Salasar Techno Engineering Ltd receives LOI for acquisition of EMC Ltd

Salasar Techno Engineering Ltd. ("Salasar" or "The Company"), is a one stop engineering and infrastructure solution provider. The Company is engaged in providing turnkey EPC services for Railway and Power sectors and is also engaged in designing and manufacturing of telecom towers, Monopoles and other Heavy Steel Structures.

Salasar, a prominent player in the field of providing engineering and infrastructure solutions, has received an LOI for acquisition of EMC Ltd. (Formerly known as Electrical Manufacturing Company Limited), a prominent player in the EPC industry. The acquisition, valued at Rs. 1,780 Mn, will mark a significant milestone in The Company's growth trajectory and strategic expansion plans.

This acquisition will present several advantages for Salasar, including:

- Enhanced Market Presence: The acquisition will strengthen Salasar's foothold in the EPC sector, particularly in the power transmission and substation segments, thereby expanding its market reach.

- Enhanced Portfolio: With EMC Ltd.'s expertise in turnkey projects, Salasar can offer a broader range of services to its clients, catering to their evolving needs comprehensively.

- Operational Synergies: The synergies between Salasar and EMC Ltd. will lead to operational efficiencies, cost optimization, and streamlined processes, enhancing overall productivity and profitability.

EMC Limited, has grown into a major EPC firm with a history of successfully delivering substantial projects. Since the 1970s, the company has exported galvanized steel towers, conductors, & hardware and of late has diversified its presence by taking up EPC projects in power transmission and substation sectors.

Commenting on the above status, the management team of Salasar said: "We are pleased to announce that we have received an LOI for the acquisition of EMC Ltd. for Rs. 1,780 Mn, a strategic move that will strengthen our presence and position in the EPC industry, underscoring our commitment to growth and innovation.

EMC Ltd, (formerly known as Electrical Manufacturing Company Limited), has established itself as a prominent player in the industry. Over the years, the company has demonstrated its expertise by completing large-scale projects and establishing a strong foothold in overseas markets through the export of galvanized steel towers, conductors, and hardware items.

With the evolving landscape of the EPC industry, EMC Ltd has proactively adapted its business model to include turnkey orders in the power transmission and substation sectors. This strategic shift aligns closely with our core business, making EMC Ltd an ideal candidate for acquisition.

Through this acquisition, we aim to capitalize on the synergies between the two companies and leverage EMC Ltd's expertise to enhance our service offerings. The addition of EMC Ltd's capabilities will position us as a qualified bidder for executing 765 kV transmission line, substations, and industrial power system projects-a healthy margin business segment with limited competitors. This strategic move enables us to meet the evolving needs of our clients more comprehensively and deliver unparalleled value in the power transmission and substation sectors.

Furthermore, this acquisition reinforces our commitment to strategic growth in the EPC industry especially in the power sector. We are confident that this strategic move will position us as a stronger and more competitive player in the market, enabling us to seize new opportunities and drive sustainable growth for our stakeholders.

Source : Equity Bulls

Keywords

SalasarTechnoEngineering LOI Acquisition EMC EPCplayer