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Sonalika Traktor Essay

Established in 1969, Sonalika group from the very beginninghastried to understand customer need so that they get better value for their money, hard earned.Sonalika has stateof manufacturing, spread in acres, located at Hoshiarpur and tax free zone at AMBin 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 anapproximate turnover of 3200 Core INR. An average growth of 30% makes it one of the fastestgrowing corporate in India. Its is also one of the few debt free companies.Group has strength of about 2000 employee & technocrats. History reveals that innovation is the keyto continued progress and when applied to technology that touches human life, it can unfold a wholenew economic phenomenon that has the power to change the world.With unique initiatives like the Thought leadership Forum, Leadership Forum, sonalika have beenable to create a unique platform for learning through success stories of industry leaders. “No, doubt that the sonalika products has created a niche for themselves not only in India but also in foreign market. To maintain quality have any defect even at micro level is been takencare of and rectified. The technology for which they use, is of the high quality and world-class quality standards.”

The industry has gradually transformed itself into a world-class player involved in building state-of-the-art products, solutions and technologies. As an industry, they are very conscious of responsibilityto society.Sonalika Foundation intends to become a catalyst, encouraging our members to do more, capturingbest 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 their vision to cater to the needful agriculture and auto industry with quality productsthrough untiring dedication and activities. As they step in to their fifth decade of existence, it continueto lead the development.Tractor and car plants work in 2 to 3 shifts depending upon volume of work for maximum production.It Continue to march ahead on road to success and glory driven by the force of initiative anddetermination to have a leading position in the tractor industry in the days to come . They haveventured in to automobile sector also with the launching of Rhino –

MUV- to write another successstory.

PROJECT HEADING
“The Study of tractors in and around Ghaziabad specially their buying practices,specific needs, model / hp / make preferences and opinion about Sonalika tractorfor this particular segment / their specific need “.

INTRODUCTION OF TRACTOR INDUSTRY
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 ismanufacturing various Tractors of Sonalika brand between 30 H.P to 90 H.P, and CLASS brandbetween 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, minimumfuel consumption and low emission. All this makes ITL one of the top three tractor selling companiesin India. These tractors are also exported to various countries including South Africa, Australia,Zimbabwe, Sri Lanka, Canada, Bangladesh, Algeria, Zambia, Senegal, Ghana etcITL has entered into strategic alliance with YANMAR of Japan for joint manufacturing tractors inIndia. 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 familywhose roots lie in its customers, who have providing constant feedback and support to allow thecompany to turn their dreams into products. “Our Manufacturing Process, Quality

Control systems and Research & Developmentfacilities are ISO-2000 certified, by the joint Accreditation system Of Australia and NewZealand. We are the first Tractor manufacturing company in the country to beaccredited with ISO-14001. It bears testimony to fact that company is having world-classR&D facilities, maintaining controls and systems of international Standard and Environment norms.”

They are also manufacturing tractors, meeting norms of Smoke & Mass Emission, Tested andcertified by ARAI, Pune. United States Environmental Norms Agency, Washington DC has alsocertified 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 bycentral Farm Machinery and Tractors Training & Testing Institute, Bundi (MP) India, (theGovernment of India Institute authorized for issuing test reports).

WELCOME TO KEY SURVEY AND STUDY
A. WHAT IS TRACTOR
A tractor is a vehicle specifically designed to deliver a high tractive effort (or torque) at slow speeds,for the purposes of hauling a trailer or machinery used in agriculture or construction. Mostcommonly, the term is used to describe the distinctive farm vehicle: agricultural implements may betowed behind or mounted on the tractor, and the tractor may also provide a source of power if theimplement is mechanised.The word tractor was taken from Latin, being the agent noun of trahere “to pull”. The first recordeduse of the word meaning “an engine or vehicle for pulling wagons or ploughs” occurred in 1901,displacing the earlier term traction engine (1859).Tractors are used extensively in mowing and land-clearing applications. In fact, the commonsuburban riding mower is basically a scaled-down tractor. They’re also used in construction,landscaping, livestock operations, and industrial settings.

B. BASIC OF CHOOSING A TRACTOR
Getting the right tractor is important: it’s an expensive purchase and one that you can easily last 10,20, or 30 years or more. This Buyer Zone Tractors Buyer’s Guide will help you through the process,answering questions such as:

How much horsepower do you need?

What features are most important?

Which attachments are the most useful?

How can you choose the right dealer?

