to sell a stake in its arm, escorts

Escorts, a manufacturer of tractors, is close to concluding a deal with private equity investors to sell a small portion of its stake in its construction equipment division and earn money for future growth. The money raised, according to Escorts’ ED Nikhil Nanda, will be utilized to establish two new manufacturing facilities for construction equipment. Nanda predicted that the equity sale will be completed by February 2007. The construction equipment business is a wholly-owned venture of Escorts, and we are in talks with some private equity investors to buy into that venture. We can not divulge any details now,” Nanda said.He said the firm is planning to set up two greenfield plants in North India â one in Haryana and one in Uttar Pradesh. Though he refused to disclose the amount of equity to be sold and the amount of funds that would be raised, sources said Escorts Ltd is in talks to di The construction industry is experiencing a boom right now, and we plan to take advantage of it, he said. “We plan to achieve financial closure within the two months and have projects ready over the next 12 months,” he said. “Escorts will focus on construction equipment, tractors as part of its ongoing restructuring, which has already resulted in its operational profits rising to Rs 107.30 crore in its fiscal ending Sept.”