RFCL looking for acquisitions in US, Europe

RFCL looking for acquisitions in US, Europe
PTI
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First Published: Sun, Feb 24 2008. 04 34 PM IST
Updated: Sun, Feb 24 2008. 04 34 PM IST
New Delhi: Veterinary products and speciality chemicals maker RFCL, a part of private equity firm ICICI Venture, is scouting for acquisitions abroad to establish a base in the high volume US and European markets, as it sees revenues crossing the Rs500 crore mark by 2010.
The company, which also manufactures chemicals used in medical diagnostics, is looking for opportunities in lab chemicals and animal healthcare products segment abroad for which it has appointed Yes Bank as its consultant.
“The share of India in lab chemicals and animal healthcare segment is only one per cent. The sector offers huge growth potential overseas and in order to cash in on this opportunity, we have to be present in bigger markets such as Europe and US,” said Sushil Mehta, managing director, RFCL.
Mid sizes firms valued at $40-50 million would be on the company’s radar for a possible takeover.
“We are only interested in companies having a strong research-based product line,” Mehta said.
The company intends to outsource a part of the acquired firm’s manufacturing to India to have cost-effective operations.
“Going forward, we expect to become a Rs500 crore company by 2010. We should comfortably touch the Rs300 crore mark in the current fiscal,” Mehta added.
RFCL is under a rapid phase of expansion and is also looking at organic ways to expand operations in the domestic market.
The company is setting up a laboratory chemicals manufacturing facility in Panoli, Gujarat, at an investment of around Rs60 crore to cater the demand from western India.
The company is also looking to tap the capital market to fund its expansion programme but has not fixed any time-frame for the purpose.
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First Published: Sun, Feb 24 2008. 04 34 PM IST