Doshion to expand through acquisition

Ahmedabad-based Doshion Ltd, a manufacturer of Reverse Osmosis systems for industrial use, is planning to expand through acquisition or mergers.

The company is looking for domestic mid-size companies in the same sector and is also not ruling out the possibilities of acquisition of a foreign company.

The company has also set a target of achieving Rs 1,000 crore business within the next five years through organic and non-organic expansion.

Talking to Business Standard, Ashit Doshi, MD, Doshion Ltd., said, "As a part of our growth plans we are looking for one or two mid-size companies for acquisition both in India and abroad. It can either be a sales and marketing company or a manufacturing unit. If it is domestic then we might go for manufacturing unit but we have kept both the options open for foreign acquisition."

The company plans to spend around Rs 20 crore to Rs 100 crore for the acquisition.

The company might go for buying major share holdings in a company or complete acquisition, Doshi said.

Giving reasons of acquisition plans, Doshi said, "We have set a target of achieving Rs 1,000 crore business within the next five years. Last year, we did a business of Rs 200 crore. This year the company's business size will touch Rs 300 crore. With the industry growing at 30 to 50 per cent per year, the company will also grow at the same pace. Moreover, our company has expertise in various technologies and global experience in setting up large RO systems."

Presently, the company is in the race for bagging Rs 600 crore worth sea water desalination project proposed to come up in Mundra.