Sintex acquires Digvijay CommunicationJune 18th, 2008 - 8:08 pm ICT by IANS
Ahmedabad, June 18 (IANS) Expanding its presence in the telecom networking sector, the Gujarat-based Sintex Industries Limited has acquired Digvijay Communication and Networks Private Limited (DCNPL) through its subsidiary Zeppelin Mobile Systems India Limited in a Rs.5.4 billion deal. Announcing the acquisition Wednesday, the company said the deal was a slump sale transaction, that is, the entity was sold for a lump sum price in which separate values are not attributed to each of the assets which are sold.
The Indore-based DCNPL is a leading provider of telecom infrastructure services in central India and its core activities comprise network infrastructure services, installation and commissioning, annual maintenance and telecom tower manufacturing. Its key clients include Nokia, Airtel, RCOM, Tata Indicom, Siemens and Idea.
Commenting on the acquisition, Sintex managing director Amit Patel said: “The acquisition offers us significant opportunity in the communication infrastructure space.
“It will enable Zeppelin to further penetrate central region of India as DCNPL enjoys a healthy market share in providing complete telecom support solutions to major telecom companies in Madhya Pradesh and Chhattisgarh. The entire management team will continue to work with DCNPL enabling Zeppelin and the acquired company to achieve scale, growth and synergies”.
DCNPL has operations in Gujarat, Maharashtra, Andhra Pradesh and Uttar Pradesh.
It has well developed manufacturing capabilities to cater to the growing demand for telecom infrastructure services. It has a tower manufacturing capacity of 3,600 tonne a year and the facility is strategically located close to the major areas of operation.
Another key advantage which DCNPL accrues for Sintex is the fact that other than the electrical equipment requirements of a new cell site, all other products and services that are required to develop and maintain a cell site are covered by it.
The acquisition comes at a time when major telecom players are set to invest heavily in rural areas where wireless density levels are low. Consequently, the Indian telecom tower industry is expected to grow from 110,000 towers a year now to around 350,000 towers a year by 2010.
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Tags: airtel, andhra pradesh, annual maintenance, central india, communication infrastructure, core activities, electrical equipment, gujarat, industries limited, infrastructure space, mobile systems, network infrastructure services, networking sector, rcom, support solutions, tata indicom, telecom companies, telecom infrastructure, telecom support, telecom tower