TIL Ltd is planning to increase its authorised capital to infuse funds into the business, by bringing in Indocrest Defence Solutions Private Limited, which is a part of Gainwell group, as a strategic investor. The company is looking to transfer the full management control in TIL to Indocrest Defence Solutions subject to shareholder and other statutory approvals.
According to Sumit Mazumder, Chairman & Managing Director, TIL, this decision mainly comes from the fact that there is no successor to continue the business operations after him.
“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. Gainwell’s 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,” Mazumder said in a press statement.
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TIL’s pending order book as on March 31, 2022 stood at around ₹333 crore with large order in the pipeline. Nearly 65 per cent of orders pertains to defence sector.
TIL’s 78 years of legacy, brand goodwill, manufacturing prowess, resource and capability, extensive product portfolio would fit very well with Gainwell’s future plans to be in the global manufacturing map. Especially, with the government’s 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,” he said.
This strategic measure will not only ensure seamless continuation of TIL’s legacy, growth and expansion benefitting our employees and all stakeholders, but also ensure that TIL remains a trusted and preferred partner in the domestic and global infrastructure arena, he added.
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Published on November 27, 2022
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