New Delhi, Oct 27 (UNI) Targeting a market leadership in the manufacture of industrial steam turbines, Triveni Engineering, leading player in the sugar manufacturing business and engineered-to-order mechanical equipment manufacturing, today announced plans to set up its presence in Europe and East Asia, either independently or with a strategic partner.
''Triveni will enhance its global foot print in two ways, firstly by acquiring a customer base or a brand and secondly by technology acquisitions from these countries,'' company Corporate Vice President Nikhil Sawhney told UNI.
The company is in active talks with three large turbine engine European manufacturers for the acquisition of technology to upgrade its capacity range of 30 MW to 50 MW.
''The company has identified a technology gap between the range of 30 to 50MW. While its internal R&D is striving to develop turbine models in this range, the developments will take up to 2-3 years.
Therefore to speed up time-to-market the company had disclosed to the stock exchange that it is in dialogue with three European parties to acquire this technology,'' Mr Sawhney said.
He, however, added that the form of acquisition is not known at the moment, as it is in the advanced process of negotiation, and said it could take the form of a buyout, JV or license.
Triveni seeks to increase its revenues from exports from 8-10 per cent of sales currently to over 15-20 per cent in the near future and expects its sales to cross Rs 500 crore this fiscal against Rs 168 crore in 2004-05 and Rs 276 crore in 2005-06.
Of the total investment of Rs 100 crore over the course of FY06 and FY07, the company has spent over 60 crore in its turbines business.
To cater to the demand from this business in the medium term and for ranges up to 60 MW, it has also undertook capacity expansion of its Bangalore-based manufacturing facility by over four times over 18 months, which will be complete by Q4 FY07.
The division is also installing a Vacuum Balancing Tunnel which will allow it to refurbish other turbines up to 150MW - a separate business line, to be operational by first quarter of FY 2008, the Corporate Vice President added.
A leading player in manufacturing steam turbines under 18MW in the country with a market share of nearly 70 per cent, the company believes that the over 100 turbines which it will dispatch this year will place it among one of the top two to three in this range globally.
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