SIX MONTHS TRAINING REPORT

DONE AT INTERNATIONAL TRACTORS LIMITED BACHLOR OF TECHNOLOGY (MECHANICAL ENGINEERING) Session 2009-12

SUBMITTED TO : MECHANICAL DEPT. JALANDHAR

SUBMITTED BY: MANINDER KUMAR ME 8th SEM ROLL NO. 90221175139

CT INSTITUTE OF MANAGEMENT AND TECHNOLOGY

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ACKNOWLEDEMENT
No engineering study is complete without practical experience. Being a B-TECH student I know that creativity and practice both are essential elements of management.

I would like to pay my sincere thanks to Mechanical department for providing me a golden chance to undergo summer training for gaining practical knowledge.

I express my sincere thanks to Mechanical Deptt. Team , who has given me a chance to get summer training at SONALIKA TRACTORS. Iam highly thankful to him for allowing me to work at very interesting project at ITL.

I express my sincere thanks to Mr. Kuber Gupta for their sympatric understanding and valuable co- operation. He is my guide in the sonalika (R&D Department) and I have completed my training under his valuable guidance.

I am highly thankful to all the staff members of mechanical departments for providing their support and co operation.

MANINDER KUMAR

CONTENTS INTRODUCTION TO COMPANY REVIEW OF LITERATURE RESEARCH METHODOLOGY DATA ANALYSIS AND INTERPRETATION CONCLUSIONS AND SUGGESTIONS BIBLIOGRAPHY AND ANNEXURE 72-74 69-71 3-43 44-48 49-56 57-68

PART-A INTRODUCTION

1.1 HISTORY OF SONALIKA GROUP

FOUNDER Mr. L.D.Mittal Sonalika Group - Sonalika group is one of the top automobile and agriculture machinery manufacturers in India. Apart from tractors its product line includes multi utility vehicles, three wheelers, engines and various farm equipments and implements. Established in 1969, Sonalika group since the inception has tried to understand customer need to be facilitating them with its value for money products. The Company has a state of art manufacturing facilities, spread in acres, located in the free shrubs of Punjab and 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 5000 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. The company works on the maxims of low production cost and clean and safe environment. Such efforts have fetched the company the accreditation like ISO 9001 and ISO 14001. 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, we have been able to create a unique platform for learning through success stories of industry leaders. 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. Sonalika is the fastest growing tractor company registering growth over growth since its inception has crossed 1.80 lac merely in 10 years & has attained one of the position in top three in India Sonalika groups products exist in various international markets. Companys product exported to Algeria, Angola, Armenia, Australia, Bangladesh, Cameroon, Ethiopia, Ghana, Ivory Coast,

Malawi, Malaysia, Mauritius, Mozambique, Nepal, Oman, Republic of Benin, Senegal, South Africa, Srilanka, Sudan, Canada, Zambia, Syria, Togo, Tunisia, Ukraine, and Zimbabwe.

1.2 MISSION & VISION

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 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

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. 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.

1.3 Details of top executives

1. Chairman- Mr. L.D. Mittal 2. vice Chairman- Mr. A.S. Mittal 3. Managing Director- Mr. Deepak Mittal 4. Finance Head- Mr.Rajnesh Jain 5. Production Head- Mr. Ashok Kapoor 6. Marketing Head- Mr.L.R.Yadav (CEO) 7. R&D Head- Mr. Ashwani Malik

Turnover
The total turnover of the group stands for 3200crore 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.

1.4 SONALIKA GROUP -MILESTONE

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15)

1969, Modest beginning into farm equipment and machine manufacture and

earning name and fame over all these year. 1995 Diversification into manufacture of tractor over whelming response

from the market. 1996 Roll out of first tractor from ITL. 2000 Enter into joint venture with Renault Agriculture France for tractor

manufacture in India. 2000 Started in house manuf. Of engine for tractor application. 2002 Started export of tractor to Africa, Asian sub continental. 2004 Started Roll out of 100000 Tractors 2004 Started establishment of ICML. 2005 Become the fourth largest tractor manuf. In India.

2005, Roll out of first vehicle from ICML facility. 2005 Joint venture with Yanmar Agriculture of Japan. 2006 Successfully developed 4 wheels drive front Axles and transmission of tractors for Yanmar. 2006 Rollout of 100000th tractor engine. 2006 Become 3rd largest manufacture of tractor in India. 2006 Market launch of Rhino (MUV) and establish dealers network.

1.5 SONALIKA GROUP UNITS

Sonalika group divided into four companies .Sonalika group units is as follow:

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1.5.1 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 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
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companies in India. These 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 companys 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. They are 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).

Address(India)

International Tractors Limited

Jalandhar Road, Hoshiarpur (Pb.)

Pin-146022

1.5.2. INTERNATIONAL CARS AND MOTOR 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) experience in & Mr. Deepak Mittal, Managing Director, who are having vast of tractors, Farm machines & Automobiles. manufacturing

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

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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. 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. International cars & motors ltd, car plant is located in foothills of Shivalik Range and surrounded by natural greenery of Himalayas at AMB (HP) a tax-free zone. The total area of plant is 93,000 Sq. M. out of which 42,000 Sq. M. is covered area. Plant capacity to produce 24000 cars in a year. Address:-Amb Distt., Himachal Pradesh.{Tax Free Zone}

1.5.3. INTERNATIONAL AUTOTRAC FINANCE LIMITED (IAFL)

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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.

