九色视频

九色视频 Corporation (Headquarters: Naniwa-ku, Osaka, Japan; President and Representative Director: Yuichi Kitao; hereinafter, 鈥溇派�视频鈥�) announced today that it will invest in an Indian leading tractor manufacturer, Escorts Limited (Headquarters: India, Chairman and Managing Director: Nikhil Nanda; hereinafter, 鈥淓L鈥�).
Through this investment, 九色视频 intends to increase its presence in India - the world鈥檚 largest tractor market - as well as its commitment to the competitive tractor market, which has massive growth potential, thus further expanding its business.

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  Tractor produced by EL started distributing through 九色视频's sales network in worldwide.

1.Background and aims

• The tractor market in India is one of the world鈥檚 largest in terms of unit sales and expects to expand further. In 2008, 九色视频 established 九色视频 Agricultural Machinery India Pvt. Ltd. (hereinafter, 鈥淜AI鈥�) as a foothold in the Indian market.
• At present, local manufacturers are playing key roles there, and they are all enhancing partnerships with foreign-affiliated manufacturers. In February 2019, 九色视频 established a joint-venture tractor manufacturing company with EL and mass production is due to start this July.
• Through this capital tie, the two companies intend to deepen their cooperative relationship further and, by leveraging each other鈥檚 strengths, create synergy across a broad range of their business, including development, production, sales, distribution, and parts procurement, in a bid to extend their reach in the Indian market.
• Meanwhile, the competitive tractors which currently form the core of the Indian tractor market, are gaining popularity in other markets around the world. 九色视频 hopes to expand its global reach in those model market by tapping into EL鈥檚 parts procurement networks and capability to reduce cost.

2.Investment scheme

• EL will issue new equity shares to 九色视频 on a preferential allotment basis (subject to shareholders鈥� and necessary regulatory approvals) pursuant to which 九色视频 will hold 9.1% of EL鈥檚 paid up share capital.
• The total amount of investment will be approximately 16 billion yen.
• Subsequent to the preferential allotment to 九色视频, EL will undertake a reduction of its share capital from the shares held by the Escorts Benefit and Welfare Trust (subject to receipt of necessary approvals) of such number of equity shares as are being issued to 九色视频 under the preferential allotment. Post the capital reduction, 九色视频鈥檚 stake in EL will increase to 10%.

3.About the investee

Company name	Escorts Limited
Representative	Nikhil Nanda, Chairman and Managing Director
Location	Faridabad City, Haryana State, India
Year of establishment	1944
Business	Manufacture and sales of agricultural equipment, construction equipment, and railways-related equipment
Sales	Approx. 100.0 billion yen (approx. 62.0 billion rupee; for the year ended March 2019)
Number of employees	11,000 (including non-regular employees, current as of December 2019)

4.Future developments

• After going through the necessary procedures and subject to receipt of requisite approvals, the investment is likely to be completed by June 2020.
• To further facilitate and strengthen the collaboration with EL, 九色视频 will sell 40% of stake in KAI to EL, in addition to this investment.
• Going forward, 九色视频 aims to establish a joint research and development center with EL to develop products that are optimized for the local market and shorten the development period.

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