Business Daily from THE HINDU group of publications
Sunday, May 24, 2009
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Business Daily from THE HINDU group of publications Sunday, May 24, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Corporate
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Overseas Investments Web Extras - Electrical Goods Crompton Greaves eyes overseas acquisition Rahul Wadke Mumbai, May 23 Crompton Greaves is looking at acquiring an industrial automation company overseas. This will help it graduate from merely selling motors (to manufacturing industries) to offering a complete automation solution. Mr S.M. Trehan, Managing Director, told Business Line that such a solution would comprise motors, drives and “a human-machine interface that will run the manufacturing processes”. This would also mark the next step in the value chain. He said that with its healthy balance sheet, Crompton could fund the buyout comfortably. “We are exploring opportunities though we have not identified a specific company yet.” Developing technologiesAccording to Mr Trehan, some of the automation technologies would be developed using in-house R&D, while the rest would be acquired from the market. Crompton has earmarked a Rs 200-crore capital expenditure plan this fiscal. Of this, Rs 110 crore will be for the domestic business and the balance overseas. “We have revised the capex from our earlier estimate of Rs 120 crore as the economic slowdown has not really hit the power sector significantly,” he said. For instance, large investments in the EU 16 power grid in Europe and the North America grid are on schedule. And with the Obama administration sanctioning special funds for the transmission sector, Crompton’s international business has also been growing well. “The company sees good demand for transformers in these geographies. Since March, there has also been good demand from the wind energy business for transformers,” Mr Trehan said.
Crompton is, however, not looking at the nuclear energy space for any fresh opportunities but will supply regular equipment to nuclear energy companies. “We will not look at nuclear power generation. Crompton Greaves will continue to supply power equipment to the sector but given the long gestation period for new projects, orders will start flowing only after 2016,” he said. Crompton Greaves’ investment helps expand product base More Stories on : Overseas Investments | Electrical Goods
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