Escorts buys out Polish tractor JV

New Delhi, March 30 | Updated: Mar 31 2005, 05:30am hrs
Escorts Ltd on Wednesday said that its wholly-owned subsidiary in the US, Escorts Agri Machinery Group Inc, has acquired 100% equity in the Polish company, Farmtrac Tractors Europe Sp (FTES). This acquisition would help the Indian tractor manufacturer, Escorts, to further consolidate and expand its European base. Escorts AMG is planning an aggressive growth in tractors export in the new financial year. Through the acquisition, the company now intends to target countries like Spain, Portugal, Austria, Germany, France, UK and Italy more effectively. FTES has already established a network of 56 dealers in Poland and 10 distributors across key European Union and central European markets.

The acquisition comes close on the heels of Escort AMGs winning a $8.56 million export order from Ghana for tractors and other agri-machinery.

We have given a very strategic conclusion to an extremely interesting journey with a promise of even more exciting times ahead, said Rakesh Chopra, business head, Escorts AMG. He added, After the Ghana government order, the latest acquisition of our joint venture in Polland will help us get a larger market share for our Farmtrac tractors in European countries and further strengthen our brand equity in international markets in the times to come.