Auto component maker Hi-Tech Gears today said it is scouting for acquisitions in the US and Europe, and a deal is likely to be finalised by next fiscal.
The company is also investing Rs 150 crore in the domestic market to set up two new facilities over the next three years.
"We have geared up for acquisitions in the US and Europe. We have just started discussions with some firms," Hi-Tech Gears Chairman Deep Kapuria told reporters on the sidelines of USIBC summit here.
He said the company was very close to acquire an automotive transmission firm in the US in 2008 but had to abandon the deal due to downturn.
"As the US market has recovered now, there is no way that we are not looking at acquisition there. In downturn, many small companies folded up so there is a lot of gap for Indian companies to fill now," Kapuria said.
He, however declined to give any possible deal size, but said it is likely to happen 'next fiscal'.
On the domestic front, Kapuria said the company will strengthen its position in the transmission space and it plans to invest Rs 150 crore over the next three years.
"Domestic auto market is growing at 30 per cent right now. There is huge demand here. We will be investing about Rs 150 crore to set up two new facilities to increase our capacity by 80 per cent," he added.
The company is setting up its sixth facility at Bhiwadi, Rajasthan, which will be commissioned by the end of this fiscal.
On exports, he said that 20-25 per cent of the company's total sales of Rs 370 crore come from the US market.
The company currently supplies transmissions to many global firms, including General Motors, Caterpillar and Cummins. It also supplies transmissions to some domestic firms like Hero Honda, Tata Cummins and New Holland.
Earlier Kapuria had said that the company is looking at expanding export markets, mainly in the Latin American nations including Brazil and Mexico.
