In a candid conversation with Mr. Ajay Kumar, Associate Vice President – International Business at International Tractors Limited (Sonalika), the success saga of the company was laid out in impressive detail.
International Tractors Limited has firmly established itself as the number one exporter of tractors from India, consistently shipping around 36,000 units annually over the past four to five years. This figure places the company far ahead of its competitors, with the second-largest exporter trailing at approximately 22,000 units.
“Our leadership position is evident when you look at the numbers,” Mr. Kumar stated, emphasising the significant gap between Sonalika and its closest competitors. “We have maintained this strong lead from India, which speaks volumes about our global operations and strategy.”
The global tractor industry is vast, comprising around 2.2 million units annually, with India contributing nearly 1 million. Despite these impressive figures, Mr. Kumar believes there is still substantial room for growth. “We are currently tapping into only 20-25% of our potential, leaving a lot of opportunities to explore,” he explained.
Their international presence spans multiple continents, including developed markets like Europe, where the company has become the number one player in specific segments. The company also has a robust presence in Latin America, North America, and Asia, particularly in key markets such as Bangladesh, Nepal, and Sri Lanka.
Africa, however, stands out as a crucial market for International Tractors Limited. “Africa is often considered the bread and butter for many companies, and we see immense potential here,” Mr. Kumar noted. The company has made significant investments in the region, including a joint venture in Algeria, where the company holds a 30% stake, effectively making it a local company. Despite a challenging market environment over the past four years due to government regulations, Sonalika once commanded a 65% market share in Algeria, selling around 3,000-3,500 tractors annually. “We are optimistic about the market reopening soon,” Mr. Kumar added.
Beyond Algeria, International Tractors Limited has a strong presence in other African markets such as Kenya, Tanzania, South Africa, Zimbabwe, Uganda, and various West African countries, facilitated through exclusive partnerships. Mr. Kumar highlighted the importance of after-sales support in these regions. “Whenever we sell a machine, we ensure the tractor is well taken care of, from parts to service,” he said, underscoring the company’s commitment to customer satisfaction.
Looking ahead, International Tractors Limited has ambitious goals for the African market. “We are confident we can double our current numbers in Africa, where we are selling over 2,500 tractors,” Mr. Kumar projected. By 2029-2030, the company aims to reach 100,000 tractors in exports, with Africa playing a major role in achieving this target.
Affordability is a key consideration in ITL’s strategy. “Each market has different needs, and we tailor our tractors accordingly,” Mr. Kumar explained. The company focuses on providing only the features that customers truly need, avoiding unnecessary additions that could drive up costs. “Farmers invest their hard-earned money into these machines, and we are committed to providing affordable tractors that boost productivity,” he added. This customer-centric approach is at the heart of Sonalika’s philosophy.
Mr. Kumar concluded with a powerful insight: “Each tractor supports at least 20-25 people around it. Our goal is to make the tractor the breadwinner for the family, and this is the core of our organization.”
As International Tractors Limited continues to expand its global footprint, its commitment to affordability, customer satisfaction, and market-specific solutions positions it as a leader in the international tractor industry. With ambitious goals for the future, particularly in Africa, International Tractors Limited is poised to continue its impressive growth story.
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