COMPARATIVE STUDY ON TRACTOR INDUSTRY WITH

SPECIAL REFERENCE TO SONALIKA TRACTORS

DONE AT INTERNATIONAL TRACTORS LIMITED

MASTER OF BUSINESS ADMINISTRATION

Session 2008-10

SUBMITTED TO : SUBMITTED BY:

RAMAN KUMAR(LECTURER) VARUN BAWA

JALANDHAR MBA 3RD SEM

ROLL NO. 174

CT INSTITUTE OF MANAGEMENT AND

TECHNOLOGY

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 ACKNOWLEDEMENT

No management study is complete without practical experience. Being an MBA student I know
that creativity and practice both are essential elements of management

We would like to pay my sincere thanks to Mr.Gurvinder Singh for providing me a golden
chance to undergo summer training for gaining practical knowledge.

We express our sincere thanks to Marketing Deptt. Team , who has given us a chance to get
summer training at SONALIKA TRACTORS. We are highly thankful to him for allowing me to
work at very interesting project at ITL.

We express our sincere thanks to Dr. Gurvinder Singh (HR Head) for their sympathic
understanding and valuable co- operation.

We are highly thankful to all the staff members of marketing departments for providing their
support and co operation.

VARUN BAWA

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 CONTENTS

INTRODUCTION TO COMPANY 3-43

REVIEW OF LITERATURE 44-48
RESEARCH METHODOLOGY 49-56
DATA ANALYSIS AND 57-68
INTERPRETATION
CONCLUSIONS AND 69-71
SUGGESTIONS
BIBLIOGRAPHY AND ANNEXURE 72-74

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 PART-A

INTRODUCTION

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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 machinery
manufacturers in India. Apart from tractors its product line includes multi utility vehicles, three
wheelers, engines and various farm equipments and implements. Established in 1969, Sonalika
group since the inception has tried to understand customer need to be facilitating them with its
value for money products. The Company has a state of art manufacturing facilities, spread in
acres, located in the free shrubs of Punjab and Himachal Pradesh.

Sonalika is the one of the top 3 tractor manufacturing companies in India, other products include
of, Multi utility 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 2000 employee technocrats. The company works on the maxims of low
production cost and clean and safe environment. Such efforts have fetched the company the
accreditation like ISO 9001 and ISO 14001. 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, we have been able to create a
unique platform for learning through success stories of industry leaders. The success saga of
Sonalika Group a business conglomerate having prime interest in agricultural & auto machinery
goes back to nearly 5 decades. The corporate philosophy embedded in trust, quality and
commitment has helped the group to carve out a niche for itself in the highly competitive world
of Machinery. Sonalika is the fastest growing tractor company registering growth over growth
since its inception has crossed 1.80 lac merely in 10 years & has attained one of the position in
top three in India

Sonalika group’s products exist in various international markets. Company’s product exported to
Algeria, Angola, Armenia, Australia, Bangladesh, Cameroon, Ethiopia, Ghana, Ivory Coast,
Malawi, Malaysia, Mauritius, Mozambique, Nepal, Oman, Republic of Benin, Senegal, South
Africa, Srilanka, Sudan, Canada, Zambia, Syria, Togo, Tunisia, Ukraine, and Zimbabwe.

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1.2 MISSION & VISION

VISION STATEMENT
The dream Project of Sonalika group is to cater the agricultural and auto industry with quality
abrasive products through untiring dedication and leadership.

MISSION STATEMENT
we pay personal attention to customers so that, we can build products they need, and not merely
sell the products we build.

CORE VALUES
To accomplish our 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.

ETHO STATEMENT OR LOGO RATIONALE

Red symbolizes the strength, power, determination, and desire of company.

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Yellow surrounding the Sonalika produces a warming effect, arouses cheerfulness, stimulates
mental activity, and generates the same.

Green Leaf in the center symbolizes growth, harmony, freshness, and fertility. Black underlining
the logo associates with power, elegance, and formality.

Orange surroundings 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.

1.3 Details of top executives

1. Chairman- Mr. L.D. Mittal

2. vice Chairman- Mr. A.S. Mittal

3. Managing Director- Mr. Deepak Mittal

4. Finance Head- Mr.Rajnesh Jain

5. Production Head- Mr. Ashok Kapoor

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 6. Marketing Head- Mr.L.R.Yadav (CEO)

7. R&D Head- Mr. Ashwani Malik

Turnover

The total turnover of the group stands for 3200crore 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.

1.4 SONALIKA GROUP -MILESTONE

1) 1969, Modest beginning into farm equipment and machine manufacture and
earning name and fame over all these year.
2) 1995 Diversification into manufacture of tractor over whelming response from
the market.
3) 1996 Roll out of first tractor from ITL.

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 4) 2000 Enter into joint venture with Renault Agriculture France for tractor
manufacture in India.
5) 2000 Started in house manuf. Of engine for tractor application.
6) 2002 Started export of tractor to Africa, Asian sub continental.
7) 2004 Started Roll out of 100000 Tractors
8) 2004 Started establishment of ICML.
9) 2005 Become the fourth largest tractor manuf. In India.
10) 2005, Roll out of first vehicle from ICML facility.
11) 2005 Joint venture with Yanmar Agriculture of Japan.
12) 2006 Successfully developed 4 wheels drive front Axles and transmission of
tractors for Yanmar.
13) 2006 Rollout of 100000th tractor engine.
14) 2006 Become 3rd largest manufacture of tractor in India.
15) 2006 Market launch of Rhino (MUV) and establish dealer’s network.

1.5 SONALIKA GROUP UNITS

Sonalika group divided into four companies’ .Sonalika group units is as follow:

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1.5.1 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 Sonalika brand between 30 H.P to 90 H.P, and CLASS brand
between 70 hp to 90hp. 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

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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 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.
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 SONALIKA 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).

