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Toshiba buys Vijai Electricals’ T&D business for Rs 1,276 cr
In a significant move, Japanese electronics giant Toshiba Corporation is set to acquire majority stake the electricity transmission and distribution (T&D) business of the city-based Vijai Electricals owned by Dasari Jai Ramesh for about $200 million (nearly Rs 1,276,8 crore).
The Japanese electronics giant will pick up majority stake in the Hyderabad-based company’s electricity transmission and distribution (T&D) business, a part of its efforts to expand base in the country
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 - Dasari Jai Ramesh
Hyderabad: In a significant move, Japanese electronics giant Toshiba Corporation is set to acquire majority stake the electricity transmission and distribution (T&D) business of the city-based Vijai Electricals owned by Dasari Jai Ramesh for about $200 million (nearly Rs 1,276,8 crore).
Both the companies which made a joint announcement on the mega deal on Tuesday said the acquisition would be completed in November this year. "Toshiba Corporation and Vijai Electricals Ltd 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)," the companies said in a statement.
Founded in 1973, Vijai Electricals has become a pioneer in the manufacturing of electricity distribution transformers. The company which currently employs over 6,000 people has 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.
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After the acquisition, 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.
"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. "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," he added.
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 South East Asia, the statement added.
