Bhel to plug into overseas M&A biz unit again
Power equipment major Bhel has decided to revive its plans for setting up a dedicated unit for overseas acquisitions.
By Dheeraj Tiwari, ET Bureau |
New Delhi: Power equipment major Bhel has decided to revive its plans for setting up a dedicated unit for overseas acquisitions. The public sector company is in talks with global advisors such as PricewaterhouseCoopers, Ernst & Young, and KPMG for appointment of a consultant for the unit.
Bhel plans to zero in on small and medium-sized companies abroad. The PSU had a separate unit for this purpose earlier, but it failed to make an acquisition.
Bhel CMD Ravi Kumar confirmed the company is planning to revive its unit meant for overseas M&A activity, but refused to divulge details. ���We���ve not earmarked any amount for our M&A activity. We felt a need to appoint global consultants as were not able to make inroads on our own,��� he said.
The company faces territorial restrictions because of its collaborations with global players like GE and Siemens. Therefore, it is felt that overseas M&A will provide it the leverage to explore the global markets. Territorial restrictions do not allow Bhel to sell its products in markets where its collaborators are active.
���The separate business unit will be a centralised group based in New Delhi which will work in tandem with the selected global consultant. It will be a focused group that will take care of due diligence and other M&A procedures.
Acquisition will be, however, made by the unit which has synergy with the target company. So, if we are acquiring a boiler unit, it will be our Trichy unit which will be acquiring this company,��� a senior Bhel official said.
Bhel will focus on acquiring new technologies, market access and product development. ���It���s not just the power equipment business. We are also looking at companies in the rigs business and defence equipment,��� the official said.
Bhel is looking at increasing its presence in West Asia, Europe and Africa.
Bhel plans to zero in on small and medium-sized companies abroad. The PSU had a separate unit for this purpose earlier, but it failed to make an acquisition.
Bhel CMD Ravi Kumar confirmed the company is planning to revive its unit meant for overseas M&A activity, but refused to divulge details. ���We���ve not earmarked any amount for our M&A activity. We felt a need to appoint global consultants as were not able to make inroads on our own,��� he said.
The company faces territorial restrictions because of its collaborations with global players like GE and Siemens. Therefore, it is felt that overseas M&A will provide it the leverage to explore the global markets. Territorial restrictions do not allow Bhel to sell its products in markets where its collaborators are active.
���The separate business unit will be a centralised group based in New Delhi which will work in tandem with the selected global consultant. It will be a focused group that will take care of due diligence and other M&A procedures.
Acquisition will be, however, made by the unit which has synergy with the target company. So, if we are acquiring a boiler unit, it will be our Trichy unit which will be acquiring this company,��� a senior Bhel official said.
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Bhel will focus on acquiring new technologies, market access and product development. ���It���s not just the power equipment business. We are also looking at companies in the rigs business and defence equipment,��� the official said.
Bhel is looking at increasing its presence in West Asia, Europe and Africa.
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