Address- International Tractors Limited Jalandhar Road, Hoshiarpur (Pb.) Pin-146022

(India)

1.5.2. INTERNATIONAL CARS AND MOTOR LIMITED

International Cars & Motors Limited (ICML) is a Group Company of the Rs 1200 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

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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 is in-process of
developing its own Common Rail Direct injection (CRDi) engines.

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 2006-2007, 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 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. International cars & motors ltd, car plant is located in foothills of Shivalik
Range and surrounded by natural greenery of Himalayas at AMB (HP) a tax-free zone. The total
area of plant is 93,000 Sq. M. out of which 42,000 Sq. M. is covered area. Plant capacity to
produce 24000 cars in a year.

Address:-Amb Distt., Himachal Pradesh.{Tax Free Zone}

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1.5.3. INTERNATIONAL AUTOTRAC FINANCE LIMITED

International Autotrac Finance Limited is a non banking finance company approved by RBI.

IAFL provide finance to customers of International cars & motors limited in rural & semi urban
areas across India through customer friendly schemes.

Its parent company Sonalika Group ranks among the largest tractor & farm equipment
manufacturer in India

Business Plans of IAFL

First Phase: In the first phase, the area of operations will be in the state of Punjab, Haryana,
Jammu, H.P (Done).

Second Phase: In the second phase, the area of operations will be extended to other parts of
Northern India.

Third Phase: In the third phase, the area of operations will be extended to whole India.

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1.5.4. SONALIKA AGRO INDUSTRIES CORPORATION

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 group’s 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- Fertilizers 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).

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Product and Services of All Group Units

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 2.1 International Tractors Limited

This company mainly deals with tractors brands and these tractors also exported to different
markets in foreign countries. These brands are as follow:-

TABLE - PRODUCT CATEGORIES

TRACTOR NAME HORSE POWER LIFTING CAPACITY

DI-750III 50 1600Kg
DI-730II 30 1200 Kg
DI-735 35 1200 Kg at lower links
DI-55 55 1200 Kg at end of lower links
DI-750II 50 1200 Kg
DI-90 90 1600 Kg at end of lower links
DI-75 2WD 75 1600 Kg
DI-750 50 1200 Kg at end of lower links
DI-60 SENIOR 60 1200 Kg at end of lower links
DI-75 4WD 75 1600Kg
DI-740III 40 1200Kg
DI-60 2WD 60 1600Kg
DI-740 40 1200 Kg at end of lower links
DI-398X(north speeds) 39 1200Kg
DI-60 4WD 60 1600Kg
DI-745III 45 1200Kg
DI-35 35 1200Kg
DI-340S 40 1600 Kg at end of lower links
Rx42 45 1200Kg
DI-47Rx 50 1200Kg
DI-730III 30 1200Kg at ends of lower links
DI-732III 34 1200Kg at ends of lower links
DI-60Rx 60 1600Kg

2.2. Sonalika Agro Industries Corporation

This company mainly deals with agricultural equipments and implements. That are helpful to the
farmers in agriculture The product line of the sonalika agro industries corporation is as follow:-

 Combine Harvestors

 Threshers

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  Potato Planters

 Maize Sheller-cum

 Seed-cum-Fertilizer Drills

 Straw Reapers

 Ploughs

 Harrows

 Tillers

2.3. International Autotrac Finance Limited

This company basically deals with services which are provided to farmers, salaried for finanace
the tractors and other agricultural equipments and implements. Provide financial assistance to
them.

2.4. International Cars And Motor Limited

At present this company produces one car model Rhino Rx a MUV by this group and also
working on the new car model INSPIRE and this will launch within this year.

Market

No wonder Sonalika products have created a niche for themselves not only in India but also in
foreign markets including France, Africa ,Bangladesh , Srilanka, Senegal, Mali, South Africa,
Canada, Syria and many of the South Asian countries. Some of the international clients are as
follow:

MG Rover, Power Train, Renault, Yanmar

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In domestic market sonalika products are popular in all across the India. In Punjab, there are
45dealers of sonalika tractors.

There are 70 dealers of International cars and motor products all over the India.

3. INTERNATIONAL TRACTORS LIMITED

As per the training concern my training is in the sonalika tractors that is International Tractors
limited. This company mainly deals with tractor manufactures and also some other like
Generators etc.ITL was established in 1995-96 with a covered area of 25 acres. It is situated at

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distance of 7 km from Hoshiarpur on Hoshiarpur-Jalandhar road. It is specialist in manufacturing
of producing three cylinder diesel engines of tractors. The first tractor manufactured by the
company on 14th Oct, 1996. In Oct, 96 the capacity of the company was one tractor in two days.
It has sold 400 tractors in the first year of launching tractor & now the production rate is 1200-
1250 tractors per month but installed capacity of company is 100 tractors per day. It has
developed its own 60HP diesel engine.

ITL’s Hosiarpur situated plant is spread across 50,000sq.meter, which is having fully
computerized and high level modern machines. Presently, the production capacity of plant is 100
tractors per day. Near about 3000 people engaged in the plant including workers, technicians,
and engineers on regular basis and around 3000 people work on contract basis.

Competitors of Sonalika tractors are as Escorts, Eicher, Hmt, Mahindra and Mahindra,
Swaraj/PTL, Tafe/Massey, New Holland ford,

ACHIEVEMENTS

-Company has produced smoke free diesel engine

-Company has increased its production of diesel engines up to 60 engines per day

-International Tractor Limited has a network of network of more than 1000 dealers
-Computerized tractor plant

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 -First Indian tractor engine750III conforming to Euro II norms

-Pride of country awarded to Sh L.D MIttal, Chariman.

-Gold medal awarded to Sh. A.S Mittal, Vice Chairman

-Udyog Bhushan awarded to Sh. Deepak Mittal, MD

3.2 DISTRIBUTION NETWORK

Followed by Sonalika:

COMPANY

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 DEALER OR STOCKIST

CUSTOMER

Followed by other firms:

COMPANY

STOCKYARD

DEALER

DIRECT & SUBDEALER

CUSTOMER

3.3 ORGANISATION CHART FOLLOWED BY ITL:-

Chairman

Vice-Chairman

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 |

Managing Director

Chief Operating Officer

Joint Chief Operating Officer

HOD of Every Dept.

