KPTL Acquires Brazilian Power T&D EPC Company Fasttel Engenharia

KPTL has signed a definitive agreement to acquire a controlling take of 51 percent in Brazilian T&D EPC company Fasttel Engenharia.

Kalpataru Power Transmission Limited (KPTL), a leading global EPC player in the power and infrastructure contracting sector, has announced that its wholly-owned subsidiary in Brazil – Kalpataru Power do Brasil Participações has signed a definitive agreement to acquire a controlling stake of 51 percent in Fasttel Engenharia for ~USD 8.80 million, subject to customary adjustments.

Fasttel, founded in 1988, specialises in Engineering, Procurement, and Construction (EPC) and maintenance of power transmission lines, substation and distribution systems across various voltage range up to 750 kV. The company mainly operates into three business areas, comprising of EPC of substation, transmission and distribution network services with revenue of around USD 47 million in 2020 and has a profitable track record. The company has presence in Brazil with an order book of around USD 95 million as on date.

Sanjay Dalmia, Executive Director, KPTL said, “we continue to expand our geographical reach aligned to our vision of being a local player in the global environment. This acquisition of Fasttel is of strategic fit to KPTL in order to capture local market opportunities in Brazil and expand business in the Latin American market. Fasttel has a track record of revenue growth of more than 25 percent CAGR over the last 5 years along with consistent profitability. It has experienced manpower that does in-house Engineering, Procurement, Land Survey, Planning, Environment Clearances and Construction.

Brazil is a large and well-regulated power transmission and distribution market with sizeable investment planned in the next 10 years. Both the companies will leverage each other’s capabilities and look forward to creating a strong presence in Brazil and larger Latin American T&D market.”

The firm has stated that its acquisition of Fasttel is in line with its strategy to strengthen its core EPC business and have a greater geographical presence in stable and growing markets. The transaction is likely to close by end of Q1FY22.

In December, the firm had reported that it had received orders worth Rs 1,300 crore from India and the overseas market in the power transmission and distribution (T&D) space. The firm had received EPC orders for pipeline laying and associated works in India and order for railway electrification, adding that KPTL’s international subsidiary has secured new T and D projects in Europe too.