The Telegraph
Since 1st March, 1999
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Havell’s readies war chest to fund acquisitions

Calcutta, Oct. 30: Havell’s India, a solution provider in the power distribution equipment industry, is ready to tap the market to fund its acquisition plans.

The company board has already approved the floating of American depository receipts (ADR) or global depository receipts (GDR) to raise $20 million. Shareholders’ approval will be sought at the annual general meeting to be held on November 16.

“A blanket approval for $20 million has been received from the board,” director Anil Gupta said. “The extent of fund requirement is, however, not yet known and will depend on acquisition plans in the next few months.”

Havell’s has recently entered into an outsourcing agreement with companies in the UK and Germany and has bagged orders worth $20 million for its MCBs. The acquisition plans will depend on the growth in the outsourcing business. “We are looking at outsourcing to fuel our exports. Our focus will be on brand acquisition in the UK, Germany, France and Spain,” said Gupta.

The board has also decided to split the company’s equity shares in the ratio of 2:1 to increase liquidity and the existing retail investor base.

The company is already listed on the Bombay Stock Exchange and the National Stock Exchange. It has kept options of a public offer open in the domestic market.

Havell’s is the flagship brand of the Rs 630-crore power distribution equipment conglomerate, QRG Enterprises. “The group expects to register a turnover of Rs 750 crore this year, with Havell’s contributing Rs 630 crore,” said Gupta.

The company has diversified into fans, lamps and luminaries businesses and expects to earn Rs 200 crore by March 2005. “The new businesses will make us a one-stop shop for electrical products. This will help us acquire a larger share of the market. We will also act as design consultants to promote our products,” said Gupta.

Havell’s has already acquired manufacturing facilities in Gurgaon, Faridabad and Noida for its new businesses.

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