VA Tech Wabag Ltd, a Chennai-based water and waste water management company, is likely to conclude two acquisitions during the current fiscal. With an expected deal size of Euro 50 million (around Rs 310 crore), these would be in Africa and Latin America.
Speaking to Business Standard after the company's AGM here, Rajiv Mittal, managing director, Va Tech Wabag Ltd, said, “We have shortlisted three companies in Latin America and sub-Sahara Africa we will definitely close one. We will try for two. The acquisitions would range from Euro 20 (around Rs 125 crore) to Euro 50 million (around Rs 310 crore)”.
These acquisitions would result in technology addition or entry into new markets, he said. "The company has cash of Rs 350 crore in hand, so funding will not be an issue."
On the company's performance, he said last year, the topline was flat, mainly due to delay in expected orders, political crisis in Libya and transaction loss between Euro and Rupee. The group has nine per cent of its order backlog from Libya.
As "things are looking positive," Mittal said the company expects to grow 20-22 per cent in topline and around 30 per cent in the bottomline during the current fiscal.
For the year ended March 31, 2011, the sales stood at Rs 732 crore as compared to Rs 701 crore, a year ago. The company's order book stood at Rs 3,400 crore as on March 31, 2011, an increase of 20 per cent compared to a year ago. “The order book is expected to grow by 20-25 per cent during the current fiscal,” he said.
At present, the orders from India stood at around Rs 2,500 crore, said Mittal, excluding orders worth Rs 800 crore that are placed but yet to be signed. According to him, the estimated annual business potential of the water sector in India is estimated to be around $30 billion (around Rs 1.35 lakh crore).