TIL spurts on plan to rope in strategic investor

28 Nov 2022 , 01:03 PM

The board of TIL at its meeting held on 26 November 2022 decided to increase the authorized capital to infuse funds into the business of the company, by bringing in a strategic investor, subject to shareholder and other requisite approvals. The capital is to be infused by Indocrest Defence Solutions, which is a part of Gainwell Group, headed by Sunil Kumar Chaturvedi. Sumit Mazumder, chairman & managing director, TIL 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. There were multiple options of investors but we chose Gainwell, of which Indocrest is a part. Back in 2016, we had divested our Caterpillar dealership business as a part of management buyout to Gainwell – erstwhile TIPL. Gainwells 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. We are happy to transfer, subject to requisite approvals, the full management control in TIL to Indocrest Defence Solutions and the Gainwell Group. Mazumder further added, In spite of the cash flow challenges, production bottlenecks and delivery delays, TIL continues to remain the preferred choice of customers of cranes, reach stackers and defence equipment. The market share for our Rough Terrain cranes continues to be in the lead. TILs pending order book as on 31st March 2022 stood at Rs 332.5 Crs with large order in the pipeline. And 65% of orders pertains to Defence sector. TILs 78 years of legacy, brand goodwill, manufacturing prowess, resource and capability, extensive product portfolio would fit very well with Gainwells future plans to be in the global manufacturing map. Especially, with the Govts emphasis on Make in India initiatives, thrust on infra developments, there will be significant opportunities for TIL. Defence is another important potential area for TIL and our order book for defence is positive and heralds significant opportunities. Mazumder further quoted, This strategic measure will not only ensure seamless continuation of TILs 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. TIL is a leading provider of infrastructure equipment in India engaged in design, manufacture and marketing of a comprehensive range of material handling and port equipment. It has a fully integrated plant at Kamarhatty and a state-of-the-art Plant at Changual, West Bengal. TIL has global alliances Grove Worldwide & Manitowoc Crane Group of USA and Hyster (a part of Hyster-Yale Group, Inc). On a consolidated basis, TIL reported net loss of Rs 23.21 crore in Q1 June 2022 as against net loss of Rs 53.52 crore in Q1 June 2021. Net sales rose 33.7% YoY to Rs 15.35 crore in Q1 June 2022. Powered by Capital Market – Live News