The Hindu Business Line : L&T Capital picks up 14.95% stake in Salzer

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Coimbatore March 2 Larsen and Toubro has through its investment arm, L&T Capital Company Ltd, picked 14.95 per cent stake in the Coimbatore-based Salzer Electronics Ltd. The latter has formally approved the proposal.

An EGM has been convened on March 28 to confirm it, said Salzer's Managing Director, Mr R. Doraiswamy.

He said L&T has, for over a decade, been marketing Salzer's products in the domestic market through its network.

Engaged in the manufacture of Cam operated rotary switches, load-break switches, terminal connectors, cable ducts/PVC channels, single phase starters, toroidal transformers, foot and proximity switches among others, Salzer Electronics, according to Mr Doraiswamy has been very active on the export front. "Our direct and indirect export account for over 40 per cent of our total income. We have achieved a turnover of Rs 44 crore during the first nine months of the current fiscal against Rs 29 crore during the corresponding period of the earlier year. We would be closing the year with a total income of Rs 65 crore and aim to achieve Rs 100 crore next fiscal," he said.

The company would be putting up a subsidiary unit very soon for manufacture of wires and cables. "Salzer Cables Ltd would have a capex of Rs 15 crore. While the promoting company - Salzer Electronics would invest Rs 3 crore, the promoters and relatives of Salzer Electronics would infuse the balance."

Mr Doraiswamy has set June as the deadline for commencement of production of cables. "We are hoping to generate a revenue of Rs 50 crore during the first year of operation of this plant. We will be making 1.50 lakh coils," he added.

More Stories on : Mergers & Acquisitions | Electronics | Larsen & Toubro Ltd

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