SYNOPSIS

ON
“COMPARATIVE STUDY ON TRACTOR INDUSTRY
WITH SPECIAL REFERENCE TO SONALIKA
TRACTORS”

FOR PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

DEGREE OF MASTERS OF BUSINESS ADMINISTRATION
(FULL TIME)
BATCH 2017-19

SUBMITTED TO: SUBMITTED BY:

MR.VIVEK SHARMA ANIKET SETHIYA
ASST.PROFESSOR MBA(FULL TIME)
ARIHANT COLLEGE,INDORE2NDYEAR

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 CONTENTS

S.NO PARTICULARS PAGE NO

1 INTRODUCTION

2 OBJECTIVE OF STUDY

3 REVIEW OF LITERATURE

4 RATIONALE OF STUDY

5 RESEARCH METHODOLOGY

6 REFERENCES

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 1.1 HISTORY OF SONALIKA
GROUP
FOUNDER -Mr. L.D.Mittal

Sonalika Group - Sonalika group is one of the top automobile

and agriculture machinerymanufacturers in India. Apart from tractors itsproduct
line includes multi utility vehicles, threewheelers, engines and various farm
equipments and implements. Established in 1969, Sonalikagroup since the
inception has tried to understand customer need to be facilitating them
with itsvalue for money products. The Company has a state of art
manufacturing facilities, spread inacres, located in the free shrubs of Punjab and
Himachal Pradesh.

Sonalika International Tractors Ltd. stands strong as 3rd largest tractor

manufacturing company in the country with the bestselling tractors ranging
from 20HP-120 HP. The company is well recognized in both Domestic and
International market as a formidable player & has earned the trust of over 8 lakh
patrons in more than 100 countries across the globe. The Company has
established World's No.1 largest integrated tractor manufacturing plant which
has a production capacity of 3 lakh tractor annually.

Today the group stands tall withan approximate turnover of 5000 Crore INR.
An average growth of 30% makes it one of thefastest growing corporate in
India. It is also one of the few debt free companies. Group hasstrength of about
2000 employee technocrats. The company works on the maxims of
low production cost and clean and safe environment. Such efforts have fetched
the company theaccreditation like ISO 9001 and ISO 14001.

History reveals that innovation is the key tocontinued progress and when
applied to technology that touches human life, it can unfold awhole new
economic phenomenon that has the power to change the world. With
uniqueinitiatives like the Thought leadership Forum, Leadership Forum, we
have been able to create aunique platform for learning through success stories of
industry leaders.

The success saga of Sonalika Group a business conglomerate having prime

interest in agricultural & auto machinerygoes back to nearly 5 decades. The

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corporate philosophy embedded in trust, quality andcommitment has helped the
group to carve out a niche for itself in the highly competitive worldof
Machinery. Sonalika is the fastest growing tractor company registering growth
over growthsince its inception has crossed 1.80 lac merely in 10 years & has
attained one of the position intop three in India

Sonalika group’s products exist in various international markets. Company’s

product exported toAlgeria, Angola, Armenia, Australia, Bangladesh, Cameroon,
Ethiopia, Ghana, Ivory Coast,Malawi, Malaysia, Mauritius, Mozambique, Nepal,
Oman, Republic of Benin, Senegal, SouthAfrica, Srilanka, Sudan, Canada, Zambia,
Syria, Togo, Tunisia, Ukraine, and Zimbabwe.

1.2 MISSIONS & VISIONS

 Sonalika ITL’s vision is to become the world’s leading tractor manufacturing

and farm Mechanization Company..

 To be the best in customer satisfaction by being customer focused and

aligning systems and processes that develops and delivers high quality,
innovative products at competitive price.

 Jisnesapnanahindekha use bhisapnadikhanahai

GaliGaliGaliGaliSonalikapahunchaanahai

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2.1 OBJECTIVE OF STUDY

 To study the customer awareness regarding sonalika tractors.

