Elecon Engineering delays Rs 400 crore overseas acquisition plans

The ongoing economic turmoil has forced many corporate to revise their growth plans. In the wake of recession, Elecon Engineering Company Ltd has postponed its plans to acquire an overseas company.

The Vallabh Vidyanagar-based engineering company was scouting engineering firms in Western Europe and USA for acquisition. The company was also in talks with few companies for the purpose. "However, we have delayed our plans of acquiring a company in the wake of slowdown," said Prayashwin Patel, chairman and managing director of Elecon Engineering Ltd.

"We have made investments in other projects and we want to ensure that the progress of these projects is not hampered", he added. Elecon wanted to buyout a mid-sized company with a turnover of Rs. 400 crore in Western Europe or USA.

"Higher steel prices and increased currency fluctuations as well as higher interest cost will have impact on our net profits," he told media persons at Vallabh Vidyanagar.

However, the Rs. 800 crore company is hopeful of achieving the turnover target of Rs. 1,100 crore set for fiscal 2008-09. It may be mentioned here that the company has recently bagged some of the big orders. As result its orderbook has surged to Rs. 1,800 crore.

As part of its Corporate Social Responsibility (CSR), Elecon has joined hands with Corsoft, a California-based mobile solutions provider company. Elecon has roped in Corsoft to installed ICE (In Case of Emergency) software in mobile phones of its employees. The software is aimed at helping the user in natural and manmade crisis.

"With the help this software, a user can record all the vital details such as emergency contact numbers, personal health details and guidelines for first aid and disaster recovery. The company has launched this software for the first time in India," said Chirag Patel, founder of Corsoft.