On its way to becoming an end-to-end solutions in telecom, Kalol-based Sintex Industries Ltd., acquired Indore-based Digvijay Communication and Networks Pvt. Ltd. (DCNPL), a telecom infrastructure provider, through its 74 per cent subsidiary Zeppelin Mobile Systems India Limited.
Through the acquisition, that cost Zeppelin Rs 54 crore, the company will further enhance its presence in central India.
Talking about the acquisition, Amit Patel, managing director of Sintex Industries Ltd., said, "This acquisition offers us significant opportunity in the communication infrastructure space. DCNPL enjoys a healthy market share in providing complete telecom support solutions to major telecom companies in the states of Madhya Pradesh and Chattisgarh.
The Company has a promising set of product / service offerings and it provides its range of solutions to leading Indian OEMs and telecom companies."
DCNPL, which offers network infrastructure services, installation and commissioning, annual maintenance and telecom tower manufacturing services, boasts of a clientele including leading telecom players like Nokia, Airtel, Reliance Communications (RCOM), Tata Indicom, Siemens and Idea amongst others.
The company recorded a compounded annual growth rate (CAGR) of over 200 per cent in revenues since financial year 2005 with margins in excess of 20 per cent.
Post-acquisition, the entire management team will continue to work with DCNPL in order to Zeppelin and DCNPL "to achieve scale, growth and synergies", added Patel.
"Another key advantage that DCNPL puts on the plate is the fact that other than the electrical equipment requirements of a new cell site, which comprises around 35 per cent of the cost, all the other products and services required to develop and maintain a cell site are covered by the operations of the company," he said.
On its part, Sintex Industries is also looking for overseas acquisition in markets like the US and Europe.
