Magma Shrachi Finance Ltd. (MSFL), one of the fastest growing financial services companies in India, today signed an agreement with International Tractors Ltd. (ITL) to form ‘Magma ITL Finance Ltd.’ a Joint Venture (JV) Company to finance Sonalika Tractor buyers on an exclusive basis across India. MSFL will have a 74% shareholding in the JV while ITL will hold the remaining 26%.

Magma ITL Finance will focus primarily on funding Sonalika tractor buyers on an exclusive basis throughout the country. It will draw support from MSFL’s strong distribution network in rural India spread across 20 states through 155 branches combined with ITL’s countrywide network of 600 dealers and 400 sub-dealers. Following the rollout, Magma ITL Finance will attain a wide presence in the rural and semi-urban markets, which it intends to further leverage to increase the scope of its financing activities in the agri-sector.

MSFL has a diversified product portfolio comprising of Commercial Vehicle Finance, Utility Vehicle Finance, Construction Equipment Finance, Used Commercial Vehicle Finance and Strategic Construction Equipment Finance. With a strategic intent, the Company has been focusing on the rural and semi-urban markets and it will further its association with its core markets by adding Tractor Financing to its portfolio.

International Tractors Ltd., owners of Sonalika brand of tractors, is one of the leading tractor manufacturing companies in India with sales of Rs. ~1,145 crore in 2006-07. Sonalika has captured substantial market share within a short period.

Sourced From: Citigate Dewe Rogerson