The Hindu Business Line : Telcon to acquire 79% in Spain’s Serviplem

Mumbai, March 28 Telco Construction Equipment Company Ltd (Telcon) has signed an agreement with the shareholders of Serviplem S.A., Spain for the acquisition of 79 per cent stake in the company. The existing owners of Serviplem will continue to hold the remaining 21 per cent. Financial details were not disclosed.

Telcon was set up in 1999 as a wholly owned subsidiary of Tata Motors, by spinning off the construction equipment business unit of Tata Motors. In 2000, Tata Motors divested 20 per cent of its shareholding to Hitachi Construction Machinery Co Ltd, Japan, and in 2005, Hitachi increased it to 40 per cent.

Telcon’s product range includes hydraulic excavators, crawler cranes, wheel loaders, backhoe loaders, dumpers and motor graders. It has formed a joint venture Telcon Ecoroad Resurfaces Pvt Ltd with HCM, GreenArm Japan and IVRCL India to promote environment-friendly road resurfacing technology in India.

Serviplem is into manufacturing, marketing and servicing of transit mixers with a market share of 60 per cent. Its activities include manufacturing of aluminium tanks for dry bulk transport and commercial presence with several other products in the cement and concrete markets. Thirty-five per cent of its revenue comes from exports.

Mr Ranaveer Sinha, Managing Director of Telcon, 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.”

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