BM Khaitan group cos plan acquisitions

Eveready eyeing regional packet tea brands

Our Bureau

Kolkata, Nov. 1 Three of the B.M. Khaitan Group companies — Eveready
Industries India Ltd, McLeod Russel and McNally Bharat Engineering
Company Ltd – are looking for Indian and overseas acquisitions.

"Funding acquisitions will not be a problem," Mr Deepak Khaitan,
Vice-Chairman of the Group, told newspersons here on Thursday. "We can
raise any amount," he added.
Packet tea biz

Eveready Industries was looking for acquisitions of regional packet
tea brands within the country and reputed FMCG brands outside.
"Currently, the packet tea business accounts for about 10 per cent of
company's total business of about Rs 850 crore and we would like to
double its size as early as possible," Mr Khaitan said. The company
was looking for acquisition opportunities in Gujarat, Maharashtra and
the northern region, he indicated. The company would also invest in
promoting its existing packet tea brands, namely, Tej, Classic, Jago
and Premium Gold.

Currently, battery and flashlights accounted for nearly 90 per cent of
the company's total turnover. "We would like to gradually reduce the
share of battery business such that by 2010-11, the non-battery
business accounts for 50 per cent of the company's estimated turnover
of Rs 2,000 crore," he said.
New ventures

Apart from packet tea, the other non-battery segments in which the
company had ventured into included mosquito coil, compact fluorescent
lamp (CFL) and dishwasher cakes. "Our debt burden is coming down and
we're out of red and now on the upswing," he added.
Tea gardens

McLeod Russel, the world's largest producer of tea, was also looking
into opportunities for acquisitions of tea gardens both within the
country and abroad. "However, we're yet to zero in on anything," Mr
Khaitan said. McLeod Russel had no plans to undertake non-tea activity
in tea gardens, he added. However, the company's diversification into
bio-fuel in partnership with D1 of the UK was making progress. About
55,000 hectares has been acquired in Jharkhand and North-east for
jatropha plantation under contract farming and there was a proposal to
acquire lands in Orissa also. "We have written to the West Bengal
Government expressing our desire to undertake jatropha plantation in
the State but we're still awaiting a reply," he said. The first
refinery would be set up in the North-east next year. "Our plan is to
grow jatropha over 200,000 hectares and produce bio-fuels and the
estimated investment would be between Rs 1,500 and Rs 2,000 crore," he
said.
Big bet

McNally Bharat Engineering, according to Mr Khaitan, was going to be
the Group's biggest company in terms of turnover estimated to rise to
more than Rs 2,000 crore within three years, up from the current Rs
700 crore. The order book position at Rs 1,500 crore was healthy and
the encouraging export orders has prompted the company to open
overseas offices in Brazil, South Africa and UAE.

"In the past two years, the CAGR has been 50 per cent and the company
is looking for suitable acquisitions in the fields in which it is
active," he said. The new unit in Asansol, which would be the
extension of the existing unit at Kumardhubi, would be focussing on
modern industrial forgings which were in good demand.

http://www.thehindubusinessline.com/2007/11/02/stories/2007110251010300.htm


[Comments: They are talking about contract farming. It seems that they
are going to grow it in farming lands not in wastelands. So be aware
farmers and natives to carry load of this foreign plant. If you are in
these state and inform me about the land selected for this project I
can suggest you scientifically that how it will affect the
biodiversity and livelihood directly and indirectly.]