1.5.4. 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 groups 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).
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Product and Services of All Group Units

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2.1 International Tractors Limited

This company mainly deals with tractors brands and these tractors also exported to different markets in foreign countries. These brands are as follow:TABLE - PRODUCT CATEGORIES TRACTOR NAME DI-750III DI-730II DI-735 DI-55 DI-750II DI-90 DI-75 2WD DI-750 DI-60 SENIOR DI-75 4WD DI-740III DI-60 2WD DI-740 DI-398X(north speeds) DI-60 4WD DI-745III HORSE POWER 50 30 35 55 50 90 75 50 60 75 40 60 40 39 60 45 LIFTING CAPACITY 1600Kg 1200 Kg 1200 Kg at lower links 1200 Kg at end of lower links 1200 Kg 1600 Kg at end of lower links 1600 Kg 1200 Kg at end of lower links 1200 Kg at end of lower links 1600Kg 1200Kg 1600Kg 1200 Kg at end of lower links 1200Kg 1600Kg 1200Kg

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DI-35 DI-340S Rx42 DI-47Rx DI-730III DI-732III DI-60Rx

35 40 45 50 30 34 60

1200Kg 1600 Kg at end of lower links 1200Kg 1200Kg 1200Kg at ends of lower links 1200Kg at ends of lower links 1600Kg

2.2. Sonalika Agro Industries Corporation

This company mainly deals with agricultural equipments and implements. That are helpful to the farmers in agriculture The product line of the sonalika agro industries corporation is as follow: Combine Harvestors Threshers Potato Planters Maize Sheller-cum Seed-cum-Fertilizer Drills Straw Reapers Ploughs Harrows
Tillers

2.3. International Autotrac Finance Limited

This company basically deals with services which are provided to farmers, salaried for finance the tractors and other agricultural equipments and implements. Provide financial assistance to them.

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2.4. International Cars and Motor Limited

At present this company produces one car model Rhino Rx a MUV by this group and also working on the new car model INSPIRE and this will launch within this year.

Market
No wonder Sonalika products have created a niche for themselves not only in India but also in foreign markets including France, Africa ,Bangladesh , Srilanka, Senegal, Mali, South Africa, Canada, Syria and many of the South Asian countries. Some of the international clients are as follow: MG Rover, Power Train, Renault, Yanmar In domestic market sonalika products are popular in all across the India. In Punjab, there are 45dealers of sonalika tractors. There are 70 dealers of International cars and motor products all over the India.

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3. INTERNATIONAL TRACTORS LIMITED

As per the training concern my training is in the sonalika tractors that is International Tractors limited. This company mainly deals with tractor manufactures and also some other like Generators etc.ITL was established in 1995-96 with a covered area of 25 acres. It is situated at distance of 7 km from Hoshiarpur on Hoshiarpur-Jalandhar road. It is specialist in manufacturing of producing three cylinder diesel engines of tractors. The first tractor manufactured by the company on 14 th Oct, 1996. In Oct, 96 the capacity of the company was one tractor in two days. It has sold 400 tractors in the first year of launching tractor & now the production rate is 1200-1250 tractors per month but installed capacity of company is 100 tractors per day. It has developed its own 60HP diesel engine. ITLs Hosiarpur situated plant is spread across 50,000sq.meter, which is having fully computerized and high level modern machines. Presently, the production capacity of plant is 100 tractors per day. Near about 3000 people engaged in the plant including workers, technicians, and engineers on regular basis and around 3000 people work on contract basis. Competitors of Sonalika tractors are as Escorts, Eicher, Hmt, Mahindra and Mahindra, Swaraj/PTL, Tafe/Massey, New Holland ford,

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ACHIEVEMENTS -Company has produced smoke free diesel engine -Company has increased its production of diesel engines up to 60 engines per day -International Tractor Limited has a network of network of more than 1000 dealers -Computerized tractor plant -First Indian tractor engine750III conforming to Euro II norms -Pride of country awarded to Sh L.D MIttal, Chariman. -Gold medal awarded to Sh. A.S Mittal, Vice Chairman -Udyog Bhushan awarded to Sh. Deepak Mittal, MD

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3.2 DISTRIBUTION NETWORK Followed by Sonalika:

COMPANY

DEALER OR STOCKIST

CUSTOMER Followed by other firms: COMPANY

STOCKYARD

DEALER

DIRECT & SUBDEALER

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CUSTOMER

3.3 ORGANISATION CHART FOLLOWED BY ITL:-

Chairman | Vice-Chairman | Managing Director | Chief Operating Officer | Joint Chief Operating Officer | HOD of Every Dept. | Managerial Staff | Executives | Support Staff
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| Workers

3.4 CERTIFICATIONS

A) ISO 9001
ITL has got ISO-9001 quality system certified by International Certification Ltd. It is for use when conformance to specified requirements is to be assured by supplier during several stages which may include design, development, production, installation & servicing. Sonalika has arranged collaboration with French Renaults for technical know-how and marketing. With the help of this collaboration SONALIKA will develop its own DI-740 Tractor engine which will help it to reduce its cost.

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B) ISO 14001:2004 Environment Management System

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3.5 Study of functioning of departments 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 subassemblies 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

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Hydraulic presses 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 dept in itself starting from designing up to 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 verification at vendor end High skilled workers are capable for making any types of prototypes

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Facilities:

High configuration workstations are used for design activities Team center is used for PLM concepts I-Deas, Solid-Edge & Auto Cad is used for 3D & 2D design activities Two transmission test rigs. Circular test track (mgr) & Roll over protection test rig. Hydraulic system test rig. Endurance test rig for operator seat & fenders. Pto test bed & Endurance test rig for MUV gearbox under commissioning. Proto machine shop with HMC, radial drilling & turning centre.

Engine R&D Center: Sonalika have In House Design Engine R&D department with up-to-date technology. Having a team of exceedingly competent & remarkable squad of engineers 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

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equipment imported from AVL Austria world leader in emission measurement for conducting in house emission. New Tractor Engine under G1 Series MUV Engine (Rover) Proto-type stage This center is capable of designing new technologically advanced Engines & its various components. It can also carry out DFEMA for its own design or any other components. 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.

Quality Assurance:The entire evolution of Quality is classified into 4 phases

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

Equipments used for Quality Assurance,

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

3D Co-ordinate Measuring Machine(CMM) 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 generate 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).

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).

