CHAPTER-1

Executive Summary

This report is regarding the survey conducted for International Tractor Limited (Sonalika) on
the topic “Comparative Study of Sonalika Tractor with Respect to Other Brands”. The survey
was conducted in varies villages of Hoshiarpur district. For this purpose a questionnaire was
developed on the basis of discussion we had with our training supervisor Dr. Gurvinder Singh
(Deputy Manager HRD ITL). Many discussions with farmers were also conducted for
developing the questionnaire. From that discussion we got to know of the various parameters
while purchasing a tractor and these parameters were also included in the questionnaire. The
no. of respondents was hundred including the dealers. The main objective of the study was to
find out the best tractor on the basis of the various parameters such as fuel efficiency,
availability of spare parts, problems faced in a tractor etc. The data regarding the areas in
which Sonalika was lacking was also to be provided to the organization.

For this purpose the samples were collected from rural areas of Hoshiarpur district. The first
objective was to see the position of Sonalika in these areas. Secondly we were to see the kind
of problems faced by the people in terms of after sale services etc. From the survey we also
observed the post purchase behavior of the farmers.

For this task we had to go to the various villages. The problems of the people in these areas
were also seen. The kind of atmosphere they had was quite different. The major problem they
had was the non availability of original spare parts. The major problem was seen in terms of
the tractor named as John Deere whose spare parts are not easily available in the market. The
findings regarding the Sonalika were also to be taken into account. The tractor was lacking in
terms of the spare parts. The major problem people had with Sonalika is that the wear and tear
of the tractor is very high. Secondly people said the tractor’s engine is changed in a short
period of time. Thus it creates a problem when farmers go to the market and the spare parts
they have in their tractor are not found. Thus it is one of the major problems with Sonalika
tractor. The people were also having problems in terms of the price of Sonalika tractor. Most of
the respondents considered it as an expensive tractor. Sonalika is considered to be the best
tractor in terms of overloading the tractor came first in this parameter. People also like this
tractor because of the comfort it gives. The tractor came out first when it comes to the tractor
which is designed ergonomically. From all this survey the thing which comes out is that the
position of the tractor is very good but not the best. The tractor is facing stiff competition from
Swaraj ant Mahindera. The reason being that these are the old players in the market and have a
strong brand image. When we talk about Sonalika then it is placed good in the market. The
implication which we have observed is that the tractor is doing well in foreign markets. The
Sonalika tractor is having strong customer base in other countries. The reason behind this is the
collaboration with the companies like Yanmar. MG Rover etc.

The company is one of the top tractor manufacturers in India. The growth the company had
within these twelve years right from its establishment in 1996 is tremendous. Within these
twelve years the companies is placed in top three tractor manufacturer companies. Thus the
improvement the company has done from the very first day of its establishment is very good.
The company is having various projects for the future also. The company is now going to enter
into power generator manufacturing. The company has also entered into a contract with a
company named as Pininfarina. This company will now have a technical collaboration with
International Cars & Motors Limited. The companies will produce a world car which will be
available by 2010 in India & Europe. The company wants to be the leader in the industry by
the year 2010. Sonalika has also done a lot of things on terms of the quality standards. It is the
company having ISO 14001 certification. Along with that it also has ISO 9000 certification.
Thus Sonalika can be considered as a company having a great potential to prove itself in todays
market.

2
 CHAPTER-2

Introduction to the Project

Introduction: I conducted a survey in Sonalika group (ITL) on the topic “Comparative

analysis of Sonalika tractor with respect to other brand of tractors”. The main objective of the
study is to find out the rank of Sonalika tractor. So, I was go for comparative analysis which
means Item by item comparison of two or more comparable alternatives, processes, products,
qualifications, sets of data, systems, etc. For this purpose I chose six brands of tractors which
are well popular in the market. These brands are:

• Sonalika
• Escort
• Mahindra
• John Deere
• Sawraj
• Farmtrac

A Brief Introduction to the tractor Industry in India

Sonalika (International Tractors Ltd.)

International Tractors Limited was incorporated on October 17, 1995 and began
manufacturing tractors designed by Central Mechanical Engineering Research Institute
(CMERI). ITL currently is manufacturing Sonalika tractors between 30 HP to 90 HP, and the
CERES brand between 60HP to 90HP. ITL went into collaboration with Renault Agriculture
of France in July 2000. Renault Agriculture is a subsidiary of the Renault Group. Renault
Agriculture was bought by CLAAS of Germany in 2003. Incidentally CLAAS already has a

3
strong presence in India market producing its Crop Tiger range of Combine Harvesters in a
plant in Faridabad (near New Delhi) since 1992.

Escorts (Escort, Powertrac and Farmtrac)

Escorts Ltd began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK
and total production climbed steadily to 33,000 in 1975 reaching 71,000 by 1980. Ford (Ford -
New Holland) was sold in 1992. Ford Motor Company proper quit the tractors business, but
the name was allowed to continue as per agreement until 2000, when Escorts relabeled its Ford
models under the Escort brand. Escort manufactures produces tractors in the 27-75 HP range
and has already sold over 6 lac tractors. Its tractors are marketed under three brand names,
Escort, Powertrac and Farmtrac.

Mahindra & Mahindra

M&M's Farm Equipment Sector origin lie in a joint venture in 1963 between the Company,
International Harvester Inc., and Voltas Limited, and was named International Tractor
Company of India (ITCI). In 1977, ITCI merged with M&M and became its Tractor Division.
After M&M's organizational restructuring in 1994, this division was called the Farm
Equipment Sector. The Farm Equipment Sector has also ventured into manufacturing of
Industrial Engines. M&M Industrial engines are used for various applications like generator
sets, industrial, construction, marine, compressors, etc. These engines are manufactured at the
Company's engine assembly plants at Kandivli and Nagpur. M&M has two main tractor
manufacturing plants located at Mumbai and Nagpur in Maharashtra. Apart from these two
main manufacturing units, the Farm Equipment Sector has satellite plants located at Rudrapur
in Uttarachal and Jaipur in Rajasthan. The Farm Equipment Sector as reported by the Company
has a dealer network of over 450 dealers. This dealer network is managed by 28 area offices,
situated in all the major cities and covering all the principal states and M&M tractors has sold

4
more than 13,00,000 tractors since its inception. M&M's Farm Equipment Sector is perhaps the
largest exporter of Indian tractors to the USA and the west. And in a reversal to earlier trends
of Indian tractor manufactures with joint ventures with western tractor companies, M&M, in
2004 announced that they had bought majority stake (80%) in Jiangling Tractor Company, and
renamed it Mahindra Jiangling Motor Co Group (JMCG). This is the first instance of Indian
tractor industries participating in India's reverse FDI. The plant in China reportedly has a
production capacity of 12,000 tractors annually.In March 2007, M&M bought a controlling
43% stake in the Mohali-based tractor firm Punjab Tractors (Swaraj) that will reportedly
increase M&M's share in the domestic farm equipment market from just over 30% to 40%. The
43% stake includes 29% owned by private equity firm Actis and 14.2% by the Delhi-based
Burman family. In July 2007, Mahindra upped its stake to 64.6%.

Mahindra & Mahindra has entered its 25th year of Market Leadership in India in 2008. M&M
is also the only tractor company in the world to receive coveted Japan Quality Medal and
Deming Prize for Quality from Japan.

John Deere

In 2000, John Deere set up production in a joint venture with Larsen & Toubro Ltd in
Sanaswadi, in a rural area near Pune, Maharashtra. It was known as L&T John Deere Private
Ltd, and manufactured tractors under the L&T - John Deere name for sale in India, and under
the John Deere name for worldwide sales.

