Gainwell Commosales to acquire TIL Ltd, invest Rs 1000 crore for expansion
Gainwell Commosales, India dealer of Caterpillar heavy equipment, on Wednesday acquired TIL Ltd (formerly Tractors India) and infused Rs 120 crore into the Kolkata-based construction equipment maker that includes Rs 70 crore for subscribing a preferential issue of equity shares.
Gainwell, the Kolkata-headquartered capital goods manufacturer with presence in the mining, construction, energy, defence, railways, and heavy equipment sectors, plans to invest Rs 1,000 crore over the next three years with an aim to become a $1-billion company by 2028, a senior company executive said.
The acquisition of TIL, done through group entity Indocrest Defence Solutions Pvt Ltd (IDSPL), is a strategic move to strengthen the company’s position in the heavy equipment manufacturing industry.
A new six-member board of directors, headed by Gainwell chairman and managing director Sunil Kumar Chaturvedi as chairman and MD, replaced the previous TIL board on Wednesday.
“The new management of TIL has devised a comprehensive two-year plan to revitalise the company that includes introducing new generational products as well as engineering and technology to refresh all its existing offerings,” Chaturvedi said.
TIL’s product portfolio comprises a wide range of mobile cranes (rough terrain, truck cranes, industrial, and pick-n-carry cranes) lattice boom crawler cranes, reach stackers, and container handlers. The company also makes custom-made and application-specific defence equipment.
Gainwell will use a mix of debt and equity to raise funds for its ambitious expansion plan.
