Paper, pulp industry main areas
The aim of the company was to become one of the top 15 pump makers in the world by 2008.
Pune Oct. 5
With already two acquisitions in its kitty, the Rs 900-crore Pune-based Kirloskar Brothers Ltd, player in the pump manufacturing segment, is eyeing acquisitions in areas where it does not have a stronghold.
Talking to presspersons, Mr Sanjay C. Kirloskar, Chairman and Managing Director, KBL, said the company has set aside Rs 250 crore-300 crore for acquisitions in areas that include pumps for the paper and pulp industry.
The company has Rs 204 crore from its recent divestment of Kirloskar Copeland alone.
He said though it would be ideal for KBL to scout for acquisitions in Africa and South-East Asia, there were no pump manufacturers in these regions.
"The locations of South Africa and Egypt might be the right choice, but those companies are not up for sale," he noted.
Mr Sanjay said the aim was to become one of the top 15 pump makers in the world by 2008.
Currently, it is positioned at 22nd largest pump manufacturers, up from its 28th position last year. It may be recalled that KBL had, in 2003, acquired the UK-based SPP Pumps Ltd, and has recently acquired the Chennai-based Aban Constructions Pvt Ltd.
He noted that the Rs 57.7-crore dealwould give an entry point for businesses in the oil and gas cross country pipelines and civil construction projects such as tunnels, bridges, roads, water and sewerage and other industrial plants.
He said the acquisition has been completed with internal resources.
Mr Sanjay said it has tendered for an irrigation project in Sudan and has been given the order for electro mechanical equipments.
He added that with the new acquisition, it would also tender for the civil construction work in Sudan.