Sauter makes India foray through 26% stake in Race

Sauter AG, the Swiss company, which specialises in building automation and management systems and related hardware, is marking its Indian entry by taking a strategic 26 per cent stake in Chennai-based engineering services company Race Technologies.

Berne-based Sauter would invest approximately Rs 25 crore over the next two years, director of Race Technologies R Suresh said.

"Sauter's first-phase investment will be Rs 5 crore for 26 per cent equity in Race," said Suresh.

He said the final quantum of stake divestment in Race would depend on market conditions and maintenance of the company's current rate of growth.

Sauter CEO Bertram Schmitz said the funds infusion by the Berne-based company in Race would open new opportunities in the Integrated Building Management Systems (IBMS) market for both companies.

Race Technologies estimates the market for IBMS at Rs 700 crore including segments like safety and security innovations inside modern buildings and research establishments with stringent internal environment requirements.

Race Technologies touched revenues of Rs 28 crore in FY06 and expects a turnover of Rs 70 crore in three years.