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3.6 SWOT Analysis:-

STRENGTH: Human Resource Research & Development Physical Resources:- SAP, own IT dept. Availability of finance Investors Relationship

WEAKNESS: Import of tractor implements Unsuccessful Rhino car Lack of advertisement regarding their products

OPPORTUNITIES: Unexplored Markets for Exports :-Mexican & Brazilian markets

THREATS: Competitors Mahindra & Mahindra New Holland John Deere TAFE

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MAJOR MARKET PLAYERS

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1. INTRODUCTION
India is basically an agricultural country. Almost 70% of Indias population is engaged in agriculture for their bread and butter. Since the Indus valley civilization, agriculture is the main source of income. In the early age the use of tractor was very low. Green revolution was the result of tractor and other input used in agriculture. Today India is the largest tractor market estimating 300,000 tractors with annual growth rate of 13.3%. It means 7 tractors per thousand. Today tractor industry is of about 5000 crores.

The beginning
The decade of 60s in India saw a green revolution resulting in increase in both production and productivity. With an emphasis on industrialization, the birth of Indian tractor too place in 1959-60 when the imports were restricted. Total indigenous production of tractors by 1965 was just 6000. With the successful introduction and acceptance of high yielding seeds, however, there was a sudden upsurge in demand for tractors after 1967 and demand started multiplying at an annual rate nearly 50%.

The second phase

Seeing the sharply growing demand, Tractor industry became the most sought in the country and as many as 18 fresh entrants approached the govt. for setting up the manufacturing units. The interest of a large majority however lay in quick profits through sale of imported tractors. Nevertheless 6 new manufacturers did enter the tractor industry; 4 in private sector and 2 in govt. combined output of 11 units had risen to 32000 by 1975

The Maturing Years

With the entry of new units in 1970 and due to increasing govt. pressure, indigenization picked up substantially after 1970 & by 1978 all most all the tractors manufacturer were nearly indigenous.

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A fillip to indigenization was also given by overall industrialization of the country, when a large number of ancillary units were established and were in a position to supply a wide range of components to the tractor industry.

The Present Scenario

The industry faced recession during 1992-93. Sales fell to 1.44 lac tractors from 1.50 lac tractors during the year 1993-94. However there was a silver lining to the cloud. During 1994-95 199596,1996-97 sales stood 1.64,1.91,2.20 lac tractors respectively. In fact exports have now become a thrust area. Different producers are now in line producing different Horse Power tractors according to their available markets around the world. Higher productivity and greater output are the two major contributions in farm mechanization. Tractors form an integral part of farm mechanization and have a crucial role to play in increasing agricultural productivity. Tractor is a highly versatile piece of machinery having a multitude of uses, used in agriculture both for land reclamation and for carrying out various crop cultivation and also employed for carrying out various operations connected with raising the crops by attaching suitable implements and to provide the necessary energy for performing various crop production operations involved in the production of agricultural crops. Tractors are capital intensive, labor displaying used as a mode of transport, in electricity generation, in construction industry and for haulage operation. It has now become an integral part of farm structure .The application of tractor for agricultural activities which swept India during the last twenty years have erased the problem of farmers. Farm mechanization program in India aims to integrate the use of available human and animal farm power with mechanical sources of power for increasing the productivity. Indian tractor industry, comparatively young by world standards have expanded at a spectacular pace during last four decades. Consequently it now occupies a place of pride in India's automobile industry. U.S.A., U.S.S.R. and only a few Western European countries exceed the current production of tractors in India, but in terms of growth India's growth is unmatched even with countries of long history of tractor manufacturing. The spectacular achievement reflects the maturity and dynamism of tractor manufacturers and also the policies adopted by the government to enable it to effectively meet the demand. The tractor industry in India has made a significant progress in terms of production and capacity as well as indigenization of technology. It is a typical

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sector where both imported technology and indigenous developed technology have developed towards meeting the overall national requirements. The global spotlight on tractors manufacturers certainly in terms of volume seems to be swinging away from the USA, UK and Western and Eastern Europe towards India where growth in the number of producers and the total volume in recent years have been impressive. In India tractor industry has played a vital role in the development. India's gross cropped area is next only to United States of America and Russia and along with fragmented land holdings has helped India to become the largest tractor market in the world. But it drops to eight position in terms of total tractor in use in the country when compared to international figures, only 3% of total tractors used all over the world . It is to be noted that while the overall automobile industry is facing recession the tractor industry is growing at 9%.About 20% of world tractor production is carried out in our country only. The arable land in India is high as 12% of the total arable land in the world. Tractor market in India is about Rs 6000 crore. On an average around 400000 tractors are produced and their sale is 260000.Uttar Pradesh is the largest tractor market in our country. One out of every four tractor is being purchased here. Indian tractor market has to be viewed considering its position in the world with respect to key parameters as given below:

1.1 INDIAN TRACTOR MARKET DESCRIPTION UNITS WORLD INDIA INDIA RANK
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TOTAL/AVG Arable Land Irrigated Area Tractors In Use Mn Hectare Mn Hectare 1444 249.6 170 45.8 10.5 2 2 8

Tractors/000 Hectares 28

The Tractors available in developed countries have advanced features and accessories that are not found in Indian tractors .Tractor industry has made a steady and satisfactory progress even in drought areas. Four factors have contributed to the steady progress: * Government laid stress on the mechanization of agriculture with a view to boost food grain production. Therefore agriculture sector started receiving financial assistance. * There is an increase in awareness among the farmers for the need of farm mechanization and are keen to acquire tractor with the help of credit facilities from financial institutions. * Agronomists believe that there is need for more tilling due to depletion of moisture and repeated cultivation of land .It is precisely for this reason that the demand for tractors was well maintained even during a draught period. * Animal power available is too inadequate to meet power demand of our farmers. Mechanized operations are preferred to eliminate drudgery and delay, also labour shortage during harvesting increased the use of tractor. At the end of the day there are enough reasons to believe that the industry will grow because: * More farmers are opting for multiple cropping over last decade. Country's net cropped area had remained virtually stagnant while gross cropped area increased by about 4.7% .This indicates the increased popularity of multiple cropping.

* 95% of tractor sales are on credit. Credit is extended by commercial banks, state land development banks and regional rural banks.

