Saturday, January 27, 2007

Sintex to buy European firm for €40 mn

Plastics and textiles company Sintex Industries is close to acquiring a European company for €40 mn before March-end. The Company has declined to divulge the name of the company citing the confidentiality the company has to maintain till the deal is concluded. The company is unlisted and is into the electrical engineering and auto ancillary capabilities having multiple locations in Europe having manufacturing facilities in Italy, Germany and France. Sintex is also in talks with four other firms, three in Europe and one in the US. The acquisition is a strategic move as the foreign firm has a pan-Europe presence with good clientele, many of whom are from Fortune 500 companies.

Sintex is also looking out in the domestic market and is in the process of acquiring electric engineering and auto ancillary based companies. The company seems to be now interested in picking up some local companies to fuel its growth. In its recently declared third quarter result, the company has seen an increase in its net income earning by 35%, while registering net income of Rs. 284.6 crores for the Q3 FY06-07 compared to Rs. 210.3 crores in the year-ago period. The net profit rose by 27% from Rs. 20.4 crores in last Q3FY05-06 to Rs. 25.9 crores in current Q3FY06-07.

Read the article in Business Standard.

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