ITC Ltd has announced the acquisition of 100% stake in Technico Pty Ltd, a producer of high-grade potato seeds. Technico is a small company with a turnover of Rs319 mn in FY2007. The acquisition through Russell Credit (ITC’s subsidiary) gives ITC access to highgrade potato seed technology and supply chain expertise needed for procurement of potatoes for its salty-snacks products. Though the company has not disclosed the cost of acquisition, and believe that the transaction is small and is unlikely to have a material impact on the company.
Kotak Securities retain outperform rating on the stock with a target price of Rs225 per share.