McNally Bharat Engineering Co Ltd, a part of the Williamson Magor Group, is increasing its stake in Sayaji Iron & Engineering Co Ltd to 92% from 87.33% at present.
McNally Bharat Engineering will transfer its products division to its unit McNally Sayaji Engineering, which it bought earlier this year, with effect from April 1, 2008. McNally Sayaji, renamed after McNally Bharat, will issue 34.55 lakh shares to the latter.
Deepak Khaitan, chairman of McNally Bharat, said: “We are looking at a growth rate of 35% for next few years.”
At present, the combined turnover of the products division of McNally Bharat and McNally Sayaji is Rs 210 crore and is looking at a turnover of Rs 1,000 crore by 2014-15.
“We see good growth in products business on better orders from engineering and infrastructure projects,” Khaitan said.
McNally Bharat has an order book size of Rs 2,666 crore as on September 30,2008. “We will increase that by Rs 1,000 crore by the end of this fiscal,” Khaitan said.
Meanwhile, the company is looking at raising capital from the market within six to 12 months.
With the acquisition of Sayaji Iron and setting up of new plants each at Kumardubi, Bengaluru and Asansol, the company’s capacity to produce equipment and spares will increase five-fold of the production in 2007-08. The production at the Bengaluru unit is expected to start in full scale in April 2009.
Cumulatively, McNally Bharat reported a total income of Rs 335.67 crore during the six months to September 30,2008.