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.”
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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.”
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.
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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.
