KYB Corp., a Japanese behemoth in concrete equipment, has exited its 51% stake in the joint venture with Premraj Keshyep-led Conmat Group, which has reclaimed it, the companies said in a statement on Monday.
The joint entity KYB Conmat Pvt. Ltd is a major market player in India and one of the top three manufacturers of concrete construction equipment, such as batching plants, paving machines, transit mixers, concrete pumps, and self-loading mixers.
It competes against other home-grown entities, such as Kedaara-backed Ajax Engineering, which went public on Monday, and Chinese-owned Schwing Stetter & Sany Heavy Industries.
While the companies did not disclose the value of the transaction, the share purchase agreement and transfer of control have been completed. Singhi Advisors exclusively advised on the deal.
The joint venture was formed in 2013 when Japan’s KYB Corp. acquired a 51% stake in fast-growing and consistently profitable Conmat Systems. It operated as a JV company for over a decade to produce transit mixers using KYB technology and other products indigenously developed by Conmat. The company claims to have increased its revenue sixfold during this period.
KYB has granted a non-exclusive license to allow the company to continue using the existing transit mixer technology and manufacture all the existing products to sell in India and export globally.
Growth outlook
The concrete construction equipment market in India is expected to grow from the current ₹88 billion to approximately ₹230 billion over the next four years at a CAGR of about 21%, as per the statement.
With much of the growth expected to be driven by infrastructure development, urbanization, and the adoption of new technologies, the company plans to leverage its range of equipment and services to boost its revenue. Beyond India, it supplies its products to over 25 countries and has an extensive network of over 200 sales and service engineers, 10 domestic dealers, and 4 international dealers.
Conmat plans to triple its revenue to over ₹10 billion in the next two years from the current ₹3.3 billion it makes through the joint venture. After this transaction, the company plans to set up other world-class manufacturing facilities, develop electric and AI-driven machines, and diversify into earthmoving machinery.
