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Avigo Capital Partners-backed material handling company Tecpro Systems Ltd has acquired Chennai-based Ambika Projects (India) Pvt Ltd to expand into the water treatment sector. Tecpro said that it is acquiring a 100 per cent stake in Ambika for Rs 10.30 crore.

"As the company was looking for its entry into this space for quite some time, it is expected that this acquisition would help the company in moving up the value chain," said Delhi-based Tecpro, which was listed on the bourses last year.

Ambika Projects is an EPC firm catering to water & waste water treatment with a presence in Chennai, Mumbai and Sultanate of Oman. Its client list includes companies VSNL, SAIL, JSW, BGR Energy, Essar, Vedanta, TTK, Shriram EPC, among others.

Tecpro is involved in undertaking turnkey projects in material handling, ash handling, balance of thermal power plant, captive power plants and pollution control systems. The company has also started to focus on turnkey BoP contracts in the thermal power generation sector.

Tecpro also recently entered into an agreement with US-based Advanced Conveyor Technologies to jointly collaborate and market overland conveyor projects.

"Established player (executed highest orders for coal handling during eleventh five year plan) in ash and material handling segment and foray into BoP segment (synchronization and diversification) would lead to growth with diversification. Clientele with strong base mitigates risk of project deferment or cancellation.

Revenue visibility over FY13e on the back of strong order-book of Rs 43.7bn (2.2x FY11 sales),” said Unicon Investment in its research report on Tecpro.

The share price of Tecpro closed at Rs 274 per share, down 0.33 per cent at BSE on Wednesday.

Tecpro is backed by Delhi-based mid-market focused fund Avigo Capital Partners, Credit Suisse,

Metmin Investments and Macquarie Asia Pacific Co- Investment Fund LP who together hold 25-28 per cent stake in the company.

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