Kalpataru Power Transmission arm to acquire 51% stake in Brazil's Fasttel
Kalpataru Power Transmission's (KPTL) wholly owned subsidiary in Brazil Kalpataru Power do Brasil Participaes has signed a definitive agreement to acquire 51 per cent stake in Fasttel Engenharia in the South American country, for USD 8.80 million. "The acquisition is in line with KPTL's strategy to strengthen its core EPC business and have greater geographical presence in
Kalpataru Power Transmission's (KPTL) wholly owned subsidiary in Brazil Kalpataru Power do Brasil Participaes has signed a definitive agreement to acquire 51 per cent stake in Fasttel Engenharia in the South American country, for USD 8.80 million.
"The acquisition is in line with KPTL's strategy to strengthen its core EPC business and have greater geographical presence in state and growing markets. The transaction is likely to close by end of Q1 FY22,” the company said.
Fasttel, founded in 1988, specialises in engineering, procurement, and construction (EPC) and maintenance of power transmission lines, substation and distribution systems across various voltage range up to 750 kV.
“Fasttel mainly operates into three business areas comprising EPC of substation, transmission and distribution network services with revenue of around USD 47 million in 2020 and has a profitable track record. It has a presence in Brazil with an order book of around USD 95 million as on date," it added.
Sanjay Dalmia, Executive Director, KPTL said, “we continue to expand our geographical reach aligned to our vision of being a local player in the global environment. 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 further said that Fasttel has a track record of revenue growth of more than 25 per cent CAGR over the last 5 years along with consistent profitability
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