The Blackstone Group today announced that its affiliate Blackstone Capital Partners (Singapore) VI has signed an agreement to acquire 12.5% of International Tractors Limited (ITL) in a structured transaction for up to $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 c.$500 million. It currently has c.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.
ITL is led by Mr. L. D. Mittal (Chairman), A. S. Mittal (Vice-Chairman), and Deepak Mittal (Managing Director). This leadership team has been instrumental in achieving the company’s strong growth over the past 17 years. ITL is headquartered in Delhi while its core manufacturing plant is in Hoshiarpur in Punjab. The Company has a strong sales and dealer network across India, as well as in overseas markets.
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.”
A.S. Mittal, Vice-Chairman, ITL, added: “We have had a very close interaction with the Blackstone team and believe they are the right partners to take the company forward in the next wave of growth. Further, I am sure this partnership will help not just ITL but the entire tractor industry at large.”
Akhil Gupta, Senior Managing Director and Chairman of Blackstone India said: “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. We are excited to partner with the ITL management team and look forward to helping the Company achieve new heights.”
New Delhi-based SSV Fincorp Services led by its CEO, Amit Tandon, was the exclusive advisor for this transaction.
Part of the Sonalika Group of Companies, International Tractors Limited (ITL) has become a renowned name in the tractor manufacturing industry. It manufactures tractors from a power range of below 20HP to over 90 HP. The Company’s vision is to become the world’s leading tractor manufacturing company and to provide value for money to its customers by producing high-quality innovative products at competitive prices. Further information is available at https://bsmedia.business-standard.comwww.sonalika.com/
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