Anubrat Project

CHAPTER 1: ABOUT THE SONALIKA GROUP
1.1) INTRODUCTION
Established in 1969, Sonalika group from the very beginning has tried to
understand customer need so that they get better value for their money, hard
earned. Sonalika has state of manufacturing facility spread in acres, located at
Hoshiarpur and tax free zone at AMB in Himachal Pradesh. Sonalika is the one
of the top 3 tractor manufacturing companies in India; other products include
MultiUtility vehicles, engines and various farm equipments. Today the group
stands tall with an approximate turnover of 5000 Crore INR. An average growth
of 30% makes it one of the fastest growing corporate in India. It is also one of
the few debt free companies. Group has strength of about 3600 employee &
technocrats. History reveals that innovation is the key to continued progress and
when applied to technology that touches human life, it can unfold a whole new
economic phenomenon that has the power to change the world. With unique
initiatives like the Thought leadership Forum, Leadership Forum, they have
been able to create a unique platform for learning through success stories of
Industry leader. No doubt that the Sonalika products has created a position for
themselves not only in India but also in foreign market. To maintain quality
even a micro level is being taken care of and rectified. The industry has
gradually transformed themselves into a world-class player involved in building
state-of-the-art products, solutions and technologies. Sonalika Foundation
intends to become a catalyst, encouraging there members to do more, capturing
best practices for quality and harnessing a greater range of resources, from the
industry and beyond, to make a major impact on the development. It has been
Guru Nanak Dev University, Amritsar
1
their vision to cater to the needful agriculture and auto industry with quality
products through untiring dedication and activities. As they step in to their fifth
decade of existence, they continue to lead the development. Tractor and car
plants work in 2 to 3 shifts depending upon volume of work for maximum
production. They continue to march ahead on road to success and glory driven
by the force of initiative and determination to have a leading position in the
tractor industry in the days to come. They have ventured in to automobile sector
also with the launching of Rhino –MUV- to write another success story.
1.1.1) GROUP VISION
To become the world's leading tractors manufacturing and a major player in
automotive products and services.
To provide genuine value to the customers.
Continuously maintaining competitive edge by developing innovative products
and services.
To ensure quality of products and create satisfied customers by offering them
the service with a delight.
1.1.2) MISSION
Sonalika pay personal attention to their customers so that, they can build
products they need and not merely sell the products they build.
1.1.3) CORE VALUES
To accomplish their mission, the ownership, staff, and management go to great
lengths to treat each customer like a member of the family and provide them
with the best choice of products and highest quality of service in the industry.
1.1.4) ETHO STATEMENT OR LOGO RATIONALE
2
Red symbolizes the strength, power, determination, and desire of company.
Yellow surrounding the Sonalika logo produces a warming effect, arouses
cheerfulness, stimulates mental activity, and generates the same.
Green Leaf in the centre symbolizes growth, harmony, freshness, and fertility.
Black underlining the logo associates with power, elegance, and formality.
Orange surrounding the complete logo represents enthusiasm, fascination,
happiness, creativity, encouragement, and stimulation.
All this permutation of persona represents the Sonalika group as an asset in the
industry. Company is manned by cream of the industries best of technocrat and
service staff. They are proud of reputation as service & solution provider and
innovator in agro industries. In a time marked by rapidly changing technology,
they have developed best of the R&D team and have also developed the
excellent quality control system to deliver high quality results in the industry.
Their actions are guided by their core values of integrity, quality, commitment,
and innovation. They are committed to living their values doing so, building a
business as great as their products. Throughout their history, company has
earned a reputation for high quality and integrity, and this has been an asset of
incalculable value. They strive to live up to these expectations, not just because
it is for good business, but also because it is the right thing to do. Their core
3
values are never to be compromise for immediate success. Over the years they
have completed transaction in over 30 countries around the globe and are well
experienced in the international market for wide variety of machinery and tractor
in comfortable price and range. Sonalika is a team that has carved in itself
successful entrepreneurship over the years. The Sonalika group is among the
India’s leading agricultural conglomerates in the high growth sector of agro
machinery, and material handling equipments and components having pioneered
from mechanization in the country. Sonalika has played a fundamental role in
the agricultural growth of India for over five decades. When they decided to take
up manufacturing of Tractors, it was a decision to tread a path fraught with
difficulties, problems and obstacles. But they carried on with a clear vision,
always seeing light at the end of the tunnel. Everything they did was with lot of
innovation and creativity. They always kept in mind that it is TIME which is
wealth not money. So their effort was to do everything in much less time than
competition. This became their competitive advantage and helped them in
touching great heights in the shortest possible time. The same scenario was
repeated while developing MUV RHINO. This has been a great experience
involving their ICML team, vendors, suppliers and dealers which is a fairly large
family now. They wish that it should be a matter of great happiness for their
associates to deal with them. With their help and good wishes, they wish to
accomplish all the great promises hidden in the future, off course at the speed of
light.
1 .2 ) GROUP OF COM PANY
1.2.1) International Cars & Motors Limited
1.2.2) Sonalika Agro Industries Corporation
4
1.2.3) International Tractors Limited
1.2.1) INTERNATIONAL CARS & MOTORS LIMITED

(ICML) is a Group Company of the Rs1200 Crores SONALIKA Group. The
Company is promoted by Mr. L.D.Mittal(Chairman), Mr. A.S.Mittal(Vice
Chairman) & Mr. Deepak Mittal(Managing Director) who are having vast
experience in manufacturing of Tractors, Farm machines & Automobiles. ICML
is a project of its kind and is the „Pride of Himachal Pradesh . The Company is
having its state-of-the-art production facility with centrally air -conditioned, dust
& pollution free environment, to manufacture multi-utility vehicles/sports–
utility vehicles in Amb, Himachal Pradesh. The Company is a Mother Unit as
its establishment shall attract many other ancillary & small units for meeting the
raw material requirements yielding manifold employment avenues, revenue &
industrialization in the state. The Company has entered into Technical
Collaboration Agreement with MG Rover of UK, with the technical know–how
from MG Rover, UK. The Company has manufactured MUV with the name of
RHINO RX & the same MUV boasts of Rover engines. The company has also
developed its own Common Rail Direct injection (CRDI) engines. The
Company has also signed a deal with General Motors to provide engines for
Chevrolet Tavera. The company has the installed capacity to manufacture 2000
MUVs in a month i.e., 24000 MUVs in a year. In the first full year of production
in 2009-20010, ICML is aiming to churn out about 5000 MUVs & expects to
achieve a turnover of 250 Crores. The Company, besides catering to the
domestic market, also has an eye on exports & exports to Malaysia, Nepal,
Bangladesh & Indonesia are also in an advanced stage. It will also offload
5
the product in African continent soon. The Company is eligible for the Central
& State Govt. Tax sops, exemption from the excise duty & income tax for 10
years, which shall add to its viability & future expansion. Sonalika Group
intends to inject Rs.1000 Crores in Himachal Pradesh over the next 2-3 years
in the upcoming ICML plant & ICML has an ambitious plan to play a major role
in the Indian Automobile Industry.
1.2.2) SONALIKA AGRO