* Irrigation facilities reduce reliance on the monsoon and allow for quick yielding varieties of food

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-grain .This reduces the cropping cycle to 3-4 months from the traditional 5-6 months. Reduced cropping cycle require deep tilling which translates into higher demand for tractors. * Cost of tractors in India is the cheapest in world .The cost of a finished tractor here is as much as the cost of gear box in developed countries. Hence there exists tremendous scope for exports. * According to a study conducted by PHD Chamber of Commerce and Industry , Since purchase of tractor involves a big investment its demand in affected by the availability and easiness of credit. A higher availability of credit will lead to a higher demand for tractors. * The tractors between the 31-40 horse power and 31-40 hp range dominate the market .The reason for medium horse power tractors being more popular are that the major tractor demanding states like Punjab Haryana and Uttar Pradesh have plenty of alluvial soil which does not require deep tilling. Lately it is visualized that higher hp segment has the maximum growth potential Higher horse powered tractors will be the future requirement with the government intention to encourage contract farming through the leasing in and leasing out of farm lands. * Regarding exports India of latter has been exporting tractors to a number of countries, but predominantly to Srilanka ,Nepal and U.S.A .However the study reveals that exports from India are going down in the recent years .The major reason for the decline in exports of tractors of tractor from India is being the failure to find an extensive market overseas ,deteriorating foreign exchange situation in African countries and their poor buying capacity, comparatively cheaper imports of second hand tractors by South East Asian countries from developed countries and the disintegration of erstwhile U.S.S.R. but also the potential export markets can be explored by Indian in the future. Since Indian tractors confirm to the international standard by virtue of their foreign collaboration it is possible for India to export to more tractors to the rice and wheat growing countries like Canada, Philippines and Bangladesh.

1.2 FOREIGN COLLABORATION Tractor industry along with others benefited from this policy which allowed free inflow of foreign technology .The manufacture of tractors started in India mainly with the help of foreign

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collaboration secured from internationally reputed companies from the USA, UK, USSR, WEST GERMANY, POLAND, and CZECH SLOVAKIA. Most of the models which were taken up for manufacture in India were developed overseas. Soon after the decision for the manufacture of tractors was made during second plan, government approved number of foreign collaboration agreements. The establishment and present status of tractor industry owes a great deal to the support received by the Indian entrepreneurs from foreign collaboration during the initial phase of manufacture. DSIR has introduced a scheme, "National Register of Foreign Collaborations", which envisages review and analysis of imported technologies in the country and suggested measures for appropriate choices acquisition and implementation of foreign know-how. Major objective of scheme is: * To undertake financial, economic and legal analysis of set of data on foreign collaboration. * Carry out a technological analysis of the imported technology and provide a stage of art technology in the country and status of implementation of collaboration. * Co-ordinate with Ministry of Industry, Commerce and Finance by providing technology data input. * Selective support to strength measures in Research and Development for technology absorption.

List of tractor manufacturers, their collaborators and the year of commencement of production: 1.2A MANUFACTURERS AND COLLABORATORS TABLE 4:

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MANUFACTURER Eicher Tractors Ltd

COLLABORATOR Gebr, Eicher Tractor. West Germany

YEAR 1961

TAFE Mahindra And Mahindra +Escorts Tractor Ltd Hindustan Machine Tools Punjab Tractor Limited International Tractors New Holland Tractor

Messey Ferguson. UK International Harvestor. UK Ford .U.K. Motokov -Praha. Czechoslovakia CMERI.INDIA Own know-how New Holland Tractors .Italy

1961 1965 1971 1971 1974 1998 1999

1.3 MAJOR PLAYERS IN INDIAN TRACTOR MARKET The tractor industry in India has developed over the years to become one of the largest tractor markets in the world. From just about 50,000 units in early eighties the size of tractor market in the country has grown up to over 200,000 units. Today industry comprises of 14 players, including 3MNCs. The opportunities still are huge considering the low farm mechanization levels in the

38

country, when compared to other developed economies across the world. After a downturn during last 3-4 years, the industry is back on a growth path, which we believe would sustain incoming years as well. Key concern for the industry is its dependence on agricultural income in hands of farmers and the state of monsoon. Tractor Segments: 30 - 40 HP dominates with over 50 percent share Tractor industry is classified into three broad segments, based on the power delivered by the engine Horse Power (HP) SEGMENTS HORSE POWER MARKET SHARE(%) Small Tractors 21-30 23-25 Tractors suited for soft soil conditions and preferred in well irrigated northern states. Medium Tractors 31-40 53-56 Used in southern and western region due to hard soil conditions. Large Tractors 41-50 17 Rich farmers with larger land holdings, especially in Punjab and Haryana. Large Tractors >50 2-4 Used in Turnkey project sites such as building sites for canals, dams and civil Construction projects. Today there are as many as 14 players operating into tractor manufacturing activity in the country. However, about 90 per cent of market is shared among the top 5-6 players only. Mahindra and Mahindra continues to dominate the industry with close to 30 per cent share, while other players like TAFE, Escorts, PTL, ITL and Eicher enjoys market share of 15 per cent , 14 per cent , 11 per cent , 11 per cent and 10 percent respectively. SUITABILITY

1.4 MAJOR PLAYERS IN TRACTOR MANUFACTURING

39

1. ESCORTS In 1960, Escorts set up the strategic Agri Machinery Group (AMG) to venture into tractors. In 1965, they rolled out their first batch of tractors under the brand name of Escort. In 1969, a separate company, Escorts Tractors Ltd., was established with equity participation of Ford Motor Co., Basil don, UK for the manufacture of Ford agricultural tractors in India. In the year 1996 Escorts Tractors Ltd. formally merged with the parent company, Escorts Ltd. TechnologiesEscorts AMG has three recognized and well-accepted tractor brands, which are on distinct and separate technology platforms. Farmtrac - World Class Premium tractors, with single reduction and epicyclical reduction transmissions from 34 to 75 HP. Powertrac - Utility and Value-for-money tractors, offering straight-axle and hub-reduction tractors from 34 to 55 HP. Indias No.1 economy range engineered to give spectacular diesel economy. Escorts - Economy tractors having hub-reduction transmission and twin-cylinder engines from 27 to 35 HP. Pioneering brand of tractors introduced by Escorts with unbeatable advantages.

