IAFL in talks to acquire US firm

Indo Asian Fusegear (IAFL), Delhi-based switchgear and lighting equipment makers, is scouting for acquisition opportunities in the US in the range of Rs 100-150 crore. The company has even created a warchest of Rs 100 crore for financing the acquisition. "Efforts are on and we are talking to a number of players in the US," IAFL chairman and managing director VP Mahendru said.

Mahendru said the company had decided to venture beyond the Indian shores as it wants to make the best use of both the US and Indian markets through the acquisition. "We are looking at a product range that will have a market in both the countries," he said.

He said IAFL is looking at all possible opportunities including technical association with the US-based companies. "We are looking at all possible opportunities and the unit will be a large one," he said. However, he declined to name the players with whom IAFL is in talks, it is too premature to divulge any details. "We will surely have a deal on our hands in the next financial year 2007-08," he said.

Asked about the financing part of the deal, he said, the company has created a warchest of Rs 100 crore for the deal through internal accruals. "Our partners will also chip in with some money," he said.

About the company's Saudi foray, he said, construction of the manufacturing plant has begun and will be completed in the next six months. "The plant is being built with an investment of $8.5 million and we are the technical partners for the facility."

On the company's Sri Lanka venture, he said, the market share is improving and the company had already made a delivery of more than Rs 2 crore.

About IAFL's performance during the third quarter (October-December), Mahendru said.