Sonalika agro was established in 1971 to support the Indian farmers with
mechanization technology to facilitate persistence of green revolution. Sonalika
Agro Industries Corporation, the groups maiden venture is one of the foremost
Farm equipments and implements manufacturing companies in India with 80%
share in threshers alone. Its product line includes Combine Harvesters,
Tractor/Self Driven straw reapers, Potato Planters, Maize seller-cum-Dehuskers,
Seed–Cum-Fertilisers Drills, various kinds of threshers, etc. Sonalika Agro is a
pioneer in manufacturing tractors mounted combine harvester, which is not
popular in India, but also in various others countries across the globe. Today, the
company is supporting the farmers with world class farming equipment to ease
the process of making the Green Revolution II, a dream come true. In the light
of the company's mission, highly qualified and experienced staff is working as a
family in the manufacturing facility at Hoshiarpur(Pb). This plant is equipped
with advanced technology to develop, manufacture and test the modern products
for the modern farmer. The company has a wide range of farm equipments and
implements to facilitate the farmers in all kinds of farming activities. It has a
large dealer network spread all over country and have approximately 80% share
6
in Indian market of farm machinery. Its products are also exported to Asian &
African countries through various export promotion counsels.
1.2.3) INTERNATIONAL TRACTORS LIMITED
International Tractors Limited was incorporate on October 17, 1995 for the
manufacture of Tractors and has since then built a distinct position for itself in
the Tractor industry. ITL is manufacturing various Tractors of SONALI KA
brand between 30 H.P to 90 H.P. The tractors manufactured by company have
secured a reputation of performance, quality and reliability in the market
because of their maximum pulling power, minimum fuel consumption and low
emission. All this makes ITL one of the top five tractor selling companies in
India. These tractors are also exported to various countries including South
Africa, Australia, Zimbabwe, Sri Lanka, Canada, Bangladesh, Algeria, Zambia,
Senegal, Ghana etc.
ITL has entered into strategic alliance with YANMAR of Japan for joint
manufacturing tractors in India. ITL has a marketing arrangement with TATA
International for development of selected South American and African market.
The company’s marketing efforts are promoted by dealer network of 600, and
7
450 sub dealers. Such a networking has enabled the company to grow like a
well-knit family whose roots lie in its customers, who have providing constant
feedback and support to allow the company to turn their dreams into products.
Their Manufacturing Process, Quality Control systems and Research &
Development facilities are ISO-2000 certified, by the joint Accreditation
system Of Australia and NewZealand. They are the first Tractor
manufacturing company in the country to be accredited with ISO-14001. It bears
testimony to fact that company is having world-class R&D facilities,
maintaining controls and systems of International Standard and Environment
norms. They are also manufacturing tractors, meeting norms of Smoke & Mass
Emission, Tested and certified by ARAI, Pune. United States Environmental
Norms Agency, Washington DC has also certified our Engines. These
certifications enabled SONALI KA Tractors to enter into world Market. All the
Models of Tractors and Combines Harvesters manufactured by us are tested &
approved by central Farm Machinery and Tractors Training & Testing Institute,
Bundi (MP), India, (the Government of India Institute authorized for issuing test
reports).
Tractors from ITL offer the perfect combination of power and economy in the
agriculture utility segment. For fast efficient operation in the rows and a
minimum width, which is typical to small land holdings, the performance of ITL
tractors is unparallel. Sonalika tractors are easy to handle, with outstanding
maneuver ability, low centre of gravity and a tight turning radius, that combine
to give fast and efficient operation in the field or yard. They also manufacture
tractors whose specifications are approved and tested dimensionally and
structurally, according to EEC and other international standard and
8
homologations. Some of their tractor models offer the most technically advanced
features available on the market today, including hydrostatic transmission,
power steering, differential lock and advanced safety devices.
Area Division: -
Company has divided the whole nation in four Zones
I) Zonal Head- Mr. D.L. Rana
St ate- Punjab, Haryana, HP, J&K, MP , CG.
II) Zonal Head- Mr. L.R. Yadav
State- U P, Uttranchal, MS
III) Zonal Head- Mr. A.K. Tomar
State- Rajasthan, Bihar, West Bengal, Jharkhand, North East , Orissa, Assam
IV) Zonal Head- Mr. V. Srinivasan
State- Karnataka, Tamilnadu, Gujarat, A.P.
Regional Office: Bhopal(MP); Raipur(CG); Ghaziabad, Lucknow, Barelly(UP);
Aurangabad(MS); Ambala, Rohtak(HR); Bathinda, Jalandhar(Pb).
Total Tractor Sales: 2,40,000 per year

1.3) SONALIKA GROUP-MILESTONES
1969:- Modest beginning into farm equipment and machinery manufacturing
and earning name & fame over all these years.
1995:- Diversification in to manufacturing of tractors over whelming response
from the market.
1996:- Rollout of first Tractor from ITL.
9
2000:- Entered into joint victuals w it h Renault Agriculture, France for tractor
manufacturing in India.
2000:- Started in house manufacturing of engine for tractor application.
2002:- Started exports of tractors to Africa, Asian sub-continent.
2003:- Started exporting Ceres brand(Renault brand) of tractors to developed
countries.
2004:- Rollout of 100,000 tractor.
2004:- Establishment of ICML(International Cars and Motors Ltd.)
2005:- Achieved turnover of 235M $ (Rs.1000 cr.) for FY 2004- 2005.
2005:- Become the fourth largest tractor manufacturing in India.
2005:- Rollout of first vehicle from ICML facility.
2005:- Joint ventures with Yanmar Agriculture of Japan for joint manufacturing
of tractors and tractors components in India to be exported worldwide.
2006:- Successfully developed four wheel drive front axles and transmission of
tractors for Yanmar.
2006:- Rollout of 100,000th tractor engine.
2006:- Become the third largest tractor manufacturer in India.
2006:- Market launch of rhino(MUV) and establishment of dealers network.
2007:- New variants of Rhino Rx launched with more technologically advanced
engine and added future with almost fuel efficiency and luxurious comforts at
affordable price.
2008:- Collaboration with Italian company for the designing of world car which
is going to be launch in year 2010.
2010:-Tie Up with Chevrolet for providing engines.
1.4) S I TUATION OF COMPANY– 2010
10
Production Capacity per day- 250
Tractors Production per day- 150 Tractors
Tractor Models- 14 (30h p- 90hp)
Number of Dealers- 1300
Total Employee- 3600(2000)
1.5) TRACTOR INDUSTRY IN INDIA
Higher productivity and greater output are the two major contributions in farm
mechanization. Tractors form an integral part of farm mechanization and have a
crucial role to play in increasing agricultural productivity. Tractor is a highly
versatile piece of machinery having a multitude of uses, used in agriculture both
for land reclamation and for carrying out various crop cultivation and also
employed for carrying out various operations connected with raising the
crops by attaching suitable implements and to provide the necessary energy for
performing various crop production operations involved in the production of
agricultural crops. Tractors are capital intensive, labour displaying used as a
mode of transport, in electricity generation, in construction industry and for
haulage operation. It has now become an integral part of farm structure .The
application of tractor for agricultural activities which swept India during the last
twenty years have erased the problem of farmers. Farm mechanization program
in India aims to integrate the use of available human and animal farm power
with mechanical sources of power for increasing the productivity. Indian tractor
industry, comparatively young by world standards have expanded at a
spectacular pace during last four decades. Consequently it now occupies a place
of pride in India's automobile industry. U.S.A., U.S.S.R. and only a few Western
European countries exceed the current production of tractors in India, but in
11
terms of growth India's growth is unmatched even with countries of long history
of tractor manufacturing. The spectacular achievement reflects the maturity and
dynamism of tractor manufacturer’s and also the policies adopted by the
government to enable it to effectively meet the demand. The tractor industry in
India has made a significant progress in terms of production and capacity as well
as indigenization of technology. It is a typical sector where both imported
technology and indigenous developed technology have developed towards
meeting the over all national requirements. The global spotlight on tractors
manufacturers certainly in terms of volume seems to be swinging away from the
USA, UK and Western and Eastern Europe towards India where growth in the
number of producers and the total volume in recent years have been impressive.
In India tractor industry has played a vital role in the development. India's gross
cropped area is next only to United States of America and Russia and along with
fragmented land holdings has helped India to become the largest tractor market
in the world. But it drops to eight position in terms of total tractor in use in the
country when compared to international figures, only 3% of total tractors used
all over the world . It is to be noted that while the overall automobile industry is
facing recession the tractor industry is growing at 9%.About 20% of world
tractor production is carried out in our country only. The arable land in India is
high as 12% of the total arable land in the world. Tractor market in India is
about Rs.6000crores. On an average around 400000 tractors are produced and
their sale is 260000. Uttar Pradesh is the largest tractor market in our country.
One out of every four tractor is being purchased here. Indian tractor market has
to be viewed considering its position in the world with respect to key parameters
as given below: The Tractors available in developed countries have advanced
12
features and accessories that is not found in Indian tractors. Tractor industry has
made a steady and satisfactory progress even in drought areas. Four factor s
have contributed to the steady progress:
DESCRIPTION UNITS WORLD INDIA INDIA

TOTAL/AVG RANK
Arable Land Mn Hectare 1444 170 2
Irrigated Area Mn Hectare 249.6 45.8 2
Tractors In Use Tractors/000 28 10.5 8
Hectares
Table 1.1: Factors Responsible For Steady Growth

