BSE-listed Salzer Electronics Ltd, a leading player offering total and customised electrical solutions – switchgears, wires & cables and energy management business, seems well set to acquire two overseas companies – Advanced ID Asia Engineering Co Ltd, Thailand and United Marketing and Trading Ltd, Hong Kong.
The 15-year old Advanced ID Asia Engineering is a contract manufacturer for OEM products, RFID-Readers, RFID-Tags, sensors, macromelt products, cable harnesses for the automotive industry, PCB assembly, CNC parts, moulding, while United Marketing and Trading is an exclusive trading arm of Advanced ID Asia Engineering.
The Salzer Electronics board has already given its go ahead to the overseas acquisition proposal, which the board thought would fuel growth of the company.
“It’s our first ever attempt to bat for this overseas acquisition as a part of our long term vision to keep the growth of the company on the fast track as well as to add values to business on a continuous basis.
If this acquisition materialises, our products portfolio would get strengthened more and our presence in the Asian and European markets through exports would go up significantly. We expect that the deal would get closed before December 2018, if all goes as expected,” said D Rajesh Kumar, joint managing director and chief financial officer. Salzer Electronics.
He said the company board has entrusted him and the managing director, R Doraiswamy with the task of opening negotiation with the present promoters of these overseas companies by issue of a non-binding expression of interest and exclusivity arrangement to take it forward progressively.
The price consideration of this transaction and other details would be made available at the relevant point of time, he said.
The company, incidentally, is the largest manufacturer of CAM operated rotary switches & wire ducts in India, with a market share of 25 per cent & 20 per cent respectively. The company, at present, caters to a wide range of products with five In-house manufacturing facilities, located in Coimbatore, Tamil Nadu.
The company has a wide distribution network locally and globally, exporting to more than 40 countries.
In India, Salzer markets its products through its own distributors and more than 350 local distributors of L&T.