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Telcon

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TELCO Construction Equipment Co. Ltd. (Telcon), founded in 1961, is an Indian manufacturer of earthmoving equipment. In recent years it has expanded its product range to include other equipment types as well. Telcon's line of excavators start at a two-ton capacity up to a maximum capacity of 120 tons. [1]

Telcon is India’s leading provider of construction and earthmoving equipment. It has two production facilities in India, in the cities of Jamshedpur and Dharwad. [2]

Telcon is a joint venture between Tata Motors and the Hitachi Construction Machinery Co.[3]

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[edit] History

Telcon was founded in 1961 as a subsidiary of Telco (Tata Engineering and Locomotive Co. Ltd.)[4]. Hitachi Construction Machinery Co. was established in 1970 as Hitachi’s construction division.[5]

In 1984 Telco and Hitachi began doing business together. They formed a technology sharing agreement. Fast forward to the year 2000: Telco and Hitachi became business partners when Hitachi purchased a 20 percent equity stake in Telcon in exchange for US$21.5 million.[6]

In spring of 2008 Telcon acquired a majority stake in two Spanish industrial equipment companies. In April, Telcon acquired a 60 percent stake of Comoplesa Lebrero, which manufactures compaction equipment. Telco had had a technology sharing agreement with Lebrero since 2002. In March 2008 Telcon acquired 79 percent of Serviplem S.A. Serviplem manufacturers truck-mounted concrete mixers and dry bulk tanks. Serviplem is a leader in its field, with sales in more than 50 countries in the world. [7][8]

In 1986 Telcon signed an agreement to share technological information with John Deere in regards to backhoe loaders. This agreement expired in 2006 and Telcon attempted to contact John Deere in order to renew the agreement, but did not receive a reply. In September 2008 Telcon’s major competitor in the Indian earthmoving market, Ashok Leyland, signed a 50/50 joint venture arrangement with John Deere to sell construction equipment in India.[9] In March 2009 Telcon appealed to India’s Foreign Investment Promotion Board, claiming the arrangement would hurt its business interests. Telcon’s appeal was rejected. [10]

[edit] The Company Today

Since the year 2000 Hitachi Construction Machinery Co. Ltd. has doubled its ownership of Telcon; it now holds a 40 percent equity stake. Telcon holds the remaining 60 percent.[11] The company is led by managing director Ranaveer Sinha.[12]

Telcon has established relationships with a number of other industrial companies. This includes joint ventures, subsidiaries, and associates:

[edit] Equipment List

[edit] References

  1. Telcon: Raising India to newer heights. ProjectMonitor.com [June 12, 2009].
  2. Tata Engineering and Hitachi in joint venture for earth moving equipment. Tata Group [June 12, 2009].
  3. Tata Engineering and Hitachi in joint venture for earth moving equipment. Tata Group [June 12, 2009].
  4. Telco Construction Equipment Company Limited. BusinessWeek.com [June 12, 2009].
  5. Tata Engineering and Hitachi in joint venture for earth moving equipment. Tata Group [June 12, 2009].
  6. Tata Engineering and Hitachi in joint venture for earth moving equipment. Tata Group [June 12, 2009].
  7. TELCON to acquire controlling stake in Comoplesa Lebrero S.A.. Machinist.in [June 12, 2009].
  8. TELCON to acquire controlling stake in Comoplesa Lebrero S.A.. Tata Motors [June 12, 2009].
  9. Ashok Leyland, John Deere join hands for construction equipment. ThaIndian.com [June 12, 2009].
  10. FIPB nixes Tata objection to John Deere, Leyland JV. Business-Standard.com [June 12, 2009].
  11. Telco Construction Equipment Company. DirectoryOf.in [June 12, 2009].
  12. Telco Construction Equipment Company Limited. BusinessWeek.com [June 12, 2009].
  13. Telco Construction Equipment. Tata Group [June 12, 2009].

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