Government laid stress on the mechanization of agriculture with a view to
boost food grain production. Therefore agriculture sector started receiving
financial assistance. There is an increase in awareness among the farmers for the
need of farm mechanization and are keen to acquire tractor with the help of
credit facilities from financial institutions. Agronomists believe that there is
need for more tilling due to depletion of moisture and repeated cultivation of
land. It is precisely for this reason that the demand for tractors was well
maintained even during a draught period. Animal power available is too
inadequate to meet power demand of our farmers. Mechanized operations
are preferred to eliminate drudgery and delay, also labour shortage during
harvesting increased the use of tractor. At the end of the day there are enough
reasons to believe that the industry will grow because: More farmers are opting
for multiple cropping over last decade. Country's net cropped area had remained
virtually stagnant while gross cropped area increased by about 4.7%. This
13
indicates the increased popularity of multiple cropping. 95% of tractor sales are
on credit. Credit is extended by commercial banks, state land development banks
and regional rural banks. Irrigation facilities reduce reliance on the monsoon and
allow for quick yielding varieties of food grain. This reduces the cropping cycle
to 3-4 months from the traditional 5-6 months. Reduced cropping cycle require
deep tilling which translates into higher demand for tractors. Cost of tractors in
India is the cheapest in world .The cost of a finished tractor here is as much as
the cost of gear box in developed countries. Hence there exists tremendous
scope for exports. According to a study conducted by PHD Chamber of
Commerce and Industry, since purchase of tractor involves a big investment its
demand in affected by the availability and easiness of credit. A higher
availability of credit will lead to a higher demand for tractors. The tractors
between the 31-40 horse power and 31-40 hp range dominate the market.
The reason for medium horse power tractors being more popular are that the
major tractor demanding states like Punjab, Haryana and Uttar Pradesh
have plenty of alluvial soil which does not require deep tilling. Lately it is
visualised that higher HP segment has the maximum growth potential. Higher
horse powered tractors will be the future requirement with the government
intention to encourage contract farming through the leasing in and leasing out of
farm lands. Regarding exports India of latter has been exporting tractors to a
number of countries, but predominantly to Sri Lanka, Nepal and U.S.A.
However the study reveals that exports from India are going down in the recent
years. The major reason for the decline in exports of tractors of tractor from
India is being the failure to find an extensive market overseas, deteriorating
foreign exchange situation in African countries and their poor buying capacity,
14
comparatively cheaper imports of second hand tractors by South East Asian
countries from developed countries and the disintegration of erstwhile U.S.S.R.
but also the potential export markets can be explored by Indian in the future.
Since Indian tractors confirm to the international standard by virtue of their
foreign collaboration it is possible for India to export to more tractors to the rice
and wheat growing countries like Canada, Philippines and Bangladesh.
1.6) FOREIGN COLLABORATION
Tractor industry along with others benefited from this policy which
allowed free inflow of foreign technology. The manufacture of tractors started in
India mainly with the help of foreign collaboration secured from internationally
reputed companies from the USA, UK, USSR, WEST GERMANY, POLAND
and CZECHSLOVAKIA. Most of the models which were taken up for
manufacture in India were developed overseas. Soon after the decision for the
manufacture of tractors was made during second plan, government approved
number of foreign collaboration agreements. The establishment and present
status of tractor industry owes a great deal to the support received by the Indian
entrepreneurs from foreign collaboration during the initial phase of manufacture.
DSIR has introduced a scheme, "National Register of Foreign Collaborations",
which envisages review and analysis of imported technologies in the country
and suggested measures for appropriate choices acquisition and implementation
of foreign know-how.
Major objective of scheme is:
♦ To undertake financial, economic and legal analysis of set of data
on foreign collaboration.
15
♦ Carry out a technological analysis of the imported technology and provide
a stage of art technology in the country and status of implementation of
collaboration.
♦ Selective support to strength measures in Research and Development
for technology absorption.
1.7) SUMMARY
Agriculture accounts for about 22% of country's GDP and engage around
70% of the population. With good spell of monsoon across the country this year
the agricultural sector would experience a good yield for both kharif and
Rabi crops. Further government efforts to implement irrigation projects and
increase the gross cropped area (GCA) will drive surplus incomes of farmers,
and given the strong correlation of the agricultural growth with tractor demand,
it will be positive for the tractor industry. With the increasing awareness of
mechanized farming, the penetration levels of tractors in India are expected to
increase. Despite being the largest tractor market in the world tractor penetration
levels in India is low at 11 tractors per 1,000 hectare of Gross Cropped
Area(GCA) as compared to world average of an estimated 19 tractors per 1,000
hectare of GCA. Also India has the largest irrigated area in the world and second
largest arable land in the world; hence there is a larger domestic market that
remains untapped. The steps taken by manufacturers on inventory and new
product fronts may put the sector on a profitable growth path in the next couple
of year s. New product launches are also expected to drive the growth. The new
products are ergonomically designed and are of higher power. Further, better
monsoon, easy credit availability, perky export market and marked improvement
in the economy contribute to this optimism. However, players are likely to face
16
pressure on margins despite higher turnover growth prospects in light of stiff
competition and rising input costs. It has to be remembered that the industry
currently is operating at less than 50% capacity utilisation. With such a large
demand-supply gap, pricing power is likely to be on the lower end of the
spectrum. Further given the large dependence of the sector on monsoon, the
span out of the monsoon in the current year will have an impact on industry's
fortune. The dependence could reduce over the long-term only if measures like
irrigation projects, yield improvement and infrastructure development gains
momentum.
1.8) STRATEGIC & FINANCIAL PARTNERS
ITL no w has strategic alliance with YANMAR, Japan backed by equity
participation of 12% , YANMAR has planned to source component aggregates,
transmission and tractors from ITL. City group and UK have equity participation
of 10% each in ITL, J.M. Morgan Stantle has equity participation of 5% *
Sonalika Tractors. Financing Joint Venture with Magma.
1.9) CURRENT MARKETS OF TRACTORS
Export:- Africa, Sri Lanka, Zimbabwe, Nepal, Bangladesh Algeria,
Senegal, Malawi, Republic of Berin, Kenya, Congo, Madagascar, Ivory Coast,
Ghana, South Africa, Sudan, Zambia, Canada, Syria, Togo, Malaysia, Mauritius,
Angola, Burkina Rasa, Oman, Mozambique, Tunisia, Ukraine
1.10) COMPLETE & BALANCE TRACTORS
We call Sonalika tractors balanced and appropriate for Indian farmers
because:-
1) Proportionate weight distribution- The weight distribution of the tractor is
uniform across their length due to which they have excellent grip on the
17
ground. This prevents slippage even on steep increasing the load. Has the
capacity to pull heavy load even on steep slopes and maintain balance
without any front lifting.
2) Large wheelbase- Front lifting is seldom witnessed due to the maximum
wheelbase.
3) Maximum ground clearance- Ground clearance is the distance between
the bottom most surface of the bottom of tractors and the ground.
4) Looks- Sonalika tractors are aesthetically appealing.
5) Ergonomics- Road visibility better because of high attitude of driver's
scale.
1.10.1) POWERFUL
We call Sonalika tractors Powerful because:
1) High Backup torque- back up torque is reserve power. Due to the
excellent pulling power; tractors are able to turn around.
2) Smokeless engine- Sonalika has used TREM-III Engine 'which burn
every single drop of diesel and build up full power because of t his they
give negligible smoke.
1.10.2) ECONOMICAL
We call Sonalika tractors Economical because:
1) Fuel Efficient- Engine uses every single drop of diesel to generate power.
2) High road speed- The Sonalika tractors is high on road. The rate of doing
work increases.
1.11) PRODUCTION
18
ITL has fully integrated and state of the art assembly facilitation for
producing world class tractors. Several productivity improvements in assembly
line over the years have made it possible to manufacture nearly 37000 tractors
per Year. Atomization of assembly line not only increased production capacity,
but also provided a quantum jump to the quality of assembled tractors. ITL
assembly line produces tractors in broad range from 30HP to 90HP with
effective planning of resources.
Quality, Assembly & Testing Tools:
• Hydraulic Test Rig Up to 1600Kg Lifting Capacity Millipore Testing
Equipment.
• Torque calibrator Hydraulic presses.
• A unique 3-Stage oil filtration system having modern facility of centrifuge
filtration
• Batch type Special purpose machines (SPM) at various locations for
washing of heavy castings, components & subassemblies.
• Pipe flushing machine for proper cleaning of hoses & pipes.
• Induction Heaters for controlled heating of bearings.
• Manufacture of Differential for tractors.
• Manufacture of Gear Box for tractors.
• Manufacture and check the Hydraulic System.
• Finally Chassis is manufactured and then Tractor Chassis is put inside the
washing plant.
• Then tractors are painted.
19
• After Painting, Tractor is Prepared in final assembly section by automatic
conveyor.
• Storage of Tractors under fully protected store house.
• Tractors are prepared for dispatchment.
• Standard testing procedures on final product.
• Roller testing.
• Road testing.
• Field Testing
1.12) BRIEF OF R&D
ITL R&D center is recognized by government of INDIA. ITL R&D is a
complete dept in itself starting from designing up to development and
implementation.
CAPABILITIES:
Highly qualified team of engineers for designing of transmission &
vehicle areas.
Vendor development is capable for the development of new projects
components of R&D through vendors & commercial settlement. Vendor quality
control is capable for ensuring quality requirements of components through
verification at vendor end.
High skilled workers are capable for making any types of prototypes
FACILITIES:
• High configuration workstations are used for design activities.
• Team centre is used for PLM concepts.
• I-Deas, Solid-Edge & AutoCad is used for 3D & 2D design activities.
20
• Two transmission test rigs: Circular test track(mgr) & Roll over protection
test rig andHydraulic system test rig.
• Endurance test rig for operator seat & fenders
1.13) DRAWBACKS OF COMPETITORS OF SONALlKA
M&M
1. This is an unbalanced tractor whose proof is that company has
given front weights in spite of which it gives front lifting which is very
dangerous for operators.
2. In the condition of sudden load tractor stops due to less TBU.
3. Due to high engine RPM there is more wear and tear and needs
frequent over-handling.
4. Hydraulic operations are not performed correctly and problem of
hydraulic hunting is normally observed causing high diesel consumption
and more tyre wear.
5. Engine oil is less which causes lesser cooling and engine components get
worn out early.
TAFE
1. Light weight tractor causes an increase in diesel consumption and more
tyre wear.
2. Gear section being lighter is a reason for inefficiency to trail heavy
implements or trolley.
3. Less ground clearance causes a hindrance in paddling and riding in rough
terrain.
4. Lesser wheelbase causes front lifting even while attaching a small
implement.
21
FARMTRAC
1. High diesel consumption.
2. Costly spares and high on maintenance cost.
3. Having a lesser weight & length the tractor gives front lifting
on attaching heavy implements.
4. Rear side is light in weight causing more wear of tyre and
lesser area coverage.
SAWARAJ
1. High diesel consumption even on lesser loads.
2. Tractors give smoke even on lesser loads.
3. Having old technology manufacturing, continuously reducing sale.
4. Costly spares and maintenance.
5. Have gone through no changes in design and having a similar bonnet &
fenders gives a look like a tin box.
JOHNDEERE
1. Not appropriate for use of Indian farmers.
2. Unbalanced in design, this is clear from the weights, provided at the front.
3. Lesser wheelbase causes front lifting which is not good for driver's safety.
4. Costly and non availability of Spare Parts.
5. Costly components cause a very high over hauling, which is unaffordable
for a normal farmer.
22
6. At turning there is a heavy drop in engine RMP which cause load on
engine and reduce engine life.
NEWHOLLAND
1. Not appropriate for Indian Farmers.
2. Uses the name FORD to get benefit in market where as there is no such
collaboration.
3. Speed reduction is not direct so power loss is greater.
4. At turning there is a heavy drop in engine RPM which cause load on
engine and reduce engine life.
1.14) BASICS BEFORE THE EXPORT
Before starting an export, an individual should evaluate his company’s
“export readiness”. Further planning for export should be done only, if the
company s assets are good enough for export. There are several methods to
evaluate the export potential of a company. The most common method is to
examine the success of a product in domestic market. It is believed that if the
products has survived in the domestic market, there is a good chance that it will
also be successful in international market, at least those where similar needs and
conditions exist.
SWOT analysis is a useful method of summaries all the information
generated during the export planning. SWOT stands for strengths, weakness,
opportunities and threats, which helps to isolate the strong and week areas
within an export strategy. SWOT also indicates the future opportunities or
threats that may exist in the chosen markets and is instrumental in strategy
formulation and selection.
23
To apply your own SWOT analysis, start by creating a heading for each
category– Strengths, Weaknesses, Opportunities and Threats. Under each of
these, write a list of five relevant aspects of your business and external market
environment. Strengths and weaknesses apply to internal aspects of your
business; opportunities and threats relate to external research. Your final
analysis should help you to develop short and long term business goals and
action plans, and help guide your market selection process. Environmental
factors internal to the company can be classified as strengths or weaknesses and
those external to the company can be classified as opportunities or threats.
24
SWOT ANALYSIS
STRENGTHS
Business strengths are its resources and capabilities that can be used as a
basis for developing a competitive-advantage. Examples of such strengths
include:
 Patents.
 Strong brand names.
 Good reputation among customers.
 Cost advantages from proprietary know-how.
 Exclusive access to high grade natural resources.
WEAKNESS
The absence of certain strengths may be viewed as a weakness. For
example, each of the following may be considered weaknesses:
 Lack of patent protection.
 A weak brand name.
 Poor reputation among customers.
 High cost structure.
 Lack of access to the best natural resources.
 Lack of access to key distribution channels.
OPPORTUNITIES
The external environmental analysis may reveal certain new opportunities
for profit and growth. Some examples of such opportunities include:
 An unfulfilled customer need.
25
 Arrival of new technologies.
 Loosening of regulations.
 Removal of international trade barriers.
26
THREATS
Changes in the external environment also may present threats to the firm.
Some examples of such threats include:
 Shifts in consumer tastes away from the firm's products.
 Emergence of substitute products.
 New regulations.
 Increased trade barriers
SUCCESSFUL SWOT ANALYSIS

