Plan fund raising for European acquisition: Kavveri Telecom

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Plan fund raising for European acquisition: Kavveri Telecom

Kavveri Telecom Products announced on Thursday that their board had approved a fund raising plan for the company. C Shiva Kumar Reddy, MD of Kavveri Telecom Products Limited, in an interview with Ekta Batra and Gautam Broker, spoke about the recent happenings in his company and the road ahead.

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Bangalore-based wireless infrastructure maker Kavveri Telecom Products announced on Thursday that their board had approved a fund raising plan for the company at the annual general meeting (AGM).

C Shiva Kumar Reddy, MD of Kavveri Telecom Products, in an interview with Ekta Batra and Gautam Broker, spoke about the recent happenings in his company and the road ahead.

Below is the transcript of the interview. Also watch the accompanying video.

Q: Could tell us about the amount that you would be raising and under which root? How exactly will the funds be used?

A: This is an enabling resolution. At the AGM, the board has agreed for the shareholders approval. We haven't decided the amount of funds to be raised as this is only an enabler.

Q: How much would you need in terms of funds? How exactly will it be deployed in the company?

A: If at all we raise funds, it could be only for acquisitions in Europe. There is a huge value base available in Europe because of the economic conditions there. We are not sure on when and how much will be required.

Q: What's the target for the topline growth in FY12? You expected about 30-40% growth this time.

A: We will continue with that growth. Last year, we have grown on a consolidated basis about 30% on the topline and 48.5% on the bottomline. This has been the trend and we will continue to grow as much as we can.

Q: Do you have any internal targets on how much would you want to scale up your revenues by through the inorganic route? You said that you have not zeroed in on any target. Is there any potential target internally in the company to scale up the topline within a few years through inorganic acquisitions?

A: The growth will come in from both organic and inorganic route. On the acquisition front, the board approved an acquisition in Europe on May 28 which will add to our topline.

We have started this contract manufacturing for over six companies, using India in specific or as a global hub manufacturing. This clearly gives a big jump on the topline as well as the bottomline.