The Blackstone Group today announced that its affiliate Blackstone Capital Partners (Singapore) has signed an agreement to acquire 12.5% of International Tractors Limited (ITL) in a structured transaction for up to USD 100 million (Rs 520 crores). The flagship company of the Sonalika Group, ITL is a leading manufacturer of tractors under the brand name ‘Sonalika’.
Incorporated in 1995, ITL has grown to have an annual turnover of USD 500 million. It currently has 10% share of the domestic tractor market. In addition, ITL exports tractors to over 70 countries worldwide. The company aims to grow its position in India as well as expand its presence in the global markets. Mr. L. D. Mittal, chairman, ITL, said: “Blackstone in India has an exceptional track record in partnering with companies during their growth phase. We have already witnessed the value-addition that they bring to us. 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 is intrinsic to India’s efforts in enhancing agricultural productivity and enriching its farmers. Favourable macro-economic trends such as rising minimum support prices and rising labour costs are leading to increased adoption of mechanization by farmers. ITL’s cost-effective manufacturing facilities with deep value engineering and strong product development capabilities provide it with a competitive advantage to capture this market.
Customers identify with the Sonalika brand for its product strength and commitment to the consumer. Further, ITL’s tractors are in great demand in international markets as well,” said Akhil Gupta, Senior Managing Director and Chairman of Blackstone India. Delhi-based SSV Fincorp Services led by its CEO, Amit Tandon, was the exclusive advisor for this transaction.
News source: Economic Times