Andrew Yule and Company Limited (AYCL) is considering outright purchase of a full-fledged transformer manufacturing plant near Chennai as part of its plans to grow its electricals business.
The company had previously purchased 10 acres of land in the area to build a transformer manufacturing facility.
"Purchase of full-fledged plant is under consideration and we are looking out for opportunities. The acquisition, if materialises, will be to the tune of Rs. 100 crore," Kallol Datta, the company's chairman and managing director, told media persons on the sidelines of the company's Annual General Meeting here on Tuesday.
Datta said a plant exceeding a manufacturing capacity of 6,000 MVA (Mega Volt Amp) has already been shortlisted to this effect.
The company, which has a strong tea business portfolio, is considering to grow its engineering business segment.
"The company's growth in the future will come through the engineering segment. The tea business is faced with many challenges," he said.
More From This Section
The engineering segment accounts for Rs.25.68 crore of its Rs.366.84 crore consolidated segment earnings.
"It (Engineering segment revenue contribution) is very less at the moment but we need to grow it. We need a good engineering product first to make the breakthrough," he said.
The Andrew Yule CMD said the Kolkata-based company cannot be dependent on tea solely as the business is faced with uncertainty.
"Cost of production is scaling up while tea prices are coming down. It is impacting the revenue and we need to focus on other segments," Datta said.
The tea business contributed Rs.188.41 crore to AYCL's revenue in the last fiscal year.
The company has achieved a turnover of Rs.377.64 crore in the last fiscal and hopes to touch Rs.500 crore revenue soon.
"I am sure the turnover will very soon be over Rs.500 crore," Datta said.