Gndu College

GNDU College

Department of Management

SONALIKA INTERNATIONAL LIMITED Report on summer training

Submitted to:

Mrs. Simriti Popli

In partial fulfillment of the

Requirement for the award of degree of

Masters of Business Administration

Submitted by:

Jasleen Kaur Karwal

MBA-5thsem

2013-UCC-1614

PREFACE

• INTRODUCTION

• HISTORY OF SONALIKA

• SONALIKA GROUP UNIT

• INTERNATIONAL TRACTORS LIMITED

• INTERNATIONAL CARS AND MOTORS LIMITED

• SONALIKA AGRICULTURE CORPORATION

• PRODUCTION AND DISTRIBUTION

• DIFFERENT MODELS OF TRACTORS

• MANUFACTURING PROCESS

• MARKETING STRATEGIES

• RECRUITMENT

• ORGANISATINAL CHART OF ITL

• FINANCIAL ANALYSIS

• ACHIEVEMENTS

• CONCLUSION

ACKNOWLEDGEMENT

I would like to express my sincere thanks to MR.GURVINDER SINGH (HEAD HRM) and MR.KAMALPREET SINGH with whose guideline I am able to received data of INTERNATIONAL TRACTOR LIMITED, VILLAGE CHACKGUJRAN, HOSHIARPUR for presentation.

I also pay my sincere thanks to MR. VISHAL (MANAGER) under whose guidance I am able to complete my presentation report in a fruitful way. I also pay special thanks to MR. GURDIAL SINGH (FINANCE DEPT.) and other members. I also pay my special thanks to the head of the various departments in the INTERNATIONAL TRACTOR LIMITED under whose kind cooperation I was able to gain ample quantity of knowledge.

In the end I thank all the employees and staff members of INTERNATIONAL TRACTOR LIMITED for their active cooperation and help provided to me useful data for presentation.

INTRODUCTION

Presentation is a most importance part of study curriculum in Master of Business Management Education field. I am being a student of MASTER IN BUSINESSADMINISTRATION (M.B.A.) in GURU NANAK DEV UNIVERSITY, COLLEGE JALLANDHAR.

So for the Presentation I have preferred INTERNATIONAL TRACTOR LIMITED HOSHIARPUR because of its bright future. INTERNATIONAL TRACTOR LIMITED is one of the best firm, which has got ISO 9001:2000 & ISO 14001 certificate in just two year of its establishment.

The firm has acquired the state of the art technology from RENAULT AGRICULTURE LIMITED FRANCE with whom they have collaborated. The profit and growth of the company is amazingly superb. In just four to five year of establishment the company is ranked in top positions. The Research & Development center of firm is completely modern with latest technology. The work force of company is highly skilled at the top level as well as floor level.

HISTORY OF SONALIKA

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. Established in 1969, Sonalika group from the very beginning has tried to understand customer need so that they get better value for their money, hard earned. Sonalika has state of manufacturing, spread in acres, located at Hoshiarpur and tax free zone at AMB in Himachal Pradesh.

Sonalika is the one of the top 3 tractor manufacturing companies in India, other products include Multi utility vehicles, engines and various farm equipments.

Today the group stands tall with an approximate turnover of 1200 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. 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, Sonalika grouches been able to create a unique platform for learning through success stories of industry leaders.

SONALIKA GROUP

Sonalika Group is one of the top five tractor manufacturers in India. Apart from tractors its product line includes multi utility vehicles (MUV), three wheelers, engines and various farm equipments and implements. Sonalika Group is contributing to green revolution in India Since 1969. Initially it started with Farm Equipments and Machinery. Brand name of the group products is "SONALIKA". The company has a state of art manufacturing facilities, spread in acres, located in the pollution free suburbs of Punjab and Himachal Pradesh.

Today the group stands tall with the approximate turnover of US Dollar 200 Million. An average growth rate of 30% makes it one of the fastest growing corporate in India. It also happens to be one of the very few debt free companies in the world. It employs about 5000 people including some of the renowned names in the industry. The company works on the maxims of low production cost and clean and safe environment. Such efforts have fetched the company the accreditations like ISO 9001:2000 and ISO 14001. Sonalika is also an environmentally responsible corporate citizen and has developed in-house, the vehicle engines that confirm to Bharat 3 Norms. It is now in the process of developing the Bharat 4 engines for its advanced products. No wonder Sonalika products have created a niche for themselves not only in India but also in foreign markets including France, Zimbabwe and many of the South-Asian countries.