Simple rules for successful SWOT analysis:
 Be realistic about the strengths and weaknesses of the organization.
 Analysis should distinguish between where the organization is
today, and where it could be in the future.
 Always analyze in relation to your competition i.e. better than or
worse than your competition.
 Keep your SWOT short, be specific and simple.
 A SWOT analysis can be very subjective, and is an excellent tool for indicating
the negative factors first in order to turn them into positive factors.
1.15) WHY INTERNATIONAL TRADES HAPPENS

International trades happen in the world due to the law of demand and
supply. There is an importer and an exporter. Supplier is an exporter and
purchaser is an importer. Second major important reason for trade is the concept
of absolute advantage and comparative advantage or plainly speaking making
27
money or earning profit. Both the parties either exporter or importer should have
any one of the above advantages. Now the question arises in the mind that what
is the absolute advantage and comparative advantage. The ability of a country,
individual, company or region to produce a good or service at a lower per unit
cost than the cost at which any other entity produces that good or service. A
country has a comparative advantage in the production of a good if it can
produce that good at a lower opportunity cost relative to another country.
International trade does not just happen. It is the result of developing
relationships and processes to ease the flow of goods and services.
1.15.1) ACCORDING TO ELI HECKCHER & BERLIN OHLIN

International trade happens due to Capital abundant country will try to
export capital intensive goods whereas labour abundant country will try to
export labour intensive goods.
1.16) WHY COMPANIES ENGAGE IN INTERNATIONAL BUSINESS

There are four main objectives that influence the companies for foreign
trade:
 To expand their sales.
 To acquire resources.
 To diversify their sources of sales and supplies.
 To minimize competitive risk.
1.17) INTRODUCTION OF EXPORT
28
There are various formalities and registrations to be made with different
authorities before an exporter can enter into export business and accept an
export order.
1) Selection of name of firm
2) Approval to name of firm
3) Registration of organization
4) Opening of bank account
5) Obtaining permanent account number
6) Registration with sales tax authorities
7) Importer – exporter code number
8) Registration cum membership certificate
9) Registration with ECGC
10) Registration under central excise law
11) Registration with other authorities
12) Registration for business identification number
13) Export licensing
1.18) REGISTRATION REQUIREMENTS FOR THE EXPORT
1.18.1) Registration with Director General of Foreign Trade (DGFT)
1.18.2) Registration with Export Promotion Council
1.18.3) Registration with Excise Income Tax Authorities
1.18.1) REGISTRATION WITH DIRECTOR GENERAL OF FOREIGN

TRADE (DGFT)
29
Once all the research and analysis is done its time to get registered with
the various government authorities. Registration with Director General of
Foreign Trade (DGFT)
For every first time exporter, it is necessary to get registered with the
DGFT (Director General of Foreign Trade), Ministry of Commerce,
Government of India. DGFT provide exporter a unique IEC Number. IEC
Number is a ten digits code required for the purpose of export as well as import.
No exporter is allowed to export his good abroad without IEC number.
However, if the goods are exported to Nepal, or to Myanmar through Indo-
Myanmar boarder or to China through Gunji, Namgaya, Shipkila or Nathula
ports then it is not necessary to obtain IEC number provided the CIF value of a
single consignment does not exceed Indian amount of Rs. 25, 000 /-. Application
for IEC number can be submitted to the nearest regional authority of
DGFT. Application form which is known as "Aayaat Niryaat Form - ANF2A"
can also be submitted online at the DGFT website: http://dgft.gov.in. While
submitting an application for m for IEC number, an applicant is required to
submit his PAN account number. Only one IEC is issued against a single PAN
number. Apart from PAN number, an applicant is also required to submit
his Current Bank Account number and Banker s Certificate. A amount of
Rs1000/- is required to submit with the application fee. This amount can be
submitted in the form of a Demand Draft or payment through EFT (Electronic
Fund Transfer) by Nominated Bank by DGFT.
1.18.2) REGISTRATION WITH EXPORT PROMOTION COUNCIL
30
Registered under the Indian Company Act, Export Promotion Councils or
EPC is a non-profit organization for the promotion of various goods exported
from India in international market. EPC works in close association with the
Ministry of Commerce and Industry, Government of India and act as a platform
for interaction between the exporting community and the government. So, it
becomes important for an exporter to obtain a registration cum membership
certificate (RCMC) from the EPC. An application for registration should be
accompanied by a self certified copy of the IEC number. Membership fee should
be paid in the form of cheque or draft after ascertaining the amount from the
concerned EPC. The RCMC certificate is valid from 1st Apr il of the licensing
year in which it was issued and shall be valid for five years ending 31st
March of the licensing year, unless otherwise specified.
1.18.3) REGISTRATION WITH EXCISE AND INCOME TAX

