New Delhi: Telco Construction Equipment Company Limited (Telcon), the leader in the Construction Equipment Sector in India, has signed an agreement with the existing shareholders of Serviplem SA, Spain for acquisition of their 79 per cent stake in the Company.
The existing owners of Serviplem will continue to be associated with the venture and own the remaining 21 per cent.
Talking about the acquisition, Managing Director of Telcon Ranaveer Sinha said, “This acquisition is of great strategic importance. Serviplem focuses on manufacturing and sale of transit mixers, dry bulk tanks and pumps, and the technology will help Telcon to enter the concrete value chain with a number of offerings. We will work together to identify opportunities and leverage their presence in the global market."
Serviplem also has a presence in China through a joint venture, facilitating Telcon to leverage growth opportunities in China as well.
Telcon, set up in 1999 as a wholly owned subsidiary of Tata Motors, is the largest manufacturer of construction equipment in India.
Telcon was by the spin-off of the Construction Equipment Business Unit of Tata Motors.
Subsequently, in 2000, Tata Motors inducted Japan's Hitachi Construction Machinery Co. Ltd. (HCMC) into Telcon by divesting 20% of its shareholding; in 2005, HCMC increased its shareholding to 40%.
Serviplem is a Spanish company, with headquarters in Zaragoza, leader in Spain, with its Baryval brand in the manufacturing, marketing and servicing of transit mixers having a market share of 60%.
Their activities include the manufacturing of aluminium tanks for dry bulk transport and commercial presence with several other products in the cement and concrete markets.
Serviplem exports 35% of its turnover to the five continents and, since 2001, is active in China through its majority stake in a manufacturing company set up with an important local partner.
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