Auto component-maker Rane Group's Holdings arm acquired 70 per cent equity stake in Telemtics4U Services Ltd for Rs 1.17 crore through subscription to fresh issue of shares and share purchase from its investors.
"We will invest Rs 27 crore over the next two years to scale up our operations, as we see high revenue and growth potential at T4U," said the Chennai-based Rane holding firm in a statement here.
Set up in 2009, the city-based T4U offers customised analytics-rich telematics solutions for transportation and asset tracking needs in the country and in Africa, South Asia and West Asia.
T4U is focused on Internet of Things (IoT) and smart technologies to design platforms and solutions to its customers in public, private and social sectors.
"T4U solutions enable its customers to manage their supply chain operations and help them control critical assets," added the statement.
T4U's revenue was Rs 18.6 crore for fiscal 2016-17.
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"As connectivity is also influencing the transportation sector, T4U acquisition will spur our ambition to capitalise on opportunities in the connected technologies," said Rane Group Managing Director Vinay Lakshman in the statement.
As a pioneer in providing customised solutions, T4U will benefit from demand for improved fleet operational efficiency, vehicle diagnostics and Internet of Things-based solutions.
"We foresee T4U buyout has potential to unfold opportunities to expand our connected vehicle product portfolio," added Lakshman.
The group is a leading supplier of steering and suspension systems, friction materials, valve train components, occupant safety systems and die-casting products.
Its products serve industry segments, including passenger and commercial vehicles, farm tractors, two-wheelers, three-wheelers, railways and stationary engines.
--IANS
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