Sonalika group is divided in four units. Sonalika group units are as follow:

Sonalika group’s products exist in various international markets. Company’s product exported in Algeria, America, Australia, Bangladesh, Ethiopia, Malawi, Malaysia, Nepal, South Africa, Sudan, Canada, Zambia, Syria, Ukraine and Zimbabwe.

Sonalika group

INTERNATIONAL TRACTORS LIMITED

International Tractors Limited was incorporated 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 75 H.P, and CERES brand between 60HP to 90HP. The Tractors manufactured by the company have secured a reputation of performance, quality and reliability in the market because of their maximum pulling power, minimum fuel consumption and Emission. All this makes ITL the fifth largest tractor selling company in India and the number one company in Nepal. The company's marketing efforts are promoted by the network of 600 Dealers , 400 Sub dealers and 50 Stockiest supervised by various regional sales offices.

We are also the first Tractor manufacturers in the country producing 50 & 60 HP Tractors fitted with diesel engines manufactured In-House, meeting Bharat III norms of Smoke & Mass Emissions. 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, Budni (MP) India, (the Government of India institute authorized for issuing test reports). Recently SONALIKA Tractors have been awarded "The Best Quality Award by the Govt. of India. Sonalika International Tractors have also been approved for subsidy under various schemes by Ministry of Agriculture, Govt. of India.

INTERNATIONAL CARS AND MOTORS LIMITED

Today with the changing times, the needs and expectations of the customer are changing. He is technically well aware and economically conscious. He is not only concerned about his own safety but also about the safety of the environment. He wants a multi utility product Therefore, we at International Cars & Motors Limited developed a team that is constantly working with the dreams that vehicles inspire. Our team is exploring human ideas and desires by developing the static driving experience with intelligent technology - simple, safe and green.

International Cars & Motors Limited (ICML) is a Group Company of the Rs. 1200 Cr 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 tractors, farm machines & automobiles. . The Company is developing its own Common Rail Direct injection (CRDi) engines.

In the 1st full year of production in 2006 – 2007, ICML is aiming to churn out about 5000 MUVs & expects to achieve a turnover of Rs. 250 Cr. The Company, besides catering to the domestic market, also has an eye on exports & hopes to market the production in the neighboring country Nepal, while talks for exports to Malaysia & Indonesia are also in an advanced stage.

SONALIKA AGRICULTURE CORPORATION

SonalikaAgro was established in 1971 to support the Indian farmers with mechanization technology to facilitate persistence of green revolution. Today, the company is supporting the farmers with world class farming equipment to ease the process of making the Green Revolution, a dream come true.

In the light of the company's mission, highly qualified and experienced staff is working as a family in the manufacturing facility at Hoshiarpur (Pb). This plant is equipped with advanced technology to develop, manufacture and test the modern products for the modern farmer. The company has a wide range of farm equipments and implements to facilitate the farmers in all kinds of farming activities. It has a large dealer network spread all over country and have approximately 80% share in Indian market of farm machinery .Its products are also exported to Asian & African countries through various export promotion counsels.

Sonalika Agriculture Corporation manufactures:-1. Multi Crop Threshers2. Automatic Cutter (HARAMBA)3. Paddy Thresher 4. Seed Cum Fertilizer Drill5. Maize Sheller 6. Potato Planter7. Reaper8. Combine Harvester

SONALIKA MULTI-CROP THRESHERS

SONALIKA” Multi-crop Threshers are capable of running with Electric Motor as well as Diesel Engine and are compatible with tractor from 2 HP to 40 HP. These threshers are suitable for threshing crops like wheat, maize, sorghum, grains, sunflower, ragi, millets, mustard & pulses etc.

SONALIKA Multi-crop Threshers consists of crop feeding chute, threshing cylinder having stud type beaters/ blades blowers, set of sieves, sieve casing, flywheel, pulleys, main shaft high quality bearings, grain and straw outlet etc. Different variants available for these threshers are - self-feeding chute, double blower, double speed, etc.

SALIENT FEATURES:-

1. Robust Construction2. 50% extra output then other threshers3. High quality material like steel, bearings, pulleys, V-belts etc 4. Provision of adjusting the cylinder and concave.5. Provision of wheels for easy transportation.6. Provision for speed variation for different crops7. Extra safety covers are provided over pulleys, flywheel. V-

belts to avoid any accident.8. More efficiency resulting in better performance in less fuel

consumption.

SONALIKA AUTOMATIC CUTTER MODEL



SALIENT FEATURS:-

1. Robust Construction2. 50% extra output then other threshers3. High quality material like steel, bearings, pulleys, V-belts etc 4. Provision of adjusting the cylinder and concave.5. Provision of wheels for easy transportation.6. Provision for speed variation for different crops7. Extra safety covers are provided over pulleys, flywheel. V-

belts to avoid any accident.8. More efficiency resulting in better performance in less fuel

consumption.

