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09-11-2013, 02:52 AM #1
Toshiba to acquire Hyderabad-based Vijai Electricals for $200 mn
In a move to enhance its production base in India, Japanese firm Toshiba Corp will acquire majority stake in Hyderabad-headquartered company Vijai Electricals for about $200 million.
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.
"Toshiba Corporation and Vijai Electricals Ltd today 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 (around Rs 1,276.8 crore)," Toshiba said in a statement, adding that the acquisition will be completed in November.
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.
"The acquisition is necessary for our global T&D strategy, and Vijai's products and sales channel provide us with an ideal fit for our T&D business in India and beyond," Takeshi Yokota, Corporate Vice President of Toshiba said in the statement. "It will support us not only in the Indian market, where we aim to secure a 20 per cent market share within five years, but in reinforcing our position in the global market, by strengthening our worldwide network."
Vijai Electricals was established in 1973, to manufacture and sell electricity distribution transformers.
The company expanded its T&D business in 2006, when it entered the power transformer and switchgear businesses, and through the business activities it has manufactured and supplied the ultra-high voltage 1200 kV power transformer.
"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 Dasari Jai Ramesh, chairman Vijai Electricals.
Toshiba will position the new company as a core production base for expanding its T&D business in India and the global market, alongside its other bases in Japan, China, Brazil, Russia and Southeast Asia, the statement added.