 To study the different parameters influence the customers in purchasing of

thetractor.

 To study major market leader among various market payers.

 To study the satisfaction level of the customers with their existing tractors

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3.1 REVIEW OF LITERATURE
This chapter in the research is the most essential one. It provides the second hand
informationthat is the information from secondary sources that help the researcher
in the research. Theliterature referred by the researcher and the findings implied in
the research are mentioned andwritten under this chapter.

This chapter gives a brief review of some of the researches conducted.In my

research I used secondary data for information. The review of my literature is as
follow:-

Ali (2006)
in his study consumer response to promotional schemes has concluded that
markethas been flooded with promotional schemes that are essentially meant
to existing customers loyalwhich give an essence of consumer retention. An
analytical approach has been proposed to makea comparative study of the schemes
as well as to study the response under some well knownschemes. As there are large
number of schemes like collect the points and win prizes , Discountcoupons , Free
offers , test drive , test ride in case of Automobile sector . but consumer responseis
different in different situations . The study showed that discount / price cut
schemes directlyreaches and consumers are satisfied with these schemes.

Bureau,
from article ³structural constraints´ in equity master.com, 11 may 2002 found that
India’s no.1 in the terms of irrigated land area, second in the arable lands and
seventh in the total area.The one way to improve productivity is to increase the
level of mechanization. In this article theylook at the growth prospects of the
tractor industry and how it is closely correlated with theIndian agricultural sector
consider the size of tractor industry. The tractor market has more thandouble in
the current decade. The first half of the decade was characterized by aggregate
volumeof growth of more than 14%

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p.a. over production and unremunerable pricing strategies followed by some of the
lead players also affect the overall growth of the sector. India is on rank 4 in
thetractor market in overall world and second in terms of volume of tractors.
Punjab and Haryanaare on top of the list in tractor market

Bureau,
from article ³Automobiles´ in myris.com (2000) concluded that nine companies
mfrs.Tractors in the country. Sales are however, concentrated in the 20-50 hp
segments owing to thesmall size of the land holding in the country, M&M is
industry leader in terms of tractor. For range 41-50 hp, Escort is no .1 and M&M is
on second place. India has about 8 tractors per thousand hectares v/s the Asian
average of 14. Potential demand for tractors is consequentlylarge with growth in
agricultural output and productivity.

Kathirvel (2009)
in his study on satisfaction level of farmers towards production marketing
of agricultural product concluded that 47% of farmers are not satisfied and 49.2%
of farmers areneither satisfied nor dissatisfied and only 3.8% are satisfied from the
marketing of agricultural product and majority of farmers are not in favour of
using new techniques for cultivation (98.6)only 4.4% using new techniques of
cultivation. The size of farm directly affects the output of agricultural product and
when landholding increases the satisfaction also increases. The govt. can pay
attention by providing transportation facilities, maintaining good roads and
providingsubsidies for fertilizers so that small and medium farmers may be
benefitted.

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 4.1 RATIONALE OF STUDY
India's second largest tractor brand exporter Sonalika ITL has recorded a 17
percent growth in international market in November 2017.

The company, which crossed one lakh units sales milestone in 2017-18, is looking
at assembling its tractors in china with localisation of certain contents to a local
partner.

The company exported 1215 units of tractors, compared to 1042 units last year in
the same month. The company is expecting 15 to 20 percent annual growth next
year as well.

Sonalika, the youngest tractor brand with a strong belief in Make in India has built
World's largest integrated tractor manufacturing unit offering customized tractors
to suit diverse farming needs.

The company has always focused on offering latest technology for customized-
solutions to all types of farming needs. This added to the increased demand, which
we attribute to a healthy monsoon, farm loan waivers, and increasing demand for
heavy duty mechanization in enhancing farm productivity.”

