Yash Birla Group owned generator manufacturer, Birla Power Solutions (BPSL), is planning to acquire a diesel engine manufacturing company, reports Business Standard. The company is eyeing an acquisition in the range of Rs 500 crore, the report adds, quoting a senioe executive of the company. The size of the acquisition would, however, depend on the horse power of the engines manufactured by the company.
BSPL is looking at acquiring a company manufacturing diesel engines of capacities ranging between 25 horse power and 200 horse power. The acquisitions will be funded through a mix of debt and equity, where, equity will contribute to about 20% of the total funds required.
The report also says that BSPL is looking at acquiring companies in the domestic market that have foreign stakes or those that have good products but do not have adequate marketing expertise. It aims to provide better marketing and sales operations to such companies.
Besides this, the company also plans to enter the diesel generator, petrol, LPG and kerosene segments. The company is also exploring a green-field venture in the renewable energy space.
The company plans to increase the number of its Birla Power Shoppe outlets in India from the current 60 to about 250 by March, next year. It is also planning to expand its presence across 40 cities in the country by 2010. BSPL is targeting to sell 100,000 generators in two years. It will also aim at achieving a turnover of Rs 500 crore by 2011-2012 by increasing its production capacity.
BSPL was set up in 1984 in collaboration with Yamaha Motor. Yamaha Motor’s stake in BSPL was bought by the company in 2002. It is currently a Rs 2,500-crore company and reported a turnover of Rs 223 crore for the financial year 2008-09.