KEC to acquire US power firm

The RPG group-promoted KEC International, one of the largest power sector erection, procurement and construction (EPC) majors in the world, will soon acquire a mid-sized power sector EPC player in the US.

"We have identified a few targets and hope to complete the transaction in a few months," said Ramesh Chandak, managing director and CEO, KEC International. He added that the targeted company would be a transmission line construction company.

Sources said the acquisition was aimed at strengthening its presence in the US market. The targeted company will have $100 million turnover.

The Rs 2,538-crore KEC already has a 50:50 joint venture in the US "� KEC Power "� with Power Engineers, a major power sector consulting company in the US. The JV was formed in 2006 to bid for projects in the US market.

The US market contributes 2 per cent of the turnover for KEC. Of the current order book of over Rs 5,000 crore for KEC, overseas projects contribute nearly 68 per cent.

Ramesh Chandak said KEC was also targeting the South African market. South Africa, now reeling under severe power shortage, has drawn up plans to bring power from the neighbouring countries.

Chandak said Octav Investments, the investment division of KEC, would be listed on the stock exchanges within a few weeks.