Hitachi hikes Telco Construction stake to 40%

Hitachi Construction Machinery Company (HCM) has signed an agreemet with Tata Motors and Telco Construction Equipment Company (Telcon) to hike its stake in Telcon from 20% to 40%.

According to a release issued by Tata Motors to the BSE today, the agreement was signed by Ratan Tata, chairman of Tata Motors, S Dazai, president and  CEO of HCM, and J K Setna, chairman of Telcon.

Telcon was floated as an 80:20 joint venture company between Tata Motors and HCM.

"The new shareholders agreement signed between the three companies envisages greater cooperation between HCM and Telcon. It includes sourcing of components and machines from Telcon by Hitachi, introducing new products of construction equipment in the country, setting up a product development facility in India and making Telcon a part of HCM's global network," the release added.