Calcutta: Kochi-based electronics, electrical and consumer durable maker V-Guard Industries is exploring opportunities to buy companies.
With Rs 100-crore cash on its balance sheet, the company's board last month gave its nod to raise Rs 500 crore in a bid to facilitate further expansion.
"We are open to inorganic opportunities. We made a small acquisition last year (in the switchgear segment). We still have about Rs 100 crore of cash and we have taken permission from the board to raise Rs 500 crore in debt or equity," said Mithun Chittilappilly, managing director of V-Guard Industries
"We do believe that after the GST and demonetisation, many smaller companies are willing to sell out and get consolidated with larger players. We want to be ready when something attractive comes up," he said.
The company has 10 of its own manufacturing facilities in addition to multiple outsourced production units across the country. More units are expected depending upon scale and capacity utilisation. The company is also looking at expanding its footprint beyond the southern markets.
"Almost Rs 60 crore has been spent in the last 18 months. We have set up two large factories for water heaters and stabilisers and one large expansion in the wire plant. Every year we typically spend around Rs 30-40 crore as capex. There are a few more products we may consider manufacturing. We are evaluating options and at a certain scale we would set up plants. But each of the plants would cost around Rs 35 crore," Chittilappilly said.
Among the categories, the company expects a higher share of fans, kitchen appliances and switchgears in its business mix. The company, which unveiled a new logo, plans to introduce smarter and internet-of-things driven products in its portfolio going forward.
"In the current year, our like-to-like growth is trending at around 15 per cent. We have put in motion lot of activities such as product development, sales and marketing, which will ensure that we can grow at 15 per cent in the next 4-5 years," said Chittilappilly.