How much you can expect to pay?Start choosing a tractor by determining if one is actually right piece for you. There are three mainpoints to consider when choosing which type of equipment is right for you: FLEXIBILITY

Skid steer loaders and tractors are designed to power many kinds of attachments,while excavators and loader/backhoes are dedicated to the specific tasks of digging and loading. As aresult, the specialized machines are more efficient at their specific jobs, but the generalists are usefulin more ways. SURFACE IMPACT

Skid steers and excavator tracks can wreak havoc on grass or loose surfaces.In contrast, even fairly substantial tractors equipped with the right tires can work on these types of surfaces without doing noticeable damage. OVERAGE AREA

Since they can move at faster speeds, tractors are more appropriate than skidsteers for work that involves covering a lot of ground: mowing or plowing large fields.

Hydrostatic transmissions are the best choice if the primary operators of the tractor aren’t familiarwith using manual transmissions. However, they’re more expensive, and they reduce the availablehorsepower slightly when compared to manual transmissions.If your operators are comfortable with using a clutch, you can save some money and get a little morepower out of your tractor by choosing a manual transmission. SAFETY (ROPS)

All new tractors are required to come with rollover protection structures (ROPS) that greatly improvesafety. When used in conjunction with a seatbelt, ROPS prevent the tractor from crushing theoperator in a rollover accident.Another safety feature to look for is an operator presence switch. These systems can detect theoperator’s weight in the driver’s seat – and if there’s no one in the seat, they automatically shut off theengine.Most tractors will have basic lights and flashers for road operation, but you should check localregulations for any rules about driving tractors on public roads to see if there are more specificrequirements. TIRES

Your application will also determine what type of tires you should choose. Tractors can use manytypes of pneumatic tires: agricultural tires for working in loose dirt; industrial tires for heavy mowingand loader work, or turf tires that reduce damage when mowing finished lawns. Your dealer shouldshow you several types of tires that appropriate for your use.

F. TRACTOR ATTACHMENTS
While the tractor itself provides the power to get your job done, the attachments are what actually dothe work. As one dealer told us, a tractor without attachments is basically a slow ride to the mailbox.Buying the right attachments for the job you need to do is an essential part of a tractor purchase. Themost common type of application is moving materials around, and for that job, a front-end loader

isa great choice. A simple scoop on two arms, a loader can be used for carrying dirt, rocks, mulch, orother loose materials; for leveling and landscaping work; and for carrying heavy items. Unlike mostattachments, this popular tool connects to the front of the tractor, instead of the back, meaning it canbe left on while using the back end for other attachments.Some popular attachments:

Box blades are used to scrape or push earth, for grading, leveling, or bulldozing applications.

Mowers come in many types: rough cut and brush mowers for cutting through heavy growthand finish mowers for more detailed work. 

In agricultural use, tillers, plows, and disk harrows are excellent tools for preparing fields.

If snow is an issue in your location, front-end plows and blowers turn your tractor into asnow-removal machine.

Backhoes
provide serious digging power –  but at a high cost: they’re among the mostexpensive attachments you can buy. Not all tractors can support backhoes,either.

Other attachments include landscape rakes, spreaders, forks, grapples, and hay bailers.

CONNECTING TRACTORS ATTACHMENTS
Most attachments connect using a three-point hitch at the back of the tractor. This lets them use thepower take-off unit (PTO) as a power source. Almost all tractors use a standard 540 RPM PTO andthree-point hitch, which means attachments are generally interchangeable between different tractors.Verify that the horsepower rating of your PTO is enough to run the attachments you plan on using.1000 and 2000 RPM PTOs are also available, but unless you need a specialized attachment that onlyworks at those speeds, they’re not important. Some tractors have a PTO located in the middle of thetractor, beneath the operator. This can be helpful for precise mowing, but it’s not very common. G.

CHOOSING A TRACTOR DEALER
Buying a tractor involves more than just choosing the right model and the right attachments: you haveto choose a tractor dealer you can work with for the long term. Like any piece of heavy equipment,your tractor will wear and eventually break, making your relationship with the dealer important.Having warranty coverage on your tractor isn’t worth much if the dealership can’t do the work youneed. Ask potential tractor dealers about their service policies:

What kind of parts inventory do you keep on hand?

How many technicians do you have? What is their training and experience like?

Do you do on-site service if my tractor needs repairs? What about scheduled maintenance?

Do you have guaranteed response times?

