C&S weighs European buyouts

Controls and Switchgear group of companies (C&S group) has chalked out major European acquisition plans. The firm also plans to merge three of its companies into one entity and enter the capital market in 2008.

Rishi Khanna, director, C&S group, said, "The company is eyeing acquisition of a well known brand in Europe that is facing difficulty in continuing its business."

The company is planning to move the European company's manufacturing facility to India while retaining the brand's business reference and network at its current headquarters.

This is being done to expand C & S group's reach throughout Europe, said Khanna . The company is looking for an acquisition of around Rs 50 crore in the initial stage. Elaborating on the company's plan, Khanna said, "The overseas acquisition will take place once we are through with the merger and IPO."

He emphasised that currently the company is looking for acquisitions mainly in Europe.

"As per our plan, we intend to merge our three group companies into one entity by the first half of the financial year 2007 to consolidate our position in the domestic market, "said Khanna.

The three companies that will be merged are Controls & Switchgear Company Ltd, Controls & Switchgear Contactors Ltd and C&S Protection & Control Ltd.

The three companies that would be merged into one entity form 75 per cent of the groups turnover presently which is at Rs 500 crore.

The group has eight companies, out of which three companies have separate entity with 100 per cent holding of the promoters while the remaining five companies are joint venture (JV) companies formed in collaboration with foreign partners.

The company is also looking for possible investment in Gujarat. "The company is planning to set up an export oriented unit (EOU) in a special economic zone (SEZ)", said Khanna.

He further said the Gujarat is one of the possible sites for the EOU. The company expects an increase in its export income to Rs 250 crore from its present Rs 100 crore .

The company has recently made its entry into the Russian market and in its eight months operations in Russia has generated turnover of Rs 3 to Rs 4 crore. The company presently exports to over 70 countries including those in Europe, North America, Korea and Japan.