New Delhi, Oct 21 (IANS) Punjab-based International Tractor Limited (ITL) Thursday said it has tied-up with Argentinian company APACHE to produce and distribute its Sonalika brand of tractors and new products in South America.
‘We have tied-up with Argentina-based company APACHE which manufacturers farm and other equipment for production and distribution of Sonalika brand of tractors in South America,’ said Rajiv Wahi, president, international business, (ITL).
The company, which sells Solis brand of tractors in South Asia and Africa, will introduce its new World Trac series through the tie-up.
‘The new range has been specifically designed to meet the needs of international markets. As South America has huge agricultural land holdings the potential for the market is tremendous,’ said Wahi.
According to him, the company will use APACHE’s existing facility as a production hub for the region. Both the companies will also collaborate in sharing technology for farm equipments.
The company did not divulge any financial details of its new venture. It plans to sell 500 tractors this year.
‘We are in a very initial stage right now, but we plan to sell 500 tractors this year and we will manufacturer 1,000 tractors from the next year,’ he said.
The new series of farm equipment will be co-branded as APACHE-Solis for the markets of Argentina, Brazil, Chile, Ecuador, Peru, Surinam, Paraguay and Bolivia.
Earlier, ITL had tied up with Brazil’s tractor and farm equipment manufacturer, Agrale, to sell its products there under co-branding.
The Rs.50-billion ($1-billion) company is now lining up its complete farming solutions for several countries in South America and Africa. The tractor manufacturer is also setting up an assembly plant in Nigeria.
Over 12 percent of the company’s 60,000 tractors, ranging from 30 to 90 horse power, are exported. With exports doubling in numbers in the last 2-3 years, the company is looking at an export figure of 15 per cent in the next two years.