AUTHORITIES
Goods exported out of the country are eligible for exemption from both
Value Added Tax and Central Sales Tax. So, to get the benefit of tax exemption
it is important for an exporter to get registered with the Tax Authorities.
31
1.19) EXPORT LICENSE
An export license is a document issued by the appropriate licensing
agency after which an exporter is allowed to transport his product in a foreign
market. The license is only issued after a careful review of the facts surrounding
the given export transaction. Export license depends on the nature of goods to be
transported as well as the destination port. So, being an exporter it is necessary
to determine whether the product or good to be exported requires an export
license or not. While making the determination one must consider the following
necessary points:
 What are you exporting?
 Where are you exporting?
 Who will receive your item?
 For What purpose your items will be used?
CANALIZATION
(In view of Globalization “Canalization” are restricted to very few items)
Canalization is an important feature of Export License under which
certain goods can be imported only by designated agencies. For an example, an
item like gold, in bulk, can be imported only by specified banks like SBI and
some foreign banks or designated agencies.
1.20) EXPORT MARKETING

It is a technique by which the exporter is able to convey the knowledge of
his products to the various parts of the world. Export Market catchers catches
the attention of the importer by their marketing strategies. They use to tell them
32
about the various advantages of their products along with their suitable price.
How to develop the export marketing while the manufacturer is too busy in the
domestic market or too busy in manufacturing of the exports or he/she don’t ant
to take on a new set of activities.
1.20.1) DIRECT EXPORT MARKETING
1) Direct to final buyer abroad-
Manufacturer sells directly to buyer abroad. No middlemen are involved.
High degree of marketing skills is required.
2) Foreign distributor-
The foreign distributor buys the products from the exporter and sells it in
the market at own account. In this the foreign distributor makes all the
marketing decisions.
3) Foreign agent–
Sells products for the sales commission.
4) Foreign trade organization–
Specialized import agencies of socialist and some non socialist countries.
5) Licensing agreement–
Exporter may seeks royally in exchanging for licensing a foreign firm to
manufacture his product abroad use his brand name, technology, etc.
6) Joint venture–
Exporter may enter into the partnership arrangement with a foreign firm
to produce and market jointly in the foreign country.
1.20.2) INDIRECT EXPORT MARKETING
33
A resident foreign buyer or the foreign customer may ask for product
samples before placing a confirmed order. So, it is essential that the samples are
made from good quality raw materials and after getting an order, the subsequent
goods are made with the same quality product. Extra care should be taken in
order to avoid the risk associated in sending a costly product sample for export.
Secrecy is also an important factor while sending a sample, especially if there is
a risk of copying the original product during export. Before exporting a product
sample an exporter should also know the Government policy and procedures for
export of samples. While sending a product sample to an importer, it is always
advised to send samples by air mail to avoid undue delay. However, if the time
is not an issue then the product sample can also be exported through proper
postal channel, which is cheaper as compared to the air mail.
1.21) SUMMARY OF MAIN REQUIREMENTS FOR INTERNATIONAL

TRADE
1) I.E. CODE i.e. Importer Exporter code number.
2) A.D. CODE i.e. Authorized Dealer code
3) Bank Account Number
4) If filling the paper is under drawback scheme of incentives an account is
reputed to be opened at port (seaport or dry port/ISD/CFS) bank.
PROCEDURE OF GETTING AN I.E. CODE

DGFT (DIRECTOR GENERAL OF FOREIGN TRADE) whose work is
to control and facilitate trade have a power to issue a code that is known as
I.E.CODE.
34
REQUIREMENT FOR AN I.E.CODE:
1) Two passport size form
2) DGFT form (if not online)
3) Demand draft of Rs:- 1000
4) N.O.C. from the parent bank (Dealing 2 year)
5) Pan card copy
6) Address proof
7) Birth proof
8) Partnership deed (if partnership firm)
9) Memorandum of Association and Article of Association (IF COMPANY).
The whole documents are sent to the DGFT and the I.E. CODE is
delivered from DGFT after 15 days of application.
35
NEED OF I.E. CODE
This code is required for the exporter to supply goods from the parent
country to the rest of the world. DGFT issue checks that the exporter should not
export any illegal product & any anti social element out of the world.
PROCEDURE FOR THE AUTHORISED DEALER CODE

The A.D code can be taken from the parent bank which is dealing in the
foreign exchange.
1.22) THE VARIOUS TYPES OF EXPORT RISKS INVOLVE IN AN

INTERNATIONAL TRADE ARE AS FOLLOW:
Credit risk- Sometimes because of large distance, it becomes difficult for an
exporter to verify the credit worthiness and reputation of an importer or buyer.
Any false buyer can increase the risk of non-payment, late payment or even
straightforward fraud. So, it is necessary for an exporter to determine the credit
worthiness of the foreign buyer. An exporter can seek the help of commercial
firms that can provide assistance in credit- checking of foreign companies.
Poor quality risk- Exported goods can be rejected by an importer on the basis
of poor quality. So it is always recommended to properly check the goods to be
exported. Sometimes buyer or importer raises the quality issue just to put
pressure on an exporter in order to try and negotiate a lower price. So, it is better
to allow an inspection procedure by an independent inspection company before
shipment. Such an inspection protects both the importer and the exporter.
Inspection is normally done at the request of importer and the costs for the
36
inspection are borne by the importer or it may be negotiated that they be
included in the contract price. Alter natively, it may be a good idea to ship
one or two samples of the goods being produced to the importer by an
international courier company. The final product produced to the same standards
is always difficult to reduce.
Transportation risks- With the movement of goods from one continent to

another, or even within the same continent, goods face many hazards. There is
the risk of theft, damage and possibly the goods not even arriving at all.
Logistic risks- The exporter must understand all aspects of international

logistics, in particular the contract of carriage. This contract is drawn up between
a shipper and a carrier (transport operator).
Legal risks- International laws and regulations change frequently. Therefore, it

is important for an exporter to drafts a contract in conjunction with a legal firm,
thereby ensuring that the exporter's interests are taken care of.
Political risks- Political risk arises due to the changes in the government
policies or instability in the government sector. So it is important for an exporter
to be constantly aware of the policies of foreign governments so that they can
change their marketing tactics accordingly and take the necessary steps to
prevent loss of business and investment.
37
Unforeseen risks- Unforeseen risk such as terrorist attack or a natural disaster
like an earthquake may cause damage to exported products. It is therefore
important that an exporter ensures a force majeure clause in the export contract.
1.23) INTERNATIONAL INCOTERMS

