Birla Powers to foray into diesel engine segment

Mumbai, May 7: Birla Power Solutions (BPSL) is planning to step into the diesel engine segment through an acquisition in the range of Rs 500 crore. The company that is having talks with four-five domestic and overseas companies and hopes to enter into the front in nine to fifteen months.

“We have plans to enter diesel generator, petrol, LPG and kerosene segment, but it will be too early to comment on any specific deal," said Kalyan Bhattacharya, president and CEO, Birla Power Solutions.

He added that the size of acquisition will depend on the horse power of the engines manufactured by the company. BPSL will look at a company that will manufacture diesel engines of capacities ranging between 25 horse power and 200 horse power. However, the CEO declined to comment on the estimated valuations of the acquisition at Rs 500 crore.

Sources close to the development said that the funding would compromise of debt and equity, with equity accounting for 15 to 20 per cent.

OneIndia News