Date:11/08/2007 URL: http://www.thehindubusinessline.com/2007/08/11/stories/2007081151800300.htm

Back International Tractors enters into financing venture with Magma

Our Bureau

New Delhi, Aug. 10 With a view to provide financing of tractors on less stringent conditions, International Tractors Ltd has entered into a joint venture to set up a new company with Magma Shrachi Finance Ltd. The initial investment in the project would be Rs 25 crore.

The joint venture company, to be known as Magma ITL Finance Ltd, would have 74 per cent stake while ITL would have the remaining 26 per cent.

“While there are stringent norms laid down by banks for financing, the new company seeks to provide loans in a much flexible manner,” said Mr L.D. Mittal, Chairman, Sonalika Group of Companies, without elaborating on the details.

With this new company, Magma would be able to get access to 193 dealer outlets of Sonalika and the latter would be able to leverage the reach that the former has through its 155 branches in rural and semi urban areas.

“Initially the joint venture would be to provide loans on tractors. But we plan to extend it to insurance products and other farm equipment,” said Mr Anjan Mitra, Chief Financial Officer, Magma Shrachi Finance Ltd.