Managerial Staff

Executives

Support Staff

Workers

3.4 CERTIFICATIONS

A) ISO – 9001

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ITL has got ISO-9001 quality system certified by International Certification Ltd. It is for use
when conformance to specified requirements is to be assured by supplier during several stages
which may include design, development, production, installation & servicing.

Sonalika has arranged collaboration with French Renaults for technical know-how and
marketing. With the help of this collaboration SONALIKA will develop its own DI-740 Tractor
engine which will help it to reduce its cost.

B) ISO 14001:2004 Environment Management System

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23
3.5 Study of functioning of departments

Production:-

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 producing tractors in broad range from 30HP to 90HP with effective
planning of resources.

Highlights of Assembly Facilitations:

Automated conveyors (Toe-in conveyors, slat conveyor and overhead conveyors.) for sub-
assemblies as well as for major assemblies and final product.

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

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  Induction Heaters for controlled heating of bearings

Standard testing procedures for final product

 Roller testing Field Testing

 Road testing

Research & Development:-

Brief of R & D :

 ITL R & D center is recognized by government of INDIA

 ITL R&D is a complete dep’t in itself starting from designing upto development,
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

 Teamcenter is used for PLM concepts

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  I-Deas, Solid-Edge & AutoCad is used for 3D & 2D design activities

 Two transmission test rigs.

 Circular test track (mgr) & Roll over protection test rig.

 Hydraulic system test rig.

 Endurance test rig for operator seat & fenders.

 Pto test bed & Endurance test rig for MUV gearbox under commissioning.

 Proto machine shop with HMC, radial drilling & turning centre.

Engine R&D Center:

Sonalika have In House Design Engine R&D department with up-to-date technology. Having a
team of exceedingly competent & remarkable squad of engineer’s proficient of designing most
excellent Engines in technology.

Engines developed so far available in rating of 28-90 HP. Sonalika has started spreading roots in
MUV manufacturing with own R&D team and designed two exclusive engines with latest
technology.

Engines are designed with Rotary FIE from BOSCH & (CRDi) Common Rail Diesel that gives
variable geometry turbocharger for superior engine response .The in house R&D has all supplies
required for complete design of engine from structural parts to emission development. Use of
CAD and FEA is made to design robust parts. While Emission test cell is also being
commissioned using equipment imported from AVL Austria world leader in emission
measurement for conducting in house emission.

New Tractor Engine under G1 Series MUV Engine (Rover) Proto-type stage

This center is capable of designing new technologically advanced Engines & its various
components. It can also carry out DFEMA for its own design or any other components.

In-house R&D capabilities:

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The in house Engine R&D department of Sonalika is one of the finest. Possessing a team of
highly qualified team of engineers capable of designing complete engine from ground up.
Engines developed so far include tractor engines from Hp rating of 28-90 Hp.With entry of
Sonalika group into MUV segment two engines have been developed by the in house R&D
exclusively for the MUV application.

The engines have been developed using latest technology. One engine uses Rotary FIE from
BOSCH while the other engine is a Common Rail Diesel Engine (CRDi) with variable geometry
turbocharger for improved engine response at all points during engine operation. The in house
R&D has all tools required for complete design of engine from structural parts to emission
development. Use of CAD and FEA is made to design robust parts. While Emission test cell is
also being commissioned using equipment imported from AVL Austria world leader in emission
measurement for conducting in house emission measurement.

Quality Assurance:-

The entire evolution of Quality is classified into 4 phases

 Inspection Phase

 Quality Control Phase

 Quality Assurance Phase

 Total Quality Management Phase

Equipments used for Quality Assurance,

 Profile Projector used for inspection of Critical Parameters e.g. Thread, Gear
profiles etc.

 3D Co-ordinate Measuring Machine(CMM)

 Software Used For Measurement(CMM)-(Geometrical 3D measuring software) In

this software,we can calculate & store co-ordinate of component as per drawing
specification as well as Geometrical tolerances (Flatness, Concentricity, Parallelism
& Positioning) with Graphical Presentation. With help of Geopak –Win generate a

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 program of each component & run in CNC mode, safe a time, generate presentable
report as per requirement. Scanning is the option in GEOPAK – WIN,with that you
record contours and surfaces, realize nominal actual comparisons with contours,
calculate geometrical elements at the contour after scanning & import contours from
external systems, respectively export them to systems (Auto cad, Ideas for modeling
purpose).

 STANDARD ROOM

 GEOPAK-WIN: - Scanning is the option in GEOPAK – WIN, with that you record
contours and surfaces, realize nominal actual comparisons with contours, calculate
geometrical elements at the contour after scanning & import contours from external
systems, respectively export them to systems (Auto cad, Ideas for modeling purpose).

3.6 SWOT Analysis:-

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STRENGTH:-

 Human Resource
 Research & Development

 Physical Resources:- SAP, own IT dept.

 Availability of finance

 Investors Relationship

WEAKNESS:-

 Import of tractor implements

 Unsuccessful Rhino car

 Lack of advertisement regarding their products

OPPORTUNITIES:-

 Unexplored Markets for Exports :-Mexican & Brazilian markets

THREATS:-

 Competitors
 Mahindra & Mahindra

 New Holland

 John Deere

 TAFE

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 MAJOR MARKET PLAYERS

1. INTRODUCTION

India is basically an agricultural country. Almost 70% of India’s population is engaged in

agriculture for their bread and butter. Since the Indus valley civilization, agriculture is the main

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source of income. In the early age the use of tractor was very low. Green revolution was the
result of tractor and other input used in agriculture. Today India is the largest tractor market
estimating 300,000 tractors with annual growth rate of 13.3%. It means 7 tractors per thousand.
Today tractor industry is of about 5000 crores.

