Shriram EPC buys 55 per cent stake in BG Tech

Chennai: Shriram EPC has acquired a 55-per cent stake in Blackstone Group Technologies, an engineering consulting firm based in Chennai.

Shriram EPC, which offers integrated project management services for renewable energy projects and manufactures wind turbines, sees the acquisition as an opportunity for consolidating its position and scaling up operations.

According to a press release from the company, the acquisition the value of which was not disclosed was funded through internal accruals with Shriram EPC acquiring existing shares and being allotted a new equity. Shriram EPC has the option to acquire the balance equity after three years. Blackstone Group Technologies will now be a subsidiary for accounting purposes.

The release quoting Mr T. Shivaraman, Managing Director and Chief Executive Officer, Shriram EPC Ltd, said that the acquisition will give the company added strength in areas covering process and metallurgy, biomass power plants and pipe rehabilitation.

For BG Technologies the acquisition gives it access to better infrastructure and execution capabilities and the opportunity to scale up business volume.

Mr S. Egbal, Director, India operations of BG Technologies, will continue to head the organisation that will maintain its distinct identity and service outside clients. A new division within Blackstone Group will focus on providing engineering services for Shriram EPC’s projects, the release said.

The acquisition gives Shriram EPC additional manpower and skill sets in high value engineering in civil and structural engineering. It was earlier outsourcing these requirements, which now can be handled in-house, enabling it to bid for larger projects, provide global market reach and have a bigger customer base.

Blackstone Group has been in the business for over 14 years and specialises in structural steel design and detailing, conveying equipment detailing and plant designing software application and development. It has staff strength of over 250 with offices in Chennai and Chicago.