Agriculture Equipments Manufacturer Enters into Agreement for Purchase of Technology from Beida Commercial and Trade Company for Manufacturing Tower Crane
The company has a market cap of over Rs 760 crore and the stock is up by 24.4 per cent from its 52-week low of Rs 132.60 per share
Indo Farm Equipment Ltd has officially entered into an international agreement on April 21, 2025, with Beida Commercial and Trade Company for the purchase of technology essential for manufacturing tower cranes. This collaboration entails a comprehensive transfer of technical knowledge, encompassing drawings, technical documents, manufacturing processes, and control standards. The agreement further includes complete technical documentation for production, assembly, and operation, along with electrical and hydraulic schematics and quality assurance documents. In consideration for this technology transfer and associated training, Indo Farm Equipment Ltd will pay Beida Commercial and Trade Company a one-time lump sum fee.
The significant terms of this agreement stipulate that all technical data and raw material standards will adhere to the national standards of the People's Republic of China. Crucially, the agreement grants L Indo Farm Equipment Ltd the license and rights to design, manufacture, use, and sell the contracted tower crane products. Beida Commercial and Trade Company is also obligated to provide necessary technical support, including training and consultation. This strategic acquisition is not a related party transaction and is expected to provide L Indo Farm Equipment Ltd with proven technology, enabling a swift entry into the construction machinery market, significant savings in R&D costs and time, and the development of in-house technical capabilities for manufacturing and servicing tower cranes.
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Indo Farm Equipment Ltd., founded in 1994, manufactures tractors (16-110 HP), pick-and-carry cranes (9-30 tons), and other farm equipment under the ''Indo Farm & Indo Power'' brand. Their product range includes 2WD and 4wd tractors with features like high pulling power and fuel efficiency, alongside innovations such as backhoe loaders and electric tractors in development. They also produce robust pick-and-carry cranes and other farm machinery like harvester combines and rotavators. Located in Baddi, Himachal Pradesh, their integrated manufacturing facility covers 1,27,840 square meters, featuring a captive foundry and advanced machinery with an annual capacity of 12,000 tractors and 720 cranes.
The company has a market cap of over Rs 760 crore and the stock is up by 24.4 per cent from its 52-week low of Rs 132.60 per share. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.