SJS Enterprises, a listed manufacturer of logos and other aesthetic products, is on the lookout for acquisition opportunities overseas as well as within the country with an aim to diversify both geographically and segment-wise.
It is reviewing a “long-list” of targets, most of which are overseas, but has not reached any decision yet, SJS Enterprises chief executive Sanjay Thapar said.
“We are quite competitive compared to suppliers in Europe or North America,” he told ET. “We would like to tap those markets and an acquisition could provide us entry into a new geography.”
The company is keen to enter North America, Europe and Asean countries, Thapar said. Acquisitions could help the company enter a new market, gain new customers, get access to new technology, or even diversify into newer business segments, he said.
“It could be an entry into adjacent industries like medical devices or gaming,” Thapar said. “Handheld gaming consoles are produced in very large volumes worldwide. Medical devices like glucometers and blood pressure monitors are also made in billions across the world.”
The company has Rs 100 crore in cash and equivalents on its books and a low level of debt, which it will leverage to acquire any identified targets, he said.
The company manufactures branded badges, body graphics, and overlays for automotive and consumer electronics industries. It has no direct competitors in the market, Thapar said.
While it gets about 13-14% of its consolidated top line from exports, the company is looking to ramp that up to 25% in the coming 5-6 years, he said.
