Hyderabad, Apr 10 (UNI) Leading Industrial productivity solution provider Atlas Copco India Ltd (ACIL) today signed an agreement to acquire 25 per cent each of Focus Rocbit Pvt Ltd and Prisma Roctools Pvt Ltd, two Hyderabad-based companies in India, to strengthen the Group's position in the market for drill bits and hammers.
Focus Rocbit Pvt Ltd is a manufacturer of Bits for rotary drilling and Prisma Roctools Pvt Ltd makes bits and hammers for down-the-hole drilling. The privately-owned companies, which largely have the same shareholders, have combined annual revenues of about Rs 40 crore and 114 employees. Sales were mainly to India, Australia, South Africa and the United States.
The busineses will operate as joint ventures within Atlas Copco's Secoroc division. ACIL has an option to acquire the remaining shares in both companies over the next 12 months.
The acquisition for an undisclosed 'cash in-share' will give ACIL two directors on the board of each company, both of whose manufacturing facilities are located at Hyderabad.
"The acquisitions add a competitive range of products for customers in India and selected markets," said Bjorn Rosengren, Business Aare President, Construction and Mining Technique. "They will also allow us to further develop and grow our rock drilling business in order to benefit from the current growth in the mining, construction and water-well sectors," he added.
The acquisition will help the ACIL, which notched Rs 1000 crore from the year 2007-2008 to maintain a 25-30 per cent growth. The strategic acquisition of the two Hyderabad-located companies over the year will provide ACIL the competitive strength to enter markets like China and Russia for the first time, Company Managing Director Mike Mustapha said.
ACIL, which has acquired three other Indian companies over the last five years was on the look out for more acquisitions.
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