BS reported that tractor and agri machinery maker Sonalika Group is in talks to acquire an Italian tractor manufacturing firm to set up base in the European continent.

Mr LD Mittal chairman of Sonalika Group said that “We are aggressively looking at expanding our presence overseas. We have got an approval to sell tractors in the United States and are now negotiating to acquire a tractor maker in Italy to set up a base for the European markets.”

Besides Africa, the company is looking at expanding operations in Latin America and China.

Mr Mittal further said that “We want to double our level of exports from the current 10% of production volumes to 20%. Exports, at present, contribute a fifth of our revenues.”

He added that the expansion programs would be carried out over the next three years. The group expects around INR 800 crore to filter in from international operations by 2014.

The group, which handles its farm equipment business through International Tractors Ltd is currently selling tractors in 68 countries. ITL has four tractor assembly units operational in Cameroon, Egypt and Algeria and Nigeria. The company is looking at commissioning another unit in Africa and a facility in Turkey, Eurasia. All these units would have a combined capacity of 2,000 units per annum on a single shift basis.

(Sourced from BS)