Tega Industries, a Kolkata-based engineering solutions provider, has received the National Company Law Tribunal's (NCLT) approval for the acquisition of McNally Sayaji Engineering Limited's plant in Kumardhubi, Jharkhand.

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This acquisition is expected to yield a 15-20 percent growth for the next few years, along with a revenue growth by five percent.

Speaking to CNBC-TV18, Mehul Mohanka, MD & CEO of Tega Industries said, “In terms of growth I see a healthy 15 to 20 percent growth over the next few years for this business to deliver. I am sure as we guide the management into new territories and new products and services, we will be able to ramp up the revenue significantly, along with margins.”

The move is expected to bolster Tega's offerings in the material handling space, in line with the company's strategy of backward integration.

Mohanka said, “It's a backward integration for us. McNally Sayaji, which is a subsidiary of the parent is in the business of manufacturing mineral process equipment for the global mining market. It is a great fit for us because from a backward integration process, it allows us to also supply our mainstay aftermarket products to the equipment on a captive basis, and also helps us grow not only the equipment revenue, but as well as on the services side.”

He added, “Since we are already in the mineral process plant in the mining industry, it just brings more product lines for us to work with when it comes to approaching customers.”

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Mohanka also said that the acquisition would cost the company about Rs 165 crore. However, the company would not be taking on any debt from the acquired plant. The acquired company is already profitable, making the deal a lucrative proposition for Tega.

To finance the transaction, Tega Industries is leveraging a combination of debt and equity.

Tega Industries has been on an upward trajectory, with the company reporting impressive growth figures for the past year. Volume growth of 17 percent and value growth of 6 percent helped revenue growth close to 24 percent year-on-year.

DynaPrime, the company's mining business vertical, has been a significant contributor to its growth story. The business is expected to continue growing at a compound annual growth rate (CAGR) of 25 percent.

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