Incoterms or International commercial terms make trade between different
countries easier. International Commercial Terms are a series of international
trade terms that are used are used worldwide to divide the transaction costs and
responsibilities between the seller and the buyer and reflect state-of-the-art
transportation practices. Incoterms directly deal with the questions related to the
delivery of the products from the seller to the buyer. This includes the carriage
of products, export and import responsibilities, who pays for what and who has
the risk for the condition of the products at different locations within the
transport process. Incoterms and world customs Incoterms deal with the various
trade transactions all over the world and clearly distinguish between the
respective responsibilities of the seller and the buyers.
"FOB" - Free On Board
The FOB (Free on Board) price is inclusive of Ex-Works price, packing
charges, transportation charges up to the place of shipment.
Seller: Seller responsible for clear customs dues, quality inspection charges,
weight measurement charges and other export related dues. It is important that
the shipment term in the Bill of Lading must carry the wording "Shipped on
Board' it must bear with signature of transporters or carrier or his authorized
representative with the date on which goods were "Boarded".
38
Buyer: The buyer indicates the ship and pays freight, transfer expenses
and risks is done when the goods passes or forwarding to the buyers
warehouse by rail or ship.
"CIP"- Carriage and Insurance Paid To
CIP- Carriage and Insurance Paid To: Title and risk pass to buyer when
delivered to carrier by seller who pays transportation and insurance cost to
destination. Used for any mode of transportation. This term is similar to
Carriage Paid To but the seller has to arrange and pay for the insurance against
the risk or loss or damage of the goods during the shipment. The seller or buyer
has to provide insurance and seller pays the freight and insurance premium.
"DAF"- Delivered At Frontier
DAF- Delivered at Frontier: Title, risk and responsibility for import clearance
pass to buyer when delivered to named border point by seller. Used for any
mode of transportation. This term is used when the goods are to be carried by
rail or road.
Seller: The seller is responsible to make the goods available to the buyer by the
carrier till the customs border as defined in sales contract.
Buyer: The buyer takes delivery of the goods at the contract agreed point border
and he is responsible for bearing all customs formalities.
“DES"- Delivered Ex-Ship
DES- Delivered Ex-Ship: Title, risk, responsibility for vessel discharge and
import clearance pass to buyer when seller delivers goods on board the ship to
destination port. Used for sea or inland waterway transportation.
Seller: The seller is responsible to make the goods available to the buyer
up to the named quay or after crossing the customs border.
39
Buyer: The buyer takes delivery of the goods from ship at destination port
and pays the expenses of unloading.
1.24) PACKAGING & LABELLING
PACKAGING
The primary role of packaging is to contain, protect and preserve a
product as well as aid in its handling and final presentation. Packaging also
refers to the process of design, evaluation and production of packages. The
packaging can be done within the export company or the job can be assigned to
an outside packaging company. Packaging provides following benefits to the
goods to be exported:
 Physical Protection– Packaging provides protection against
shock, vibration, temperature, moisture and dust.
 Containment or agglomeration – Packaging provides
agglomeration of small objects into one package for reason of
efficiency and cost factor. For example it is better to put 1000
pencils in one box rather than putting each pencil in separate
1000 boxes.
 Marketing: Proper and attractive packaging play an
important role in encouraging a potential buyer.
 Convenience- Packages can have features which add
convenience in distribution, handling, display, sale, opening,
use, and reuse.
 Security- Packaging can play an important role in reducing
the security risks of shipment. It also provides authentication
seals to indicate that the package and contents are not
40
counterfeit. Packages also can include anti-theft devices, such
as dye-packs, RFID tags, or electronic article surveillance tags,
that can be activated or detected by devices at exit points and
require specialized tools to deactivate. Using packaging in this
way is a means of loss prevention.
LABELLING
Like packaging, labelling should also be done with extra care. It is
also important for an exporter to be familiar with all kinds of sign and
symbols and should also maintain all the nationally and internationally
standards while using these symbols. Labelling should be in English, and
words indicating country of origin should be as large and as prominent as any
other English wording on the package or label. Labelling on product provides
the following important information:
 Shipper's mark
 Country of origin
 Weight marking (in pounds and in kilograms)
 Number of packages and size of cases (in inches and
centimeters)
 Handling marks (international pictorial symbols)
 Cautionary markings, such as "This Side Up."
 Port of entry
 Labels for hazardous materials
Labelling of a product also provides information like how to use,
transport, recycle or dispose of the package or product. With pharmaceuticals,
41
food, medical and chemical products, some types of information are required by
governments. It is better to choose a fast dyes for labelling purpose. Only fast
dyes should be used for labelling. Essential data should be in black and
subsidiary data in a less conspicuous colour: red and orange and so on. For this
purpose, Export Inspection Council (EIC) was set up by the Government of
India under Section 3 of the Export (Quality Control and Inspection) Act,1963.
It includes more than 1000 commodities which are organized into various
groups for a compulsory pre-shipment inspection. It includes Food and
Agriculture, Fishery, Minerals, Organic and Inorganic Chemicals, Rubber
Products, Refractoriness, Ceramic Products, Pesticides, Light Engineering,
Steel Products, Jute Products, Coir and Coir Products, Footwear and
Footwear Products. An important aspect about the goods to be exported is
compulsory quality control and pre-shipment inspection. For this purpose,
Export Inspection Council (EIC) was set up by the Government of India
under Section 3 of the Export (Quality Control and Inspection) Act, 1963.
It includes more than 1000 commodities which are organized into various
groups for a compulsory pre-shipment inspection. It includes Food and
Agricultur e, Fishery, Minerals, Organic and Inorganic Chemicals, Rubber
Products, Refractoriness, Ceramic Products, Pesticides, Light Engineering,
Steel Products, Jute Products, Coir and Coir Products, Footwear and
Footwear Products. The discussion on inspection certificate and quality control
is incomplete without ISO -9000. Established in 1987, ISO 9000 is a series
of international standards that has been accepted worldwide as the norm
assuring high quality of goods. The current version of ISO 9000 is ISO
9000:2000.
42
CHAPTER 2: NEED, SCOPE & OBJECTIVES OF THE
STUDY NEED
Today’s market is customer driven, so it is necessary for each and every

type of business to keep a track of the ever changing preferences of their
customers, so that they can best match their products and services to the
customer expectations. This will help the companies to retain their
customers for longer periods. This, in turn, will result in increased sales,
higher market share and more profits for the company.
A company can develop its strategies according to its customer needs if it
knows about their behaviour. So, there is need to study the buyer’s behaviour
towards Sonalika tractors in Hoshiarpur.
SCOPE
This study encompasses surveying the tractor users/farmers residing in the
selected areas of Hoshiarpur district.
OBJECTIVES OF THE STUDY:

1. To analyse the various factors (financial and others) that affect the buying
decision of the farmers/users while purchasing a tractor.
2. To find out the problems faced by user s and their satisfaction level from
the tractors.
3. To study the views of Sonalika tractor users about their tractor s
attributes.
4. To determine the SONALIKA brand awareness among the users.
43
5. To identify the new features expected by the users from the tractor
manufacturers.
6. To analyze the various ways through which Sonalika can strengthen
its brand image among the local users of Hoshiarpur district.
CHAPTER 3: RESEARCH METHODOLOGY
3.1 RESEARCH
Research is the systematic process of collecting and analyzing
information to increase our understanding of the phenomenon under study.
It is the function of the researcher to contribute to the understanding of the
phenomenon and to communicate that understanding to others.
3.1.1 RESEARCH PROCESS

Defining Research Objective
Intensive Literature Survey
Research Design
Collection of Data
Analysis of Data
Report Writing
3.1.2 RESEARCH DESIGN

Research design is known as framework within which the whole
activity of research and methods or procedures is clearly mentioned under
which the research is to conduct. In today s competitive scenario it is very
difficult to establish an entirely satisfactory classification system but for the
44
sake of simplicity it is necessary that the research should be classified on the
basis of fundamental objectives.
Generally, there are two types of research methods that are being
followed:
(I) Exploratory research method. It is also known as qualitative research.
Main characteristics or features of exploratory research are:
Conducted to clarify and define the nature of a problem.
Does not provide conclusive evidence
Subsequent research expected
Explorator y research method involves the use of some or all of the

following techniques:
Searching secondary part,
Surveys of knowledgeable persons,
Analyzing case studies,
Focus group interviews,
Observation of people, places or events to generate insights.
(II) Conclusive research method
It is also known as quantitative research as it is designed to help
executives choose among various possible course of action i.e. to make decision.
Main characteristics or features of conclusive research are:
It describes characteristics of a population or phenomenon.
 Aims to verify insights and to aid decision makers in selecting
a specific course of action.
45
Conclusive research method further involves the following two
techniques:
Descriptive Research: Involves generating data describing its
composition, characteristics and relationships.
Experimental Research: Allows one to make causal inferences about
relationships among variables. Experimental method provides stronger
evidence of relationships. In general, when descriptive research ends,
experimental begins.
3.1.3 DATA COLLECTION

n order to conduct any kind of research we always need data. Data can
always be in two forms:
(I) Primary data: Primary data are those, which are collected afresh and for
the first time and thus happen to be original in character. The drawback of
using primary data is that its collection is expensive and time consuming.
Sources of collecting primary data are Questionnaire, Observation,
interview, etc.
(II) Secondary data: On the other hand, are those, which have already been
passed through the statistical process. Its advantage is that it is readily
available and cheap while its disadvantage is that the data may be
irrelevant. Sources of collecting secondary data are magazines, journals,
database, and website links etc. The researcher would have to decide
which sort of data he/she would be using for his/her study and
accordingly he/she will have to select one or the other method of data
collection.
46
3.2 RESEARCH METHODOLOGY FOR THE PROJECT
To achieve the objective of the project there was certain
information which was to be gathered and accordingly some concepts had to
be explained. This report tries to study the buyer behaviour towards Sonalika tr
actor s in Hoshiarpur .
3.2.1 RESEARCH DESIGN
Descriptive research design is used for the study. Descriptive research
design implies the study of complete information regarding the respondents
profile and his/her views/opinions/preferences towards some problem. It can
be called a research framework whereby the complete descriptive of the
respondent is studied and data in specific is collected and analyzed to draw
conclusions for a problem.
3.2.2 RESEARCH PROBLEM
“To study the factors that influences the buying behaviour of the
users toward Sonalika tractors and its brand awareness among the
respondents.”
47
3.2.3 SAMPLE SIZE
The number of member in a sample is called sample size. The sample size
is 100.
3.2.4 SAMPLING TECHNIQUE
Convenience sampling technique is used for the survey. Sometimes
called grab or opportunity sampling, this is the method of choosing items
arbitrarily and in an unstructured manner from the frame.
3.2.5 DATA COLLECTION
(a) Primary Data: Questionnaire is used in order to get first hand information.
(b) Secondary Data: Data was collected from the website links, books as
listed in the references.
3.2.6 TOOLS FOR ANALYSIS
The data gathered from the respondents are calculated and analyzed using
tables and results are represented with the help of graphs. The graph played the
pivot role in deriving the conclusions.
3.3 LIMITATIONS OF THE STUDY
Although the sincere efforts have been done to collect authentic and
relevant information, the study may have the following limitations:
Scope Limit: The scope of the study is limited to Hoshiarpur district only
because of limited time and money. So, results of study may not be generalized
for India as a whole.
Probability of Inaccuracies: This study is based on the assumption that
responses are true and factual although at times that may not be the case.
Existence of Biases: Different people may interpret the same thing in different
ways. Thus, there is a chance of personal biasness in interpretations.
48
Main focus is on Sonalika brand only:
It does not take into consideration the detailed analysis of customer’s behaviour
towards other tractor brands.
49
CHAPTER 4: DATA ANALYSIS AND
INTERPRETATIONS
Figure 4.1: Map of Hoshiarpur
My survey covers the following villages:-

