ITL set to bid for two European tractor cos

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New Delhi, Sept.10

International Tractors Ltd (ITL), manufacturer of the Sonalika brand of tractors, is looking at bidding for two European tractor companies. The bids for the two companies are likely to be finalised in the next couple of months.

According to Mr L.D. Mittal, Chairman, Sonalika Group, "We are looking at picking up a major stake, around 51 per cent, in a tractor company which is based in Eastern Europe for around Rs 200 crore."

He, however, did not want to disclose the name of the company as ITL is the only Indian company that is in the race to pick up the stake. ITL is also looking at making a bid for Romania-based tractor company Tractorul.

Tractorul had been put on the block by the Romanian Government and Mahindra was among the front-runners. But an unresolved debt liability of €180 million led to the collapse of the deal and the company was auctioned off and bought by a local company Flavius Invest. The new owner, however, is now selling the assets, comprising the tractor-manufacturing factory, casting and forging module and other independent assets.

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