Salzer Electronics to acquire two overseas firms

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.

Ritwik Mukherjee