T&M Industry in India: Acquisition and Consolidation,FDI

In this blog concerning the growth through Consolidation of T&M industry in India,we will talk of couple of T&M Services companies which need to be looked at,from the point of view of strengthening the financials and improving the service offering of these.First to come in mind are good number of small operators who give out on rent the T&M instruments widely used in maintenance of physical layers of the telecom.Instruments in use are the Sitemaster and OTDR and the RF monitors of different kind.There is no recognised MNC brand operating in the country,except Livingston.Some others like Electrorent,TestEquity etc tried entering the market but failed.A few Indian mercantile companies are in this business ,mainly Mumbai and Kolkata based traders.So the first level of T&M Consolidation can be done by a Global Lease Rental and Asset Management and Reconstruction company to achieve at least a revenue of say 26-28 Cr pureplay services in this segment.Because of the depressed market conditions,there is a case of wise cherry picking here.

Another recommendation will be in the area of such companies in the Power sector maintenance.Again there has been severe depression with mainstream power companies and they are wanting to shed or hiveoff the testing and maintenance business to separate specialist organisations.Entrepreneurs can explore such opportunities at BGR,JSPL and some smart power operators companies.Here the consolidation of T&M companies can lead to creation of a platform which can lead to real big operations.They will have scope of big expansion when UMPP,Nuclear and Coal based power projects are put into stream.

The aerospace and Defense related maintenance companies can be consolidated in a more innovative way.There are good large assets are available of many MROs of aviation (Commercial Aviation)in several cities where there is MROs headquarters.So these can be consolidated to achieve better profiability and scaling too.


We will keep this piece of Acquisition and consolidation going in couple of more blog posts.Keep watching!