Advanced Systek to hive off stake

AHMEDABAD: Advanced Systek is in the process of hiving off its stake to a diversified global giant engaged in technology, finance and services, interested in the Indian company that provides terminal automation systems to oil & gas industry.

Headquartered in Vadodara, Advanced Systek caters to firms such as ONGC, IOC, BPCL, HPCL, Oil India, Shell, Petrobras and VOPAK. It claims to have nearly 60% of the Indian market for terminal automation systems.

Sources close to the development said the acquirer is a multinational giant offering engineering solutions to energy sector. “The acquirer will pick up controlling stake in Advanced Systek and it has expressed interests in complete buyout subsequently.

Negotiations are in final stage and the announcement would be made anytime soon,” said a source. The value of the deal could not be known. Promoters Mukesh Kapadia and Umed Fifadra could not be reached for their comments.

Established in 1988, Advanced Systek was known as Daniel Measurement & Control (India) before it was demerged with metering business to look after. “Almost every oil and gas exploration company is engaged in improving its process on terminals for better efficiency and safety.

In such scenario, terminal automation systems will continue to remain in demands,” said a senior official with one of the clients of Advanced Systek.