Havell's to raise $20m for overseas buyout in Europe

Havell's India Ltd, a leading producer of electrical switchgear, cables and accessories, is drawing up plans to raise up to $20 million to do an acquisition in Europe.

"It is yet to be decided whether the money will be raised from a public issue or through foreign currency convertible bonds," sources in the company said.

The company has mandated professional services firm PricewaterhouseCoopers to zero in on a possible target for acquisition. "It has already identified two companies, one in Sweden and the other in Norway," the sources added.

According to the sources, Havell's India is looking for a company which has a brand and a distribution network in Europe. "The company's plan is to tap the market in Europe. For this, it needs a brand and a distribution network. The products will all be made in India," the sources added.

The firm has already started building up its reserves. CLSA had recently invested $5 million in the company by subscribing to its fully-convertible debentures.

These debentures will come up for conversion in June 2006. In the past also, Havell's has tried to establish a foothold in Europe when it tried to acquire Geyer AG of Germany.