Billionaire Gautam Thapar plans to buy companies to expand India’s third-largest equipment maker and add capacity in the nation’s biggest paper maker as demand in the world’s fastest growing major economy after China surges.
Crompton Greaves, which has been searching to buy an automation equipment maker overseas, will make an “announcement” this year, Thapar said in an interview to Bloomberg-UTV. Thapar’s power unit will prepare for an initial share sale in six weeks and use the proceeds to build power plants, while Ballarpur Industries plans to spend $176 million to add capacity to make paper, he said.
The fast pace of growth in industrial production and surging exports in the country is encouraging companies to boost capacity and scout for acquisitions overseas. Reliance Industries, India’s most-valuable company, is bidding for LyondellBasell Industries AF, while National Aluminium Co, India’s second-biggest producer, plans to almost triple production capacity in the next six years.
“Acquisitions will enable companies increase market share faster at a time when fundamentals are improving,” said Misal Singh, an analyst at Edelweiss Capital in Mumbai, who has a “buy” rating on Crompton Greaves.
