Su-Kam plans to raise Rs 200 cr, says IPO an option

Power products maker Su-Kam today said it will raise around Rs 200 crore within next six months for which it is looking at various options, including listing the firm on stock exchanges.

The company, which aims to be a billion-dollar entity in the next five years, said it also plans to achieve sales of Rs 1,000 crore by next fiscal.

"We will be raising around Rs 200 crore for expansion through equity, strategic investments... We are currently working on various options for raising it...," Su Kam Managing Director Kunwer Sachdev told PTI.

Asked if the company is looking at listing on stock exchanges, Sachdev said, "We are working on it." He, however, did not give further details.

Reliance India Power Fund -- a private equity fund sponsored jointly by Anil Ambani-led Reliance Group and Singapore-based Temasek Holdings (Temasek) has a stake of 19% in Su-Kam. Sachdev said Reliance India Power Fund had bought the stake for around Rs 45 crore in 2006.

He said demand for power products, including batteries, inverters and other energy storage devices in the country are growing and expects Su-Kam to be a billion dollar company in the next five years.

"Our target for next fiscal year is Rs 1,000 crore. Our Our five year target is to become a $1 billion company. Battery, UPS, inverter have big scope. LED again is a growing market. So looking at the growth, becoming a billion dollar company is not a big challenge," Sachdev said.

The company has been growing at 30-40% annually and expects to cross Rs 700 crore as sales by the end of this fiscal, he added.

On the company's expansion plan, Su-Kam is also looking at setting up a manufacturing plant in Bangladesh and Nigeria within the next one year.

"We have put one battery plant in Nepal and we are trying to set up in Bangladesh and Nigeria within one year...We are already are working on it," he said.

At present, the company has six plants in India and sells its products to 70 countries across the globe. The overseas markets account 15% to its overall turnover.

Besides, the company said it is developing products for the rural market as part of its strategy to penetrate into smaller cities and towns in India.

"We have developed inverters for Rs 1,500. These are the products for those who cannot afford it..As of now, contribution from rural is very less. We are trying to bring more products which are more cost effective," he said.