PRODUCTION AND DISTRIBUTION



SALIENT FEATURES:-

1. Robust Construction2. 50% extra output then other threshers3. High quality material like steel, bearings, pulleys, V-

belts etc 4. Provision of adjusting the cylinder and concave.5. Provision of wheels for easy transportation.6. Provision for speed variation for different crops7. Extra safety covers are provided over pulleys, flywheel.

V-belts to avoid any accident.8. More efficiency resulting in better performance in less

fuel consumption.

DIFFERENT MODELS OF TRACTORS OF COMPANY

As the name suggest the company is related with the production of tractors and started its commercial production on 14-10-1996 at present the company is producing eight to nine models of tractors, which are : -

1. DL-730 Two cylinder, Single clutch2. DI-734 Two cylinder, Single clutch

3. DI-740Three cylinder, Single clutch, Standard

4. DI-740Three cylinder, Single clutch, Deluxe

5. DI-740Three cylinder, Single clutch, Standard

6. DI-740Three cylinder, Single clutch, Deluxe

7. DI-750-IThree cylinder, Single clutch, Standard

8. DI-750-IThree cylinder, Single clutch, Deluxe

9. DI-705-IIIThree cylinder, Single clutch, Standard

10. DI-705-IIIThree cylinder, Single clutch, Deluxe

MANUFACTURING PROCESS OF SONALIKA INTERNATIONAL TRACTORS LIMITED

Every Sonalika Tractor manufacture at Hoshiarpur based plant comes out as a sample of unparallel techniques. There export techniques are keenly observant of every small part manufactured here. Quality of spare parts manufactured here is inspected and checked as per international standards.

1. PROCESS OF ENGINE MANUFACTURING:- Sonalika manufactures unmatched, smokeless engines that emerge successfully through every touchstone of quality. In the manufacture of this most vital part of Tractor, only imported machines are used, which in term lend its quality confronting to international standards.

2. PROCESS OF GEAR MANUFACTURING:- Hi-Tech Gadgets and largest techniques are used to manufacture gears of international standards instruments especially those imported from Germany, France and Russia are used to build a special kind of power working capacity of Gear.

3. QUALITY CHECKING OF GEAR BOX: -Every Gear Box of Sonalika is checked on every level in a special way with fully computerized machines. This is just to make sure that manufacturing of Gear match with international standards.

4. QUALITY CONTROL: -Department of quality control tests even the ignorable obsession with keen eye so that Sonalika Tractors may emerge successfully through every test of quality. Here experts measure every specification

up to three decimal points of millimeter. Thereafter, it is to wonder that every Sonalika Tractor is magnificent sample of quality.

5. SUB ASSEMBLING:- Production process of Tractors completes its course cycle in this fully computerized section of the factory. Every part of Tractor is thoroughly checked and assembled. Thereafter, Tractor is shifted to final Assembling Section where it eventually sees the light of the day.

6. PAINT SHOP:- After having been through the sub-assembling, every part of the Tractor is shifted to Paint Section, where these spares are painted with the help of imported machines. This fully computerized section utilizes the paint techniques used in the Car industry all over the world, and thus, Tractors too get splendid look. Anti rusting techniques, which adds to the longevity of your Tractor and makes nits serve you for several years is the most important feature of the painting techniques adopted here.

7. FINAL ASSEMBLING: - After the completion of manufacturing process including all technical requirements, the Tractor is given finishing touches in the Final Assembling Section. Thereafter, it undergoes rollers testing, field-testing and road testing. These tests ensure the actual working capacity of the Tractors.

8. IMPROVEMENT PROCESS BY RESEARCH & DEVELOPMENT DEPARTMENT:- Improvement is a continuous process and as per changing times and requirements, every product needs to be evolved further. In keeping with the changing requirements of Tractor Consumer, R&D Department of Sonalika incessantly making continuous endeavor R&D Department also ensures the quality checking of every part of the Tractors and if, the suggestion for improvement are given. All these factors are considered vis-à-vis international standards so that farmers should get high tech Tractors genuinely indigenous and on quit genuine price.

9. STORAGE OF MANUFACTURED TRACTORS:- It is necessary to observe utmost caution not only in the manufacturing of Tractors, but also in keeping them in similar conditions. Once they are manufactured and are to be dispatched with this end in view a fully covered storage shed had been specially established.

MARKETING STRATEGIES

The Sonalika Company Ltd. Has the largest sale of tractors. It usually leads the other company in price changes, new product introduction, and distribution coverage and promotinal intensity.The various marketing strategies adapted by Sonalika are :

1. Demonstration and free test drive:- When the company introduces a new product in the market, it demonstrates its vehicle to the customers and provide from test drive, with a view and educate them at dealer showroom.

