3i takes minority stake in India’s Sonalika(2)

3i takes minority stake in India’s Sonalika 2006-05-23 Sharon Lim <P>Global private equity firm <FONT color=#99926b>3i</FONT> has taken a 10 percent stake in the International <FONT color=#99926b>Tractors (ITC)</FONT> and <FONT color=#99926b>International Cars & Motors

Global private equity firm 3i has taken a 10 percent stake in the International Tractors (ITC) and International Cars & Motors (ICML) divisions of the Sonalika Group, an Indian manufacturer of tractors and farm machines.

3i has paid $50 million (€41.3 million) to acquire its minority stakes in ITC and ICML.

Anil Ahuja, managing director of 3i India told PEO in an interview that its investment will fund the expansion of ITL’s tractor production facility and support the working capital of ICML, an early-stage company.

ITL’s other shareholders include Japanese tractor manufacturer Yanmar Gropu and Citigroup’s venture capital arm, CVCI, which holds a 10 percent stake in ITL and a 20 percent stake in ICML.

The Sonalika Group, owned by the Mittal family, has been manufacturing tractors, farm machines and automobiles for more than 25 years. ICML recently launched a multi-purpose vehicle (MUV) named ‘Rhino’, which it intends to export to Nepal, Malaysia, Indonesia and Africa.