Emco, a manufacturer of electrical equipment, is learnt to be in talks with Siemens. The market also puts a price tag to the stake acquisition. The company, say market sources, will sell the stake at Rs 120 per share, a premium of Rs 30 to the market price of Rs 93. Sources point out KPMG Consultants is advising the company on the disinvestment plans.

The Emco Transformers counter has been witnessing huge volumes on the bourses with the volumes in the scrip sky-rocketing from 100 shares on BSE on June 28 to touch a phenomenal volume of 52,700 shares on Monday. The volumes in the scrip in NSEmoved up from 200 shares on June 28 to touch 9,900 shares on Monday. The scrip price also jumped to close at Rs 93.75 on BSE on Monday, up by 46.71 per cent from Rs 63.90 on June 28. On the NSE the counter moved to touch Rs 93.35, up by 47 per cent from Rs 63.50 on June 28.

Emco with its four divisions, including transformers, meters, scada and contracts, caters largely to the domestic market. The wide range of transformers manufactured by Emco include 315 MVA 400 KV transformers, generator transformers, unit auxiliary 33 kv and station auxiliary transformers, interconnecting and power distribution transformers.

It also makes rectifier transformers upto 160 KADC, six and 12 pulse with IPT, furnace transformers of 150 MVA industrial distribution transformers 300 KVA to 16,000 KVA and dry type transformers, shunt & series reactors.

The company also undertakes turnkey contracts which include substation design, erection, testing and commissioning. Its technical collaborators include EMU Electronik ofGermany and Ramar Technology of the UK and GE Harris Energy Control Systems Canada Inc.

Emco gets most of its business from state electricity boards and local companies. It also caters to the international market.

Siemens, which has a strong presence in the power sector in the country, is one of the major players in the area of power transmission and distribution. A large range of switchgears manufactured by the company includes high and medium voltage switchgear, outdoor circuit breakers, low voltage switchboards and substation automation.

The Indian arm of the German power giant has a well-established manufacturing base which is supported by strong marketing network in the country. It has the manufacturing units in Maharashtra, Calcutta, Goa and Gujarat. Established in 1922, the diversified company is also engaged in communication, transportation and healthcare business. The project division of the company undertakes project engineering of mining and material handling plants, refineries chemicals,food processing and textile projects.