Gautam Thapar’s Avantha group is consolidating its three holding companies into one to be called Avantha Holdings and aims to increase revenue from $4 billion (Rs 17,988 crore) to $10 billion in three years, B Hariharan, group director of finance, told Financial Chronicle.

The group aims to raise promoter holdings in Bilt and Crompton Greaves to the 55 per cent limit allowed under Sebi regulations. It is also considering an acquisition for its ITeS business and is open to acquisitions for Bilt, Crompton Greaves and its food processing company Global Green.

Hariharan said consolidation of Bilt Paper Holdings, Solaris Holdings and New Quest is under way and will be completed in 12 months, as it requires court approvals and other clearances. The rationale is to create one company through which all promoter holdings can be routed.

The group has business interests in pulp and paper, power transmission and distribution equipment and services, food processing, farm forestry, chemicals, energy, infrastructure, information technology (IT) and IT-enabled services (ITeS).

The promoter’s holding in Bilt is 50 per cent while in Crompton Greaves it is 41 per cent. Hariharan said, although the level of holdings is comfortable, the promoter group would like holdings to go up to 55 per cent.

He said growth for the group would come from brownfield expansion and acquisitions. In the past few years, the group has completed acquisitions in different sectors.

Bilt, which is the largest paper company in the country, has added 3.5 lakh tonnes in capacity and 1.20 lakh tonnes in pulp expansion in Malaysia. Its target of reaching 1 million tonnes of paper capacity by 2011 has been achieved a year in advance, Hariharan said.

“We are open to opportunities in paper for acquisitions,” he added.

Despite the slowdown last year, Crompton Greaves has shown good growth, he said. “Unless there is an acquisition opportunity there will not be much capex,” he added. Global Green has revenues of Rs 650 crore and recently Rabo’s private equity arm invested $10 million in the company. “The intention is to grow this business. This business does not require too much capital. We are looking at acquisition opportunities, both domestic and overseas. In two to three years, we expect to take it to the IPO market,” he said.

But Hariharan declined to give details of the proposed IPO of Avantha Power and Infrastructure.

“In the ITeS business, we are looking at acquisition opportunities right now,” Hariharan said, without giving details. He said funds for expansions have been tied up and Bilt has raised Rs 2,000 crore, of which Rs 750 crore has been pumped into Malaysia.