Delhi, 10 August 2007: 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.

About Magma Shrachi Finance Limited: Magma Shrachi Finance Limited (MSFL) is a leading financial services company in India with Assets under management of over Rs 6000 crore and a steady base of over 1,60,000 customers spread across the country. It has a well-diversified product portfolio comprising Commercial Vehicle Finance, Car & Utility Vehicle Finance, Construction Equipment Finance, Used Commercial Vehicle Finance, Strategic Construction Equipment Finance and Fee Based Business such as general insurance and personal loans. The Company follows an excellent credit appraisal policy through well-laid processes, which has helped it to build a quality asset base over the years.

MSFL currently operates through 155 branches in 20 states and employs 3,480 people. The company has a focus on rural and semi urban India which generates major part of its business. The pan India presence and strong networks across regions help the company offer customised services to an ever expanding base of customers.

Magma Shrachi has posted disbursal of Rs 728 crore, 67% growth in the first quarter ended 30th June 2007 with a Profit of Rs 18.1 crore, up 65% over the corresponding period.

About International Tractors: International Tractors Limited was incorporated in 1995 for manufacturing of Tractors and has since built a distinct position for itself in the Tractor industry. ITL is manufacturing various Tractors of Sonalika brand between 30 H.P. to 75 H.P, and CERES brand between 60HP to 90HP. ITL today is the fastest growing agri-equipment manufacturer and amongst the top four manufacturers in India. ITL has also been exporting to countries like Nepal, France, South Africa, Australia, Zimbabwe, Sri Lanka, Canada, and Bangladesh etc. It is the market leader in Nepal.

ITL posted a turnover of Rs 1145 crore in 2006-07 with a PAT of Rs 112 crore. The company sold 36223 nos of tractors and over 17000 other agri equipment.

ITL has two manufacturing facilities today in Hoshiyarpur, Punjab (for Tractors) and Himachal Pradesh (for SUVs). The manufacturing process, quality control systems and Research & Development facilities are ISO- 9001:2000 Certified by the Joint Accreditation System of Australia and New Zealand. ITL is the first Tractor manufacturing company in the country to be accredited with ISO-14001.The company's marketing efforts are promoted by the network of 600 Dealers, 400 Sub dealers and 50 Stockiest supervised by various regional sales offices.

For further details, pl contact: