New Delhi: Charting out expansion plans in its utility vehicle and farm equipment businesses, Sonalika Group said on 14 June it will invest about Rs1,150 crore ($283 million) in the next three years.
The investments would be through its two subsidiaries — International Cars and Motors LTD (ICML) and International Tractors Ltd (ITL).
While ICML would invest about Rs700 crore on capacity expansion, enhancing its design facility and development of a new sports utility vehicle, ITL would invest about Rs450 crore on setting up a new tractor manufacturing unit in south India and ramping up existing capacity.
“We are looking at setting up a greenfield tractor manufacturing plant in south India. We have written to the governments of Tamil Nadu, Andhra Pradesh and Karnataka for the purpose,” Sonalika Group chairman L.D. Mittal told reporters here.
He said the new plant will entail an investment of about Rs250-300 crore, with an annual capacity of about 40,000 units.
ITL would also invest Rs150 crore on doubling capacity of its current facility at Hoshiarpur in Punjab to 80,000 units a year.
ICML managing director Deepak Mittal said the company would invest Rs700 crore by 2009 on new product development and increasing utility vehicle manufacturing capacity at Una in Himachal Pradesh.
Of the Rs700 crore investment planned by ICML, Mittal said about Rs200-250 crore will go into the development of a sports utility vehicle, which is expected to be launched after two years.
Besides, the company is expanding the utility vehicle capacity at Una to 60,000 units a year from the current 24,000. It could need an investment of Rs250 crore, he added.
The company on 14 June launched an upgraded version of its MUV Rhino Rx, which has been priced between Rs5.85 lakh and Rs6.95 lakh (ex-showroom Delhi).
Mittal said the new vehicle would be launched across India by September and the company was looking to sell about 2,000 units a month.
The earlier version of Rhino, which was launched about two years back in select cities of north India, has been doing just about 200 units a month.
Asked about the group’s plans of foraying in the small car segment, L.D. Mittal said it was not immediately looking at it.