Bajaj Electricals to acquire West-based company

Kolkata, Feb 16 (UNI) Bajaj Electricals Limited(BEL), part of the Rs 13,500-crore Bajaj Group, is in an advance stage of acquiring a West-based electrical company and will invest Rs.30 crore for capacity expansion.

"We are in an advanced stage of acquiring a West-based electrical company. Right now I can not divulge its identity, but the deal will be finalised in the next one and a half month," company's Chairman and Managing Director Shekhar Bajaj told reporters here today.

He said the deal size could go up to Rs.100 crore.

The company, sought to be acquired, was in line of existing product line of Bajaj Electricals, but weak in financials, the CMD said without giving further details.

He said the company would invest a capex of Rs 30 crore in 2007-08 for increasing highmast lighting and galvanizing capacity to 50,000 tons from the present 30,000 tons.

The BEL products range from lamps, tubelights, fans and small household appliances to turnkey engineering services.

In reply to a question, Mr.Bajaj said the company targeted to achieve Rs.2,000-crore mark in its turnover by 2010. The turnover in 2006-07 was expected to be Rs.1050 crore as against Rs. 845 crore in the last fiscal.

He said the company, doing export business more as OEM suppliers to global electrical companies, was taking it more seriously."Currently our exports are two per cent of the total revenue. We are targeting to take it to ten per cent by 2010," Mr.

Bajaj said.

UNI