The beginning

The decade of 60’s in India saw a green revolution resulting in increase in both production and
productivity. With an emphasis on industrialization, the birth of Indian tractor too place in 1959-
60 when the imports were restricted. Total indigenous production of tractors by 1965 was just
6000.

With the successful introduction and acceptance of high yielding seeds, however, there was a
sudden upsurge in demand for tractors after 1967 and demand started multiplying at an annual
rate nearly 50%.

The second phase

Seeing the sharply growing demand, Tractor industry became the most sought in the country and
as many as 18 fresh entrants approached the govt. for setting up the manufacturing units. The
interest of a large majority however lay in quick profits through sale of imported tractors.
Nevertheless 6 new manufacturers did enter the tractor industry; 4 in private sector and 2 in govt.
combined output of 11 units had risen to 32000 by 1975

The Maturing Years

With the entry of new units in 1970 and due to increasing govt. pressure, indigenization picked
up substantially after 1970 & by 1978 all most all the tractors manufacturer were nearly
indigenous.

A fillip to indigenization was also given by overall industrialization of the country, when a large
number of ancillary units were established and were in a position to supply a wide range of
components to the tractor industry.

The Present Scenario

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The industry faced recession during 1992-93. Sales fell to 1.44 lac tractors from 1.50 lac tractors
during the year 1993-94. However there was a silver lining to the cloud. During 1994-95,1995-
96,1996-97 sales stood 1.64,1.91,2.20 lac tractors respectively. In fact exports have now become
a thrust area. Different producers are now in line producing different Horse Power tractors
according to their available markets around the world.

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 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 manufacturers 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 overall 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

32
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 6000 crore.
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:

1.1 INDIAN TRACTOR MARKET

DESCRIPTION UNITS WORLD INDIA INDIA RANK

TOTAL/AVG

Arable Land Mn Hectare 1444 170 2

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 Irrigated Area Mn Hectare 249.6 45.8 2

Tractors In Use Tractors/000 Hectares 28 10.5 8

The Tractors available in developed countries have advanced features and accessories that are
not found in Indian tractors .Tractor industry has made a steady and satisfactory progress even in
drought areas. Four factors have contributed to the steady progress:

* 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 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.

34
* 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 visualized 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 Srilanka ,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, 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.

1.2 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 CZECH SLOVAKIA. Most of the models which were taken up for
manufacture in India were developed overseas. Soon after the decision for the manufacture of

35
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.

* 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.

* Co-ordinate with Ministry of Industry, Commerce and Finance by providing technology data
input.

* Selective support to strength measures in Research and Development for technology

absorption.

List of tractor manufacturers, their collaborators and the year of commencement of production:

1.2A MANUFACTURERS AND COLLABORATORS

TABLE 4:

MANUFACTURER COLLABORATOR YEAR

36
 Eicher Tractors Ltd Gebr, Eicher Tractor. West Germany 1961

TAFE Messey Ferguson. UK 1961

Mahindra And Mahindra International Harvestor. UK 1965

+Escorts Tractor Ltd Ford .U.K. 1971

Hindustan Machine Tools Motokov -Praha. Czechoslovakia 1971

Punjab Tractor Limited CMERI.INDIA 1974

International Tractors Own know-how 1998

New Holland Tractor New Holland Tractors .Italy 1999

1.3 MAJOR PLAYERS IN INDIAN TRACTOR MARKET

The tractor industry in India has developed over the years to become one of the largest tractor
markets in the world. From just about 50,000 units in early eighties the size of tractor market in
the country has grown up to over 200,000 units. Today industry comprises of 14 players,
including 3MNCs. The opportunities still are huge considering the low farm mechanization
levels in the country, when compared to other developed economies across the world. After a

37
 downturn during last 3-4 years, the industry is back on a growth path, which we believe would
sustain incoming years as well. Key concern for the industry is its dependence on agricultural
income in hands of farmers and the state of monsoon.

Tractor Segments: 30 - 40 HP dominates with over 50 percent share

Tractor industry is classified into three broad segments, based on the power delivered by the engine
Horse Power (HP)

SEGMENTS HORSE POWER MARKET SUITABILITY

SHARE(%)

Small Tractors 21-30 23-25 Tractors suited for soft soil conditions
and preferred in well irrigated northern
states.

Medium Tractors 31-40 53-56 Used in southern and western region

due to hard soil conditions.

Large Tractors 41-50 17 Rich farmers with larger land holdings,

especially in Punjab and Haryana.

Large Tractors >50 2-4 Used in Turnkey project sites such as

building sites for canals, dams and civil

Construction projects.

Today there are as many as 14 players operating into tractor manufacturing activity in the
country. However, about 90 per cent of market is shared among the top 5-6 players only.
Mahindra and Mahindra continues to dominate the industry with close to 30 per cent share, while
other players like TAFE, Escorts, PTL, ITL and Eicher enjoys market share of 15 per cent , 14
per cent , 11 per cent , 11 per cent and 10 percent respectively.

1.4 MAJOR PLAYERS IN TRACTOR MANUFACTURING

38
1. ESCORTS

In 1960, Escorts set up the strategic Agri Machinery Group (AMG) to venture into tractors.

In 1965, they rolled out their first batch of tractors under the brand name of Escort.

In 1969, a separate company, Escorts Tractors Ltd., was established with equity participation of
Ford Motor Co., Basil don, UK for the manufacture of Ford agricultural tractors in India.

In the year 1996 Escorts Tractors Ltd. formally merged with the parent company, Escorts Ltd.

Technologies-

Escorts AMG has three recognized and well-accepted tractor brands, which are on distinct and
separate technology platforms.

Farmtrac - World Class Premium tractors, with single reduction and epicyclical reduction
transmissions from 34 to 75 HP.

