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Monday, Jan 21, 2002

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Kaashyap Radiant to buy Shriram EPC units

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CHENNAI, Jan. 20

THE Chennai-based Kaashyap Radiant Systems Ltd (KRSL) is to acquire the power, energy, technology and related software division of Shriram EPC Ltd, according to a stock exchange notice. Towards this, the company is to allot 75 lakh equity shares of Rs 10 each at a price of Rs 20 per share to Shriram EPC. An extraordinary general meeting of KRSL is to be held on March 8 to consider and approve the allotment.

Speaking to Business Line, Mr A. Venkatramani, Managing Director, KRSL, said: "Twenty per cent of the entity to be acquired constitutes software services. Further, with this purchase, KRSL will also acquire expertise in the area of biomass and wind power engineering."

Asked if the new areas were not driving the company away from the core competence of IT education and software development, he said: "This gives a stability to the company and helps it fend off the effects of a slowdown or other uncertainties. Secondly, the purchase brings in CAD expertise to the company and this will aid in CAD and related education areas. With the acquisition, we get engineers with IIT background and experience in the said engineering areas. This will tie in well with our expertise in ERP that focusses primarily on the manufacturing sector. This acquisition will also give us exposure to new clients of Shriram, such as Sterlite. We also expect to use this relationship to provide IT services to the Shriram group. Their IT spend last year was to the tune of Rs 5 crore."

He added, "The combined entity will reach a turnover of between Rs 100 and Rs 150 crore by the end of March 2002. The divisions we are interested in have a current order-book of around Rs 150 crore."

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