Sunday, 16 October 2011

International Tractors Ltd to sell 10 per cent to PEs to raise Rs 450 crore; eyes overseas buy

International Tractors Limited, referred herein as ITL is in talks with Private Equity investors to sell 10 percent stake. ITL is a part of the Rs 5,000-crore Sonalika Group. It manufacturers a wide range of 20 HP to 90 HP category of tractors.

Sonalika Group Chairman, Mr. LD Mittal said that the amount raised which is approximately Rs 450 Crore by selling 10 percent stake would be utilized in an acquisition deal which is almost finalized. The acquisition is of a European Company which manufactures Tractors and deal would amount to Rs 200 Crore approximately. However, a portion of the raised amount would also be used in raising the current capacity of Indian subsidiary. ITL has installed capacity of 60,000 tractors a year. "We want to scale it up to 1 lakh, within two years," he said.

The company plans to set up a manufacturing facility in the south, and has investment plan of Rs 100 crore next year."We want to increase our sales in the south. The new facility will cater to the southern markets," he said.The company has proposed to set up the new tractor facility on a 25-acre land with an installed annual capacity of 30,000 tractors.


Post a Comment

Twitter Delicious Facebook Digg Stumbleupon Favorites More