KEC International Ltd has earmarked around $80 million for an acquisition in the US and South Africa each. The company is eyeing sales of Rs 2,900 crore in 2007-08 and has emerged as the largest builder of power distribution towers and infrastructure in the world.
With 170,000 tonnes of infrastructure work in the current financial year, KEC is way ahead of its nearest competitor Hyundai Engineering & Construction at around 1,00,000 tonnes. A merger with group companies RPG Transmission and National Information Technologies Ltd have added the telecom and transmission businesses to its portfolio.
In an interview with Hindustan Times , Harsh Goenka, chairman of the RPG Group, had said he wants to be a global player in power and KEC will spearhead this. KEC Managing Director Ramesh Chandak told Hindustan Times: “We have identified a few companies in the US. We will select one and start due diligence. We will also look for something similar in South Africa.”
The company already earns 66 per cent of its revenues overseas and is keen to establish itself in the developed markets. “We are looking for a company with some experience in laying transmission and distribution lines in the US. We can take over and scale it up,” Chandak added.
The company has earmarked $40 million (Rs 160 crore) for each acquisition, Chandak said. The plan is to do all the manufacturing for the towers in India and then ship them to the destination countries for erection. The company has major revenues coming in from Africa and the west Asian region apart from south Asia, which accounts for 33 per cent of its turnover.
Chandak added that KEC would also invest around Rs 80 crore in its manufacturing units in India for increasing capacity and look at brining in some modern equipment.