The Hindu Business Line : Bajaj Electricals set to finalise Rs 100-cr buy

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Kolkata Feb 16 Bajaj Electricals Ltd is in an advanced stage of negotiation for acquiring a Western-India based electrical company at an approximate cost of Rs 100 crore. The company will also pump in Rs 30 crore for capacity expansion.

"We are in the process of finalising the acquisition, which should be done within one-and-a-half months. The deal size could be up to Rs 100 crore," the Chairman and Managing Director, Mr Shekhar Bajaj, told newspersons.

"We are looking at companies with high level of manufacturing ability in similar product range but weak in financials," he added, hinting that the company might end up acquiring more than one company over the next few years.

Part of the Rs 13,500-crore Bajaj Group, the company produces electrical goods ranging from fans to lighting to brown goods. It also offers turnkey engineering services.

According to Mr Bajaj, the company will invest Rs 30 crore in 2007-08 in enhancing high-mast lighting and galvanising capacity from 30,000 to 50,000 tonnes.

Through both organic and inorganic growth strategies, the company aims to reach the targeted turnover of Rs 2,000 crore in 2010.

It expects to end the current fiscal with a turnover of Rs 1,050 crore, compared to Rs 845 crore in 2005-06.

"We are also looking at the export market more seriously," Mr Bajaj said.

More Stories on : Mergers & Acquisitions | Electrical Goods

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