Revathi to do away with the drills

Will pump proceeds into construction equipment

MUMBAI: Coimbatore-based construction equipment company Revathi Equipment Ltd has decided to completely sell off its drilling division and its strategic investments in other firms and employ the capital raised to strengthen its position in the construction equipment sector.

In a notice to the Bombay Stock Exchange, Revathi Equipment Ltd said the company intends to “dispose of all or part of the drill division including the manufacturing undertaking of the company located in Coimbatore.”

It will also sell off all movable and immovable properties of the company related to the drill division and Revathi Equipment’s strategic investments in the equity shares of Monarch Catalyst Pvt Ltd and Potential Service Consultants Pvt Ltd.

Revathi Equipment, part of New Delhi-based Renaissance Group, which acquired a 40% stake of the company from Atlas Copco Ltd and Chicago Pneumatic Tool Co in 2002, is looking at streamlining and focusing on the construction equipment sector by infusing further capital in the company.

It is also looking at taking the business global by forming joint ventures and strategic alliances with several major players.

The notice said the company will soon be acquiring a manufacturing facility in Chennai for expanding the construction equipment business there.

The construction equipment sector along with infrastructure is pegged at a size of over $2.25 billion and is growing at the rate of 30% annually.

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