Powertrac - Utility and Value-for-money tractors, offering straight-axle and hub-reduction

tractors from 34 to 55 HP. India’s No.1 economy range – engineered to give spectacular diesel
economy.

Escorts - Economy tractors having hub-reduction transmission and twin-cylinder engines from
27 to 35 HP. Pioneering brand of tractors introduced by Escorts with unbeatable advantages.

2. JOHN DEERE

Deere & Company, founded in 1837 (collectively called John Deere), has grown from a one-man
blacksmith shop into a corporation that today does business around the world and employs
approximately 56,000 people. The company continues to be guided, as it has been since its
beginning, by the core values exhibited by its founder: integrity, quality, commitment and
innovation. To expand its global presence in Agricultural equipment, John Deere established the
India Tractor business in 1997 under a ‘50:50’ joint venture with Larsen & Toubro Limited
(L&T). In 2005, John Deere acquired the remaining shares in the joint venture. The India
Tractor business includes a fully integrated manufacturing facility with three focus factories -
Engine, Transmission and Vehicle Assembly. Spread over 112 acres with 50,000 m 2 of covered
area at Sanaswadi, Pune, it produces modern tractors from 35 to 70 HP for both domestic and

39
international markets. These include North & South America, Europe and South East Asia where
they have earned a reputation for quality

3. TAFE

TAFE full name is Tractor and Farm equipment limited. TAFE is a US$750 million tractor major
incorporated in 1960 at Chennai in India, in collaboration with Massey Ferguson (now owned by
AGCO corporation, USA). TAFE acquired the Eicher tractors business, its engine plant at Alwar
and transmissions plant at Parwanoo through a wholly owned subsidiary “TAFE Motors and
Tractors Limited. A member of the Amalgamations Group of Chennai, this company has four
plants involved in tractor manufacturing at Mandidheep (Bhopal), Kallidaipatti (Madurai),
Doddabalbur (Bangalore) and in Chennai. Apart from being among the top five tractor
manufacturers in the world, TAFE is also involved in making diesel engines, gears, panel
instruments, engineering plastics, hydraulic pumps, plantations and passenger car distribution
through other divisions and wholly owned subsidiaries.

TAFE Motors and Tractors Limited has, apart from the tractor manufacturing plant at Mandideep
mentioned above, a Diesel Engine plant at Alwar, Rajasthan producing a range of air cooled and
water cooled diesel engines up to 80 HP with plans are on to increase the product range up to 125
KVA. The Transmissions Division located at Parwanoo in Himachal Pradesh produces a range of
transmission components both for captive use as well as for sale to OE manufacturers.

TAFE Access Limited is a wholly owned subsidiary of TAFE involved in the manufacture and
marketing of farm implements, trailers and accessories, distribution of passenger cars,
manufacture of hydraulic pumps and panel instruments to discerning customers both in India and
overseas.

TAFE’s Engineering Plastics Division produces a range of components for the consumer
electronics, IT, white goods and automotive sector and has the distinction of being awarded
Toyota Quality Award.

TAFE’s Power Source Division produces a range of automotive batteries for both two wheeler
and four wheeler applications for sale through AMCO Batteries Ltd. As well as for sale directly
through a dedicated distribution channel under the brand name of “Speed”.

40
4. MAHINDRA & MAHINDRA

The Mahindra group's Farm Equipment Sector (FES) is amongst the top three tractor brands in
the world. It has won the Japan Quality Medal in 2007. It also holds the distinction of being the
first tractor company globally to win the Deming Application Prize in 2003. FES is the first
tractor company worldwide to win these honors. This shows the strong focus of FES on Quality
and Customer Satisfaction. Today, the domestic market share of FES is around 42%. (Mahindra
brand: 30% and Swaraj brand: 12%).

The motto of FES is to usher prosperity; for its customers, dealers, employees, society and all
other stakeholders.FES has 6 state-of-the-art manufacturing plants (including 2 plants of Swaraj)
in India, 2 plants in China, 3 assembly plants in USA and 1 assembly plant in Australia. FES has
a presence in around 25 countries across six continents with more than 1000 dealers world-wide.

FES has a subsidiary agricultural tractor manufacturing company in India known as Mahindra
Gujarat Tractor Limited (MGTL).

5. HMT

HMT was the fulcrum on which the industrial development of India was envisaged. It was set up
in 1953 to meet the challenge and take up the pioneering role in the development of machine
tools - the vital component for industrial development.

HMT successfully diversified into diversified areas of engineering. Leading this diversification
drive was the HMT Tractor Business Group. Since its inception in 1971, HMT Tractor Business
Group has increasingly contributed its might in building HMT into an organisation to reckon
with. Presently Tractor Business Group is part of HMT Ltd., the holding company of HMT
Group.

41
HMT rolled out its first 25 HP tractor in collaboration with Motokov of erstwhile Czekoslovakia
from its Pinjore plant in the state of Haryana.The success of the 25 HP tractor in Indian
conditions led HMT to indigenise the 25 HP in a short span of five years.

And that was just the beginning...

The passing years, saw the needs of the Indian farmer change. Farm mechanisation was growing
at a rapid pace and called for more powerful and multi-role tractors.

HMT stepped in by introducing tractors that met the specific needs of the agricultural sector.
HMT manufactures a wide range of tractor from 25 HP to 75 HP. Keeping in tune with HMT's
philosophy of introducing innovative products and continously upgrading its tractors with better
technology, these models incooporate contemporary technology viz. fuel efficient engine
meeting emission norms, floor gears, direct axle, latest styling giving value for money to its
customers.

HMT's Tractor Project commenced its operations from Pinjore in June 1971.This unit is the main
unit today fully integrated with foundry, manufacturing, assembly and testing facilities for 20000
tractors and engines. Beside, assembly unit at Hyderabad (Andhra Pradesh,India). The Tractor
unit is certified with ISO 9001 Quality Standards.

6. 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 Sonalika brand between 30 H.P to 90 H.P, and CLASS brand
between 70 hp to 90hp. 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

42
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 450 subdealers. 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.

