TELCON acquires 79% stake in Spain firm

Written by Corporate Bureau | Mumbai, Mar 28 | Updated: Mar 30 2008, 04:37am hrs
Telco Construction Equipment Company Ltd (TELCON), leading construction equipment sector in India, signed an agreement with the existing shareholders of Serviplem SA, Spain for acquisition of their 79% stake in the company. As part of the partnership strategy, the existing owners will continue to be associated with the venture and own the remaining 21%.

According to Ranaveer Sinha, managing director, TELCON, This acquisition is of strategic importance and will add impetus to its plan to be a $2 billion company by 2012. Serviplem focuses on manufacturing and sale of transit mixers, dry bulk banks and pumps. The technology will help TELCON to enter the concrete value chain with a number of offerings. TELCON can drive growth in two important growth economies, which are, India and China. With this acquisition, the Tata Group will have significant presence in the Aragon Region in Spain as it is already present in the region through partnership with Hispano Carrocera SA, a bus body building company, and it has recently opened branch offices at Zaragoza, as per the press release.

Sinha added that the companys growth plans are in line with expectations.