In 2005, Deere & Company acquired nearly all the remaining shares in this joint venture. The
new enterprise is known as John Deere Equipment Private Limited. The factory currently
produces tractors in of 35, 40, 42, 47, 50, 55 and 70 HP capacities for domestic markets and for
export to to the USA, Mexico, Turkey, North and South Africa, and South East Asia. Pune
factory started to produce new 55 to 75 Hp 5003 series tractors for European market in 2008.

Punjab Tractors Ltd (Swaraj Tractors)

5
In 1965, Government of India research institute Central Mechanical Engineering Research
Institute, Durgapur, WB initiated design and development of Swaraj Tractor based on
indigenous know-how. In 1970, Punjab Government acquired the Swaraj tractor's design and
established Punjab Tractors Limited (PTL). It was India's first large-scale totally indigenous
project. The company exports Tractors to various countries including USA. It manufactures
nine models of tractor and several models of combine harvesters. The manufacturing units are
located at Mohali District, Asron Village of Nawanshahar District and Nabha of Patiala
District, Punjab.

Swaraj also manufactures Forklifts and Combines, which are assembled in their Mohali Plant.

Actis, a private equity firm acquired 29% of Punjab Tractors in mid-2003 from the Punjab
Government. In March 2007, and currently subject to the receipt of requisite approvals, M&M
bought a controlling 43% stake in Punjab Tractors Ltd. that will reportedly increase M&M's
share in the domestic tractor market from just over 30% to nearly 40%. The 43% stake in
Punjab Tractors includes the 29% owned by Actis and 14.2% by the Delhi-based Burman
family. In July 2007, Mahindra upped its share in Punjab to 64.6%.

6
 CHAPTER-2(A)

Review of the articles

Buying your first tractor: The People You Buy From

This article applies mostly to the first time buyer of the working tractor but if you have
purchased many tractors, you may find yourself reminiscing about a few of your own
experiences. If you are a first-time buyer, chances are that you are likely to take the word of the
seller on things. This is where the problems start...

You have reviewed your implement needs and determined the size of machine that will fit the
bill and even made a list of the most desirable models. You checked on the availability of a 3-
point hitch for the machines on the list and advertised in your local classified paper with
something like the following:

Wanted: Ford 8N, 500, 600, AC CA, or Farmall A. Good running condition, good tires &
priced reasonably. AC or Farmall should include Plow and Disk or 3 point hitch. No excessive
rust. Call Evelyn and Joe at 555-1212.

The calls start pouring in with everything from a fellow who restores Fords and has a beauty
for $4500 to a person that says "I think it's a AC CA" (in reality it's a Simplicity lawn tractor).
You are going to have to wade through this mine field of the wrong machines to find those that
really are contenders. Take your time and go look at the ones that sound like they are close in
price and condition but remember that no matter what was said on the phone, reality may
throw you some curves. Your dealings may just uncover some of the following:

7
People who unknowingly misrepresent the type and condition of their tractor
People who intentionally misrepresent the type and condition of their tractor

You will find the first category is the norm. Most people who respond to your advertisement
will be cleaning out the barn or garage and just want to get rid of Uncle Bob's old tractor. This
can be a good source for machines (and frequently the lowest prices) but remember that most
folks in this category have machines that may have sat for years or they had purchased the
machine recently, couldn't get it running and want to cut their losses. Since these people have
no knowledge of their tractor, they can be trusted (since you won't be relying on much that
they say). Unfortunately this means you must be the expert and do your own evaluation (In
another article we cover some of the technical evaluation criteria for previewing).

Nebraska Tractor Test Lab

The Nebraska Tractor Test Laboratory (NTTL) was established in 1920 in response to the
Nebraska Tractor Test Act of 1919, which required all agricultural tractors sold and advertised
in Nebraska to have manufacturers' performance claims verified by the Nebraska Tractor Test
Lab. The act was vigorously sponsored by W. F. Crozier (a state representative who in 1916
purchased a tractor that did not perform as advertised) and fellow senator Charles Warner.

The first tractor successfully tested in the lab was in 1920 - a John Deere Waterloo Boy. The
original tractor test lab facility was intended to be only temporary and was erected very
quickly, however, the building was used for decades. In 1980, the original tractor test lab
facility - now the Lester F. Larsen Tractor Test and Power Museum - was designated an
Historic Landmark of Agricultural Engineering by ASABE. (Larsen was the NTTL's longest
serving director, from 1946 until his retirement in 1975.)

8
Over the years, changes in tractor technology and increased specialization of associated
traction machinery have resulted in changes to the Tractor Test Act and corresponding
alterations to the Tractor Test Lab's role.

For example, construction tractors (steel-track crawlers and loader-backhoe tractors) were
exempted from test in 1956. In the 1960s, the first minimum power limit was established at 20
advertised horsepower, excluding riding lawn mowers and lawn and garden units from test and
permit requirements. In 1986, the minimum horsepower level was raised to 30 kW (40 hp), due
in part to the growth of tractor power away from lower levels and the advent of larger lawn and
garden tractors. Also at this time, the law was changed to allow the tractor test lab to conduct
tests according to the Organization for Economic Co-operation and Development (OECD) test
codes. The state of Nebraska now allows OECD tests conducted elsewhere to be accepted for
use in Nebraska.

Today, all tractors tested undergo one or more tests at the tractor test lab. Tractors have PTO
horsepower verified (Figure 1). This test is more than just a verification of power; it also
establishes a full load power and fuel curve and also includes partial power testing.
Additionally, tractors with more than 100 PTO horsepower are tested for drawbar performance.
During drawbar testing, each tractor tows a load car (Figure 2). The load car pictured on the
left has been in use since the fall of 2003 and replaced the earlier load car, shown on the right,
that had its origins in 1937. During testing (Figures 3 and 4, below and right), a number of
measurements are made in each gear at rated engine speed and maximum power engine speed.
These measurements include fuel used (which is supplied and measured from the load car),
drawbar pull, speed, travel reduction (reported as slip), distance traveled, engine and fan rpm,
as well as various temperatures. The load car applies a load using three electric retarders in
series driven through a separate transmission. Additional load units are sometimes pulled
behind the load car to provide additional loading if the tractor under test is sufficiently
powerful.

9
Generally, the tests for one tractor require approximately a week. Typically, it takes one full
day to conduct a PTO test, unless more time is needed for minor power adjustments. Fuel rate
adjustment is allowed to ensure that: 1) the minimum advertised power at either rated engine
speed or standard PTO speed is met or 2) the power does not exceed the maximum power
desired by the manufacturer. The manufacturer is constrained to not exceed warranty fuel
limits for the engine series in each model. Drawbar testing typically requires portions of three
days to complete. Because tractor performance varies depending upon atmospheric conditions,
tests must be.

Identifying Your Tractor

You may have purchased a farm with the tractor already on it, or maybe you inherited your
"new" tractor from a relative. Maybe you bought it from a friend who didn't know what kind of
tractor it was, or perhaps (and this is every tractor fanatics dream) you stumbled across it in an
abandoned field covered with weeds but intact. In any case, you have no idea what the make
and/or model is. For awhile perhaps it doesn't really matter. Especially if it runs! But pretty
soon you'll probably need to tinker with it a bit and maybe buy a part or too. Having a manual
is nice. But how does one go about determining what make and model the tractor is so you can
purchase the items you need?

