Telcon buys majority stake in Spanish co

Telcon, a joint venture company of Tata Motors and Hitachi, has bought 79% in Serviplem, a Spain-based contruction equipment company for euro 45 million.

Through the acquisition, Telcon aims to have a significant share of the bouyant infrastructure industry of China and also India. Serviplem holds a majority stake in a Chinese manufacturing company set up in partnership with a local firm.

Ranaveer Sinha, managing director, Telcom said in a statement, "This acquisition is of great strategic importance and will add impetus to its plan to be a $2 billion company by 2012. Serviplem, which 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".

The acquisition will provide the Tata group 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.