2. Free service programmed:- Free service coupons are provided with the purchase of new vehicle and if any parts are damaged within the guarantee period, they are reported at free of cost by the dealer.

3. Free checkup campaign:- Once or twice a year the dealer and service engineers of the company arrange free checkup campaign and the customers are educated about the difficult handling of the vehicles.

4. Advertisement:- With the view to create demand for the product in the mind of the customer and to improve the competitive strength the company advertise its products through various media such as TV, Newspaper, Magazines, and Sign boards etc.

5. Field staff:- Dealers will send their field staff to villages, rural and urban areas to educate the customers about the uses of vehicles and also taken orders.

RECRUITMENT

Diploma/Graduate Engineers are recruited. Recruitments is done through following sources:

1) Campus interviews.2) Employment exchange.3) Advertisement.

Candidates are required to go through compulsory selection testes as personality, typing, aptitude test and a series of functional tests by which competence of the candidates at the cognitive level is assured.

Also the candidates have to undergo training up to a particular level. Important factor considered while selection an individual are the set of aptitude and values an individual possess, as this determines the ultimate adjustments between organization and employee.

Circulating the requirement internally, e.g. the scheme of “FAST TRACK” to managerial carriers also fills many vacancies. Candidates with the necessary aptitude under goes a selection test program based on assessment center methodology. Those who are successful can jump almost four grades.

ORGANISATIONAL CHART OF ITL

FINANCIAL ANALYSIS

The term financial statement analysis includes both analysis and interpretation. A distinction should, therefore, be made between the two terms.

While the term analysis is used to mean the simplification of financial data by methodical classification of the data given in the financial statements, interpretation means explaining the meaning and significance of the data so simplified.

However both analysis and interpretation are interlinked and complementary to each other. Analysis is useless without interpretation and interpretation without analysis is difficult or even impossible.

METHODS OR DEVICES OF FINANCIAL ANALYSISA number of methods are used to study the

relationship between different statements.1. Ratio Analysis2. Comparative Statements3. Trend Analysis4. Common-Size Statements5. Fund Flow Analysis6. Cash flow Analysis

The comparative financial statements are statements of the financial position are different periods of time. The elements of financial position are shown in a comparative form of so as to give an idea of financial position at two or more periods.

The comparative statement may show: -

1. Absolute figures (Rupee Amounts)2. Changes in absolute figures i.e. increase or decrease in

absolute figures.3. Absolute data in terms of percentages.4. Increase or Decrease in terms of percentages.

The analyst is able to draw useful conclusions when figures are given in a comparative position. The figures of sales for a quarter, half-year may tell only the present position of sales efforts. When sales figures of previous periods are given along with the figures of current period, then the analyst will be able to study the trends of sales over different periods of time. Similarly, comparative figures will indicate the trend and direction of financial position and operating results.

ACHIEVEMENTS

1. Company has produced smoke free diesel engine.

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

3. The company has obtained ISO 9001 14001 Certification.

4. Sonalika tractors have made rapid strides in Indian Tractor Industry by having sold 17002 tractors during 2001-2002 achieving over 50% growth vis-à-vis industry drop to the tune of 10% as compressed to preceding year.

5. ITL has a network of around 560 dealers all over India.

6. International Tractors Limited, the rapidly growing Tractor Company, has been awarded the ITID Quality Excellence Award. This award has been instituted by the institute Of Trade and Industrial Development.

7. CMERI Govt. of India, which has many firet to its credit in many fields, has been helping Sonalika a lot in enriching the Company with technological advancements based on their strenuous efforts and Research a function was held at the VigayanBhavan in New Delhi.

CONCLUSION

Having gone through the financial analysis of International Tractors Ltd.

For last two years it is observed that:-

A satisfactory level of Working Capital Is maintained in the Company. There is increase in the working capital each year.

Current assets of the company increased every year. Company is doing everything to further increase current assets in the future.

Sales of the company have increased in each year and this shows that company is growing its share in the market and giving tough competition to its competitors.

Net profit of the company has also increased each and every year. This shows the liquidity position of company. Company has better ability to face any adverse situation. This increases the goodwill of the company and which is very good for the company.

Almost all the ratios, except few, are in favour of the company. This means that company’s policies and position are very good.

From the trend analysis it is considered that there is appositive trend in the company. Means to say that company has grown in last 10 years and will also continue in the future.

Company has to do more advertisement for its tractors. This will promote the sale to increase.

CERTIFICATE

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