Financial Daily from THE HINDU group of publications
Tuesday, Oct 25, 2005
Financial Daily from THE HINDU group of publications Tuesday, Oct 25, 2005 |
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Corporate
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New Projects Birla Power Solutions on expansion mode Neha Kaushik
New Delhi , Oct. 24 BIRLA Power Solutions is planning an expansion overdrive to boost its export revenues as well as consolidate its position in the domestic market. The company is setting up three new units in Uttaranchal to diversify into newer product categories. According to Mr Sanjay Khazanchi, President and CEO of Birla Power Solutions, the company would soon be foraying into the medium gensets (40-50 kVA) category and is setting up a unit for manufacturing them. "This segment is growing at more than 15 per cent per annum, with demand being driven by the telecom and bank (ATMs) segment," Mr Khazanchi said. The company is in talks with a British engine major for procuring the engines and an Italian company for the alternators. A second unit in Uttaranchal is being set up for making silent acoustic hoods for these gensets. The third unit is to make inverters for the home segment. This unit will have a capacity of 120,000 units per annum. Birla Power Solution plans to fund this expansion through a public issue expected later this calendar. "We plan to raise about Rs 75 crore through the public issue. This would be our second offering in the market," Mr Khazanchi said. The company is also increasing its focus on exports and plans to set up an assembly unit in Africa (most likely in Nigeria) in the next 9-12 months. "We are studying two-three countries where we could commence assembly. This would be in tie-up with a local partner. We expect to boost exports to about 15-20 per cent of total sales in a few years," he said. Local assembly would help it reduce costs and take on competition from Chinese manufacturers in the export markets.
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