The first logical step would be to ask a friend or a neighbor who is knowledgeable about
tractors. They could stop by, take a look and hopefully solve the mystery. But if none of your
friends or neighbors has a clue, then the second logical step would be to take you to the local or
regional library. You have a picture of your tractor clearly in your mind (or perhaps in your
wallet) so go compare that picture to the pictures you find in tractor books or publications at
the library.

If you already know the make of the tractor ("Farmall", or "Ford" or "Massey-Harris", etc) but
you just don't know the model ("Farmall Model A", "Ford 8N", "Massey-Harris Pony", etc)
then you may want to purchase a book covering your particular manufacturer. If you have no

10
idea who even made the tractor, there are more general books available such as "The
Encyclopedia of American Farm Tractors" by C.H. Wendel. This book covers hundreds of
tractor makes and models and has many pictures.

CHAPTER-3

An overview of the industry

History

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 of, Multi utility vehicles, engines and various farm equipments. Today the
group stands tall with an approximate turnover of 3200 Core INR. An average growth of 30%
makes it one of the fastest growing 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 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
has been able to create a unique platform for learning through success stories of industry
leaders.

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, Sonalika is very conscious
of her responsibility to society. Sonalika Foundation intends to become a catalyst, encouraging

11
our members to do more, capturing best practices for quality and harnessing a greater range of
resources, from the industry and beyond, to make a major impact on the development. It has
been the vision of Sonalika to cater to the needful agriculture and auto industry with quality
products through untiring dedication and activities. As Sonalika steps in to its fifth decade of
existence, it continues to lead the development. Tractor and car plants work in 2 to 3 shifts
depending upon volume of work for maximum production. Sonalika continues to march ahead
on road to success and glory driven by the force of initiative and determination to have a
leading position in the tractor industry in the days to come. Sonalika has ventured in to
automobile sector also with the launching of Rhino –MUV- to write another success story.
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 our 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

12
Red symbolizes the strength, power, determination, and desire of company. 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. And 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.

Group Companies:

International Tractors Limited (ITL)

International Cars & Motors Limited (ICML)
Sonalika Agro Industries Corporation (SAIC)
International Autotrac Finance Limited (IAFL)

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

13
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. The 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.

Sonalika is 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).

Tractors from ITL offer the perfect combination of power and economy in the agriculture
utility segment. For fast efficient operation in the rows and a minimum width, which is typical
to small land holdings, the performance of ITL tractors is unparallel. Sonalika tractors are easy
to handle, with outstanding maneuverability, low center of gravity and a tight turning radius,
that combine to give fast and efficient operation in the field or yard.

We also manufacture tractors whose specifications are approved and tested dimensionally and
structurally, according to EEC and other international standard and homologations. Some of
our tractor models offer the most technically advanced features available on the market today,

14
including hydrostatic transmission, power steering, differential lock and advanced safety
devices.

International Cars & Motors 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
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.

15
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.

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).

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.

International Autotrac Finance Limited

16
 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.

Whom to Finance

 Salaried
 Agriculturist
 Self Employed
 Partnership
 Pvt.co.,others

IAFL Schemes

 Scheme for salaried class

 Scheme for Business class
 Scheme for Taxi Purpose
 Scheme for Agriculturists

17
An Overview of the Group

18
Market Share

The group has a strong presence in Punjab and Himachal Pradesh and its tractor manufacturing
arm, International Tractors Ltd, has a market share of 11 per cent. With plans to become the
market leader in the next 3 to 5 years, the group will double the capacity of its current facility
in Hoshiarpur to 80,000 units a year.

International Tractors Ltd or ITL as it is popularly known aims to increase its current turnover
of Rs 1,300 crore to Rs 1,500 crore by the end of 2008. The group currently exports tractors to
South Africa, Zimbabwe, France, Australia, Sri Lanka, and Bangladesh. They have begun their
foray into the American tractor market with hobby tractors, which are low-powered tractors
with 40-45 HP, used for gardening.

Milestones (Landmarks)

19
2007

Joint Venture between ITL and MAGMA, August 2007.

On Aug. 10 with a view to provide financing of tractors on less stringent conditions,

International Tractors Ltd has entered into a joint venture to set up a new company with
Magma Shrachi Finance Ltd. The initial investment in the project would be Rs 25 crore.The
joint venture company, to be known as Magma ITL Finance Ltd, would have 74 per cent stake
while ITL would have the remaining 26 per cent.

2007

New variant of RHINO RX

New variant of RHINO Rx launched with more technologically advanced engine and added
features with utmost fuel efficiency and luxurious comfort at affordable price.

2006

Market Launch of RHINO (MUV)

Market Launch of RHINO (MUV) and Dealer network is being expanded through out the
country. Our Chairman Has been Elected as President of TMA, Appointed as Ambassador of
Macedonia & a member of National Council Confederation of Indian Ministry. Successfully
Developed Four Wheel Drive front axles and Transmission of tractor for Yanmar. Became the
third largest tractor manufacturer in India.

2005

Achieved turnover of USD 235 Million for FY 2004-05.

Achieved turnover of USD 235 Million (Rs1000 Cr.)For FY 2004-05. Become the fourth
largest tractor manufacturer in India. Rollout of first vehicle from ICML facility. Joint venture
with Yanmar Agriculture of Japan for manufacturing of Tractors in India eived the ISO 9001/
ISO 14000 & TS 16949Certification for ICML and ITL. Initiated Crankshaft & Cylinder Block

20
Machining Line and other components under Lean manufacturing System Received orders
from Yanmar for Manufacturing of Front Axles and Transmission.

2004

Rollout—100000th Tractor in the year

Opening of ICML in Sonalika group

2003

Started export of tractors to Africa & Asian subcontinents.

2001

Started in house manufacturing of engine for tractor application

2000

Entered into Joint venture with Renault (Class,) from Germany agricultural

1997

Entered into Manufacturing of tractors.

1969

Modest beginning into farm equipment and machinery manufacturing

Infrastructure

21
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

22
  A unique 3-Stage oil filtration system having modern facility of centrifuge filtration
 Batch type Special purpose machines (SPM) at various locations for washing of heavy
castings, components & subassemblies
 Pipe flushing machine for proper cleaning of hoses & pipes
 Induction Heaters for controlled heating of bearings

Standard testing procedures for final product

 Roller testing
 Road testing
 Field 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 verificationworkstations
at vendor end.
 High configuration are used for design activities
High
Teamskilled
center workers
 arePLM
capable for making any type of prototypes.
 is used for concepts
 I-Deas, Solid-Edge & AutoCad is used for 3D & 2D design activities Facilities
 Two transmission test rigs
Design Engines
 Circular test track (mgr) & Roll over protection test rig
 Hydraulic system test rig
 Endurance test rig for operator seat & fenders
23
 Pto test bed & Endurance test rig for MUV gearbox under
commissioning
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 measurement.

In-House R&D Capabilities:

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.

24
Quality Assurance

International Tractors Ltd, Certified as

Quality Management System - ISO 9001:2000 Std.

Quality Management System - ISO/TS 16949:2002 Std. (ITL Auto Division)

ISO 14001:2004 Environment Management System

25
The entire evolution of Quality is classified into 4 phases

 Inspection Phase
 Quality Control Phase
 Quality Assurance Phase
 Total Quality Management Phase

Profile Projector

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

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).

3D Co-ordinate Measuring Machine (CMM)

26
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 generates a 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).

