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C.J. Punnathara

Kochi, Nov. 4 In order to extend its reach and acquire superior technology, V Guard Industries Ltd is planning to acquire a company based out of Europe.

The priority in the new acquisition would be in assimilating the technology to manufacture large UPS systems meant for big office and factory environment, for manufacture and marketing in India, Mr Mithun Chittilappilly, Executive Director of V Guard, said. After the acquisition, V Guard also planned to expand the target company’s presence in the EU region.

V Guard is a leader in off-line technology of building UPS for smaller home PCs for the Indian market. It had been scouting for technology to extend its UPS range for large computer systems for big offices and factories in the Indian market.

The cost of the acquisition would be of the order of Rs 30-40 crore which we should be able to generate from our internal accruals and debt, Mr Mithun Chittilappilly said.

The company, which had been in negotiation with two Taiwanese companies as well, had brought the proto-types of all the interested companies and tested the products under Indian conditions in the market before zeroing in on the EU company. The target company has a presence in six countries of Europe.

V Guard is targeting a dominant presence in the country’s largely fragmented on-line UPS market. Through this, V Guard hopes to integrate its presence in the Indian UPS market by providing a whole range of products through its large and growing branches and outlets.

More Stories on : Overseas Investments | Mergers & Acquisitions | Electrical Goods

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