Indian parts maker Amtek Auto is eyeing two more acquisitions in Europe and plans to spend $US150m over two years to set up capacity in low cost countries, its chief told a news agency on Wednesday.

"We are evaluating two deals and talks are in an advanced stage," chairman Arvind Dham told Reuters. The target firms have revenue of more than $100m each, he said.

Amtek, which makes steel and aluminium components, will spend $10m to set up a plant each in China and Romania, Dham reportedly said.

The company has also appointed a consultant for the merger of group firm Amtek India with itself and the consulant was likely to submit a report in a couple of months, he said, according to the report.