27
Use of FEA for Component Design

Sonalika Engines are produced in air-conditioned plant with Air, Dust & Moisture controlled
for the Best Assembly Conditions to ensure a quality product to the end user. The engines are
known for being Reliable, Fuel Efficient, Lowest in noise, compact, all-weather proof and
rugged. Every engine produced is thoroughly tested on engine test beds before being passed
onto the customer. Sonalika offers one of the widest range of engines from power ratings of
28-90 Ps for tractor applications, while a host of options is also available for engines for
powering Gensets. Now with Sonalika group venturing into the MUV segment two new
engines have been developed specifically for this application. The engines manufactured at
state of art facilities world class R&D with complete expertise in diesel engines offer value for
money performance to customers.

Major Highlights

1. Sh. L.D. Mittal has got honour as entrepreneur of the year from the governor of Punjab.
2. Sh. D.K. Mittal has got honour from rural area development minister
3. Total tractor market share of ITL is 8%.
4. The company has obtained ISO 9001 and ISO 14001 certification.
5. The company manufactured its first tractor in February 1996.
6. Company has sold 1.70 lakh tractors in 10 years only. Thus it has been honoured as fast
growing company and registered itself in the top three manufacturers.
7. Sonalika has 12 models ranging 30 to75 H.P.
8. Sonalika group is contributing to the green revolution in India since 1969.
9. The group has turnover of 1000 Crores.
10. The plant is located in 40 acres.
11. ITL entered in to a joint venture with Renault Agriculture France in July 2000.
12. ITL has strategic alliance with Yanmar Japan along with equity participation of 12%.
13. SAP (System Application & Products in Data Processing) one of the most widely used
in the world has been installed in the company.
14. Metaphase (Product data base management system) has also been installed in R&D in

28
 direct interface with SAP.
15. Strength of ITL is effective cost, technical capabilities and marketing capabilities.

Financial Partners

CVCI (Citigroup Venture Capital International)

Investment ITL-9.5%
Investment ICML-18%
In June 2005 the Citigroup Venture capital joined the company as financial partner, having
equity stake of 9.5%.

JM Financial Trustee Pvt Ltd

JM Financial Trustee Pvt Ltd, a company of JM Group joined the company in Jan, 2007 as
Financial Partner with the equity stake of 5%.

3i Agri-Vehicels

Investment ITL-10%

29
Investment ICML-10%
3i Agri-Vehicels limited joined the company as financial partner in March, 2006 with the
equity stake of 10%.

Joint Venture

CVCI (Citigroup Venture Capital International)

Investment ITL-9.5%
Investment ICML-18%
In June 2005 the Citigroup Venture capital joined the company as financial partner, having
equity stake of 9.5%.

YANMAR, Japan

Investment -12%
Yanmar company limited, Japan joined the company in Sept, 2005 as strategic partner, having
12% equity stake in the company.

MG ROVER Group Limited

Entered into technical collaboration agreement with MG ROVER Group Limited

30
 Magma Shrachi Finance

The company entered into the joint venture with Magma Shrachi Finance limited on 10th
august 2007 to incorporate a new company with 74:26 (Magma-ITL) ratio of equity
participation for financing tractors of manufactured by the company.

3i Agri-Vehicels

Investment ITL-10%
Investment ICML-10%
3i Agri-Vehicels limited joined the company as financial partner in March, 2006 with the
equity stake of 10%.

International Business Information

After consolidating its market share in the domestic and being counted as top three tractor
manufacturer, ITL has now set its sight at becoming a major International Tractor
Manufacturer. Sonalika Tractors are new successfully running in over 30 countries across Asia,
Africa, North America and Australia. During last year market have been opened up in
Australia, Ethiopia, Nigeria, Mozambique, Sudan, Qatar and Yemen in addition to traditional
strong presence in market like Sri Lanka, Bangladesh, Kenya, Uganda, Egypt, Algeria, Mali
and Senegal and etc. Sonalika is already the largest exported Indian to market like Nepal,
South Africa and many others in Africa. The Focus has now shifted to concentrate on
developing high volume tractor market like USA, Australia, Italy, Iran and Turkey etc. ITL
Participated in several Agricultural shows in Canada and USA during Feb’07 and got very
good response from the farmer and has finalized the entry strategy for the North America
market. A new range of EPA complaint tractor with a modern front look has been developed

31
for the developed for the developed market like USA and Europe. Several European companies
have also shown interest in Sonalika product and new market in Spain, Italy, Slovenian and
other east European market will market will start selling ITL products shortly. Again a new
range of EURO III complaint tractors are currently undergoing European homologation.
During Last financial Year Sonalika Product also received technical homologation clearance
from Nigeria & Sudan. Showing faith in ITL quality and cost effectiveness some of the leading
European tractor brands have short listed ITL to outsource their products range from ITL.
After inspecting ITL facilities these companies have selected the tractor models to be
outsourced from ITL. This will give ITL assured annual export volume of over 5000 units per
annum along with upgrade ITL technology and production System. Further negotiation is
underway with companies from turkey, Poland and Italy for long term cooperation and joint
marketing of IT product across Europe as well offer contract manufacturing facility to these
companies. In order to strengthen the dealer effectiveness in the target overseas market during
the year. Several training programs have been conducted at ITL training center in Hoshiarpur.
These were attended by sales and services staff from Bangladesh, Sri Lanka, South Africa,
Yemen, Nigeria, Ghana, Cameramoon, Ethiopia, Algeria, & Egypt etc. The introduction of 75
HP tractor range in 2WD & 4WD has given additional boost to TL exports. Sonalika is in fact
the only company exporting 90 H .P tractor range India competing successfully with
established international brands in this range. With the increase in dealer network and product
range ITL is set to give a major boost to its export volume and build the Sonalika brand
internationally. Crossing new horizon very day.

International Clients

CNCI
MG ROVER
POWER TRAIN
RENAULT

32
YANMAR

Future Projects

ICML in technical collaboration with Italy's Pininfarina for its 'World Car'

ICML’s idea to innovate world cars by 2010 in India & Europe seems to be coming to a full
circle. These world cars will now roll on Italian engineering as Pininfarina, apart from the
designing support will also provide consultancy support to the making of these cars. With the
engineering of Pininfarina, these cars would be unique in terms of safety, design and styling
which are strongly associated with Pininfarina.

The entire engineering and the designing of the car would be carried out under the keen
supervision of Mr. Pininfarina in Italy. The objective is to make cars appealing to different
markets and segments. The cars will have high standards of safety and engineering. The quality
would be at par with global products. This will be a versatile platform having a family of
vehicles that will include SUV’s, MUV’s and high end luxury cars. Designed by the world
famous design house, Pininfarina, these vehicles would comprise high-end aesthetic features
that will suit the sensibilities of a sophisticated buyer in a most suitable manner. ICML is
investing approx. Rs 700 Cr. initially on this project.

Pininfarina, the Italian auto giant, has some bigger plans in store for India. It is in the planning
to set up a global hub in India in two to five years and desires to work with some major Indian
automobile companies. Pininfarina caries the versatility to offer designs for small cars to
luxury ones. The company believes that India is soon going to be the next global auto market
which is also one of the reason for Pininfarina to venture into this auto market.”

Sonalika to set up Rs 250 crore tractor unit near Patna in Bihar

Sonalika Group, one of the top 5 tractor manufacturers in India , plans to invest Rs 250 crore to
set up a unit that will roll out 40,000 tractors and 8,000-10,000 agriculture implements a year.

33
The group aims to strengthen its presence in the eastern Indian states of Bihar, Orissa and West
Bengal. The new facility, located near Patna in Bihar, is slated to become operational in one
year.