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 SONALIKA 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).

CHAPTER II
43
REVIEW OF
LITERATURE

44
CHAPTER II

REVIEW OF LITERATURE

This chapter in the research is the most essential one. It provides the second hand information
that is the information from secondary sources that help the researcher in the research. The
literature referred by the researcher and the findings implied in the research are mentioned and
written 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 market
has been flooded with promotional schemes that are essentially meant to existing customers loyal
which give an essence of consumer retention. An analytical approach has been proposed to make
a comparative study of the schemes as well as to study the response under some well known
schemes. As there are large number of schemes like collect the points and win prizes , Discount
coupons , Free offers , test drive , test ride in case of Automobile sector . but consumer response
is different in different situations . The study showed that discount / price cut schemes directly
reaches and consumers are satisfied with these schemes.

Bureau, from article “structural constraints” in equity master.com, 11 may 2002 found that India
is 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 they
look at the growth prospects of the tractor industry and how it is closely correlated with the
Indian agricultural sector consider the size of tractor industry. The tractor market has more than
double in the current decade. The first half of the decade was characterized by aggregate volume
of growth of more than 14% 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 the
tractor market in overall world and second in terms of volume of tractors. Punjab and Haryana
are on top of the list in tractor market

45
Bureau, from article “Automobiles” 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 the
small 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 consequently
large with growth in agricultural output and productivity.

Bureau, from article “Indian tractor industry to see flat growth this year”, Zee news 8 Jan 2009
concluded that the Indian tractor industry in 2008-09 is unlikely to register growth and sales are
likely to be at 3 lac tractors same as what was achieved in 2007-08. Mahindra sold 92000 tractors
in last year and exported 8000.

Bureau, from article “Tractor maker claims record export sales”, Indiaforums.com 19 Apr 2009
concluded that ITL which sells tractors under the sonalika brand claimed it has achieved highest
export sales among all mfrs. In the country during 2008-09. The company posted export sale of
Rs.105 Crores. An increase of over 262% over the previous year. it had earned Rs .40 crores
from export in 2007-08

Diwan & Jain (2004) in their study brand positioning: The unbeatable weapon in present market
scenario concluded that right positioning can beat the competition because today the markets are
flooded with clones or sea of homogeneous products. Only way to cross this sea is to create and
communicate a distinctive image which makes the customers convinced to choose the brand over
the competitors brand. An Effective brand positioning strategy includes the needs of customers,
product category, target segment, competition, benefit, perception and brand personality. All this
help in raising brand value.

46
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 are
neither 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 providing
subsidies for fertilizers so that small and medium farmers may be benefitted.

Kaushik (2004) in her article now come outsourcing of tractors – MNCs drive exports by 18.5%
concluded that the tractors sales up and now exported to foreign market and also at good rate of
18.5% increase annually. Eicher group, the exports of tractor last year grow to 16100 unit from
13581 units in 2002-03. Some of new MNC entrant SAME deutz fahr also has plans to develop
India as an Export Hub.

Seth (2009) in his article in livemint concluded that tractor exports excluding production at 2009
due to recession in foreign market, in this fiscal year tractor demand in India have been 303882
units which represent a growth of 5% over the previous year. According to Chaudhary who is
also the President of Industry body Tractor Mfrs. Association, estimates domestic tractor sales
will grow between 5-8% in fiscal 2010.

Shrinivasan(2000) in her article Indian Tractor industry is ready to face the Chinese threat
concluded that 75% of Indians are involved in agriculture sector still it seems they are being
neglected . other than Haryana and Punjab , intensity of mechanization is also very low due to
some lending norms the policy makers will take into account the fact that the tractor is a multi
utility vehicle and therefore the revenues of a tractor owner are going to come in not from land of
his own but also through contract farming or hiring of land for production

47
Valson (2001) in his study on tractor industry, segmented into four categories based on engine
horse power less than 30hp, 31 to 40hp, 41-50hp and more than 50 hp. historically the 31-50 hp
segment contribute to over 50% of the market owing to the demand from the northern state of
India and finded some factors that drive the demand for tractors in India like agricultural
production and govt. procurement price directly affect the demand of Tractors. Same as in the
case of monsoon and credit policies of bank also directly affect the demand of tractors. Some
change factors occurred in other states like Gujarat, the gross irrigated area has increased from
27% in 1989-90 to 335 in 1996-97. Now companies take stress on 50 hp tractors instead of small
tractors and second hand tractors also attracted the demand of tractors in mind of consumers due
to their Competitive price for same segment.

CHAPTER III
48
RESEARCH
METHOLDOLGY

OBJECTIVES OF THE RESEARCH

 To study the customer awareness regarding sonalika tractors.

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

tractor.

 To study major market leader among various market payers.

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

49
3.1RESEARCH METHODOLOGY

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

3.2 Research design

A research design is the arrangement of conditions for collection and analysis of data in a manner
that aims to combine relevance to the research purpose with economy in procedure. In fact, the
research design is the conceptual structure within which research is conducted; it constitutes the
blueprint for the collection, measurement and analysis of data. One may split the overall research
design into following parts:

50
a) The sampling design which deals with the method of selecting items to be observed for the
given study.

b) The observational design which relates to the condition under which the observations are to be
made.

c) The statistical design which concerns with the question of how many items are to be observes
and how the information and the data gathered are to be analyzed.

d) The operational design which deals with the techniques by which the procedure specified in
the sampling, statistical and observational design can be carried out.

Need for a research design

Research design is needed because it facilitates the smooth sailing of the various research
operations thereby making research as efficient and possible yielding maximal information with
minimal expenditure of effort time and money. It stands for the advance planning of the method
used 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 research
design 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.

51
The primary data are those data which are collected afresh and for the first time, and thus happen
to 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 study
and 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 and
compilation of information collected through various newspapers, magazines and internet etc. In
this research, I follow both the method of data collection.
 This research involves both primary and secondary sources of data collection.
 The information was collected and assembled from various websites, newspaper and
magazines.

