Kerala-based VGuard Industries, one of the larger players in the inverter, water heater and pump segments, is looking for acquisitions and is ready to spend up to Rs 500 crore as it seeks to expand outside southern India. It has engaged a merchant banker and is in talks with 10-12 potential targets, Managing Director Mithun K Chittilappilly said.

The company, which has grown organically since its inception in 1977, now wants to increase its market share outside South India. It also intends to set up a manufacturing facility in the East, where it seeks to bolster its presence. Eastern India is the company's new focus area, Chittilappilly said.

For acquisition, V-Guard is looking at companies with manufacturing and product capabilities outside the southern region. The targets need to have a regional brand presence and a product range that is in synergy with VGuard's, he said.

"The companies identified for acquisition are mostly in West and north India. We know some of these are for sale. We are in talks with others to find out if their promoters are ready to sell them to us," he said.

Chittilappilly hopes to close a deal within the next 8-9 months.