Mumbai-based VHCL Industries Ltd, which is into manufacturing of metal alloys and reprocessed plastic granules, is looking for acquisition of potential companies in plastics business, as per a stock market disclosure.
In a meeting held on March 24, the board of the company discussed the possibility of expansion via inorganic route by exploring potential acquisitions. It did not give details of the possible size of target firms.
The acquisition plan is part of the company’s target to achieve sales of Rs 1,000 crore by the end of the year ending March 31, 2015.
VHCL Industries, which has achieved sales of Rs 483.94 crore in the first eleven months of the financial year (as on February 28, 2014), expects to end the ongoing fiscal with a sales of Rs 500 crore.
While its revenue target for the coming year is ambitious given that it may end FY14 with just under 4 per cent top-line growth, it is banking on the commissioning of a new aluminium alloy plant with a capacity of 36,000 MTPA which can generate as much as Rs 450 crore in annual revenues when fully operational.
Shares of the company were trading at Rs 19.05, down 4.75 per cent in the mid-day trading on the BSE on Tuesday compared with their previous close.
(Edited by Joby Puthuparampil Johnson)