Research approach
The approaches mainly opted by the researcher to get the result include behavioral, survey, focus
group, observational, experimental approaches etc.

For conducting this research the main approach used was survey approach i.e. interviewing the
consumers.

Research instrument
The primary data was obtained during the course of doing research in a systematic manner with
the help of questionnaires and interviewing peoples.

Questionnaire method: this method of data collection is quite popular, particularly in case of
big enquires. In this method a questionnaire is sent to the persons with a request to answer and
return the questionnaire. A questionnaire consists of a number of questions in a definite order on
a form or a set of forms.

52
The questionnaire used by me for the purpose of data collection was of structured type. It was
designed keeping in mind the research problem which included close ended questions. The
questionnaire was given to the respondents who were expected to read and understand the
questions and write down the reply in the space meant for the purpose in the questionnaire itself.

Sampling design
A sample design is a definite plan for obtaining a sample from a given population. It refers to the
technique or procedure the researcher would adopt in selecting items for the sample.
Sample design may as well lay down the items to be included in the sample i.e., the size of the
sample. Sample design is designed before data are collected. There are many sample designs
from which a researcher can choose. Some design is relatively more precise and easier to apply
than others.

Population
Population refers to part of universe from which the sample for conducting the research is
selected. Universe and population can be same in some researches. It may be finite or infinite. In
finite universe the number of items is certain, but in case of infinite the number of item is infinite
i.e., we cannot have an idea about the total number of items.The population for my study is
different respondent from villages and nearby Hosiarpur.

Sampling unit

Sampling unit refers to smallest possible individual eligible respondent. In my study the
sampling unit is single individual user of tractor.

Sampling size

53
This refers to the total number of respondents selected from the universe to constitute a sample.
The size of the sample should neither be excessively large, nor too small. It should be optimum.
An optimum sample is one which fulfills the requirement of efficiency, representativeness,
reliability and flexibility. The sample size for my research is hundred respondents.

Sampling techniques
In this research study, non-probability convenience sampling is opted for. Convenience sampling
is done purely on the basis of convenience or accessibility. This sampling method has been
mainly chosen because of time, financial constraints and lack of expertise.

Sampling frame
Frame is the list of respondents i.e. list of all the users of different tractors
Statistical analysis
Data will be analyzed with the help of frequency distribution, percentages and other suitable
statistical tools.
Classification and tabulation transforms the raw data collected through questionnaires and
personal interviews into useful information by organizing a compiling the bits of data contained
in each of the hundred questionnaires i.e., observation and responses are converted into
understandable and orderly statistics for further analysis and interpretation.

Following applications of statistics are used to organize and analyze the data:
 Simple tabulation of data using tally marks.

54
  Calculating the percentage of the responses.
Formula used:
Percentage= (number of responses/total responses)*100
 Graphical analysis by means of bar graphs and pie charts.

Data Analysis and Interpretation

For the purpose of analyzing, raw data was summarized in a master table and from this table the
results have been carried out. The questions having multiple/alternative choices. In case of
ranking questions the total score has been added and final ranking is given. In case of checklist
questions the average of total no. of responses was calculated. In case of explanatory questions,
the general suggestions were summarized.

LIMITATIONS TO THE RESEARCH

 As the data will be collected through questionnaire, there are chances of biased
information provided by the respondents.

 The survey is limited only to Mukerian tehsil. Hosiarpur Distt.

55
 As the sample size is small compared to the total population the outcome cannot be
generalized.
 The study was done for a short period of time, which might not hold true over a long
period of time.
 The area is too vast to research and the entire picture may be vary if sample should be
increase.
 Respondents are basically villagers they usually not take more emphasis on these
questions.

CHAPTER IV

DATA ANALYSIS
AND INTERPRETATION

56
4.1 DATA ANAYSIS AND INTERPRETATION

Data analysis is an important part in any of the research as it fulfills the purpose for which
research is made. In this chapter analysis of every question asked from consumer through the
questionnaire is done. In this part of my study the analysis of data is done from the basis of
information collected through the questionnaire with the help of table and graphs.
TABLE 4.1
Brand owned by the targeted consumers of tractors
Brand % age
Sonalika 6
Escort/ford 30
Mahindra & Mahindra 28
Tafe/Massey 20
Swaraj 14
John deere 2

57
 FIGURE -4.1a

INTERPRETATION
From our research on the tractor users we find that mostly people owned the Escort tractors and
Mahindra & Mahindra tractors.

TABLE 4.2
PURPOSE OF USING THE TRACTOR

Agriculture % Industial % Loading/unloading %

94 4 2

58
 FIGURE 4.2a

INTERPRETATION
In our study on comparative analysis, we find that most of the people using tractors for
agricultural purposes and some of the users using tractor as loading and unloading of sands,
bricks etc like thing and some small entrepreneurs using for industrial purposes.

TABLE -4.3
MAIN COSIDERATION WHILE PURCHASING TRACTORS

Consideration % age
Price 4
Performance 90
Quality -

59
Brand image 6

FIGURE – 4.3a

INTERPRETATION
The main consideration of buying the tractors is performance they not bother about the price as
shown above on the figures and same in case of brand image and quality because performance
automatically deals with quality.

TABLE 4.4

HORSE POWER OF TRACTORS

30-40 40-50 50-60

28 40 32

60
 FIGURE 4.4a

INTERPRETATION
Generally people uses the tractors between 40-50 horse power range due to less cost of these
tractors and less expenses on maintenance near about 32% respondents uses more than these
limits but about 40% using between above said limits.

