Kolkata-based Adhunik Metaliks is eyeing acquisitions in the value-added forgings segment. The company is looking at acquiring idle plants in the US and Germany and setting up plants in India.The forgings plant could be set up in Kharagpur, Chennai or Pune. The timeframe for the acquisition was 2008, Manoj Kumar Agarwal, MD of Adhunik Metaliks, said.Agarwal said, the size of the acquisitions would be in the range of Rs 30-70 crore. The company could also examine joint venture options for forgings.With the addition of forgings in its portfolio, Adhunik expects its turnover to be in the region of Rs 1,500 crore. Adhunik registered a turnover of Rs 462 crore in FY06.The company has committed Rs 437 crore in a phased manner to the second phase expansion programme, expected to go onstream in FY08. The iron ore mining would commence in April 2007 and the earnings before interest, depreciation, taxation and ammortisation (EBIDTA) would go up by 4-5 percentage points. The iron mine was allotted to the company in Orissa around two months back. The company is confident of commissioning its projects by FY08 which would give it a headstart over competitors, Agarwal said.The company plans to expand its fabrication and galvanisation capacity from 12,000 tonne and 30,000 tonne to 48,000 tonne and 60,000 tonne respectively by the last quarter of FY07.Adhunik plans to merge the existing facilities of fabrication and galvanisation at Neepaz Tubes with Unistar Galvanising and Fabricators, acquired by the company, in a bid to leverage competencies.
