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Crompton Greaves eyes $300-$600 mn acquisition in Latin America

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BS Reporter Mumbai/ Ahmedabad
Last Updated : Jan 20 2013 | 11:59 PM IST

Crompton Greaves, a leading manufacturer of electrical products, is eyeing acquisition in Latin American for about USD 300 million to 600 million (approximately Rs. 1,400 crore to Rs. 2,800) depending upon the size of the company.

"We are planning to buy a company in Latin America. The planned acquisition may require investment in the range USD 300 million to 600 million," said Sudhir Trehan, managing director, Crompton Greaves Ltd.

However, he refused to divulge the details and the name of the firm to be acquired but said that the company will be in the same space as Crompton Greaves operates in. "The entire process of this buyout is likely to take more than 10 months," he added.

It may be mentioned here that USD3 Avantha Group company has plans to enter into automation of electrical sub-sations business. Earlier Trehan had hinted that it would purchase a company having technology for automation of sub-stations.

The company's order book is likely to rise by 20 per cent in 2009-10. Currently, the company has orderbook of Rs. 6,600 crore.

According to him, Avantha Power is gearing up to hit the market with its public issue in next 12 months. Post issue, its stake in the company would come down to 26 per cent from current 41 per cent.

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"Apart from nuclear and renewable energy sectors, Avantha Power may also look at bidding for ultra mega power projects," he added.

Crompton Greaves is also in the process of expanding the production capacity of its CFL lighting systems manufacturing facility at Vadodara. The company will invest Rs. 40 crore to enhance the production capacity to 1 million pieces per month.

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First Published: Oct 10 2009 | 12:40 AM IST

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