Do you provide loaners if my tractor needs to be taken in for service? Will you pick my tractorup if it needs to go in for extensive work? You should visit the dealer’s facility. Simply seeing the parts warehouse and service areas can give you a good sense of their capabilities.

REGULAR MAINTAINENCE
Relatively simple tasks like changing the oil, replacing filters, and lubricating joints are an essentialpart of extending your tractor’s lifespan, and many tractor owners choose to take care of routinemaintenance on their own. But in addition to repairing breakdowns, your dealer should also help withthis type of preventative maintenance.They should provide you with a detailed maintenance manual, and walk you through the basicmaintenance procedures if necessary. They can also be your source for the parts and supplies youneed to keep the tractor running smoothly.

Handling this routine maintenance isn’t difficult, but it does require that you stick to a schedule.Because regularly scheduled maintenance is so important, it can make sense to purchase amaintenance contract. For a small yearly fee, the dealer will make sure all required maintenance isdone right and on time, either at your location or theirs. OTHER CONSIDERATIONS

Many tractor manufactures have been around for decades. While newer or lesser-known brands maybe cheaper, choosing a brand with longevity helps unsure that you’ll be able to find parts when youneed them.Better dealers will let you take a tractor for a demo at your own site. This is a great way to evaluatedifferent models: you’ll be able to get a feel for how well each performs in your specific applications.You’ll also be able to directly evaluate subjective issues like visibility and ease of use. Lastly, don’t underestimate your personal reactions. Choose a dealer you feel is honest with yo u andeasy to work with: those impressions are often good indicators of how the dealer will treat you in thelong run. If the dealer aggressively starts selling you on a tractor without trying to determine yourneeds, you may want to keep moving. Quality dealers want to put you in the right tractor, knowingthat if you’re satisfied with your purchase, you’ll eventually come back.

softening of commodity prices preparing the ground for the industry to earn higher profitabilitymargins. The pickup in volumes also lowered the overhead expenses for the tractor manufacturers,boosting their profitability. While the OEMs did not lower the listed sales price of tractors, the benefitof lower steel prices was passed on to the end customers via discounts. This is an accepted practice inthe industry; given that once prices are lowered it is difficult to raise them subsequently. However,during H2 2009-10, the tractor majors increased the prices with the reversal of commodity prices andthe discounts have also come down INDUSTRY TREND BY REGION

The biggest markets for the tractor industry include States like Uttar Pradesh (UP), Andhra Pradesh(AP), Madhya Pradesh (MP), Rajasthan, and Maharashtra, which together accounted for around 50%of the total tractor sales in India during 2009-10. The tractor industry witnessed a strong y-o-y growthof 28.3% during 2009-10, with most of the States reporting positive growth during the year.

The northern region remains the largest tractor market in India with sales of around 1,67,000 unitsas of 2009-10. This region reported a growth rate of 35.7% in volume sales in 2009-10 over theprevious fiscal, with the key contributors including UP, Punjab, Haryana and Rajasthan. The northernregion benefited from higher MSPs (for crops), limited availability of labour (forcing highermechanisation), and increasing non-agricultural use of tractors. Additionally, increased infrastructuredevelopment activities (especially highways) led to appreciation in land values and use of tractors fornon- agricultural purposes. In some cases, farmers also received compensation for the Government’s acquisition of select land patches (adjoining highways), which increased the availability of cash withthem. Feedback from industry players suggests cash purchases (including purchases using KisanCredit Card) in some northern States increased to 35-40% of the total tractor volumes in 2009-10from 10-15% in the past.Tractor volumes in UP grew by 42.7% during 2009-10, with H2, 2009-10 reporting particularlystrong growth (around 51% y-o-y) mainly on the back of high sugarcane prices for the kharif cropand improved irrigation facilities.

