Salasar Techno Engineering Ltd, in a stock exchange filing, said that it has received the letter of intent for acquisition of EMC Ltd, a Kolkata-headquartered EPC player in the power T&D sector and which is currently under liquidation.
The acquisition, valued at Rs.178 crore will mark a significant milestone in Salasar’s growth trajectory and strategic expansion plans, the filing said.
This acquisition will present several advantages for Salasar:
- The acquisition will strengthen Salasar’s foothold in the EPC sector, particularly in the power transmission and substation segments, thereby expanding its market reach
- 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
- The synergies between Salasar and EMC Ltd. will lead to operational efficiencies, cost optimization, and streamlined processes, enhancing overall productivity and profitability
Liquidation process of EMC Ltd
According to information independently available, the liquidation process of EMC Ltd was initiated under the provisions of the IBC (Indian Bankruptcy Code, 2016) and the Liquidation Process Regulations [Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016] by an order of the National Company Law Tribunal, Kolkata Bench, dated November 21, 2023 and the liquidation process commenced with effect from November 21, 2023. Mr. Raj Singhania was appointed as the Liquidator. It is further learnt that the e-auction associated with the liquidation process was held on March 14, 2024.
765kV projects
“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 765kV 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,” the management team of Salsar was quoted saying the stock exchange filing.
EMC 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, the Salasar communication said.
Note: Incorporated in 1953, EMC Ltd was earlier known as Electrical Manufacturing Company Ltd.
Also read: Salasar Techno Engineering Wins Its First Ever International EPC Order
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