V-Guard plans acquisition in online UPS segment

V-Guard Industries today said it was looking at acquiring a domestic online UPS manufacturing company and has already completed the technical due diligence process for the same.

"We have completed technical due diligence and are satisfied with the target company. We are waiting for our board approval to conduct the financial due diligence," V-Guard Industries' Executive Director Mithun Chittilappilly, told reporters here.

The company expects to begin financial due diligence in January. The target company clocked a turnover of Rs 80 crore in the last financial year, he said.

V-Guard has also initiated talks with a company from the European Union for technology transfer. However, the talks have been suspended and are expected to recommence in April, Chittilappilly said.

The Kochi-based company makes stabilisers, UPS systems, cables, fan and electrical water heaters.

Chittilappilly said that the company has dropped its earlier plans to set up an enamelling plant unit following fluctuations in copper prices. It had planned to invest Rs 9 crore in the plant.

"We had planned the enamelling plant for captive consumption. Because of price fluctuations, we are not going ahead with it. We are using aluminium instead of copper in our product portfolio," he said.