City-based Tega Industries which completed the acquisition of McNally Sayaji Engineering Limited through the NCLT route for Rs 165 crore, expects 15 per cent compounded annual growth from the business over the next three to four years.

As part of the resolution plan, the company would also infuse Rs 15 crore in McNally Sayaji towards capital expenditure.

“This marks Tega’s first acquisition in India and fourth globally,” said Mehul Mohanka, MD and group CEO of Tega Industries, at the company’s fourth-quarter earnings call.

“McNally Sayaji Engineering offers innovative solutions in manufacturing and marketing of crushing, screening, grinding, material handling, and mineral processing equipment, complemented by integrated customer support and after-sales service. This acquisition represents a significant step towards expanding our product portfolio, both in terms of products as well as services and spares,” Mohanka said.

“McNally Sayaji was an operational company and is a kind of backward integration for us because they are in equipment space and we provide spares which are getting installed into those equipment as well. So, McNally will open up that market from the equipment side,and from Tega’s perspective, this will also add value because we will have more installed equipment bases of our own group companies, which will add an advantage to us,” said Kaushal Sureka, deputy general manager, finance and accounts, Tega Industries Limited.

“They have done in the range of CAGR growth of 12-15 per cent (growth in business) in the last two years since they went into NCLT and we believe in the initial first two years, we would be able to take it up by at least 2-3 per cent and 15 per cent is a reasonable number which we should be able to achieve for the next three years,” Sureka told analysts.

Tega Industries is engaged in the business of mineral beneficiation, mining, and bulk solid handling with operations in Bengal and Gujarat in India and Chile, South Africa and Australia, globally. The company closed FY23 with a revenue of Rs 1,214 crore and a profit of Rs 184 crore.

The shares of the company were listed on the NSE and BSE in 2021.