CHAPTER-4

Objectives of Study
1) To know about the customers perception regarding purchase of tractor.
2) To analyze the factors which influences purchase of a tractor.
3) Compare the different tractors available in the market in the terms of performace and

34
 Appearance
4) To highlight the considerable factors which leads to customer satisfaction.

CHAPTER-5(A)

RESEARCH METHODOLOGY

Managers need information in order to introduce products and services that create value in the
mind of the customer. But the perception of value is a subjective one, and what customer’s
value this year may be quite different from what they value next year. As such, the attributes

35
that create value cannot simply be deduced from common knowledge. Rather, data must be
collected and analyzed. The goal of marketing research is to provide the facts and direction that
managers need to make their more important marketing decisions. To maximize the benefit of
marketing research, those who use it need to understand the research process and its
limitations.

MARKETING RESEARCH Vs. MARKET REASERCH

These terms often are used interchangeably, but technically there is a difference.
Market research deals specifically wit the gathering of information about a market’s size and
trends. Marketing research covers a wider range of activities. While it may involve market
research, marketing research is a more general systematic process that can be applied to a
variety of marketing problems.

The Value of Information

In general, the value of information is determined by:
• The ability and willingness to act on the information.
• The accuracy of indecisiveness that would exist without the information.
• The accuracy of information
• The amount of variation in the possible results.
• The level of risk aversion
• The reaction of competitors to any decision improved by the information
• The cost of the information in terms of time and money.

The Marketing Research Process

Once the need for marketing research has been established, most marketing research projects
involve these steps:
• Define the problem
• Determine research design

36
• Identify data types and sources
• Design data collection forms and questionnaires
• Determine sample plan and size
• Collect the data
• Analyze and interpret the data
• Prepare the research report

Problem Definition:

The decision problem faced by management must be translated into a market research
problem in the form of questions that define the information that is required to make the
decision and how this information can be obtained. Thus, the decision problem is translated
into a research problem. For example, a decision problem may be whether to launch a new
product. The corresponding research problem might be to assess whether the market would
accept the new product.
The objective of the research should be defined clearly. To ensure that the true decision
problem is addressed, it is useful for the researcher to outline possible scenarios of the
research results and then for the decision maker to formulate plans of action under each
scenario. The use of such scenarios can ensure that the purpose of the research is agreed
upon before it commences.

Research Design

Marketing research can classified in one of three categories:

EXPLORATORY RESEARCH
DESCRIPTIVE RESEARCH
CAUSAL RESEARCH

37
These classifications are made according to the objective of the research. In some cases the
research will fall into one of these categories, but in other cases different phases of the
same research project will fall into different categories.

Exploratory Research has the goal of formulating problem more precisely, clarifying
concepts, gathering explanations, gaining insight, eliminating impractical ideas, and
forming hypotheses. Exploratory research can be performed using a literature search,
surveying certain people about their experiences, focus groups and case studies. When
surveying people, exploratory research studies would not try to acquire a representative
sample, but rather, seek to interview those are knowledgeable and who might be able to
provide insight concerning the relationship among variables. Case studies can include
contrasting situations or benchmarking against an organization known for its excellence.
Exploratory research may develop hypotheses, but it does not seek to test them.
Exploratory research is characterized by its flexibility.
Descriptive Research is more rigid than exploratory research and seeks to describes of a
product, determine the proportion of the population that uses a product, or predict future
demand for a product. As opposed to exploratory research, descriptive research should
define questions, people surveyed, and the method of analysis prior to beginning data
collection. In other words who, what, where, when. Why, and how aspects of the research
should be defined. Such preparation allows one the opportunity to make any required
changes before the costly process of data collection has begun. There are two basic types of
descriptive research: longitudinal studies and cross-sectional studies. Longitudinal studies
are time series analyses that make repeated measurements of the same individuals, thus
allowing one to monitor behavior such as brand switching. However, longitudinal studies
are not necessarily representative since many people may refuse to participate because of
the commitment required. Cross-sectional studies sample the population to make
measurements at a specific point in time. A special type of individuals who experience the
same event within the same time interval over time. Cohort analyses are useful for long-
term forecasting of product demand.

38
 Causal research seeks to find cause and affect relationships between variables. It
accomplishes this goal through laboratory and field experiments.

Data Types and Sources

Secondary Data

Before going through the time and expense of collection primary data, one should check
for secondary data that previously may have been collected for other purposes but that can
be used in the immediate study. Secondary data my be internal to the firm, such as sales
invoices and warranty cards, or may be external to the firm such as published data or
commercially available data. The government census is a valuable source of secondary
data.
Secondary data has the advantage of saving time and reducing data gathering costs. The
disadvantages are that the data may not fit the problem perfectly and that the accuracy may
be more difficult to verify for secondary data than for primary data.
Some secondary data is republished by organizations other than the original source.
Because errors can occur and important explanations may be missing in republished data,
one should obtain secondary data directly form its resource. One also should consider who
the source is and whether the results may be biased.
Whether the data is useful in the research study. How current the data is and whether it
applies to time period of interest.
Errors and accuracy –whether the data is dependable and can be verified.
Presence of bias in the data.
Specifications and methodologies used, including data collection method, response data rate,
quality and analysis of data, sampling size and sampling technique, and questionnaire design.

Primary Data

Often, secondary data must be supplemented by primary data originated specifically for the
study at hand. Some common types of primary data are:

39
Demographic and socioeconomic characteristics
Psychological and lifestyle characteristics
Attitude and opinions
Awareness and knowledge- for example, brand awareness
Intentions – for, example, purchase intentions. While useful, intentions are not a reliable
indication of actual future behavior.

Motivation – a person’s motives are more stable than his/her behavior, so motive is a better
predictor of future behavior than is past behavior.

Primary data can be obtained by communication or by observation. Communication involves

questioning the respondent’s either verbally or in writing. This method is versatile, since one
need only to ask for the information; however, the response may not be accurate.
Communication usually is quicker and cheaper than observation. Observation involves the
recording of actions and is performed by either a person or some mechanical or electrical
device. Observation is less versatile than communication since some attribute of a person may
not be readily observable, such as attitude awareness, knowledge, intention, and motivation.

Observation also might take longer since observes may have to wait for appropriate events to
occur, through observation using scanner data might be quicker and more cost effective.
Observation typically is more accurate than communication.

Personal interviews have an interviewer bias that mail- in questionnaires do not have. For
example, in a personal interview the respondent’s perception of the interviewer may affect the
responses.

Questionnaire Design

40
The questionnaire is an important tool for gathering primary data. Poorly constructed questions
can result in large errors and invalidate the research data, so questionnaire should be tested
thoroughly prior to conducting the survey.

Measurement Scales

Attributes can be measured on nominal, interval, ordinal and ratio scales.

Nominal Scale are simply definitions, with only permissible mathematical use being for
counting. Example: social security numbers.

Ordinal Scale are used for ranking. The interval between the numbers conveys no meaning.
Median and mode calculations can be performed on ordinal numbers. Example; class ranking

Interval Scale maintains an equal interval between numbers. These scales can be used for
ranking and for measuring the interval between two numbers. Since the zero point is arbitrary,
ratios cannot be taken between numbers on an interval scale; however, mean median, and
mode are all valid.
Example: temperature scale

Ratio Scale are referenced to an absolute zero values, so ratio between numbers on the scales
are meaningful. In addition to mean, median, and mode, geometric average also are valid.
Example: weight

Sample Plan

41
The sampling frame is the pool from which the interviews are chosen. The Telephone books
often are used as a sampling frame, but have some shortcomings.Telephone books exclude
those households that do not have telephones and those Households with utilized numbers.
Since a certain percentage of the numbers Listed in a phone book are out of service, there are
many peoples who have just moved who are not sampled. Such sampling biases can be
overcome by using Random digit dialing. Mall intercept represent another sampling frame,
through There are many people who do not shop at malls and those who shop more often will
be over- represented unless their answers are weighted in inverse proportion to their frequency
of mall shopping.

