M&M woos to get hold of Sonlika, a Rs5000 crore business, to widen its prospects in tractor sector. Sonalika is in a pact with the UK based engine maker MG Rover. M&M, once gets this deal done, may see its own car manufacturing plant there. M&M is in this move, following a clumsy picture about is tie up with Renault for Logan. M&M is fully concentrating on this tractor sector, more than the car segment. But no official word about such move from Sonalika, as indicated by its Chairman. He rejected the information as a speculative story.
The Chairman’s recent visit to the Himachal Pradesh unit is just to evaluate the unit and the discussion about M&M is on the manufacture of cars. But no decision is taken at any stage. Sonalika group is an amalgamated group of International Cars &Motors, International Tractors and a separate agriculture venture. A proposal for making a next generation SUV with MG Rover engine is mooted by the group. Currently the company is in the market with its MUV Rhino Rx in India and some global markets.