Kalpataru Power Transmission Ltd (KPTL) said on Friday that its wholly-owned subsidiary in Brazil has signed a definitive agreement to acquire controlling stake of 51 per cent in Fasttel Engenharia Ltda for 8.8 million dollars (about Rs 64 crore).
Founded in 1988 Fasttel specialises in engineering, procurement and construction (EPC) and maintenance of power transmission lines, sub-station and distribution systems across various voltage range up to 750 kilovolts.
The company had revenue of 47 million dollars (about Rs 343 crore) last year and has an order book of 95 million dollars (about Rs 693 crore). The transaction is likely to close by end of Q1 FY22.
"We continue to expand our geographical reach aligned to our vision of being a local player in the global environment," said KPTL's Executive Director Sanjay Dalmia.
"This acquisition of Fasttel is of strategic fit to KPTL in order to capture local market opportunities in Brazil and expand business in Latin American market," he said in a statement.
Fasttel has a track record of revenue growth of more than 25 per cent CAGR over the last five years along with consistent profitability. It has experienced manpower which does in-house engineering, procurement, land survey, planning, environment clearances and construction, said Dalmia.
Brazil is a large and well-regulated power transmission and distribution market with sizable investment planned in the next 10 years.
"We look forward to welcoming Fasttel into the Kalpataru family. Both the compes will leverage each other's capabilities and look forward to create a strong presence in Brazil and larger Latin American T&D market," said Dalmia.
KPTL is one of the largest and fastest growing specialised EPC compes from India engaged in power transmission & distribution, oil & gas pipeline, railways, infrastructure development, civil contracting and warehousing & logistics business with a strong international presence in power transmission & distribution.
The company is currently executing several contracts in India, Africa, Europe, Middle East, CIS, SAARC and Far East.
( With inputs from ANI )
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