Gandhinagar, India — Italian engineering plastics producer Radici Group is looking seriously at an acquisition in India, to tap into what it says is a rapidly growing market for the company.
"We are scouting for an acquisition and already are in touch with a few companies in India," said Silvio Dorati, managing director of its Radici Plastics India Pvt. Ltd. subsidiary, at Plastindia 2018 in Gandhinagar. "The acquisition will likely be finalized this year or early 2019."
According to a Feb. 5 news release, the Bergamo, Italy-based company said it's been collaborating with a local tolling firm since 2013 and it added that "we do not rule out potential acquisitions that would be a fundamental step towards consolidating our presence in this market."
Radici India's sales have been growing about 7 percent a year, targeting the automotive, electrical/electronics, construction and infrastructure segments.
"Our objectives have always been growth and being close to our customers with a structured organization," Dorati said. "Among the emerging countries, India plays an important role for our business area."
However, he declined to share information on prospective companies it is negotiating with and any investment or location details.
Radici entered the market in India in 2006, supplying products from its production sites in China and Europe.
"The India operation would focus on the domestic market initially and open to exports in the future depending on the opportunities in the region," he said.
Radici manufactures engineering plastics including nylon, polybutylene terephthalate, acetal, thermoplastic elastomers and polyphenylene sulfide at eight production sites in Europe, North America, South America and Asia.
Acquisitions are a frequent growth vehicle for the firm. In 2015, the company bought an engineering plastics compounder in Mexico. In 2010, it bought a bankrupt compounder in the United States.