Sonalika International Tractors is planning to invest Rs 500 crore to expand the capacity of its tractor unit at its Hoshiarpur plant in Punjab.

Under the proposed plan, the company will double the capacity of the project to 1.5 lakh units per annum from its current capacity of 75,000 units per annum. The project is expected to be completed by December 2014.

In addition, the company will invest Rs 200 crore in its equipment division to expand its production.

The company already completed an expansion plant last year in Punjab.