In designing the research study, one should consider the potential errors. Two Sources of errors
are random sampling errors are random sampling error and non-Sampling errors. Sampling
errors are those due to the fact that there is a non-zero Confidence interval of the results
because of the sample size being less than the Population being studied.
Non –sampling errors are those caused by faculty coding, Untruthful responses, and respondent
fatigue, etc.
There is a trade off between sample size and cost. The larger the sample size, the smaller the
sampling errors but higher the cost. After a certain point the smaller sampling error cannot be
justified by the additional cost.

While a larger sample size may reduce sampling error, it actually may increases the total error.
There are two reasons for this effect. First, a larger sample size may reduces the ability to
follow up on non-responses. Second, even if there is a sufficient number of Interviewers may
results in a less uniform interview process.

Data Collection

42
In addition to the intrinsic sampling error, the actual data collection process will introduce
additional errors. These errors are called non-sampling errors. Some non sampling errors may
be intentional on the part of the interviewers, who may introduce a bias by leading the
respondent to provide a certain response .The interviewers also may introduce uniintential
errors, for example, due to not having a clear understanding of the interview process or due to
fatigue.
Respondent also may introduce errors. A respondent may introduce intentional errors by laying
or simply by not responding to a question. A respondent may introduce uniintential errors by
not understanding the question, guessing, not paying close attention, and being fatigued or
distracted.
Such non-sampling errors can be reduced through quality control technique.

Data Analysis-Primary Steps

Before analysis can be performed, raw data must be transformed into the right format. First, it
must be edited so that errors can be corrected or omitted. The data must then be coded; this
procedure converts the edited raw data into number or symbols. A code cook is created to
document how the data was coded. Finally, the data is tabulated to count the numbers of
samples falling into various categories sample tabulations count the occurrences of each
variable independently of the other variables. Cross tabulations, also known as contingency
tables or cross tabs, treats two or more variables simultaneously. However, since the variables
are in a two dimensional table, cross tabbing more than two variables is difficult to visualize
since more than two dimensions would be required. Cross tabulation can be performed for
nominal and ordinal variables.
• Cross tabulation is the most commonly utilized data analysis method in marketing
research. Many studies take the analysis no further than cross tabulation. This technique
divides the sample into sub-groups to show how the dependent variable varies from one
subgroups to another. A third variable can be introduced to uncover a relationship that
initially was not evident.

43
Marketing Research Report
The format of the marketing research report varies with the needs with needs of the
Organisation. The report often contains the following section:
1. Authorization letter for research
2. Table of contents
3. List of illustrations
4. Executive summary
5. Research objectives
6. Methodology
7. Results
8. Limitations
9. Conclusions & recommendations
10. Appendices containing copies of questionnaire, etc

Scope of Study

This earth is full of talent. Only those people can survive who believe in hard work, dedication,
determination and lots of positive thinking. When we talking about competition within two
people or within two brands only that can survive who positioned himself differently and
appropriately. Marketing is very challenging and exciting field as solving of managerial
problems requires insight, experience, and analytical ability of the Marketing Manager. There
are different strategies which are used in the market for profitability. Now it is job of
Marketing Manager to decide which strategy or combination of method, he should adopt for
increasing the sales or profitability, depending on the objective. So marketing manager of any
firm should be updated or recognized with the current happenings in the market. He has
appropriate knowledge about current business environment. I have conducted a survey in
Hoshiarpur district to find out the current position of Sonalika tractor in the light of other
brands of tractor. The main purpose of study is to find out the farmers perception regarding
tractors and which source influence the most while purchase of particular brands of tractor.
Sample Design and Size

44
Sample is the part of universe or population. A sample is termed as a good sample if it
represents the whole population. Sample design is determined before data are collected. On the
basis of the sample, we should be capable enough to predict the behavior of the elements of
universe. The sampling unit of my study was Mukerian, Hajipur and Bhangala.

Sampling size refers to the number of items to be selected from universe to constitute a sample
and an optimum sample is one, which fulfills the requirement of efficiency, Sampling size
refers to the number of items to be selected from universe to constitute a sample and an
optimum sample is one, which fulfills the requirement of efficiency.
Farmers: 100
This sample size was selected on the basis of the recommendations by my training guide.

Data Collection

Data can be collected from either primary sources or secondary sources. My study is based on
primary data.
Primary data: For the purpose of my study, I have collected primary data with help of
interviews and questionnaires. This data was collected to know about the awareness,
perception, opinion and behavior of the respondents towards different brand of tractors. I make
a questionnaire for tractor users (farmers) and visit to 100 farmers to know there views
regarding tractors. I have conducted the interviews mostly from old farmers whom have
appropriate knowledge about tractors. My questionnaire covers all the information before the
purchase of tractor and after the purchase of tractor.
I have also made use secondary data for completion of my study. Various kinds of secondary
data used: Text books, Internet sites etc.

Research Approach

45
Survey is best suited for descriptive and analytical research. Survey are undertaken to learn
about people's knowledge, beliefs, preferences, satisfaction and so on and to measure these
magnitudes in the general public. Therefore, I have done this survey for Descriptive and
Analytical research process. Descriptive research includes surveys and fact finding enquiries of
different kinds. The main purpose is description of the state of affairs is noted down and
analytical research used to analyze the material and facts

Tools of Data Analysis

Keeping in view the objectives of the research and nature of data, I have applied various
statistical tools like Chi Square test, weighted average test.

CHAPTER-5(B)

Limitations of Study
Every Market Research study suffers from few limitations and my study is also suffering from
few constraints. They are listed as under:

Time & Resource Constraints

Due to limitation of time and resources, the coverage of this study has been restricted to few
selected respondents and dealers. If the time and resources provided would have been more
then the study could have been extended to wider area, to make it more comprehensive.
Space Boundary
As the study was restricted to Hoshiarpur district only. Thus its findings/results may not be
applicable to other areas.

Consumer Dynamism
Consumer behavior, in today’s world is very dynamic. Thus, there is every possibility that over
a period of time, the findings of today might not be applicable.

CHAPTER-6

46
 Data Interpretation and Analysis

Table 1: Tractor being used currently:-

Tractor name Percentage

Sonalika 10

Swaraj 24

Mahindera 16

John Deere 0

Massey Ferguson 24

Farmtrac 25

Escort 1

25

20 Sonalika
Swaraj
15
Mahindera
John Deere
10
Massey Ferguson
5 Farmtrac
Escort
0
Percentage

47
Interpretation: - From the survey conducted we see the leading tractor in terms usage is
Farmtrac with 25%. It is followed by Swaraj and Massey Ferguson with equal percentage of
24%. Mahindera comes third with 16% followed by Sonalika with 10%.
Table 2: What people expect from a tractor?

Factor Percentage

Road Speed 9

Ground Clearance 12

Less Maintenance 19

Availability of Workshops/Mechanics 25

Good Resale Value 35

35
Road Speed
30
25 Ground Clearance
20
Less Maintenance
15
10 Availability of
Workshops/Mechanics
5
Good Resale Value
0
Percentage
Interpretation:- From the graph we see that the characteristic which people mostly think of
while purchasing a tractor is the Good Resale Value with 35% which is followed by
Availability of Workshops, Less Maintenance, Ground Clearance, Road Speed with 25%, 19%,
12%, 9% respectively.

