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After Mahindras, ITL too eyes Romanian co for JV(Ecomonic Times, The (India) (KRT) Via Thomson Dialog NewsEdge) Feb. 6--NEW DELHI -- After M&M another Indian tractor maker is looking for Romanian pickings. International Tractors Ltd (ITL), maker of the Sonalika brand of tractors, is in discussion with Romanian company Forma Botosani to set up a joint venture in Romania. According to sources in the tractor industry, Mr Amrit Sagar Mittal, vice-chairman of the Hoshiarpur-based ITL, will be visiting Romania next week for discussions with the Forma Botosani team. When contacted, Sonalika International chairman L D Mittal refused to comment. Sources say Sonalika is looking at some other assets in other East European countries as well. Forma specialises in the production of spare parts for tractors as well as agri machinery. Apart from agri vehicles it is also involved in mill works and castings, forge and sinter products. Sonalika has been aggressively diversifying in the auto business of late. First, it invested Rs 200 crore in a passenger vehicle facility and now it wants to develop a Rs 1.5 lakh car. ITL is the flagship company of the Sonalika Group. The group itself is targetting revenues of about Rs 1,500 crore this fiscal with growth pegged at a 35 percent clip. At the recent launch of its first passenger vehicle product the Rhino Rover, company top brass indicated that ITL will contribute two-third of this turnover. The company has also been raising funds through small chunk sales of equity. Currently Citibank holds 10 percent stake in ITL and 20 percent in the passenger vehicle subsidiary International Cars and Motors. Company officials have also indicated that a UK-based private equity firm will pick up another 10 percent stake in the company and may even pick up some stake in the tractor flagship as well. Romania has attracted interest from those sniffing for M&A thanks to its imminent entry into the European Union. The company is in the process of privatising a number of its state-owned businesses. By Nandini Sen Gupta & Urmi Goswami |