Financial Daily from THE HINDU group of publications
Thursday, Mar 09, 2006
Financial Daily from THE HINDU group of publications Thursday, Mar 09, 2006 |
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Corporate
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Mergers & Acquisitions Hind Sanitaryware to set aside Rs 200 cr for acquisitions K Giriprakash
On the tile Targets Rs 1,000-cr turnover within three years. Eyeing companies with turnover between Rs 50 crore and Rs 300 crore. Aims to become one of the top three in each segment of the industry.
Bangalore , March 8 Hindustan Sanitaryware is readying up a war chest of around Rs 200 crore and is in talks with three major players for acquisition. "One of the first three deals should come through between three (months) and six months," the Hindustan Sanitaryware & Industries (HSIL) Joint Managing Director, Mr Sandip Somany, told Business Line. He said the company is willing to invest more into acquisitions if it is able to acquire a bigger player. Mr Somany said the company wants to take advantage of the infrastructure boom in the country and hence wants to scale up its operations quickly. It has set a Rs 1,000-crore turnover target within three years and wants to become a home solutions company within that period. "To achieve that, we need to acquire companies," he said. "With a debt equity ratio of 0.6: 1, we can easily raise more debts," Mr Somany said. He said the company has liquid cash of around Rs 65 crore and hence is in a comfortable position to acquire companies. He said the company was eyeing companies whose turnover was between Rs 50 crore and Rs 300 crore. It was in talks with three players in different segments of the industry but was not willing to divulge names of these companies, he said. "Our target is to become one of the top three companies in each segment of the industry within two years," he said. HSIL's sales increased 37 per cent to around Rs 110 crore during the third quarter of 2005-06 while its net profit grew around 47 per cent to Rs 6.31 crore.
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