See Rs 200cr turnover this year: Salzer Electronics

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See Rs 200cr turnover this year: Salzer Electronics

In an interview with CNBC-TV18, R Doraiswamy, Managing Director of Salzer Electronics Ltd, spoke about the latest happenings in his company and sector.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Salzer Elec See previous management interviews See what other Experts & Brokerages are saying about Salzer Elec BSE | NSE 01/01/70 Are Mutual Funds betting on ? Other Stocks in this news Larsen and Toubro |

In an interview with CNBC-TV18, R Doraiswamy, Managing Director of Salzer Electronics Ltd , spoke about the latest happenings in his company and sector.

Here is a verbatim transcript of an exclusive interview with R Doraiswamy on CNBC-TV18. Also watch the accompanying video.

Q: L&T Capital stake goes up to 26% now because of the merger of Salzer Cables with Salzer Electronics. Can you confirm all this for us that an open offer will not be necessary and if that is the case then are you one step to being bought over by L&T completely since there will be a very good strategic fit?

A: We are dealing with Larsen and Toubro for the last 20 years. About a year back they have taken an equity participation with us to an extent of 8.5%. We along with L&T plan to put a Salzer Cables Limited in which they have invested 49%. Now we are merging Salzer Controls with Electronics. After merging, Salzer Electronics will give 17.5% to L&T. Already, existing they are having 8.5%. Now it comes to 26%. So they are getting this 26% by way of merger. It is not required to have any public offer.

Q: Now that they have 26% stake, won't it make a lot of sense for L&T to buy up Salzer itself, Salzer Electronics?

A: We have two plans. One is our marketing strategy. We are going to work together in as bigger way including our export market. In our product range, we are going to increase our innovative products in switchgear division with the help of R&D development infrastructure. Cables and wires are going to manufacture the complete range in consultation with Larsen and Toubro's advisors and marketing people.

They are also going in a big way about the energy saver and automatic meter reading system throughout India which is the need of our today to save the power. We are taking a very big participation with Larsen and Toubro in coordination with them.

Q: Has the management of Larsen and Toubro approached you with an offer to take management control of their company? Are you personally interested in selling your majority stake to L&T?

A: Yes. L&T is very clear that the company Salzer Electronics will be run by the promoters. Two of their L&T directors are already in our board. We have already formed coordination committee between Salzer and L&T which is meeting once in a year. They have always considered that the future of the Salzer Electronics how to go about it. L&T is not interested in management of day to day affairs to the Salzer Electronics limited.