ACE may take Rs 20-30cr debt if Chinese acquisition happens

Action Construction Equipment (ACE) is in advanced talks to acquire a Chinese company. The cost of this acquisition would be around Rs 40-50 crore.

Sorab Agarwal, managing director of the company, in an interview with CNBC-TV18's Latha Venkatesh and Gautam Broker, mentioned that the Chinese company is in the similar trade as ACE. He said, "If everything goes well, the business for that company can be doubled in about one or one-and-a-half year."

Agarwal also stated that they would take some debt of about Rs 20-30 crore, if the acquisition takes place.

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

Q: You are in advanced talks to acquire a Chinese company. When can you make this acquisition? What is the cost?

A: We are at an advanced stage. If everything goes well, we should be able to finalise it in the next one-two months. The approximate cost would be about Rs 40-50 crore.

Q: You did about Rs 700 revenues in FY11. What kind of a target do you have in mind, both from the organic and inorganic front?

A: Organically, we should be able to grow at least about 40-45% this year. If the inorganic portion also joins within this year, then it should be an addition of about 10-15% more.

Q: What does this Chinese company do?

A: I can