New owner for Indian crane maker TIL
By Alex Dahm28 November 2022
Indian crane and materials handling equipment manufacturer TIL plans to bring in a strategic investor to take control of the company.
Under the plan Indocrest Defence Solutions Private Limited, part of Gainwell Group, will make the investment in TIL. Indocrest, headed by Sunil Kumar Chaturvedi, is a defence contractor. Around 65 per cent of TIL’s business is supplying India’s armed services with materials handling equipment.
Commenting on the proposed takeover Sumit Mazumder, TIL chairman and managing director, said, “This decision mainly comes from the fact that there is no successor to continue the business operations after me. Also, after facing challenging times in the last couple of years, bringing in a strategic investor became imperative in order to continue the business operations.”
In 2016 TIL sold its Caterpillar dealership business to Gainwell, owner of Indocrest. “Gainwell’s experience and expertise in selling and servicing infra equipment augurs very well with TIL and naturally has the right strategic synergy with the current product line of TIL as well as having the best sectoral and customer fit,” Mazumder continued.
“This strategic measure will not only ensure seamless continuation of TIL’s legacy, growth and expansion benefitting our employees and all stakeholders, it will make sure that TIL remains a trusted and preferred partner in the domestic and global infrastructure arena,” Mazumder concluded.
Established 78 years ago in 1944, TIL designs, manufactures and markets a range of materials handling and port equipment for the Indian market. Rough terrain mobile cranes and reach stackers are its main products. For the 12 months to the end of March 2021 TIL reported a turnover of INR 320.51 Crore (US$40 million).
Headquartered in Kolkata, TIL has two factories in Eastern India. One at Kamarhatty is the only purpose-built mobile crane-manufacturing facility in the country, the company said. TIL has a longstanding alliance with USA-headquartered crane manufacturer Manitowoc Grove and with forklift specialist Hyster, part of Hyster-Yale Group in the USA.
The investment plan was announced at the TIL board meeting on 26 November. An extraordinary general meeting will be held on 23 December 2022 with a view to gaining shareholder approval for the takeover.