German industrial engineering and steel production multinational Thyssenkrupp has started the process of divesting its stake in the Indian business — Thyssenkrupp Industries India (tkII) to co-shareholders Paharpur Cooling Towers and Protos Engineering.

A binding agreement to divest the entire stake has been executed on January 22, 2024. Thyssenkrupp approximately held 55 per cent in tkII, according to the interim financial statements of the group in the first quarter of 2023-24.

The transfer of ownership is expected by the second quarter of the current calendar year subject to the the conclusion of regulatory processes, according to a statement from tkII.

The Indian arm is a partner for the engineering, construction and service of industrial plants and systems in the fields of mining, cement, energy, boilers and sugar.

“In order to ensure seamless business continuity, tkII cement division will continue to have access to core technologies of thyssenkrupp’s business unit Polysius through a perpetual license agreement with thyssenkrupp Polysius GmbH. The agreement will enable tkII to continue to provide new-build cement plants and equipment and services to all clients across India, Bangladesh and Nepal,” the statement said.

“tkII will in turn continue to provide thyssenkrupp Polysius with engineering and manufacturing support globally. While there is a change in the shareholding, the approach to the market and the way we serve our cement customers in India through tkII remains unchanged,” the statement added.

“While the terms of the agreement remain confidential, we see the new majority shareholders of tkII as the best owners to grow tkII in the future,” said Pablo Hofelich, chairman of tkII and CEO of thyssenkrupp Polysius.

Vikram Swarup and Gaurav Swarup, chairman & co-chairman, respectively, of Paharpur Cooling Towers Limited, which will be the majority shareholder of tkII post-closing, said, “tkII is a highly successful and well-regarded entity when it comes to equipment and associated services for the cement, mining, energy and sugar sectors. We are delighted to have reached an agreement with thyssenkrupp in acquiring a leading shareholding at tkII.”

Vikram Swarup of Paharpur Cooling Towers and P.N. Kapadia of Protos India have been on the board of tkII for years.