TABLE4. 5
COST INCURRED ON TRACTORS

Cost % age

61
2-4 lacs 28
4.6 lacs 64
>6 lacs 8

FIGURE 4.5a

INTERPRETATION

Around 54% respondents using the tractor costing 4 to 6 lacs and 28 % respondents using 2 to 4
lacs range tractors. Very few from our sample space using tractor costing more than 6 lacs

TABLE 4.6
AWARENESS LEVEL OF SONALIKA TRACTORS

62
Awareness level % age
Yes 100
No -

FIGURE 4.6a

INTERPRETATION

Almost all the respondents are aware of the Sonalika tractors. They know about the brand of
these tractors they basically like DI 740 III.

TABLE 4.7
SOURCE OF INFORMATION ABOUT SONALIKA TRACTORS

Source of information % age

63
Newspaper -
Television 4
Displays 42
Social network 32
Dealers 22

FIGURE 4.7a

INTERPRTATION
The respondents basically know from the displays and their social network like relatives and
friends. Respondents are less aware about the ads in newspapers.

TABLE 4.8
FACTOR OF DISTINCTION AT THE TIME OF THE PURCHASE OF THE TRACTORS

Factor Of Distinction % age

64
Price 4
Promotional scheme 6
Engine performance 70
Technical advancement 20

FIGURE 4.8a

INTERPRETATION
Basically the respondents like the engine performance at the time of the purchase of tractors only
4 % people go for the prices.

TABLE 4.9
BRAND PREFERANCES BY THE RESPONDENTS

PREFERENCE % AGE
Sonalika 24

65
Farmtrac/ Escort 40
Mahindra & Mahindra 20
Eicher 2
Swaraj 8
John deere 6

FIGURE 4.9a

INTERPRETATION

Around 40% people preferred farmtrac/escorts tractors and 24% preferred sonalika and 20 %
Mahindra and Mahindra

TABLE 4.10
SATISFACTION LEVEL OF THE TRACTOR USERS WITH THEIR PRESENT
TRACTORS

66
excellent satisfactory good poor Very poor
52 42 6 - -

FIGURE 4.10a

TABLE 4.11
FUTHER EXPECTATION IN NEW TRACTOR’S MODEL

SPECIFICATION %age
GEAR SYSTEM 14
ENGINE EFFI. 26
ACESSORIES 16 67
HYDRAULICS LIFTMENT 10
MILEAGE 34
 FIGURE 4.11a

INTERPRETATION

Basically people want new modification in engine efficiency and mostly people go for
developments in mileage.

68
 CHAPTER V
CONCLUSION
&
SUGGESTIONS

CONCLUSION

Sonalika has various advantages over its competitors such as low initial cost, low fuel
consumption, high speed, low maintenance cost, & easy availability

69
As tractor is meant for pulling load, sonalika has all these qualities to pull maximum load due to
high backup torque

People prefer farmtrac / ford tractors as per our research study and people like engine
performance as the main consideration of purchasing tractors.

They basically affected by the displays in providing information regarding new products so
company should create some awareness regarding this and make some hording on roads to attract
tractor users with new features mention on it.

Respondents are basically from village sides so they are not affected by the newspapers, because
in their daily life they never spent time on newspaper and their purchasing decision followed by
dealers, social network and hoardings.

SUGGESTIONS

Through tractor market is highly competitive in India and Sonalika is relatively new brand.
Hence Sonalika need a strong positioning. As sonalika tractor is capable of pulling more load and

70
unbeatable and unchallengeable features. Sonalika must be positioned as a tractor, which is most
economical and ideal for heavy load work.

Product awareness:

For promotion of a new product awareness is most important factor. As all the farmers contacted
are aware of sonalika tractors and their features and specifications. This can be done through
organizing kisan melas, exhibitions and effective demonstration at village level.

Here opinion leaders can play a vital role. Opinion leader is a person whose opinion is given high
weight age by common people like sarpanchs. Company should also concentrate on this factor.

 Besides these points we would like to suggest few more things:

 More & more emphasis on R & D must be given

 Spare parts must be easily available for different models of tractors

 Become a cost leader in field of tractors

 Provide better after sale service to develop better relation with dealers

BIBLIOGRAPHY

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1. WWW.SONALIKA.COM

2. SEARCH ENGINE (GOOGLE AND YAHOO)

3. SONALIKA LIBRARY

4. MAGAZINES (INDIA TODAY)AND JOURNALS

5. NEWSPAPERS

QUESTIONNAIRE

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Name of the customer:

Contact Number:

1) Which brand of tractor you are currently using?

Sonalika Escorts Mahindra & Mahindra Tafe Swaraj

John Deere New Holland

Please Mention company’s particular brand name of tractor …………………………….

2) For which purpose you are using tractor?

Agriculture Industrial purpose Loading Unloading

3) During purchase of tractor what was your consideration?

Price Performance Quality Brand Image

After Sale Services Hydraulic liftment power Mileage Hp

4) How much horse power is it? Mention………………

5) What cost did you incurred to procure it?

2-4lac 4-6lac More than 6lac

6) Are you satisfied with the features provided by company in your tractor?

Yes No

If no then reason is ………………………………

7) Are you aware of sonalika tractors?

Yes No

8)If yes, how did you come to know about sonalika tractors?

Newspapers Television Displays Friends/Relatives

73
 Festivals/Social functions Dealers

09) Is after sale service of this product is easily available to you in near market?

Yes No

10) Are you satisfied with after sale service provide by company?

Yes No

11) From which factor you feel that this company’s tractor is different from another company’s

tractors?

Price Promotional schemes Engine performance

Technical advancement any other specifies ………..

12) Rate your preferences among the different brands of tractors?

Sonalika Farmtrac Mahindra & Mahindra Eicher Swaraj

John Deere Ford Any other mention…………………………….

13) How has been the performance of your tractor?

Excellent Satisfactory Good Poor Very poor

14) What will you think that this tractor fulfill your all requirements?

Strongly Agree Agree Can’t says Disagree Strongly Disagree

15) What kind of development you want to have in new model?

Gear System Engine Efficiency Availability of Accessories

Hydraulic Liftment Efficiency Mileage Any Other

Any suggestions

74
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