2. JOHN DEERE Deere & Company, founded in 1837 (collectively called John Deere), has grown from a one-man blacksmith shop into a corporation that today does business around the world and employs approximately 56,000 people. The company continues to be guided, as it has been since its beginning, by the core values exhibited by its founder: integrity, quality, commitment and innovation. To expand its global presence in Agricultural equipment, John Deere established the India Tractor business in 1997 under a 50:50 joint venture with Larsen & Toubro Limited (L&T). In 2005, John Deere acquired the remaining shares in the joint venture. The India Tractor business includes a fully integrated manufacturing facility with three focus factories - Engine, Transmission and Vehicle Assembly. Spread over 112 acres with 50,000 m2 of covered area at Sanaswadi, Pune, it produces modern tractors from 35 to 70 HP for both domestic and international markets. These

40

include North & South America, Europe and South East Asia where they have earned a reputation for quality

3. TAFE TAFE full name is Tractor and Farm equipment limited. TAFE is a US$750 million tractor major incorporated in 1960 at Chennai in India, in collaboration with Massey Ferguson (now owned by AGCO corporation, USA). TAFE acquired the Eicher tractors business, its engine plant at Alwar and transmissions plant at Parwanoo through a wholly owned subsidiary TAFE Motors and Tractors Limited. A member of the Amalgamations Group of Chennai, this company has four plants involved in tractor manufacturing at Mandidheep (Bhopal), Kallidaipatti (Madurai), Doddabalbur (Bangalore) and in Chennai. Apart from being among the top five tractor manufacturers in the world, TAFE is also involved in making diesel engines, gears, panel instruments, engineering plastics, hydraulic pumps, plantations and passenger car distribution through other divisions and wholly owned subsidiaries. TAFE Motors and Tractors Limited has, apart from the tractor manufacturing plant at Mandideep mentioned above, a Diesel Engine plant at Alwar, Rajasthan producing a range of air cooled and water cooled diesel engines up to 80 HP with plans are on to increase the product range up to 125 KVA. The Transmissions Division located at Parwanoo in Himachal Pradesh produces a range of transmission components both for captive use as well as for sale to OE manufacturers. TAFE Access Limited is a wholly owned subsidiary of TAFE involved in the manufacture and marketing of farm implements, trailers and accessories, distribution of passenger cars, manufacture of hydraulic pumps and panel instruments to discerning customers both in India and overseas. TAFEs Engineering Plastics Division produces a range of components for the consumer electronics, IT, white goods and automotive sector and has the distinction of being awarded Toyota Quality Award. TAFEs Power Source Division produces a range of automotive batteries for both two wheeler and four wheeler applications for sale through AMCO Batteries Ltd. As well as for sale directly through a dedicated distribution channel under the brand name of Speed.

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4. MAHINDRA & MAHINDRA The Mahindra group's Farm Equipment Sector (FES) is amongst the top three tractor brands in the world. It has won the Japan Quality Medal in 2007. It also holds the distinction of being the first tractor company globally to win the Deming Application Prize in 2003. FES is the first tractor company worldwide to win these honors. This shows the strong focus of FES on Quality and Customer Satisfaction. Today, the domestic market share of FES is around 42%. (Mahindra brand: 30% and Swaraj brand: 12%). The motto of FES is to usher prosperity; for its customers, dealers, employees, society and all other stakeholders.FES has 6 state-of-the-art manufacturing plants (including 2 plants of Swaraj) in India, 2 plants in China, 3 assembly plants in USA and 1 assembly plant in Australia. FES has a presence in around 25 countries across six continents with more than 1000 dealers world-wide. FES has a subsidiary agricultural tractor manufacturing company in India known as Mahindra Gujarat Tractor Limited (MGTL).

5. HMT HMT was the fulcrum on which the industrial development of India was envisaged. It was set up in 1953 to meet the challenge and take up the pioneering role in the development of machine tools the vital component for industrial development. HMT successfully diversified into diversified areas of engineering. Leading this diversification drive was the HMT Tractor Business Group. Since its inception in 1971, HMT Tractor Business Group has increasingly contributed its might in building HMT into an organisation to reckon with. Presently Tractor Business Group is part of HMT Ltd., the holding company of HMT Group. HMT rolled out its first 25 HP tractor in collaboration with Motokov of erstwhile Czekoslovakia from its Pinjore plant in the state of Haryana.The success of the 25 HP tractor in Indian conditions led HMT to indigenise the 25 HP in a short span of five years.

42

And that was just the beginning... The passing years, saw the needs of the Indian farmer change. Farm mechanisation was growing at a rapid pace and called for more powerful and multi-role tractors. HMT stepped in by introducing tractors that met the specific needs of the agricultural sector. HMT manufactures a wide range of tractor from 25 HP to 75 HP. Keeping in tune with HMT's philosophy of introducing innovative products and continously upgrading its tractors with better technology, these models incooporate contemporary technology viz. fuel efficient engine meeting emission norms, floor gears, direct axle, latest styling giving value for money to its customers. HMT's Tractor Project commenced its operations from Pinjore in June 1971.This unit is the main unit today fully integrated with foundry, manufacturing, assembly and testing facilities for 20000 tractors and engines. Beside, assembly unit at Hyderabad (Andhra Pradesh,India). The Tractor unit is certified with ISO 9001 Quality Standards.

6. 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 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. These 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 companys marketing efforts are promoted by dealer network of 600, and 450 subdealers. Such a networking has enabled the company to grow like a
43

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.

They are 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).

