Gainwell Group Acquires Infra Equipment Manufacturer TIL Limited

New Delhi, Jan 24, 2024:  Gainwell Group, through its group entity- Indocrest Defence Solutions Private Limited (IDSPL), on Wednesday acquired a dominant stake in TIL (formerly Tractors India) Limited (NSE: TIL), one of India’s leading infra equipment manufacturer.  

Gainwell Group promoter Sunil Kumar Chaturvedi, appointed as a director of TIL today is slated to be appointed, subject to Shareholders’ approval, the Chairman & Managing Director of TIL.  

“This is a milestone moment for Gainwell and TIL both and is in line with the larger aspiration of the Gainwell Group to achieve $1 billion size and stature within the next 5 years. TIL with a history of nearly eight decades embodies   a   rich   legacy, brand   goodwill, manufacturing   prowess   and    wide range   of capabilities. The Company has a strong, strategic fit for Gainwell Group and the combination of our strengths will drive significant value for all stakeholders,” Chaturvedi said speaking about the acquisition, adding, “The acquisition is a strategic move that will enhance Gainwell Group’s leadership in the heavy equipment manufacturing industry. TIL brings with it almost eight decades of deep engineering expertise and manufacturing experience, together with a strong brand recognition in the market.”

IDSPL has infused ₹120 crore into TIL including ₹ 70 crore for subscribing to the preferential issue of shares.  A new six-member Board  of Directors  replacing  the  existing  incumbents  has  been  put  in  place  by  Gainwell  Group  in anticipation  of  shareholders’ approval.  TIL’s new Board has also approved in their maiden meeting replacement of all its Key Management Persons (KMPs) within next 60 days’ time.  A formidable source of high-quality cranes, reach stackers and defence equipment, TIL brand has been a part of India’s infrastructure sector growth since 1944.

Sharing his views on the acquisition, TIL’s outgoing Chairman & Managing Director, Sumit Mazumder said, “This strategic measure will ensure seamless continuation of TIL’s legacy, growth and expansion benefitting our employees and all stakeholders. TIL under Gainwell’s management will be strongly positioned to continue building on top of its eight decades of legacy, ensuring revival in the business performance and expansion that will benefit all stakeholders.  The strategic investment from Gainwell will also make sure that TIL remains a trusted and a preferred partner in the domestic and global infrastructure landscape”.

Commenting on the acquisition Rajiv Prasad, President and CEO of Hyster–Yale Group which has been a key partner for TIL since 2008 said, “We look forward to a strong turnround of TIL in days ahead. Hyster remains confident that the long-standing partnership between Hyster and TIL will gain new heights in able stewardship of Mr. Chaturvedi. Hyster-Yale Group remains committed to working with TIL in its speedy ramp-up, which also supports our mission of providing “optimal solutions” to solve customers’ toughest problems.”

Aaron H. Ravenscroft, President and CEO of the Manitowoc Company, Inc. said, “We see TIL’s transition as a turning point in its history with Manitowoc over the last 60 years and look forward to Mr. Sunil Chaturvedi and his team taking the company to new heights. We will continue selling Manitowoc Crawler Cranes along with Grove Mobile Telescoping Cranes from the Manitowoc Crane Group through TIL and see great potential in the company moving forward”.
Indcap Advisors have supported TIL in this transaction.