Blackstone invests $100 mn in ITL
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Private equity player Blackstone Group today said it will acquire 12.5 per cent stake for up to Rs 520 crore in International Tractors Ltd (ITL) that makes Sonalika brand of tractors.
Blackstone Capital Partners (Singapore) VI, an affiliate of The Blackstone Group, has signed an agreement to acquire 12.5 per cent of International Tractors Ltd (ITL) in a
structured transaction for up to USD 100 million (Rs 520 crore), the investment firm said in a statement.
International Tractors Ltd Chairman L D Mittal said: "Their strategic inputs will further enable us to achieve our ambitious growth plans.
In addition to helping us scale up our operations, this deal will provide us access to Blackstone's global best practices."
ITL, which is the flagship company of the Sonalika Group, was incorporated in 1995 and has an annual turnover of USD 500 million.
The company is one of the major tractor makers in the domestic tractor market. It also exports to over 70 countries worldwide.
Blackstone India Senior Managing Director and Chairman Akhil Gupta said favourable macro-economic trends such as rising minimum support prices and rising labour costs are leading to increased adoption of mechanisation by farmers, providing growth potential for the tractor market in India.
"International Tractors Ltd's cost-effective manufacturing facilities with deep value engineering and strong product development capabilities provide it with a competitive advantage to capture this market," he said.