CHAPTER II REVIEW OF LITERATURE

44

CHAPTER II REVIEW OF LITERATURE This chapter in the research is the most essential one. It provides the second hand information that is the information from secondary sources that help the researcher in the research. The literature referred by the researcher and the findings implied in the research are mentioned and written under
45

this chapter. This chapter gives a brief review of some of the researches conducted. In my research I used secondary data for information. The review of my literature is as follow:Ali (2006) in his study consumer response to promotional schemes has concluded that market has been flooded with promotional schemes that are essentially meant to existing customers loyal which give an essence of consumer retention. An analytical approach has been proposed to make a comparative study of the schemes as well as to study the response under some well known schemes. As there are large number of schemes like collect the points and win prizes , Discount coupons , Free offers , test drive , test ride in case of Automobile sector . but consumer response is different in different situations . The study showed that discount / price cut schemes directly reaches and consumers are satisfied with these schemes. Bureau, from article structural constraints in equity master.com, 11 may 2002 found that India is no.1 in the terms of irrigated land area, second in the arable lands and seventh in the total area. The one way to improve productivity is to increase the level of mechanization. In this article they look at the growth prospects of the tractor industry and how it is closely correlated with the Indian agricultural sector consider the size of tractor industry. The tractor market has more than double in the current decade. The first half of the decade was characterized by aggregate volume of growth of more than 14% p.a. over production and unremunerable pricing strategies followed by some of the lead players also affect the overall growth of the sector. India is on rank 4 in the tractor market in overall world and second in terms of volume of tractors. Punjab and Haryana are on top of the list in tractor market

Bureau, from article Automobiles in myris.com (2000) concluded that nine companies mfrs. Tractors in the country. Sales are however, concentrated in the 20-50 hp segments owing to the small size of the land holding in the country, M&M is industry leader in terms of tractor. For range 41-50 hp, Escort is no .1 and M&M is on second place. India has about 8 tractors per thousand hectares v/s the Asian average of 14. Potential demand for tractors is consequently large with growth in agricultural output and productivity.

46

Bureau, from article Indian tractor industry to see flat growth this year, Zee news 8 Jan 2009 concluded that the Indian tractor industry in 2008-09 is unlikely to register growth and sales are likely to be at 3 lac tractors same as what was achieved in 2007-08. Mahindra sold 92000 tractors in last year and exported 8000.

Bureau, from article Tractor maker claims record export sales, Indiaforums.com 19 Apr 2009 concluded that ITL which sells tractors under the sonalika brand claimed it has achieved highest export sales among all mfrs. In the country during 2008-09. The company posted export sale of Rs.105 Crores. An increase of over 262% over the previous year. it had earned Rs .40 crores from export in 2007-08

Diwan & Jain (2004) in their study brand positioning: The unbeatable weapon in present market scenario concluded that right positioning can beat the competition because today the markets are flooded with clones or sea of homogeneous products. Only way to cross this sea is to create and communicate a distinctive image which makes the customers convinced to choose the brand over the competitors brand. An Effective brand positioning strategy includes the needs of customers, product category, target segment, competition, benefit, perception and brand personality. All this help in raising brand value.

Kathirvel (2009) in his study on satisfaction level of farmers towards production marketing of agricultural product concluded that 47% of farmers are not satisfied and 49.2% of farmers are neither satisfied nor dissatisfied and only 3.8% are satisfied from the marketing of agricultural product and majority of farmers are not in favour of using new techniques for cultivation (98.6) only 4.4% using new techniques of cultivation. The size of farm directly affects the output of agricultural product and when landholding increases the satisfaction also increases. The govt. can pay attention by providing transportation facilities, maintaining good roads and providing subsidies for fertilizers so that small and medium farmers may be benefitted.
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Kaushik (2004) in her article now come outsourcing of tractors MNCs drive exports by 18.5% concluded that the tractors sales up and now exported to foreign market and also at good rate of 18.5% increase annually. Eicher group, the exports of tractor last year grow to 16100 unit from 13581 units in 2002-03. Some of new MNC entrant SAME deutz fahr also has plans to develop India as an Export Hub.

Seth (2009) in his article in livemint concluded that tractor exports excluding production at 2009 due to recession in foreign market, in this fiscal year tractor demand in India have been 303882 units which represent a growth of 5% over the previous year. According to Chaudhary who is also the President of Industry body Tractor Mfrs. Association, estimates domestic tractor sales will grow between 5-8% in fiscal 2010.

Shrinivasan(2000) in her article Indian Tractor industry is ready to face the Chinese threat concluded that 75% of Indians are involved in agriculture sector still it seems they are being neglected . other than Haryana and Punjab , intensity of mechanization is also very low due to some lending norms the policy makers will take into account the fact that the tractor is a multi utility vehicle and therefore the revenues of a tractor owner are going to come in not from land of his own but also through contract farming or hiring of land for production

Valson (2001) in his study on tractor industry, segmented into four categories based on engine horse power less than 30hp, 31 to 40hp, 41-50hp and more than 50 hp. historically the 31-50 hp segment contribute to over 50% of the market owing to the demand from the northern state of India and finded some factors that drive the demand for tractors in India like agricultural production and govt. procurement price directly affect the demand of Tractors. Same as in the case of monsoon and credit policies of bank also directly affect the demand of tractors. Some change factors occurred in other states like Gujarat, the gross irrigated area has increased from 27% in 1989-90 to 335 in
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1996-97. Now companies take stress on 50 hp tractors instead of small tractors and second hand tractors also attracted the demand of tractors in mind of consumers due to their Competitive price for same segment.

CHAPTER III RESEARCH METHOLDOLGY

49

OBJECTIVES OF THE RESEARCH

To study the customer awareness regarding sonalika tractors. To study the different parameters influence the customers in purchasing of the tractor. To study major market leader among various market payers. To study the satisfaction level of the customers with their existing tractors

3.1RESEARCH METHODOLOGY
Research can be defined as a scientific and systematic search for pertinent information on a specific topic. According to Clifford Woody research comprises defining and redefining problem, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Research methodology is a way to systematically solve the research problem. It may be understood as the science of studying how research is done scientifically.
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3.2 Research design

A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. In fact, the research design is the conceptual structure within which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data. One may split the overall research design into following parts: a) The sampling design which deals with the method of selecting items to be observed for the given study. b) The observational design which relates to the condition under which the observations are to be made. c) The statistical design which concerns with the question of how many items are to be observes and how the information and the data gathered are to be analyzed. d) The operational design which deals with the techniques by which the procedure specified in the sampling, statistical and observational design can be carried out.