48
Table 3: Tractor in case of fuel efficiency

Tractor name Percentage

Sonalika 12

Swaraj 16

Mahindera 36

John Deere 0

Massey Ferguson 29

Farmtrac 7

Escort 0

40

35

30 Sonalika
Swaraj
25
Mahindera
20 John Deere
15 Massey Ferguson
Farmtrac
10
Escort
5
0
Interpretation: - On the basis of above data we see that in case of fuel efficiency Mahindera
comes out to be the leading tractor with 36% which is followed by Massey Ferguson, Swaraj
and Sonalika with 29%, 16% and 12% respectively.

49
χ² test application:

By applying Chi square test (χ²) we can analyze if there exists a significant difference between
Choice of factors for SONALIKA brand or not as follows:
Tractor in terms of fuel efficiency
Step 1: Set the hypothesis
Ho : Sonalika is fuel efficient.
Ha : Sonalika is not fuel efficient.
Step 2 ; Set the rejection criteria
Df= 6-1=5
At alpha 0.05 and df 5 the critical value from chi square table is 11.07
Step 3: Calculate Statistics:

Observed Expected O-E (O-E)² (O-E)² E

12 20 -8 64 3.2
16 16 0 0 0
36 16 20 400 25
0 16 -16 256 16
29 16 13 169 10.5625
7 16 -9 81 5.0625
Total 59.825

From the above table we see that the calculated value comes out to be greater then the critical
value. Thus Ho is rejected in this case. Thus Ha is accepted.

Table 4: Financial factor which influences most while purchasing a tractor:-

50
 Influencing Factor Percentage

Price 21

Loan Facility 70

Buy Back Scheme 6

Discount 3

70

60

50
Price
40
Loan Facility
30 Buy Back Scheme
20 Discount

10

0
Percentage
Interpretation: - The data shows most of the people are attracted by the loan facility while
purchasing a tractor. The graph shows 70% of the people from the whole sample have
purchased the tractor on loan facility which is followed by the price of the particular tractor
with 21%.People are least attracted by the discounts with 3%.

Weighted Average Method

51
 F.S Weight Respondents Total
%age weight
Price .4 21 8.4

L.F .3 70 21

B.B.S. .1 6 0.6

Discount .2 3 0.6

From the above table we see that most of the respondents are attracted by loan facility.

Table 5: How did the customers come to know of the tractor they are currently making
use of:-

52
 Factor Percentage

Relatives 58

Wall Paintings 5

Exhibitions 13

Supplier Visits 22

TV Advertisement 0

News Papers 2

60

50

40 Relatives
Wall Paintings
30 Exhibitions
Supplier Visits
20 TV Advertisement
News Papers
10

0
Percentage
Interpretation:-We see from the graph that most of the people came to know of the
tractor they are currently making use by their relatives with 58% followed by supplier visits,
exhibitions with 22% and 13% respectively.

Table 6: Most Affecting Factor Which Affect The Choice of A Particular Tractor: -

Factor Percentage

53
 Brand Name 44

After Sale Services 2

Availability of Spare Parts 20

Kind of Work to Be Taken from 18

Tractor
Coverage Area 11

Warrenty 5

Brand Name
45
40
35 After Sale
30 Services
25
20 Availability of
15 Spare Parts
10
Kind of Work to
5
Be Taken from
0 Tractor
Percentage
Coverage Area

Interpretation: - From the above graph we see that the factor which affect mostly the people
Warrenty
while purchasing a tractor is the Brand Name with 44% which is followed by the Availability
of Spare Parts with 20%. Kind of Work to be taken from the Tractor comes at third number
with 19% which is followed by Coverage Area with 12%.

Table 7: Problem Faced Mostly By the People in Their Tractors:-

54
 Problem Percentage

Clutch Plate 24

Oil Leakage 18

Front Lifting 28

Gear Box Noise 16

Slow Speed 14

30

25

20 Clutch Plate
Oil Leakage
15
Front Lifting
10 Gear Box Noise
Slow Speed
5

0
Percentage
Interpretation:- From the graph we see that the mostly faced problem by the people in their
tractors is Front Lifting with 28% which is followed by the problems namely Clutch Plate, Oil
Leakage, Gear Box Noise, Slow Speed with 24%, 18%, 16%, 14% respectively.
Table 8: Tractor on the basis of availability of spare parts

Tractor name Percentage

Sonalika 17

55
 Swaraj 39

Mahindera 8

John Deere 0

Massey Ferguson 25

Farmtrac 11

Escort 0

40
35
30 Sonalika
Swaraj
25
Mahindera
20
John Deere
15 Massey Ferguson
10 Farmtrac
5 Escort
0
Percentage
Interpretation: - From the graph based on the data the leading tractor in case of availability of
spare parts is Swaraj with 39% followed by Massey Ferguson and Sonalika with 25% and 17%
respectively.

Tractor in case of availability of spare parts

Step 1: Set the hypothesis

Ho : Sonalika spare parts are easily available.
Ha : Sonalika spare parts are not easily available.

56
Step 2: Set the rejection criteria
Degrees of freedom= 6-1=5
At alpha 0.05 and df 5 the critical value from chi square table is 11.07
Step 3: Compute Statistics

Observed Expected O-E (O-E)² (O-E)² E

17 20 1 1 0.0625
39 16 19 361 18.05
8 16 -8 64 4
0 16 -16 256 16
25 16 9 81 5.0625
11 16 -5 25 1.5625
Total 44.74

Interpretation: - From the table we see that the calculated value is greater than the critical
value. Thus Ho is rejected and Ha accepted. Thus Sonalika spare parts are not easily available.

Table 9: Tractor in case of overloading:-

Tractor name Percentage

Sonalika 38

Swaraj 18

Mahindera 12

57
 John Deere 1

Massey Ferguson 1

Farmtrac 30

Escort 0

40
35
30 Sonalika
Swaraj
25
Mahindera
20
John Deere
15 Massey Ferguson
10 Farmtrac
5 Escort
0
Percentage
Interpretation: - According to the graph based on the data best tractor in case of overloading
is Sonalika with 38%. It is seen that the close competitor of Sonalika is Farmtrac having 30%
which is followed by Swaraj with 18%.

Tractor in case of overloading

Step 1. Set the hypothesis
Ho: Sonalika is not good in case of overloading.
Ha: Sonalika is good in case of overloading.
Step 2. Set the rejection criteria
Degrees of freedom: n-1= 6-1=5
At alpha = 0.05 and df 5 the critical value from the chi square distribution table is 11.07

58
Step 3: Compute the test statistics

Observed Expected O-E (O-E)² (O-E)² E

38 16 22 484 30.25
18 16 2 4 0-25
12 20 -8 64 3.20
1 16 -15 225 14.0625
1 16 -15 225 14.0625
30 16 14 196 12.25
Total 74.075

Interpretation: - From the above table we see that the calculated value is greater than that of
the critical value. Thus the hypothesis Ho is rejected and Ha is accepted thus Sonalika is good
in case of overloading.

Table 10: Most attracting tractor in shape:-

Tractor name Percentage

Sonalika 27

Swaraj 8

Mahindera 20

John Deere 0

59
 Massey Ferguson 5

Farmtrac 40

Escort 0

40
35
30 Sonalika
Swaraj
25
Mahindera
20
John Deere
15
Massey Ferguson
10 Farmtrac
5 Escort
0
Percentage
Interpretation: - From above graph we see that the leading tractor in terms of shape is
Farmtrac with 40% followed by Sonalika with 27% which is followed by Mahindera, Swaraj,
and Massey Ferguson with 20%, 8%, 5% respectively.

