Telco Construction Equipment Company Limited (Telcon), a leader in the construction equipment sector in India, signed an agreement with the existing shareholders of Serviplem S.A, Spain for acquisition of their 79 per cent stake in the company. In the spirit of partnership, the existing owners will continue to be associated with the venture and own the remaining 21 per cent.

Speaking on the occasion of signing the agreement, Ranaveer Sinha, managing director of Telcon said that this acquisition is of great 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 tanks and pumps. The technology will help Telcon to enter the concrete value chain with a number of offerings.

Serviplem also has a presence in China through a joint venture which can also be leveraged. With the acquisition, Telcon can drive growth in two important growth economies, viz India and China. Mr Sinha said that Serviplem and Telcon will work together to identify opportunities and leverage their presence in the global market.

With this acquisition, the Tata Group will have a significant presence in the Aragon Region in Spain as it is already present in the region through its partnership with Hispano Carrocera S.A., a bus-body building company, and its recently opened branch office at Zaragoza.

Speaking on Telcon’s future growth plans, Mr Sinha mentioned that the company’s growth plans are in line with expectations and that he is constantly on the look out for strengthening its product portfolio through technology transfers, partnerships and other acquisitions.