Need for a research design

Research design is needed because it facilitates the smooth sailing of the various research operations thereby making research as efficient and possible yielding maximal information with minimal expenditure of effort time and money. It stands for the advance planning of the method used or adopted for collecting the relevant data and the techniques to be used in their analysis, keeping in view of the objectives, time and money. The research design for my research is descriptive as well as exploratory.

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Data sources:
The task of data collection begins after a research problem has been defined and a research design has been chalked out. While deciding about the methods of data collection, the researcher should keep in mind two types of data:1. Primary data 2. Secondary data. The primary data are those data which are collected afresh and for the first time, and thus happen to be original in character. The secondary data on the other hand, are those which have already been collected by someone else and which have already been passing through the statistical process. The researcher would have to decide which sort of data he would be using for his study and accordingly he will have to select one or the other method of data collection. The methods of collecting primary and secondary data differ since primary data are to be originally collected, while in case of secondary data the nature of data collection work is merely that of collection and compilation of information collected through various newspapers, magazines and internet etc. In this research, I follow both the method of data collection. This research involves both primary and secondary sources of data collection. The information was collected and assembled from various websites, newspaper and magazines.

Research approach
The approaches mainly opted by the researcher to get the result include behavioral, survey, focus group, observational, experimental approaches etc. For conducting this research the main approach used was survey approach i.e. interviewing the consumers.

Research instrument

52

The primary data was obtained during the course of doing research in a systematic manner with the help of questionnaires and interviewing peoples. Questionnaire method: this method of data collection is quite popular, particularly in case of big enquires. In this method a questionnaire is sent to the persons with a request to answer and return the questionnaire. A questionnaire consists of a number of questions in a definite order on a form or a set of forms. The questionnaire used by me for the purpose of data collection was of structured type. It was designed keeping in mind the research problem which included close ended questions. The questionnaire was given to the respondents who were expected to read and understand the questions and write down the reply in the space meant for the purpose in the questionnaire itself.

Sampling design
A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or procedure the researcher would adopt in selecting items for the sample. Sample design may as well lay down the items to be included in the sample i.e., the size of the sample. Sample design is designed before data are collected. There are many sample designs from which a researcher can choose. Some design is relatively more precise and easier to apply than others.

Population
Population refers to part of universe from which the sample for conducting the research is selected. Universe and population can be same in some researches. It may be finite or infinite. In finite universe the number of items is certain, but in case of infinite the number of item is infinite i.e., we cannot have an idea about the total number of items.The population for my study is different respondent from villages and nearby Hosiarpur.

Sampling unit

53

Sampling unit refers to smallest possible individual eligible respondent. In my study the sampling unit is single individual user of tractor.

Sampling size
This refers to the total number of respondents selected from the universe to constitute a sample. The size of the sample should neither be excessively large, nor too small. It should be optimum. An optimum sample is one which fulfills the requirement of efficiency, representativeness, reliability and flexibility. The sample size for my research is hundred respondents.

Sampling techniques
In this research study, non-probability convenience sampling is opted for. Convenience sampling is done purely on the basis of convenience or accessibility. This sampling method has been mainly chosen because of time, financial constraints and lack of expertise.

Sampling frame
Frame is the list of respondents i.e. list of all the users of different tractors

Statistical analysis
Data will be analyzed with the help of frequency distribution, percentages and other suitable statistical tools. Classification and tabulation transforms the raw data collected through questionnaires and personal interviews into useful information by organizing a compiling the bits of data contained in each of the hundred questionnaires i.e., observation and responses are converted into understandable and orderly statistics for further analysis and interpretation. Following applications of statistics are used to organize and analyze the data: Simple tabulation of data using tally marks. Calculating the percentage of the responses. Formula used: Percentage= (number of responses/total responses)*100

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Graphical analysis by means of bar graphs and pie charts.

Data Analysis and Interpretation

For the purpose of analyzing, raw data was summarized in a master table and from this table the results have been carried out. The questions having multiple/alternative choices. In case of ranking questions the total score has been added and final ranking is given. In case of checklist questions the average of total no. of responses was calculated. In case of explanatory questions, the general suggestions were summarized.

LIMITATIONS TO THE RESEARCH

As the data will be collected through questionnaire, there are chances of biased information provided by the respondents.

The survey is limited only to Mukerian tehsil. Hosiarpur Distt. As the sample size is small compared to the total population the outcome cannot be generalized. The study was done for a short period of time, which might not hold true over a long period of time. The area is too vast to research and the entire picture may be vary if sample should be increase. Respondents are basically villagers they usually not take more emphasis on these questions.

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CHAPTER IV
56

DATA ANALYSIS AND INTERPRETATION

4.1 DATA ANAYSIS AND INTERPRETATION

Data analysis is an important part in any of the research as it fulfills the purpose for which research is made. In this chapter analysis of every question asked from consumer through the questionnaire is done. In this part of my study the analysis of data is done from the basis of information collected through the questionnaire with the help of table and graphs. TABLE 4.1 Brand owned by the targeted consumers of tractors Brand Sonalika % age 6

57

Escort/ford Mahindra & Mahindra Tafe/Massey Swaraj John deere

30 28 20 14 2

FIGURE -4.1a

INTERPRETATION
From our research on the tractor users we find that mostly people owned the Escort tractors and Mahindra & Mahindra tractors. TABLE 4.2 PURPOSE OF USING THE TRACTOR Agriculture % 94 Industrial % 4 Loading/unloading % 2

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FIGURE 4.2a

INTERPRETATION
In our study on comparative analysis, we find that most of the people using tractors for agricultural purposes and some of the users using tractor as loading and unloading of sands, bricks etc like thing and some small entrepreneurs using for industrial purposes.

TABLE -4.3

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MAIN COSIDERATION WHILE PURCHASING TRACTORS Consideration Price Performance Quality Brand image % age 4 90 6

FIGURE 4.3a

INTERPRETATION The main consideration of buying the tractors is performance they not bother about the price as shown above on the figures and same in case of brand image and quality because performance automatically deals with quality.

TABLE 4.4
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HORSE POWER OF TRACTORS 30-40 28 40-50 40 50-60 32

FIGURE 4.4a

INTERPRETATION Generally people uses the tractors between 40-50 horse power range due to less cost of these tractors and less expenses on maintenance near about 32% respondents uses more than these limits but about 40% using between above said limits.

