The $14 billion Swiss major TE Connectivity, manufacturers of connectors for electric, electronic and internet systems, is scouting for acquisitions in India. It is looking to buy out medium sized companies providing connectivity solutions for industrial automation, solar energy and railway sectors, in order to expand its India business.
The India arm is targetting a three-fold growth in turnover to R5,000 crore by 2017, said V Raja, president and managing director, TE Connectivity India.
The Bangalore-headquartered 5,000-strong TE Connectivity India posted a revenue of Rs 1,400 crore in 2012. "We will achieve this target through organic and inorganic growth," Raja said.
TE Connectivity may buy firms valued up to Rs 300 crore. It bought a company in Pune for Rs 25 crore last year that manufactures connectors for automobiles. "If it is too small, then we won't waste our time. Technology and access to clients are our priorities," Raja said.
"We are looking to supply to Indian Railways and want to buy a company that already supplies to the Railways," he said.
The company will complete an investment of about Rs 1,000 crore by the end of this year. TE Connectivity has already invested over Rs 600 crore so far and will invest Rs 300 crore more to upgrade and expand its plants in Bangalore.
About 35% of TE India's revenue comes from supplies to auto sector while aerospace and consumer electronics sectors are other growth drivers. Raja said the company sees growth in sectors such as financial services and data centres.
According to Raja, the zero import duty in imports to set up semiconductor plants and investment allowance of 15% to manufacturing companies investing in plant and machinery, announced in the union budget, will attract investments in the electronic industry.