Table 11: Tractor designed ergonomically

Tractor Percentage
name
Sonalika 37

Swaraj 13

Mahindera 16

John Deere 3

Massey Ferguson 16

60
 Farmtrac 15

Escort 0

40
35
30 Sonalika
Swaraj
25
Mahindera
20
John Deere
15 Massey Ferguson
10 Farmtrac
5 Escort
0
Percentage
Interpretation: - On the basis of above graph we see that leading tractor which is designed
ergonomically is Sonalika with 37% which is followed by Mahindera and Massey with equal
percentage of 16%.

Tractor designed ergonomically

Step 1 : Set the hypothesis
Ho : Sonalika is nit designed ergonomically.
Ha : Sonalika is designed ergonomically.
Step 2: set the rejection criteria
Df= 6-1=5
At alpha 0.05 and df 5 the critical value from chi square table is 11.07
Step 3: Calculate Statistics:

61
Observed Expected O-E (O-E)² (O-E)² E

37 16 21 441 27.5625
13 16 -3 9 0.5625
16 20 -4 16 0.8
3 16 -13 169 10.5625
16 16 0 0 0
15 16 -1 1 0.0625
Total 39.55

Interpretation: - From the above table we see that the calculated value comes out to be greater
then the critical value. Thus Ho is rejected in this case. Thus Ha is accepted.

Table 12: How did people describe Sonalika Tractor on the following factors?

Factor Percentage

Expensive 31

High Quality 18

Well Built 45

Good Value for Money 6

62
 45
40
35
30
Expensive
25
High Quality
20
Well Built
15 Good Value for Money
10
5
0
Percentage
Interpretation: - It is clear from the graph that 45% of the people say that Sonalika is the Well
Built tractor which is followed by 31% of the people saying it is expensive. Remaining 18%
say it is High Quality followed by 6% of the people saying it is a Good Value for Money.

CHAPTER-7

Recommendation and Suggestion

• While interacting to the farmers, I noticed that number of farmers want lock system in
tractor. They claim that there is no tractor in the market with this facility. So company
has to produce tractors with lock system facility.

63
• Keeping in view the increase competition, the company should increase there warranty
period and sales promotion activities to built their brand image.
• Keeping in view the local manufacturing, company should position itself as most
service providing brand of tractors in the mind of farmers. So that there should be no
problem for farmers regarding the maintenance of their tractors. With this type of
facility the company can position itself differently which will be helpful in today’s
scenario.
• Training should be given to the salesmen on how to increase sales through building
better relationship and handling promotion material efficiency.
• Sales executives of the company should try to solve the grievances of dealers as early
as possible which will reduce the risk that dealers will shift to other brands.
• To build brand image company can work on there promotional tools differently. For
example, there should be visit to the farmer’s house that uses Sonalika tractor and
consultation with them regarding the tractor. With this interaction company can
maintain their relationship and also can find current problems in there tractors.
• There is less emphasis on advertisement of tractors. By increasing the advertisement
expenditure company can create more awareness among the people.
• Keeping in view the requirements of the farmers Sonalika should produce tractors with
lock facility.

• The resale value of the Sonalika tractor is very low. The tractor gets into bad condition
after two to three years. As we have found most of the farmers purchase tractor on the
basis of tractor’s resale value thus it creates problem on the part of Sonalika.

• The wear and tear of the tractor is very high leads to lot more maintenance of the
tractor.

64
• The tractor is lot more noisy while operation. So Sonalika should work on it.

CHAPTER-8

Conclusion

65
In the end we can say that Sonalika tractors are doing well in sub continent. This survey shows
that Farmtrac is leader among these six brands of tractors. In my area of study Farmtrac is at
top because of its durability, less maintenance and good resale value. Mahindra is in second
position followed by Sawraj and Sonalika. The main feature of M&M which is most
considered by the farmers is most fuel efficient tractor. Sonalika is termed as good value for
money. According to some farmers Sonalika group uses different components from different
brands of tractor. They also claim that the durability of Sonalika tractor is not as well as other
brand of tractor. In my survey I come to know that John Deere is one of the emerging Brands
of tractor. Spare parts of John Deere are not easily available in the market which is major cause
of its fewer shares in the market.

CHAPTER-9

ANNEXURE

QUSTIONNAIRE

66
Name:

Address:

Contact Nos. Mobile: Landline:

Tractor being used currently:

Mahindra & Mahindra Sonalika John Deere

Farmtrac Sawraj Massey Ferguson

Others

Year & Month of Purchase:

Q: 1 What do you expect from a tractor? Please allocate points out of 100 to each option.

S.No. Options Available Points Given

1. Road Speed

2. Ground Clearance

3. Less Maintenance

4. Availability of
Workshops/Mechanics
5. Good Resale Value

Q: 2 What financial sector influence you most while having a tractor? Please tick any of the
following option.

Price Loan Facility Buy Back Scheme

67
Discounts

Q: 3 How much does these sources influence the purchase of a particular brand of tractor?

Relatives Neighbours Mechanics

Spare Parts Shops Old Customers

Q: 4 How did you come to know of the tractor you are currently making use of?

TV Advertisement Relatives Wall Paintings

Exhibitions News Papers Supplier Visits

Relatives

Q: 5 To what extent does these factors affect the choice of tractor? Rank the following factors
on the scale of 1 to 6 (1 stands for most affecting factor 6 for least affecting factor)

S. No. Factors Affecting Rank

1. Brand Name

2. After Sale Services

3. Availability of Spare
Parts

4. Kind of work to be taken

from tractor

5. Coverage Area

68
 6. Warranty

Q: 6 What are the problems faced while using a tractor? Please rank the following factors on
the scale of 1 to 6 (1 stands for the most important problem of the following & 6 for the least
important)

S. No. Problems Faced Rating

1. Clutch Plate Problem

2. Oil Leakage

3. Front Lifting

4. Gear Box Noise

5. Differential Noise

6. Slow Speed

Q: 7 According to you which tractor’s spare parts are easily available?

Sonalika Escort Mahindra & Mahindra

John Deere Sawraj Farmtrac

69
Q: 8 Which tractor according to you is most fuel efficient?

Sonalika Escort Mahindra & Mahindra

John Deere Sawraj Farmtrac

Q: 9 Which of the following tractors perform better in case of “Overloading”?

Sonalika Escort Mahindra & Mahindra

John Deere Sawraj Farmtrac

Q: 10 How would you rate the following tractors on the basis of their appearance? Please rate
them on the scale of 1 to 6 (1 stands for the most attracting appearance & 6 for the least
attracting in appearance)

Sonalika Escort Mahindra & Mahindra

John Deere Sawraj Farmtrac

Q: 11 Which of the following tractors do you feel are designed “Ergonomically”?

Sonalika Escort Mahindra & Mahindra

John Deere Sawraj Farmtrac

Q: 12 How would you describe Sonalika tractor on the following attributes?

Expensive High Quality Well Built

Good Value for money

Q: 13 What is the level of satisfaction you have from your tractor?

Not Satisfied Average Satisfied

Highly Satisfied

70
Q: 14 What are the various facilities you would like to add in your tractor? Please specify in
few words

CHAPTER-10

Bibliography

References :-
Kotler Philip, Marketing Management, Pearson Publisher Ltd, New Delhi
Statistical Methods by S.P.Gupta
Concepts & practices of Research Methodology by HARPREET SINGH.

71
MAGAZINES:
Company pamphlets
WEBSITES:
www.sonalika.com
www.google.co.in

72