Kyokuto Kaihatsu Kogyo Co. Ltd. has acquired Satrac Engineering Pvt. Ltd.
Satrac Engineering Pvt. Ltd., is a Bangalore, India-based manufacturer of special-purpose vehicles such as truck tipper bodies, trailers and tank trucks and is a supplier to all leading truck original equipment manufacturers, most major logistic companies and retail fleet owners in India. Through its high-quality, technical capabilities and widespread servicing network, it has continued to grow its business in India.
Kyokuto Kaihatsu Kogyo Co. Ltd. is a $1.1 billion revenue, construction equipment manufacturer, headquartered in Nishinomiya, Japan. The company offers special purpose vehicles such as dump trucks, sprinkler trucks, concrete boom pumps, transit mixers, tailgate lifters, tank trucks and pneumatic bulk carriers. Kyokuto offers its products to the construction sector, logistic sector, environmental sector, environmental equipment and systems and car parking systems. The company has affiliate entities in Japan, China, India and Indonesia.
Tatsuya Nunohara, President of Kyokuto, states, “The Indian special-purpose vehicle market has been temporarily stagnant due to last year’s increased axle norms and tightening of financing by financial institutions, along with the impact of the Covid-19 pandemic. However, in the medium to long term, demand for construction and logistics vehicles is expected to expand due to the promotion of large-scale infrastructure projects and growth in the logistics and steel and cement industry. Demand for environmental vehicles, such as refuse collection vehicles, is also expected to grow, particularly in urban areas, due to an increase in the amount of garbage generated by population and economic growth, as well as the policies of Clean India and Smart City promoted by the government.”
Tatsuya continues, “Kyokuto further strengthens its business foundation in India by securing excellent manufacturing bases and customer relations in southern India through the acquisition of SATRAC, and expand and develop the company’s special-purpose vehicle business in the country while utilizing the business and technical platforms that have been cultivated.”
Mrinal Bantwal, Managing Director at SATRAC, commented, “SATRAC remains a very well-recognized tipper, trailer and body supplier to the Indian commercial vehicle industry. We see a great fit between SATRAC’s manufacturing excellence and Kyokuto’s technological expertise and are delighted to be a part of their growth stories in India.”
Preet Singh, Managing Director and Head of Industrials at Lincoln International India, commented, “This transaction, coming in the midst of significant industry headwinds, reiterates the continuing global interest for high-quality industrial businesses in India and more specifically the increased activity in the Indo-Japan corridor.”
Lincoln International acted as the exclusive M&A advisor to Kyokuto. The firm’s Japan and India offices closely worked together to identify an ideal partner for Kyokuto to implement its long-term vision in the India market. Lincoln International has significant experience and a successful track record of working with a range of special-purpose vehicle businesses, across geographies, and continues to be a leader in the Industrials markets.
We appreciate Lincoln’s efforts in putting together this transaction and assisting both parties to bridge the cross culture and cross border barriers.
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