Patel Engineering is planning to foray into real estate development business by acquiring the Rs 250 crore (Rs 2.5 billion), Mumbai-based construction company, Michigan Engineering.
Patel Engineering undertakes civil engineering works including construction and design of hydroelectric projects, micro-tunnels, irrigation and highway projects.
"We are in acquisition talks with Michigan. If talks materialise, the acquisition would be concluded in a couple of months," said Pravin Patel, non-executive chairman, Patel Engineering.
Patel Engineering is also in talks with four other Indian and foreign infrastructure engineering companies.
According to Rupen Patel, managing director, the inorganic growth plan would help Patel Engineering to acquire niche technologies, which no other engineering company possesses, thereby gaining competitive advantage. Besides, it accelerates sales growth, compared to an organic expansion, he added.
Patel Engineering had acquired the US-based ASI and had brought the roller compacted concrete technology used in dam constructions to India.
The technology has reduced the construction time to 12-18 months from the earlier four years period.
The company had also acquired the US-based Westcon Microtunneling Inc and introduced micro-tunnelling technology in India. Micro-tunnelling is the process by which tunnels are dug using machines operated from outside.
Patel Engineering has completed 7,000 mw of hydroelectric projects in the country till now, which is 22 per cent of the total hydroelectric projects completed so far, Pael said. "In the immediate future, we would be working on hydropower projects in Greece, Turkey, Libya and the US," he added.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