Mahalpur
Lalwan
Food and grain market
Wood market
50
Statement 1:
Comparative position of various tractor brands in Hoshiarpur. The
percentage of tractor in the Hoshiarpur district is given below:-
12%
15%
Sonalika
27% Farmtrac
Mahindra
Tafe
9%
37% Others
Figure 4.2: Comparative position of various tractor brands in Hoshiarpur
Analysis and Interpretation: On being surveyed what are the various

brands that are popular in the Hoshiarpur district, I came to this conclusion.
Farmtrac tractors are doing very well in the Hoshiarpur district. The main
reason for their good hold in the Hoshiarpur is good resale value and easily
availability of spare parts. The second most well known tractor company in
Hoshiarpur district is Tafe. For hard working such as threshing and trolley
they mostly purchase Farmtrac and for easy work they purchase Tafe for tube
well because it give a good fuel efficiency. If we say about New Holland it is
not appropriate for Indian Customers but uses the name Ford to get benefit in
51
market whereas there is no such collaboration. If we say about Sonalika is the
third most admired company in the Hoshiarpur district. The main reason for
their drawback in their hometown is that the spare parts are not easily
available though the design and power of the tractor are greatly admired by
the customers.
Statement 2:
Work taken from the tractor.
USES OF TRACTOR
17%
48% Tubewell
Transportation
Cultivation
35%
Figure 4.3: Work taken from the tractor

Analysis and Interpretation:
On being asked about the work taken from the tractor, 48% of the
respondents have said that they use tractor for cultivation and ploughing of
field, 35% of the respondents have said that they use tr actor for transportation
52
and for trolley purposes such as lifting of bricks, woods, grains and 17% of the
respondents have said that they use rractor for tube well purposes.
53
Statement 3:
Season preferance for tractor purchase.
SEASON OF PURCHASE:
15%
40% Summer
Winter
Other
45%
Figure 4.4: Season preferance for tractor purchase

On being asked about preferable season for purchasing a tractor, 45% of
the respondents said they will prefer to buy the tractor in winter season,
40% of the respondents said they will prefer to buy the tractor in
summer and 15% of the respondents expressed their desire to purchase
the tractor in one of the other seasons such as rainy or autumn or spring. The
maximum respondents expressed their wish to buy a tractor in winter and
then summer season. Mostly, respondents sold their sugar cane in market in
winter. So, there is no problem of money in winter. In summer season the
54
respondents have to plough the fields and therefore they buy the tractors in
the market.
55
Statement 4:
Financial factors influencing tractor buying decision.
FINANCIAL FACTORS THAT INFLUENCE BUYING OF A
TRACTOR
13% Price
16% 48% Loan
Buy Back Scheme
23% Discount
Figure 4.5: Financial factors influencing tractor buying decision

It was found that out of the 100 respondents, nearly half said that price
of the tractor is the main factor that influence the tr actor buying decision, 16%
of the respondents said that buy back scheme influences the most while buying
a tractor and 23% of the respondents said that various loan schemes offered
by the bank is the main which attracts them to buy a new tractor.
56
57
Statement 5:
General factors affecting the choice of a tractor.
Factors Summated Score Total Rank
Brand Name 30*1+16*2+26*3+14*4+14*5 266 1
After sale 8*1+22*2+20*3+26*4+24*5 336 4
service
Availability of 24*1+32*2+10*3+18*4+16*5 270 3
spare parts
Fuel Efficiency 28*1+18*2+22*3+22*4+10*5 268 2
Warranty 10*1+12*2+22*3+20*4+36*5 360 5
Table 4.1: General factors affecting the choice of a tractor

For the listed 5 factors that affect the choice of a tractor, the factor ranked
1 i.e. Brand Name is the most important factor and the factor ranked 5 i.e.
Warranty is the least significant factor affecting the choice of a tractor.
58
Statement 6:
Various sources that influence the purchase of a particular tractor
SOURCES INFLUENCING PURCHASE
Likert Scale: (1= Strongly Disagree, 2= Disagree, 3=Neutral, 4=Agree, 5=
Strongly Agree)
Sources Strongly Disagre Neutra Agre Strong Summa
Disagree e l e ly ted
Agree Score
(a) Relatives 4*1 9*2 13*3 49*4 25*5 382
(b) Neighbours 12*1 21*2 19*3 37*4 11*5 314
(c) Spare Part 10*1 32*2 28*3 21*4 9*5 287

Shops
(d) Old Customer s 14*1 12*2 9*3 26*4 39*5 364
(e) Mechanics 21*1 33*2 12*3 24*4 10*5 269
Table 4.2: Various sources that influence the purchase of a particular tractor

From the above data, it is clear that (a) is the most dominant source that
influences the purchase of a particular tractor.
59
Statement 7:
Problems faced in the tractors.
Problem Summated Score Total Rank
Non 10*1+10*2+20*3+10*4+5*5+10*6+10*7+10* 510 3

availability of 8+5*9+10*10
spare parts
Slow speed 20*1+10*2+15*3+5*4+5*5+10*6+10*7+5*8+ 490 1
10*9+10*10
Frequent 5*1+5*2+5*3+10*4+20*5+20*6+5*7+10*8+5 600 9
maintenance *9+15*10
required
Not fuel 10*1+10*2+20*3+10*4+10*5+5*6+10*7+5*8 505 2
efficient +15*9+5*10
Heating of 20*1+5*2+5*3+10*4+5*5+5*6+15*7+5*8+20 565 7
Engine *9+10*10
Smoke on 5*1+10*2+5*3+5*4+20*5+20*6+5*7+15*8+5 540 6
load *9+10*10
Oil leakage 10*1+20*2+5*3+10*4+10*5+5*6+5*7+25*8+ 515 4
5*9+5*10
Not good for 5*1+15*2+10*3+15*4+10*5+5*6+20*7+5*8+ 525 5
trolley 10*9+5*10
Front lifting 5*1+10*2+10*3+15*4+5*5+5*6+15*7+10*8+ 595 8
10*9+15*10
Heavy drop in 10*1+5*2+10*3+10*4+5*5+15*6+5*7+15*8+ 600 9
RPM 10*9+15*10
Table 4.3: Problems faced in t he tractors
60
For the listed 10 problems the problem ranked 1 i.e. slow speed is
most frequently faced problem by the users in their tractor. The low fuel
efficiency and non availability of spare parts are other most common problems
faced by users in their tractors.
61
Statement 8:
Measure of performance of the tractor in terms of user satisfaction level.
SATISFACTION LEVEL
9% 13%
Highly Satisfied
8%
Dissatisfied
Neutral
21% Satisfied
49%
Highly Satisfied
Figure 4.7: Measure of performance of the tractor in terms of user

satisfaction level

It was found that 49% of the respondents were satisfied with the
performance of their tractor and 21% of the respondents were neutral with the
performance of their tractor; 13% and 8% of the respondents were highly
dissatisfied and dissatisfied with the performance of their tractors
respectively.
62
Statement 9:
Attribute based evaluation of Sonalika/Other tractor s.
ABOUT SONALIKA
16% 13%
12%
22%
37%
High Quality Expensive Price Brand Image Well Built Value for Money
63
ABOUT OTHERS
15%
37%
28%
11%
9%
High Quality Expensive Brand Image Well Built Value For Money
Figure 4.8: Attribute based evaluation of Sonalika/other tractors

Out of the respondents who own Sonalika tractors, 37% feel that their
tractor belongs to a good brand; 22% feels that their tractor is well built and 16%
feels that their tractor provides them the value for their money.
Out of the respondents who own tractors of some other brand, 37%
feels that their tractor possess high quality; 28% feels that their tractor is well
built and 15% feels that their tractor provides them the value for their money.
64
Statement 10:
New features expected by the respondents from the tractor manufacturers:
 There should be some screen in the front of driver’s seat so
that the screen protects them from wind, dust and pollution.
 The ground clearance of the tractor should be more.
 The tractors should be more fuel efficient.
 Instead of two brakes there should be one brake.
 In case of FARMTRAC, the accelerator position should be
changed.
 There should be some protection for the radiator when we
have to use them in the field.
 The spar e parts of tractor should be easily available in the
market.
 There should be hydraulic brakes in them.
 There should be front fender to the above tyres.
 The silencer position should be below.
 The tractor should be fully covered and there should be A/C
in them.
 The fan belt should be strong.
 The road speed of the tractor should be more.
 The tractor should come with speakers.
65
Statement 11:
Sonalika brand awareness among the respondents.
HAVE YOU SEEN SONALIKA ADVERTISEMENT?
70
60
50
40
30 65
20 35
10
0
Yes No
SOURCE OF AWARENESS
10%
33%
18% Reference
Wall Painting
Hoardings
Exhibitions/Trade shows
Supplier visit
Others
20% 13%
6%
Figure 4.9: Sonalika brand awareness

