KHL: Hitachi to acquire controlling stake in Telcon

[IBH]

Hitachi is reportedly to acquire a further 20% stake in Telcon, a joint venture in India between the company and Tata Motors. The deal, valued at INR 100 crore (US$ 21.2 million), would see Hitachi become the majority partner in Telcon, with its stake rising from 40% to 60%

Telcon manufactures Hitachi excavators under licence in India and is the national distributor for imported Hitachi construction equipment. The relationship as a Hitachi licensee goes back to 1984, but it was only in 2000 that Hitachi took an equity interest in Telcon.

Telcon also owns a controlling interest in Spanish compaction equipment manufacturer Lebrero and concrete equipment maker Baryval Serviplem. Telcon also manufacturers Tata-branded backhoe loaders and wheeled loaders.

Telcon is one of two dominant players in the Indian excavator market, along with L&T Komatsu, another Japanese-Indian joint venture. According to Off-Highway Research there were 8000 crawler excavators sold in India last year, making it the fourth largest market in the world after China, the US and Japan. Off-Highway Research expects the Indian excavator market to surpass both the US and Japan this year, with sales rising to more than 10000 machines.
Source: http://www.khl.com/magazines/international-construction/detail/item55077/Hitachi-to-acquire-controlling-stake-in-Telcon/