In the case of Punjab, tractor volumes remained strong for the fifthstraight year in 2009-10 (y-o-y growth of 42%). In Rajasthan however, growth in tractor volumes wasrelatively subdued in 2009-10 (around 24% y-o-y) as compared with the figure for the northernregion as a whole. Tractor sales in Rajasthan were especially low in H2, 2009-10 versus H1, 2009-10,due to lower kharif output on account of deficient rains and inadequate financing availability.In the eastern region, tractor volumes continued to report strong growth in 2009-10, albeit on a smallbase, and went up by 53.8% over 2008-09, being driven mainly by the higher MSPs announced forpaddy. Within the region however, many financiers remained reluctant to finance tractor purchases insome States like Bihar. Nevertheless, in Bihar, tractor volumes grew 66% over 2008-09 to around29,000 units in 2009-10, thereby accounting for over 50% of the total sales in the eastern region. TheBihar market, where tractor penetration had been low historically, has shown sustained growth overthe last few years and become one of the important markets for the tractor industry. Overall, in theeastern region, growth in tractor volumes is expected to moderate, going forward, as the benefit of alow base get diluted gradually.The western region reported sales of around 92,000 tractor units during 2009-10 —  a growth rate of 35.7% over the previous fiscal —  benefiting particularly from the strong performance thatMaharashtra, Gujarat and MP posted during H2, 2009-10 (55% y-o-y growth over H2, 2008-09).

Thefactors contributing to the strong growth in the region during H2, 2009-10 included a benign baseeffect, higher crop prices (of sugarcane and cotton in Maharashtra, and of cereals and soyabean inMP), and greater availability of retail finance.The performance of the southern region in terms of tractor sales was relatively modest during 2009-10, with the growth rate being around 11.9% over the previous fiscal. While most States in the regionreported healthy growth, AP, which is the largest tractor market in the south, de-grew by 10.4% in2009-10. The AP market has been undergoing a volume correction since 2007-08, with the precedingfour to five years having witnessed a large and sustained volume growth; this factor apart, the de-growth of 2009-10 was also aided by irregular monsoons. The other big market in the southernregion, Karnataka, reported growth of 74% in tractor volumes in 2009-10 mainly on the strength of higher MSPs for rice; however, volume growth is expected to moderate in 2010-11 because of thebase effect. In Tamil Nadu, tractor sales were flat during H1, 2009-10, but the performance improvedin H2, 2009-10 mainly because of improved retail financing by the PSBs.

INDUSTRY TRENDS BY TRACTOR HORSE POWER(HP SEGMENT)
The Indian tractor market has traditionally been a medium HP market, with 31-40 HP tractorsaccounting for around 47% of the total industry volumes. In 2008-09, the 31-40 HP category hadreported sales of 157,602 tractor units, which was about the same as the previous year’s figure but lower than the 2006-07 statistic by 7%. In 2009-10 however, this category reported a strong revival,with the volume growing by 22%2 over 2008-09; the revival was led by UP, Karnataka and MadhyaPradesh.The other major segment in the Indian tractor market is the 41-50 HP range, which accounts foraround 23% of the total industry volumes. This segment grew by around 10% during 2009-10,thereby underperforming the growth in overall tractor volumes (around 19%) that year. The mainreason for this underperformance was the low growth that the southern region, the biggest market forthis segment, reported in 2009-10.

The >51 HP segment of the Indian tractor market alsounderperformed the industry growth rate in 2009-10 mainly because of the de-growth in the exportswhich is a key demand area for these high HP tractors. SOME LONG TERM DEMAND DRIVERS (TRACTOR INDUSTRY)

Low penetration of tractors in Indian agriculture:

Indian agriculture is characterised by low farmmechanisation, fragmented land holdings, and high dependence on monsoon rains (in the absence of adequate irrigation facilities). Tractor penetration in India is low at around 13 tractors per 1,000hectares as against the global average of 19 and the US average of 29. While this does indicate therelative backwardness of Indian agriculture, it also points to the significant scope that exists forraising tractor penetration, which bodes well for tractor demand over the long term. Government support for the agricultural sector:

Although agriculture contributes just around 20% to India’s GDP, it provides employment to a large rural population, which is why the sector remains a strong focus area for the Government. The tractor industry benefits significantly from theGovernmental focus on agriculture, with measures such as nil excise duty on tractors (even the exciseduty on tractor parts has been lowered from 16% to 8%) and inclusion of tractor financing underpriority sector lending (by PSBs) serving as long-term demand drivers. Financing of tractor purchaseis of great significance for the industry, it being a key demand facilitator. Export of tractors:

Indian tractor manufacturers have been increasingly targeting the internationalmarkets over the last few years. The industry exported a total of around 37,900 tractors during 2009-10, with the USA, Africa, South America, and some Asian countries being the top destinations. Theindustry leader, Mahindra and Mahindra (M&M), has acquired Yancheng Tractors, the fourth largesttractor manufacturer in China (in terms of FY2008 volumes), to improve its presence in the country.In the developed markets, Indian tractors have a relatively marginal presence, with sales being largelyrestricted to the hobby farming segment.


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