Japanese company Toshiba Corp has signed an agreement to buy electricity transmission and distribution assets worth 200 million dollars in India.
New Delhi, Sept 11/Nationalturk – In what could give further impetus to Japan-India economic cooperation, Japanese company Toshiba Corp has signed an agreement to buy electricity transmission and distribution assets worth 200 million dollars in India.
Toshiba Corp has reached an agreement with Indian company – Vijai Electricals Limited. The Japanese company will acquire majority stake in Indian company for electricity transmission and distribution business.
“Toshiba Corporation and Vijai Electricals Ltd have announced that they have agreed to Toshiba’s acquisition of the major part of Vijai’s electricity transmission and distribution (T&D) business for approximately $200 million,” Toshiba said in a statement here.
The Japanese company said the acquisition will be completed in November 2013.
It said Toshiba will establish a new company that will absorb the acquired business, and also integrate Toshiba’s design and manufacturing technologies for T&D systems.
The new company will also enter other growing markets in India, including power electronics systems, such as high voltage direct current (HVDC) power transmission and static var compensators for high voltage networks (SVC), and railway power supply systems.
‘Acquisition necessary for Toshiba’s global T&D strategy’
Takeshi Yokota, Corporate Vice President of Toshiba said the acquisition is necessary for company’s global T&D strategy. “The Vijai’s products and sales channel provide us with an ideal fit for our T&D business in India and beyond”.
He said the agreement will help them not only in the Indian market, where they aim to secure a 20 per cent market share in next five years, but in reinforcing their position in the global market by strengthening their worldwide network.
Vijai Electricals was established in 1973, to manufacture and sell electricity distribution transformers.
“I’m delighted to reach agreement with Toshiba, a global company. We are proud that our technology strengths and people capabilities will become part of Toshiba Group and will provide them a powerful platform for their business growth and market expansion,” said Vijay’s chairman Dasari Jai Ramesh.
India has recorded year-on-year GDP growth of over 5% since 2003, and long-term capital investment is expected to continue to counter current infrastructure shortages in key areas, including electricity and transportation. The T&D market size is expected to rise to over US$4 billion by 2015.
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Faiz Ahmad / NationalTurk India News
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