The company has a tie-up with Yanmar and has expanded its footprint to another
10 new countries in the year 2017. With this, Sonalika has expanded to 90
countries across the globe. By 2018, the company plans to enter 5 new markets.
The export range will be equipped with engines complying with future emission
standards.

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"Our strategy has been to focus across HP segments and our tractors have become
the preferred choice of progressive farmers not just in India but globally. To
further strengthen our presence in Europe and US market, we have recently
unveiled Solis 30 HST (Hydrostatic Transmission) in Agritechnica - Hanover
Germany in Nov'17. Solis a well-recognized brand from ITL in Europe was very
much appreciated in the exhibition for Solis 30 HST along with Solis22, Solis 28
and other tractors with next generation tractor platform. Through our tie-up with
Yanmar, we are targeting five more markets in 2018," said executive director
Sonalika ITL, Raman Mittal.

The incremental volumes are underpinned by encouraging response from Europe

and Asia. Sonalika's export demand has also received a boost from markets in
Africa, where the governments are encouraging agriculture mechanization.

Sonalika International currently has assembly plants in Brazil, Algeria, Iran and
Cameroon, and exports semi-knocked-down, completely-knocked-down and fully-
built tractors to approximately to 90 countries.

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5.1 RESEARCH METHODOLOGY
Research can be defined as a scientific and systematic search for pertinent
information on aspecific topic. According to Clifford Woody research comprises
defining and redefining problem, formulating hypothesis or suggested solutions;
collecting, organizing and evaluatingdata; making deductions and reaching
conclusions and at last carefully testing the conclusions todetermine whether they
fit the formulating hypothesis.Research methodology is a way to systematically
solve the research problem. It may beunderstood as the science of studying how
research is done scientifically.

5.1.1 RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of
data in amanner that aims to combine relevance to the research purpose with
economy in procedure. Infact, the research design is the conceptual structure
within which research is conducted; itconstitutes the blueprint for the collection,
measurement and analysis of data. One may split theoverall research design
into following parts)

(a)Thesampling design which deals with the method of selecting items to be

observed for thegiven study.

(b) Theobservational designwhich relates to the condition under which the

observations are to be made.

(c) Thestatistical designwhich concerns with the question of how many items are to
be observesand how the information and the data gathered are to be analyzed.

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(d) Theoperational designwhich deals with the techniques by which the procedure
specified inthe sampling, statistical and observational design can be carried out.

5.1.2 NEED FOR A RESEARCH DESIGN

Research design is needed because it facilitates the smooth sailing of the various
researchoperations thereby making research as efficient and possible yielding
maximal information withminimal expenditure of effort time and money. It stands
for the advance planning of the methodused or adopted for collecting the relevant
data and the techniques to be used in their analysis,keeping in view of the
objectives, time and money.The research design for my research is descriptive as
well as exploratory.

Data sources:
The task of data collection begins after a research problem has been defined and a
researchdesign has been chalked out. While deciding about the methods of data
collection, the researcher should keep in mind two types of data:-

1. Primary data
2. Secondary data.

The primary data are those data which are collected afresh and for the first time,
and thus happento be original in character. The secondary data on the other hand,
are those which have already been collected by someone else and which have
already been passing through the statistical process. The researcher would have to
decide which sort of data he would be using for his studyand accordingly he will
have to select one or the other method of data collection. The methods
of collecting primary and secondary data differ since primary data are to be
originally collected,while in case of secondary data the nature of data collection
work is merely that of collection andcompilation ofinformation collected through
various newspapers, magazines and internet etc. Inthis research, I follow both the
method of data collection.

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 This research involves both primary and secondary sources of
data collection.

 The information was collected and assembled from various websites,

newspaper andmagazines.

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 6.1 REFERENCES

 WWW.SONALIKA.COM

 SEARCH ENGINE (GOOGLE AND YAHOO)

 SONALIKA LIBRARY

 MAGAZINES (INDIA TODAY)AND JOURNALS

 NEWSPAPERS

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