Sonalika group to expand capacity with Rs700-cr investment by 2009

New Delhi: International Cars and Motors Ltd (ICML), part of the Sonalika Group that is known as a tractor maker through its International Tractors Ltd, is planning to invest Rs700 crore by 2009 in capacity expansion, launch of a sports utility vehicle (SUV) and a design facility.

Company officials said Rs200 crore would be invested in doubling production capacity from the current 2,000 units per month for the newly launched multi-utility vehicle, Rhino Rx while Rs250 crore would be used towards a new SUV and another Rs150 crore for a design facility.

The MUV has been priced between Rs5.85 lakh and Rs6.95 lakh and would be available across the country from September. The company would phase-out the earlier model, which sells about 200 units per month, and is targeting to sell 2,000 units a month of the new version.

The company is looking to strengthen its position in the multi-utility vehicle segment by establishing a dealer network of 200 by the end of the fiscal and has already appointed 100 dealers.

International Tractors Ltd (ITL), also a part of the Sonalika group would invest Rs450 crore in setting up a new tractor manufacturing facility in South India for which it is already in talks with Karnataka, Tamil Nadu and Andhra Pradesh.