Doosan Group sees this year as crucial in raising its international presence with strong signs of economic recovery in emerging and developed markets.

Doosan is upbeat about this year’s revenue target. It aims to reap 27.7 trillion won for the year from 24.6 trillion won a year ago.

In operating profit, Doosan is aiming for 2.2 trillion won, up from 1.8 trillion during the same period, said spokesman Lee Jay-hyung.

``One of the noticeable things is that the group is trying to create some 60 percent of the total revenue outside the peninsula," said Lee.

Doosan, the nation’s oldest conglomerate, has business interests from desalination, construction equipment and water treatment to power plants.

Officials say the solid contribution of its key affiliates will play a pivotal role that will make a so-called ``quantum leap’’ in future sustainability.

It plans to put more focus on strengthening its infrastructure support business (ISB) by restructuring non-IBS units in a strategy for corporate-wide migration to target businesses, Doosan officials told The Korea Times, Monday.

``We’ve made substantial progress focusing on our business units over the last few years and the ongoing procedures will help us see sustainable corporate growth away from economic downturn,’’ Lee said.

Doosan grappled with liquidity problems during the global economic downturn, leading it to apply selective business strategies for management efficiency.

Concentration

Several industry sources said Doosan has been in ``deep talks’’ with five foreign private equity fund (PEF) to sell its food-focused affiliate SRS Korea with the deal completion set within the first half.

``Doosan is in talks with five PEFs to sell SRS Korea, which controls Burger King and KFC in the form of a `progressive deal.’ Group owners have keen interests in the smooth sale of SRS,’’ said a source familiar with the matter.

The source, who asked not to be identified, added the deal value was known to be a few million dollars.

SRS Korea is now up for sale but declined to reveal further details citing the sensitivity of the issue, according to industry executives.

``Amid positive signs of economic recovery, Doosan expects the sale to be completed just months later. It sees another economic downturn from the latter half of next year,’’ said another source.

The firm is not ruling out the possibility that the global economy will experience corrections and show volatility from 2012, though it still denies that the global economy including South Korea will fall under a ``double-dip’’ recession.

``Strengthening our financial soundness is one of Doosan’s top management priorities for the year,’’ said another Doosan spokesman Bae Hyung-sik.

Doosan raised 60 billion won by selling Samhwa Crown last year. In another fund-raising campaign, the conglomerate has listed its Doosan Engine on the nation’s main bourse.

The country’s top construction-equipment maker and critical earnings driver Doosan Infracore is also in a separate process for a fundraising campaign.

The forklift business was taking up 10 to 15 percent of the total Infracore sales on an annual basis.

Stock prices in Doosan Infracore and its mother companies, including Doosan Heavy Industries were hit heavily in May last year mainly because of market speculations that they expect to inject fresh money into Bobcat.

``Doosan will pay back all its debt relating to the Doosan Infracore International (DII) buying not only for the 2010 tranche but also for the 2011 tranche, and greatly lessen our financial burden from it,’’ said an unnamed Doosan executive.

DII posted 4 million worth of operating profit during the fourth quarter of last year and it’s expected Doosan Infracore China (DICC) to go with the IPO plan sometime next year, at the earliest amid the recovery of construction industries in the United States and China, according to market analysts.

``By pushing our restructuring efforts and keeping fund-raising campaigns, Doosan will minimize the effects of the possible share sale in Bobcat which is scheduled for the latter half of 2012. That’s the preparedness for further corporate growth,’’ added the executive, asking not to be identified.

Favorable market responses

The efforts were receiving favorable reviews from markets as the transition toward profitable businesses will strengthen the entire revenue-making structures.

``We are positive about an increasing backlog coming from Doosan Heavy and the uprising profit curves of other key units,’’ said E-Trade Securities, a local brokerage, in a research note to clients.

E-Trade has presented 192,000 won as its target price. ``The outlook of construction equipment-related markets in China looks lucrative, taking a cue from its involved businesses,’’ E-Trade added.

``Eased liquidity worries on Bobcat is quite positive to Doosan Infracore stocks, while that’s going to be the booster to Doosan Heavy and Doosan Group, as well,’’ said Lee Hoon, an analyst at Korea Investment.

Doosan said it will hire more research staff for patented technologies and the conglomerate is planning to continue its merger and acquisition drives for an effective business expansion.

The group plans to invest 1.7 trillion won for R&Ds this year ― an increase of 30 percent year-on-year ― to secure eco-friendliness technologies, Doosan said in a statement.