The Hindu Business Line : Easun Reyrolle eyeing buys in power biz

The company currently offers products in areas such as protection (relays), communication and control, switchgear and metering. It would therefore look at acquiring companies that can plug gaps in this product portfolio to have the complete range of power transmission and distribution related products.

Easun Reyrolle recently got shareholders’ approval to raise $60 million (about Rs 240 crore) through FCCBs and this is likely to be used for funding future acquisitions.

When asked if the company would look at entering the gas-insulated power systems business (it had once said it would), a senior official said “if the opportunity comes.”

Energy meters

The company has been getting enquiries for the energy meters it produces. These automated meters help to get information about electricity consumption, bill payments (past and present) and other related information from a remote location.

“We have been getting enquiries to deploy these meters over 50,000- 60,000 locations,” company sources said.

Easun Reyrolle has deployed these meters for about 7,000 customers in Mumbai and is confident that revenues from this segment in future will contribute significantly to overall revenues.

Net profit, sales

The company reported sales of Rs 51.36 crore for the quarter ended September 2007, up about 62 per cent over the same quarter last year. Net profit stood at Rs 5.81 crore compared to last year’s Rs 3.9 crore. This growth is the result of demand for power systems owing to “activity in the infrastructure sector”, said the official.

More Stories on : Mergers & Acquisitions | Electrical Goods

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page