The Hindu : Business : Polish venture in Escorts fold

Online edition of India's National Newspaper
Thursday, Mar 31, 2005

Business

Business

Polish venture in Escorts fold

By Our Special Correspondent

NEW DELHI, MARCH 30. Escorts today announced that its wholly owned U.S. based subsidiary, Escorts Agri Machinery (Escorts AMG), has completely taken over its Polish joint venture, Farmtrac Tractors Europe Sp.zo.o (FTES). A company release says Escorts AMG is all set to push tractor exports in the new financial year as the announcement comes close on the heels of a major export order worth $8.56 million won from the Ghana government for tractors and other farm mechanisation equipment.

According to the Business Head of Escorts' Agri Macinery Group, Rakesh Chopra, the latest acquisition of our Polish JV, after the Ghana order, 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".

In June 2000, Escorts had taken up a 49 per cent stake in FTES, which was subsequently enhanced to 64 per cent in May 2003. FTES is a Polish limited liability company with a share capital of about $2 million. Escorts said the acquisition would enable it to expand its European base, by increasing the reach of its Farmtrac range of tractors, with a deeper penetration into the extremely competitive Western European markets and the fast growing African, Asian and Latin American ones.

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