After 77 years in India, German conglomerate Thyssenkrupp Industries India (tkII) has transferred its entire stake to Paharpur Cooling Towers and Protos Engineering Co, its longstanding co-shareholders. The deal is set to close in the second quarter of this year, with Paharpur Cooling Towers becoming the majority owner of tkII, thus transitioning it into an Indian company.
In a statement on Wednesday, tkII announced that a binding agreement had been executed on January 22, 2024, to initiate the process to divest Thyssenkrupp’s entire stake in tkII to Paharpur Cooling Towers and Protos Engineering.Thyssenkrupp announced the sale of Thyssenkrupp Industries India’s remaining 55% stake in tkII. The parent company signed an agreement to sell the stake to a consortium of previous co-owners. This move will result in Thyssenkrupp reducing its workforce by around 2,370 positions.
Pablo Hofelich, chairman of tkII and CEO of thyssenkrupp Polysius, said that the terms of the agreement would be kept confidential. He noted that the shareholding structure of tkII was undergoing changes, and the new majority shareholders would play a pivotal role in its future growth. Vivek Bhatia, managing director and CEO of tkII, expressed optimism about the proposed changes in shareholding, foreseeing a new era of growth and success for tkII.
Vikram Swarup, chairman, and Gaurav Swarup, co-chairman of Paharpur Cooling Towers Limited, the future majority shareholder of tkII, emphasised their extensive involvement with tkII’s operations for decades. They, along with P. N. Kapadia of Protos India, already own about 27% of the company and have served on its Board for years. “tkII is a highly successful and well-regarded entity when it comes to equipment and associated services for the cement, mining, energy and sugar sectors. We are excited about the growth and opportunities that lie ahead,” Swarup said.
However, tkII specialises in constructing plants for cement, mining, energy, sugar, and boilers, providing manufacturing, supply, and commissioning services both within India and for international markets.
The cement business was jointly served with thyssenkrupp Polysius GmbH (tk Polysius) of Germany. The mining segment represented nearly 50% of the company’s operations, while cement plants constituted approximately 20% of its business.
The new owners have confirmed their commitment to maintaining both the cement and non-cement businesses, including those in mining, energy, boilers, sugar, and related services. These operations will continue under the new ownership.
To maintain seamless operations, tkII’s cement division will retain perpetual access to thyssenkrupp’s Polysius core technologies through an agreement with thyssenkrupp Polysius GmbH. This enables tkII to provide new-build cement plants, equipment, and services to clients in India, Bangladesh, and Nepal while also offering global engineering and manufacturing support to thyssenkrupp Polysius.