Dongfang in talks to buy Trichy-based power firm.

Chinese firm Dongfang is in talks to take over Trichy-based power equipment manufacturer Cethar. The acquisition will help the Chinese company have presence in India. It will also help Dongfang control its costs as well as comply with the localisation norms in India.

Cethar, formerly known as Cethar Vessels, manufactures both sub-critical and super-critical boilers, used in power plants. It also designs and constructs thermal power plants up to a capacity of 800 megawatts. In 2010-11, it clocked sales worth Rs 2,430 crore. 'The valuation of this company comes to around Rs 500-600 crore. They are currently in talks and the acquisition would help Dongfang have an entry into Indian manufacturing,' said a person directly involved with the deal. Neither Cethar nor Dongfang responded to an email questionnaire.

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