HCC acquires Swiss reality construction firm
Hindustan Construction Company (HCC), known for doing mega infrastructure projects in India, has announced to acquire a controlling stake in Switzerland-based reality contractor Karl Steiner AG (KSAG). This is the first such overseas acquisition by HCC which, it says, will give them access to many world class European technologies that will augment EPC offerings in India and other markets. The company will acquire a 66% stake through buying new shares for CHF 35 million (Rs150 crore). The remaining 34%, it says, will be acquired within next four years.
Ajit Gulabchand, Chairman and Managing Director, HCC, said: “This acquisition has been carried out on grounds of strategic fit both to capture local market opportunity and to provide us with a presence for European expansion. This will allow HCC to undertake the development and construction of world class residential and commercial spaces on a turnkey basis in India. This strategic fit will also open the Swiss and European market to HCC’s E&C business and will help procure greater access to technology and EPC capability.”
With this acquisition, HCC which has until now a stronger presence in big infrastructure segments would look to diversify into growing market of integrated building construction in India. The company says the integrated building market is estimated at Rs65,000 to Rs75,000 crore annually. “There are only three-four good players present at the moment and we would like to capture enough share of the market in days to come,” said Vinayak Deshpande, President and COO, HCC.
The company is also studying the Middle East market to take up real estate and integrated building projects.