Sonalika tractors introduces Rs 1,300 crore expansion plan for manufacturing facility in Punjab

Update On: Fri Mar 15 2024 by Gaurav Sharma
Sonalika tractors introduces Rs 1,300 crore expansion plan for manufacturing facility in Punjab

Sonalika tractors announced on Friday the laying of the foundation stone for two new plants in Punjab. The development is in line with the company's commitment to infuse a fresh round of investment announced late last year. Sonalika will invest Rs 1000 crore in setting up a new tractor assembly plant, and, additionally, Rs 300 crore in setting up a new high-pressure foundry.

The state-of-the-art tractor assembly facility, which was unveiled by state CM Bhagwant Mann, is dedicated to Sonalika Group’s export commitments and will increase the company's annual capacity by an additional 1 lakh tractors once fully operational.

In addition, the Japanese engineered DRAS, a high-pressure foundry plant, will be the largest casting plant in North India once it is ready.

Dr. Amrit Sagar Mittal, Vice Chairman, Sonalika Tractors said, “Sonalika’s fresh round of investments in the Hoshiarpur will pave way for further solidifying our position as the proud owner of the world’s largest tractor manufacturing facility. The government' s support has been phenomenal, particularly through its single-window channel for facilitating the establishment of new projects in Punjab. The collaborative efforts between the private sector and the government are fostering a conducive environment for business growth and innovation.”

Also Read: Greaves Electric Mobility launches Eltra City electric 3-wheeler

Akshay Sangwan, Director - Development & Commercial, Sonalika Tractors, said, “Our heavy duty tractor range will get a major boost in terms of quality and expansion as the new casting plant is equipped with a melting capacity of over 1 lakh metric tonnes per annum. Featuring the state-of-the-art German-made Kunkel Wagner high-pressure moulding line, DRAS is poised to elevate the quality of tractors through the production of fine-quality casting.”

Sonalika tractor unveils Rs 1,300 crore expansion plan for its manufacturing facility in Punjab

Potential impact on employment and the local economy

The unveiling of Sonalika Tractors' ambitious Rs 1,300 crore expansion plan in Punjab has the potential to significantly impact employment and the local economy in the region. With such a substantial investment, the expansion is likely to create a multitude of job opportunities across various sectors, from manufacturing and engineering to logistics and administration.

The influx of new employment opportunities can lead to reduced unemployment rates, increased income levels, and improved standards of living for the local community. As more individuals secure stable jobs within the expanded Sonalika Tractors facility, the overall economy of Punjab is expected to experience a positive boost.

Also Read: Tata Motors signs MoU with govt of Tamil Nadu, to invest Rs 9000 crore in five years

Furthermore, the expansion plan may also stimulate growth in ancillary industries and businesses, creating a ripple effect that benefits the broader local economy. Increased economic activity generated by Sonalika Tractors' expansion could lead to enhanced infrastructure development, higher consumer spending, and a thriving business environment in the region.

Overall, the potential impact of Sonalika Tractors' expansion on employment and the local economy in Punjab is significant, promising growth, prosperity, and development for the community and beyond.

Latest Tractor News

    View all Tractor News