Siliguri, April 8: The Siliguri-based PCM Group of Industries has acquired a German conglomerate that supplies concrete sleepers and tracks systems to railways globally.

The takeover of Rail.One GmbH through a 36-million Euro (around Rs 255 crore) deal is the first acquisition of a foreign firm by a corporate group based in north Bengal.

The PCM group with around 15 companies in its fold with various interests had started the railway business in 1992 by setting up its first sleeper manufacturing unit near New Jalpaiguri.

K.K. Mittal, the chairman of the group, said that through the acquisition his company had become one of the leading conglomerates that offered railway infrastructure to the world.

“We are excited about the acquisition as it further strengthens our portfolio and expertise in railway infrastructure across the globe. This is a giant step for us and this acquisition has made us world’s leading conglomerate in railway infrastructure. We are also in talks with other railway majors around the world for expansion and research,” Mittal said here today with the CEO of Rail.One, Jochen Riepl, by his side.

The Siliguri group has formed the company SPV PCM Germany GmbH to take over the German rail major.

“This is one of the major acquisitions in the world railway sector by an Indian company. The PCM Group has now become a leading provider of track systems in the world,” Mittal said.

Initially, the Indian Railways was the principal client of the PCM Group, but gradually, it bagged orders to supply sleepers in the UAE and Saudi Arabia. (See chart)

“We have three factories in these two countries. Another plant is under construction in Thailand. Rail.One, has 12 plants and they would help in the expansion of our market. We spent around 36 million Euros to acquire the German railway behemoth,” said the PCM Group chairman.

Rail.One, which became a subsidiary of the PCM Group on March 27, is venturing into the US market and is building a production plant there with an annual capacity of six lakh concrete sleepers.

“We are happy that the PCM Group, which has extensive experience in the railway infrastructure, has acquired Rail.One Group,” Riepl said.

“Rail.One’s strengths of quality and reliability could be combined with the long-term vision of PCM. The result will be new business possibilities and international growth for the group,” he added.

Other than the production of the concrete sleepers, the PCM Group is into a series of other businesses as well.

“We have a steel plant in Bhutan, units manufacturing track ballast, stone chips and wielding facility for rails, tea gardens and some other businesses. The principal focus of the group is, however, on the railway infrastructure,” said a PCM Group official.