Focus Rocbit is a manufacturer of bits for rotary drilling, while Prisma makes bits and hammers for down-the-hole drilling.
HYDERABAD: With an eye on increasing its access to new markets and tapping the fast growing infrastructure sector in India, Pune-based Atlas Copco India has entered into an agreement to acquire 25% equity each in city-based Focus Rocbit and Prisma Roctools for an undisclosed amount.
Focus Rocbit is a manufacturer of bits for rotary drilling, while Prisma makes bits and hammers for down-the-hole drilling.
The two companies are small in size, adding up to just $10 million (~Rs 40 crore) in revenues. However, both are profitable.
Kobus Malan, VP, Apac and Africa, Atlas Copco Secroc AB said the businesses will operate as joint ventures and Atlas Copco has an option to acquire the remaining shares in both companies subsequently.
Chief financial officer Suresh Ghotade said Atlas Copco would exercise the option of acquiring the balance after a year.
Atlas Copco India is 84% held by Sweden’s Atlas Copco. It has three major divisions — compressor technique (manufacturers air compressors, gas and process compressors, turbo expanders, electric power generators, air treatment equipment and air management systems), construction and mining technique (rock drilling tools, construction and demolition tools, drill rigs and equipment) and industrial technique (industrial power tools, assembly systems, aftermarket products, software and service).
But the acquisitions are strategic in nature and will strengthen Secoroc in India apart from opening up a wide market for Atlas Copco in China, Russia and several other regions, Malan added. The acquisition will company a greater presence in the consumables space as well.
Atlas Copco has made three acquisitions in the past seven years, beginning with Chicago Neumatic in 2001.
(With inputs from Rabin Ghosh)
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