BS reported that in the wake of recession, Elecon Engineering Company Ltd has postponed its plans to acquire an overseas company.

As per report, Elecon Engineering was scouting engineering firms in Western Europe and USA for acquisition. The company was also in talks with few companies for the purpose. Elecon wanted to buyout a mid-sized company with a turnover of INR 400 crore in Western Europe or USA.

Mr Prayashwin Patel CMD of Elecon Engineering said that "However, we have delayed our plans of acquiring a company in the wake of slowdown. We have made investments in other projects and we want to ensure that the progress of these projects is not hampered.”

Mr Vallabh Vidyanagar told media that "Higher steel prices and increased currency fluctuations as well as higher interest cost will have impact on our net profits.”

It may be mentioned here that the company has recently bagged some of the big orders. As result its order book has surged to INR 1,800 crore. The company is hopeful of achieving the turnover target of INR 1,100 crore set for fiscal 2008-09.

(Sourced from Business Standard)