IAFL in talks to acquire US co
Indo Asian Fusegear Ltd is scouting for acquisition opportunities in the US in the range of Rs 100-150 cr.
By PTI |
NEW DELHI: Delhi-based switchgear and lighting equipment maker Indo Asian Fusegear Ltd (IAFL) is scouting for acquisition opportunities in the US in the range of Rs 100-150 crore.
The company has even created a warchest of Rs 100 crore for financing the acquisition.
"Efforts are on and we are talking to a number of players in the United States," IAFL Chairman and Managing Director V P Mahendru told media.
Mahendru said the company had decided to venture beyond the Indian shores as it wants to make the best use of both the United States and Indian markets through the acquisition. "We are looking at a product range that would have a market in both the countries," he said.
He said IAFL was looking at all possible opportunities including technical association with US-based companies apart from acquisition. "We are looking at all possible opportunities and the unit would be a large one," he said.
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Mahendru, however, declined to name the players IAFL was in talks with saying, it was too premature to divulge any details. "We will surely have a deal on our hands in the next financial year (2007-08)," he said.Asked about the financing part of the deal, Mahendru said, the company had created a warchest of Rs 100 crore for the deal through internal accruals. "Our partners would also chip in with some money," he said.
About the company's Saudi foray, he said, construction of the manufacturing plant had begun and would be completed in the next six months. "The plant is being built at an investment of $8.5 million and we are the technical partners for the facility."
On the company's Sri Lanka venture, he said, the market share is improving and the company had already made a delivery of more than Rs 2 crore worth products.
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Asked about IAFL's performance during the third quarter (October-December), Mahendru said, "The third quarter result would definitely be better than last year."He said the business is growing by 40-50 per cent each year and the company was upbeat looking at its performance during the first half of FY07. IAFL recorded sales of Rs 100.06 crore during the H1 FY07, a growth of 48.41 per cent over the last fiscal.
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Going forward, Mahendru said, the company would close the current financial year on a superb note. "This year would be superbly better than the last year. Moreover, the Haridwar plant will start commercial production by March, which would figure in the numbers of the last quarter," he added.Start a SIP with as low as ₹500 with ET Money App!
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