Yanmar Tractor Maker Seeks to Up Stake in ITL to 20%.
New Delhi: Japanese tractor maker Yanmar is in talks with International Tractor Limited, to raise its stake in the third largest tractor maker in India.
Japanese tractor maker Yanmar is looking forward to raise its stake in the third largest tractor maker in India, so regarding this it is in talks with International Tractor Limited (ITL).
The company's top official told, currently Yanmar owns 12.5% stake in International Tractor and now it has expressed interest in raising that to 20%. Yanmar was an early investor in the Indian company having bought the stake in 2005 for Rs 200 crore.
In an interview, managing director of ITL, Deepak Mittal told, "Our Japanese partner (Yanmar) is willing to buy 8% more in the company. We will see if we can accommodate them." ITL currently gets about 30% of its Rs 5,000 crore revenues through exports.
Blackstone is looking to exit International Tractors Limited (ITL). Blackstone is a leading US private equity investor. Currently Blackstone owns 18% stake in the tractor maker it bought for Rs 520 crore.
Abdul Majeed is an automotive sector expert at Pricewaterhouse. He said that, ITL's profitability has remained intact as they are also very well diversified.