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Hyderabad, April 10 Atlas Copco (India), part of the Swedish diversified group engaged in compressor manufacture, drilling mining and construction equipment business, has announced the acquisition of 25 per cent stake in Focus Rocbit and Prisma Roctools, both privately-held drilling bit makers based in Hyderabad.

The Indian-listed entity has the option to take the entire stake in both these companies over the next one year. The management of the company did not divulge the deal value.

Focus Rocbit is a manufacturer of bits for rotary drilling equipment and Prisma Roctools makes bits ad hammers for down-the-hole drilling operation.

These two companies have combined revenues of about $10 million with sales in India, Australia, South Africa and the US.

The Managing Director of Atlas Copco (India), Mr Mike Mustapha, said that the company in India has grown at about 27-30 per cent per annum and has made four acquisitions in the last five years. These two acquisitions would add to the company product portfolio in India and enable them to serve the markets in the region.

The company, with current revenues of about Rs1,000 crore, has presence in all the three businesses — air compressors, construction and drilling equipment and related tools in India.

Addressing a press conference here on Thursday to announce the acquisitions, the Vice President of Product Companies, Atlas Copco Secorec AB, Mr Kobus Malan, said “These acquisitions add competitive range of products both in India and some select markets in the region which are currently not being addressed. They will allow us to further develop rock-drilling business.” These businesses will now operate as joint ventures within Atlas Copco Secoroc division.

In India, Atlas Copco employs over 1,400 people in India and has two manufacturing bases — one at Nashik and other at Pune. The company recently concluded expansion of these two manufacturing units and sees them serving for about five years.

The company is also in the process of negotiating for more land near Pune for further expansion plans, Mr Mike Mustapha said.

More Stories on : Mergers & Acquisitions | Engineering

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