In a landmark decision, the board of Bobby and Sumit Mazumdar led TIL Limited; Kolkata has finally decided to sell their highly profitable Caterpillar dealership, to Goodearth Minetech Pvt. Ltd. TIPL erstwhile TIL Limited Caterpillar division of the parent company had been a Caterpillar dealership for the past 66 years. The deal was set at Rs 350 Crores along with all assets and liabilities of the Caterpillar portion of the business, by the buyer.
Sunil Chaturvedi MD and CEO said in an interview with Equipment India," I would like to inform you that the TIL board has decided to sell the company. The matter will now be put up to all the shareholders for their acceptance. I expect that the entire transaction will be completed by the end of May 2016. "
On asking him what attracted him to acquire TIPL he commented "This has been something which has been the verge for a long time. Caterpillar invited me to join the dealership it was a possibility in my mind from day one. Earlier I was in the capital goods component manufacturing sector and not really in marketing, project organisation and aftermarket support. I read about it and found that there is a possibility that I can own it"
Interestingly, his tenure as MD & CEO of TIPL, for the past two and a half years was also a golden opportunity to learn the business and conduct long-term due diligence of the business, prior to acquiring the same Speaking to Sumit Mazumdar, Chairman and MD, TIL Limited, Equipment India finds that he is now interested in concentrating is attention on manufactured equipment, as it is his core competence developed over many decades in the industry." He will focus on taking the business of cranes, port and other new equipment forward to much higher levels of profitability in future" he said.
On managing a seamless transition Chaturvedi commented" I have been part of the business for the past two and a half years. It is not that I am new to the system. Customers are aware of the impending change. I have personally met many customers all over the country. They certainly know about me and feel assured of continuity. They now have the freedom to use the very modern technology in Caterpillar products."
Briefly explaining the acquisition Chaturvedi informed" We had great support from Caterpillar for this acquisition. They have supported me during the entire acquisition and balance money I have organised from the market. On a parting note, Chaturvedi said "this acquisition is good for both TIPL as a company and its people".