McNally Bharat eyes acquisitions in Europe

Engineering turnkey project execution company McNally Bharat Engineering Company Limited today said it is eyeing acquisitions in Europe for which it had a dialogue with a few firms.

"We are looking at Europe for buyouts," Chairman of McNally Bharat Deepak Khaitan said.

He said the acquisitions would be aimed at carrying out turnkey projects in cement and to enter the oil & gas sector.

Khaitan told reporters here that the company has a comfortable order book position of Rs 4,200 crore as of now.

During the year, the target order book is of Rs 4,000 crore, out of which Rs 1,700 crore has been already secured in the first three months. Khaitan said the company bagged its first overseas order from Zambia. He said countries like Mongolia and Indonesia are also on the radar.

He said 20-30 per cent of the company's topline would come from overseas orders.

Notching a turnover of Rs 1,400 crore last fiscal,McNally is expecting sales of Rs 2,200 crore this fiscal. By 2015, the company's revenue would touch Rs 5,000 crore, he said.

Khaitan said the holding firm of the German manufacturing business and CMT (coal and mineral technology) is based in Singapore.

He added the name of the holding company has been changed to MBE Mineral Technologies Pte Limited from MBE Holdings Pte Limited, which was a 100 per cent subsidiary of Mcnally Bharat.

Khaitan said steps are being taken to register the holding company with ministry of science and technology of Singapore.

To strengthen the future growth plan of the company, Mcnally has appointed three consultants, KPMG, PwC and E&Y.

He said while KPMG would do a critical analysis of McNally's growth strategy, PwC would suggest on organisational restructure and E&Y would design internal operational control.

In the first quarter of 2010-11, its total income increased 11 per cent to Rs 283.48 crore and net profit registered a rise of 15 per cent at Rs 6.15 crore.