Atlas Copco Picks Up 25% Stake In Two Indian Firms

With an objective to beef up its market position in drill bits and hammers, Atlas CopcoAtlas Copco India Ltd (ACI), a Swedish company’s unit, has acquired 25% equity stake in two Hyderabad-based drilling technology companies including Focus Rocbit Pvt. Ltd and Prisma Roctools Pvt Ltd.

However, the financial details of the deal were not disclosed up till now.

The deal to get hold of 25% stake was signed between Mr. Mike Mustapha, Managing Director of Atlas Copco (India) Limited and Mr. Ujjwal Muzumder, Managing Director of Focus Rocbit and Director Prisma Roctools Private Limited.

Prisma Roctools Pvt Ltd produce DTH Hammers and Bits and other complementary products and services for Rotary and down-the-hole (DTH) drilling sector, whereas Focus Rocbit Pvt. Ltd is engaged in manufacture of Rotary Bits and complementary products and services for rotary drilling.

The businesses will operate as joint ventures within Atlas Copco’s Secoroc division.

Besides, Atlas Capco also has the option to procure the remaining 75% holding in these two privately-owned companies, which largely have the same stockholders. The companies have a combined annual turnover of $10 million (Rs 40 crore) and 114 employees.

Sales are mainly in India, Australia, South Africa and United States.

While talking to media persons, Mr. Mustapha stated, “We aim to enter new markets and compete and strengthen the position.”

“The acquisitions add a competitive range of products for customers in India and selected markets. 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,” Mr. Mustapha added.

In the last five years, Atlas Capco has acquired four companies in the Indian market.

The shares of the company, on Thursday, closed at Rs 976.15, up 1.9 percent, on the Bombay Stock Exchange (BSE).

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