66
67
Out of the 65% of the total respondent who said that they have seen the
Sonalika advertisement; 33% came to know about Sonalika through
reference,13% through wall paintings and remaining through exhibitions,
supplier visit and other sources.
68
Statement 12
Newspaper preference of the respondents.
NEWSPAPER PREFERENCE
Ajit 38
JagBani 28 North
West
Punjab Kesari 12 East
Punjabi Tribune 22
0 5 10 15 20 25 30 35 40
Figure 4.10: Newspaper preference of the respondents

It was found that 38% of the respondents prefer to read Ajit, 28%
likes to read Jag Bani, 22% like to read Punjabi Tribune and the remaining
12% read Punjab Kesari.
69
Statement 13:
Need for Sonalika representative services.
DO YOU WANT SOMEONE FROM SONALIKA TOGET IN TOUCH
WITH YOU?
30%
Yes
No
70%
Figure 4.11: Need for Sonalika representative services

70% of the respondents said that they need Sonalika’s representative to
get in touch with them whereas the other 30% of the respondents don t require
the service of any representative from Sonalika.
70
CHAPTER 5: FINDINGS OF THE STUDY
The major findings of the study are as summarized below:

o Of the 100 tractors surveyed 37% of them are Farmtrac.
o 48 % of the customers use tractors for cultivation purposes.
o 45 % of the customers surveyed desires to buy the tractor in winter
season.
o The 48% of the customers have said that the price of the
tractor influences the most while buying the tractor.
o 49% of the customers agreed to the point that they ask there
relatives about the purchase of particular brand of tractor.
o Most of the customers agreed on the point that the road speed of
tractors should be more.
o 37% of the customers think that SONALIKA has good brand image
in the market.
o 37% of the customer s who own tractors other than Sonalika think
that their tractors are of high quality.
o 65% of the respondents said that they have seen Sonalika
advertisement.
o 33% of the respondents who have seen Sonalika advertisement said
that they have seen it through reference.
o 38% read the Ajit newspaper.
o 70% of the customers have said that they do want someone from
Sonalika to get in touch with them.
71
CHAPTER 6: CONCLUSION,
SUGGESTIONS/RECOMMENDATIONS
CONCLUSION
The International Tractors Ltd. Brand “SONALIKA” is one of the most
well known brands in the local as well as in foreign market. The brand
“SONALI KA” is well admired for its design, technology and power of the
tractor. The main drawback for its sale in the local market is that the spare parts
are not easily available and the resale value of the tractors in the market is not
good. In order to increase the sales in the local market the brand should
be friendly with the customers.
SUGGESTIONS OR RECOMMENDATIONS
The management must decide to open the spare part shop in the
factory so that the customers can get the accessories easily. Being the local
brand the company must use good marketing techniques such as marketing
by radio which is most popular among customers. The company should hold
exhibitions and trade shows to attract the customers. It should select the villages
where free service facilities may be provided and the food grain market should
be selected to increase the sale in the market. And last but not least the
company should concentrate more on the tractors market ranging from 30-
72
60 HP as the sale within this range of HP is more in the Hoshiarpur
district.
73
REFERENCES
BOOKS
 Beri G. C., “Marketing Research”, Tata McGraw-Hill Publishing

Company Limited, New Delhi, Third Edition, 2006.
 Kothari C.R. ,“Research Methothodology”, New Age International

Publishers,Second Revised Edition, 2004.
 Kotler P., “Marketing Management”, Pearson Education(Singapore) Pte.

Ltd., New Delhi, Eleventh Edition, 2005.
WEBSITES
 http://www.sonalika.com/
74
ANNEXURE
QUESTIONNAIRE
Dear Sir/Madam,
I, Anubrat Singh Dadhwal, am a student of MBA, and doing project on
“BUYER BEHAVIOUR TOWARDS SONALIKA TRACTORS IN
HOSHIARPUR”. As a part of my project I am conducting a survey through
this questionnaire on various issues related to buying decision of a tractor.
So, I kindly request you to co-operate with me to fill up the questionnaire. I
assure you that information gathered will be kept secret and will be used for
academic purpose only.
Name Phone No _____________

Father’s Name __ Village _____________
Engine No Chassis No _____________
Tractor Model Month & Year of purchase ___
1. How many tractor companies do you know about?

Sonalika
Tafe
Farmtrac
Mahindra
Others
2. What work you generally take from the tractor?

75
76
3. Suppose you have to purchase a new tractor, which season will you prefer
to buy it?
Summer
Winter
Other
4. Which financial factor influences you the most while buying a tractor?
(tick only one)
Price
Loan
Buy back scheme
Discount
5. To what extent do these factors affect your choice of a tractor? (Rank the
order where 1 is most important and 5 is least important)
Factors Rank
Brand Name
After sale service
Availability of spare parts
Fuel Efficiency
Warranty
6. How much do these sources influence the purchase of a tractor?

Likert Scale: (1= Strongly Disagree, 2= Disagree, 3= Neutral, 4= Agree, 5=
Strongly Agree)
77
Sources Strongly Disagree Neutral Agree Strongly
Disagree Agree
( a) Relatives
( b) Neighbours/Villagers
( c) Spar e Part Shops
( d) Old Customers
( e) Mechanics
7. Rank the following problems according to the frequency of their

occurrence in your tractor?
(Where 1 is most prominent and 10 is least prominent)
Problems Rank
Non availability of spare parts
Slow speed
Frequent maintenance required
Not fuel efficient
Heating of Engine
Smoke on load
Oil leakage
Not good for trolley
Front lifting
Heavy drop in RPM
8. What satisfaction level you have from your tractor?
HIGHLY DISSATISFIED
DISSATISFIED
NEUTRAL
78
SATISFIED
HIGHLY SATISFIED
9. How do you describe Sonalika/your tractor on following attributes?(tick
only one)
High Quality
Expensive Pr ice
Brand Image
Well Built
Value for money
10.What are the new features do you expect from the tractor manufacturer?
11.Have you seen Sonalika advertisement?

YES NO
If Yes than through which of the following source:
Reference
Wall painting
Hoardings
Exhibition/Tradeshows
Supplier Visit
Others
79
12.Which is your favourite newspaper or magazine?
Thank you for your time.
80

Anubrat Project

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Anubrat Project

Uploaded by

Copyright:

Available Formats

CHAPTER 1: ABOUT THE SONALIKA GROUP

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

1.2.1) INTERNATIONAL CARS & MOTORS LIMITED

Guru Nanak Dev University, Amritsar

1.2.2) SONALIKA AGRO

Guru Nanak Dev University, Amritsar

1.2.3) INTERNATIONAL TRACTORS LIMITED

Guru Nanak Dev University, Amritsar

Total Tractor Sales: 2,40,000 per year

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

DESCRIPTION UNITS WORLD INDIA INDIA

Table 1.1: Factors Responsible For Steady Growth

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

SUCCESSFUL SWOT ANALYSIS

1.15) WHY INTERNATIONAL TRADES HAPPENS

Guru Nanak Dev University, Amritsar

1.15.1) ACCORDING TO ELI HECKCHER & BERLIN OHLIN

1.16) WHY COMPANIES ENGAGE IN INTERNATIONAL BUSINESS

Guru Nanak Dev University, Amritsar

1.18.1) REGISTRATION WITH DIRECTOR GENERAL OF FOREIGN

Guru Nanak Dev University, Amritsar

1.18.2) REGISTRATION WITH EXPORT PROMOTION COUNCIL

Guru Nanak Dev University, Amritsar

1.18.3) REGISTRATION WITH EXCISE AND INCOME TAX

Guru Nanak Dev University, Amritsar

1.20) EXPORT MARKETING

1.20.2) INDIRECT EXPORT MARKETING

Guru Nanak Dev University, Amritsar

1.21) SUMMARY OF MAIN REQUIREMENTS FOR INTERNATIONAL

PROCEDURE OF GETTING AN I.E. CODE

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

PROCEDURE FOR THE AUTHORISED DEALER CODE

1.22) THE VARIOUS TYPES OF EXPORT RISKS INVOLVE IN AN

Guru Nanak Dev University, Amritsar

Transportation risks- With the movement of goods from one continent to

Logistic risks- The exporter must understand all aspects of international

Legal risks- International laws and regulations change frequently. Therefore, it

Guru Nanak Dev University, Amritsar

1.23) INTERNATIONAL INCOTERMS

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

Guru Nanak Dev University, Amritsar

Today’s market is customer driven, so it is necessary for each and every

OBJECTIVES OF THE STUDY:

3.1.1 RESEARCH PROCESS

3.1.2 RESEARCH DESIGN

Explorator y research method involves the use of some or all of the

(b) Neighbours 121 212 193 374 11*5 314

(c) Spare Part 101 322 283 214 9*5 287

(e) Mechanics 211 332 123 244 10*5 269

Non 101+102+203+104+55+106+107+10 510 3