After a couple of years of slowdown, Hinduja Foundries, part of Hinduja group, is back on the growth path and the company is contemplating buying a foundry in Europe besides expanding the domestic production capacity.
“In 2007-08, we were looking at acquisitions abroad aggressively. However, we couldn’t do that due to economic slowdown. We have been looking at three units — one in Latin America and two in Eastern Europe. But we are in dialogue with one unit in Europe at present,” B Swaminathan, managing director of Hinduja Foundries, said.
Indian companies have not been very successful in their acquisition of overseas foundries so far. Coimbatore-based Sakthi group, which acquired foundries in Europe during 2007 and 2008, became the victim of the global downturn and the units filed for bankruptcy in their respective countries.
“Of course, we are very cautious about our overseas acquisitions considering the Indian companies previous track records. Hinduja group is known for managing multi-cultural organisations successfully and we can always devise the best strategy to run it efficiently post-acquisition. We can think of bringing downstream activities to India and carrying out only upstream activities there,” V Sankar, chief financial officer of Hinduja Foundries fold Financial Chronicle.
22 May 2011 G.Balachander
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