The Hindu Business Line : Metso of Finland eyes mid-sized buys in India

Metso Corporation, a Finnish engineering and technology major, is planning to beef up its manufacturing base in India and is eyeing mid-sized acquisitions in the country.

The company, which reported global sales of €5 billion in 2006, is also keen on increasing its headcount, scaling up investments and further strengthening India as a sourcing base for its operations in Asia.

“We have been looking for acquisitions in India to strengthen our presence. We believe in growing through acquisitions and provide value to our shareholders. We are committed to growing strongly in the Indian market,” said President and CEO Mr Jorma Eloranta.

He added that acquisitions were a part of Metso’s growth stategy around the world and in India the company is on the lookout for targets.

“But any acquisition is possible if it meets Metso’s criteria for overall strategic and economic fit.”

With over 300 customers in India, Metso’s net sales in the country shot up to €115 million in 2006, against €57 million in the previous year.

“India is one of Metso’s fastest growing markets and ranks very high in our profitable growth strategy.”

Metso Corporation, which has a presence in several business segments – from crushing and screening equipment used in construction to fibre lines for paper production – has so far concluded investments to the tune of €20 million in India and plans to increase investments further.

“So far, a large part of our business in India has come from the road development sector. In the near future, we expect a new wave of business to come from emerging areas such as real estate, airport and commercial aggregate segments.”

Metso will shortly open an engineering centre called MetsoDNA in Mumbai, the third one after Finland and the US.

The centre will cater to the needs of its growing commitments in India, particularly its automation division.

“We plan to significantly expand our presence in India through investing in market and hiring personnel, besides expanding our manufacturing and foundry operations,” Mr Eloranta said.

“I firmly believe that India could play a bigger role in our global sourcing than it does today.”

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