The Blackstone Group has announced that it has acquired a 12.5 per cent stake in International Tractors Ltd (ITL).

The US-based private equity player said that it is acquiring the stake for up to Rs 520 crore in ITL, which is the flagship company of the Sonalika Group. The Blackstone Capital Partners (Singapore) VI signed the agreement with International Tractors Ltd (ITL) valued at $100 million, according to the statement from Blackstone.

"Their strategic inputs will further enable us to achieve our ambitious growth plans. In addition to helping us scale up our operations, this deal will provide us access to Blackstone's global best practices," said ITL Chairman L. D. Mittal.

Blackstone India Senior Managing Director and Chairman Akhil Gupta pointed out that the rising cost of manual labour and minimum support prices are convincing farmers to start mechanizing their agricultural practices. This will help boost the tractor market in the country.

ITL was established in 1995 and has an annual turnover of $500 million. It is a leading player in the India tractor market and exports its products to as many as 70 countries around the world.