TABLE4. 5 COST INCURRED ON TRACTORS

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Cost 2-4 lacs 4.6 lacs >6 lacs

% age 28 64 8

FIGURE 4.5a INTERPRETATION Around 54% respondents using the tractor costing 4 to 6 lacs and 28 % respondents using 2 to 4 lacs range tractors. Very few from our sample space using tractor costing more than 6 lacs

TABLE 4.6 AWARENESS LEVEL OF SONALIKA TRACTORS

62

Awareness level Yes No

% age 100 -

FIGURE 4.6a

INTERPRETATION Almost all the respondents are aware of the Sonalika tractors. They know about the brand of these tractors they basically like DI 740 III. TABLE 4.7 SOURCE OF INFORMATION ABOUT SONALIKA TRACTORS Source of information Newspaper Television % age 4
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Displays Social network Dealers

42 32 22

FIGURE 4.7a INTERPRTATION The respondents basically know from the displays and their social network like relatives and friends. Respondents are less aware about the ads in newspapers.

TABLE 4.8 FACTOR OF DISTINCTION AT THE TIME OF THE PURCHASE OF THE TRACTORS Factor Of Distinction Price Promotional scheme % age 4 6
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Engine performance Technical advancement

70 20

FIGURE 4.8a INTERPRETATION Basically the respondents like the engine performance at the time of the purchase of tractors only 4 % people go for the prices.

TABLE 4.9 BRAND PREFERANCES BY THE RESPONDENTS PREFERENCE Sonalika Farmtrac/ Escort Mahindra & Mahindra Eicher % AGE 24 40 20 2

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Swaraj John deere

8 6

FIGURE 4.9a

INTERPRETATION Around 40% people preferred farmtrac/escorts tractors and 24% preferred sonalika and 20 % Mahindra and Mahindra TABLE 4.10 SATISFACTION LEVEL OF THE TRACTOR USERS WITH THEIR PRESENT TRACTORS

excellent 52

satisfactory 42

good 6

poor -

Very poor -

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FIGURE 4.10a

TABLE 4.11 FUTHER EXPECTATION IN NEW TRACTORS MODEL

SPECIFICATION GEAR SYSTEM ENGINE EFFI. ACESSORIES HYDRAULICS LIFTMENT MILEAGE

%age 14 26 16 10 34
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FIGURE 4.11a INTERPRETATION Basically people want new modification in engine efficiency and mostly people go for developments in mileage.

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CHAPTER V

CONCLUSION & SUGGESTIONS

CONCLUSION

Sonalika has various advantages over its competitors such as low initial cost, low fuel consumption, high speed, low maintenance cost, & easy availability

69

As tractor is meant for pulling load, sonalika has all these qualities to pull maximum load due to high backup torque

People prefer farmtrac / ford tractors as per our research study and people like engine performance as the main consideration of purchasing tractors.

They basically affected by the displays in providing information regarding new products so company should create some awareness regarding this and make some hording on roads to attract tractor users with new features mention on it.

Respondents are basically from village sides so they are not affected by the newspapers, because in their daily life they never spent time on newspaper and their purchasing decision followed by dealers, social network and hoardings.

SUGGESTIONS

Through tractor market is highly competitive in India and Sonalika is relatively new brand. Hence Sonalika need a strong positioning. As sonalika tractor is capable of pulling more load and unbeatable and unchallengeable features. Sonalika must be positioned as a tractor, which is most economical and ideal for heavy load work.

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Product awareness: For promotion of a new product awareness is most important factor. As all the farmers contacted are aware of sonalika tractors and their features and specifications. This can be done through organizing kisan melas, exhibitions and effective demonstration at village level.

Here opinion leaders can play a vital role. Opinion leader is a person whose opinion is given high weight age by common people like sarpanchs. Company should also concentrate on this factor.

Besides these points we would like to suggest few more things: More & more emphasis on R & D must be given Spare parts must be easily available for different models of tractors Become a cost leader in field of tractors Provide better after sale service to develop better relation with dealers

BIBLIOGRAPHY
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1.

WWW.SONALIKA.COM

2. SEARCH ENGINE (GOOGLE AND YAHOO) 3. SONALIKA LIBRARY

4.

MAGAZINES (INDIA TODAY)AND JOURNALS

5. NEWSPAPERS

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QUESTIONNAIRE

Name of the customer:

Contact Number:

1) Which brand of tractor you are currently using? Sonalika John Deere Escorts Mahindra & Mahindra Tafe Swaraj

New Holland

Please Mention companys particular brand name of tractor . 2) For which purpose you are using tractor? Agriculture 3) Industrial purpose Loading Unloading

During purchase of tractor what was your consideration? Price Performance Quality Brand Image Mileage Hp

After Sale Services

Hydraulic liftment power

4) How much horse power is it?

Mention

5) What cost did you incurred to procure it?

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2-4lac

4-6lac

More than 6lac

6) Are you satisfied with the features provided by company in your tractor? Yes No

If no then reason is 7) Are you aware of sonalika tractors? Yes No

8)If yes, how did you come to know about sonalika tractors? Newspapers Television Displays Dealers Friends/Relatives

Festivals/Social functions

09) Is after sale service of this product is easily available to you in near market? Yes No

10) Are you satisfied with after sale service provide by company? Yes 11) No

From which factor you feel that this companys tractor is different from another companys tractors? Price Promotional schemes Engine performance any other specifies ..

Technical advancement

12) Rate your preferences among the different brands of tractors? Sonalika John Deere 13) Farmtrac Ford Mahindra & Mahindra Any other Eicher Swaraj

mention.

How has been the performance of your tractor? Excellent Satisfactory Good Poor Very poor

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14) What will you think that this tractor fulfill your all requirements? Strongly Agree Agree Cant says Disagree Strongly Disagree

15) What kind of development you want to have in new model? Gear System Engine Efficiency Availability of Accessories Mileage Any Other

Hydraulic Liftment Efficiency

Any suggestions

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