The Hindu Business Line : Telcon takes 60% in Spanish company

Mumbai, April 4 Telco Construction Equipment Company Ltd signed an agreement with the shareholders of Comoplesa Lebrero S.A., Spain, for acquisition of 60 per cent stake in the company on Thursday.

Over the past four years, Lebrero, a construction equipment company, was sourcing components from Telcon for its products.

Telcon was set up in 1999 as a wholly-owned subsidiary of Tata Motors by the spin-off of 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.

Last week, Telcon signed an agreement with the shareholders of Serviplem S.A, Spain, for acquisition of 79 per cent stake in the company. The financial details were not disclosed. Serviplem focuses on manufacturing and sale of transit mixers, dry bulk tanks and pumps.

Mr Ranaveer Sinha, Managing Director of Telcon, said: “This acquisition helps Telcon enhance product offerings in the road and general construction value chain. Telcon, Hitachi and Lebrero will work together to identify opportunities and leverage their presence in the global market.”

Mr Sinha allayed fears that the acquisition speed would de-focus Telcon from its core business in India. He said that, in fact, this acquisition helps Telcon strengthen and add relevance to last week’s Serviplem deal of enhancing product offerings.

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.

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