FCC

Conmat Group Acquires 100% Stake in KYB-Conmat

2025-03-05

Conmat Group, led by first-generation technopreneur Premraj Keshyep, has successfully acquired full control of KYB Conmat, a leading player in the concrete equipment sector, valued at Rs 3.3 billion. The acquisition involved buying back a 51 per cent stake from the company's joint venture (JV) partner, KYB Corporation, a Japanese giant with a $2.9 billion global presence in concrete machinery. As this was a privately negotiated inter-partner transaction, the financial details remain undisclosed.

KYB Conmat, a top contender in the Indian concrete equipment market, ranks as one of the three largest manufacturers of products like batching plants, paving machines, transit mixers, concrete pumps, and self-loading mixers. The acquisition was facilitated by global M&A advisory firm Singhi Advisors, with legal support from DSK Legal.

The JV was originally established in 2013 when KYB Corporation acquired a 51 per cent stake in Conmat Systems, which was a rapidly growing and profitable company. Over the past decade, the JV focused on manufacturing transit mixers using KYB's technology and other products developed by Conmat. During this period, the company's revenue grew sixfold. In a noteworthy move, the Indian company has secured a non-exclusive license from KYB, allowing it to continue using existing transit mixer technology. This ensures that the company can continue manufacturing its full product range for both the Indian market and international exports.

As India aims to become a developed nation by 2047, significant investments in infrastructure are driving increased demand for advanced construction equipment. The Indian concrete construction equipment market, currently valued at Rs 88 billion, is projected to grow to Rs 230 billion by 2029, with a compound annual growth rate (CAGR) of approximately 21 per cent. The ""Make in India for the World"" initiative is gaining momentum, positioning India as a key player in the $18.5 billion global concrete equipment market, which is expected to reach $25 billion by 2029. This growth is being driven by infrastructure development, urbanization, and the adoption of new technologies.

Conmat Group, with its strong design, development, and manufacturing capabilities, is well-positioned to capitalise on this growth. The company employs over 450 highly skilled professionals, along with more than 350 contractual workers. It also boasts an extensive network of over 200 Sales & Service Engineers, 10 domestic dealers, and 4 international dealers, supplying products across India and to over 25 countries worldwide.