Diamond Power to acquire stake in Orissa-based Utkal Galvanizers

Diamond Power to acquire stake in Orissa-based Utkal Galvanizers

Ahmedabad: Diamond Power Infrastructure Ltd (DPIL), a firm having interests in the power equipment and engineering, procurement and services sector announced on Wednesday that it has signed a memorandum of understanding with Orissa-based Utkal Galavanizers Ltd. to acquire a strategic stake.

DPIL is based in Vadodara in Gujarat. “This acquisition will give DPIL equal management rights in Utkal Galavanizers Ltd however, it will not be a majority stake," said Bhagwan Makhijani, refusing to divulge further details of the deal as the deal is yet to be approved by DPIL board.

He added that Utkal’s revenue in 2011-12 is expected be at around 175 crore with a profit after tax (PAT) of around 13 crore.

Utkal Galvanizers has interests in extra high voltage (EHV) power transmission and carries out activity beginning from the concept of design to commissioning of EHV towers, substations and other lattice structures. Utkal Galvanizers is experienced in setting-up EHV lines of 220KV and 400 KV and has set up substations of 400 KV both in and in neighbouring countries like and , a statement from DPIL said.

“With the strategic stake in Utkal, Diamond Power’s foray in transmission and our EHV segment will get a boost. This deal will also enable the company to get bigger government orders," said Suresh Bhatnagar, chairman, DPIL.

Utkal Galvanizers is an approved vendor and an EPC contractor of Power Grid Corporation of India Ltd. for various EHV transmission products. DPIL’s order book as on 31 March, 2011, stands at 1,650 crore while the firm’s nine- month revenues in 2010-11 stood at over 750 crore.