Magma Shrachi Finance Limited, the country’s fastest growing asset finance company and International Tractors Limited, manufacturers of “Sonalika” – a leading tractor brand- today signed a memorandum of understanding (MoU) at a city hotel to form Magma ITL Finance Limited – a joint venture asset financing company for financing the Sonalika range of tractors. The MoU was signed by Mr Sanjay Chamria, Vice Chairman & MD of Magma Shrachi and Mr LD Mittal, Chairman of International Tractors in the presence of the media and senior management teams of both companies. Magma will hold 74% shareholding in the new company while 26% will be held by International Tractors.

Speaking on the occasion, Mr Sanjay Chamria, Vice Chairman & MD of Magma Shrachi said “The tie-up is in line with Magma’s focus on rural markets. Magma has already established deep penetration into the hinterlands with 49% of its 155 branch network being in rural India. Our significant presence in this market combined with a strong base of loyal rural customers, who the company is already serving through other products such as commercial vehicle, Utility vehicle loans etc., will help the joint venture ramp-up its operations quickly and also enable the new company to look at other financing opportunities in the agri-sector in future. The joint venture will ride also on the strong distribution and dealer network of Sonalika to establish its footprint very quickly to provide the coverage within a short period of commencement of operations and proposes to benefit a lot”, he added. “The objectives of the new company are fully aligned with India’s need to lift growth rates in the agricultural sector through better technology and funding”, added Mr Chamria.

Mr L D Mittal, Chairman of International Tractors said. “the joint venture would not only get the benefit of Magma’s deep presence in the rural markets, but will also be able to cash in on ITL’s countrywide strong dealer and distribution network making the foundations even stronger. Both Magma and ITL as co-investors have displayed long-term commitment to rural markets and have very successful track records; the joint venture builds on this strength and understanding of the rural markets and its needs”, added Mr Mittal.

The vision of the new co is to provide funding to the farming community all over the country for purchase of tractors and other equipments which they need for agriculture and allied purpose and also extend allied services like insurance etc which they are currently not served well.

The new company will be headquartered in Delhi and would start functioning shortly.

Sourced From: Sobhagya Advertising Service