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The joint venture agreement was signed at Sonalika’s office at New Delhi on Wednesday, 17th October 2018 in presence of Dr. Deepak Mittal, MD, Sonalika-ITL and Omar Terrah, MD, FAMAG SPA, Algeria.
Country's third largest tractor manufacturer International Tractors Ltd on Tuesday announced a joint venture with its long-term associate and distributor FAMAG in the Algerian market.
he joint venture agreement was signed at Sonalika’s office at New Delhi on Wednesday, 17th October 2018 in presence of Dr. Deepak Mittal, MD, Sonalika-ITL and Omar Terrah, MD, FAMAG SPA, Algeria.
The Joint venture where Sonalika will acquire minority stake is a step towards further strengthening the association and presence of Sonalika in the Algerian market and ITL’s vision of serving the local customers with best-in-class technology.
KPMG in India was the exclusive financial advisors for Sonalika for this transaction.
Algeria is one of the key markets for Sonalika where it enjoys close to 80% market share. Sonalika started exporting its tractors to Algeria in 2004 and started its relationship with FAMAG as a distributor.
The fresh funding from Sonalika shall be utilised to further augment the manufacturing capacity and technical capabilities of the Joint venture.
Commenting on the Joint Venture, Dr. Deepak Mittal, MD - Sonalika ITL said, “Today Sonalika ITL is a trusted brand among 9 lakh farmers across markets, in both India and abroad. Algeria was the first country where we started exporting and with support of our partners FAMAG have been able to build a formidable presence in Algeria. We are happy that our overseas Joint Venture is with FAMAG with whom we started our exports. We are confident that this Joint venture would further strengthen our collaboration with FAMAG and facilitate introduction of new technologies and right price point.”
Omar Terrah, MD, FAMAG SPA said, “We started a humble journey with Sonalika in 2004, and today we are taking a leap ahead with formation of this Joint venture. Both partners are committed to work towards bringing in best in class Agri-machinery for our customers in Algeria and delivering the same at right price point with localization.”
Sonalika and FAMAG have already been working together over the last 2 years for setting up a manufacturing base in Algeria, and the assembly facility is by-and-large ready and functioning at present.