Stone India is planning to acquire stake in the European company, which make components for the European railways.

The company, in this way, intends to capture the European railway components market through its arm Duncan Goenka group.

In a press conference in Kolkata, Amitava Mondal, Stone India chief executive officer & managing director said that the group would complete the acquisition through the bidding process.

The company will set up a special purpose vehicle (SPV) to buy the assets in legal manner. The special purpose vehicle (SPV) will be registered either in Cyprus or Netherlands as par its convenience.

The finance for the deal may be provided by Dresdner Bank which has, recently been acquired by Commerzbank AG. The company has already completed three rounds of bidding process and last round is likely to be completed in a short time.

Stone India provides railways breaks and exports these components to New Zealand, Africa (including Tanzania and Mozambique), Australia and Vietnam.

The company registered a profit of Rs 92 crores last year and Rs 120 crore in the current fiscal. The company would invest Rs 25 crore in a new unit at Nalagarh in Himachal Pradesh to further increase its revenue. It has got clearance from the Research Design & Standards Organization for some of the products.