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Toshiba to buy Hyderabad-based Vijai Electricals

Posted: 13 Sep 2013     Print Version  Bookmark and Share

Keywords:Toshiba  acquisition  Vijay Electricals  transmission and distribution 

Toshiba Corporation has announced the acquisition of Hyderabad-based power and distribution transformer company Vijai Electricals Ltd. Toshiba buys the major part of Vijai's electricity transmission and distribution (T&D) business for about Rs.1,257.86 crore ($200 million).

In parallel, Toshiba said it 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.

"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 company said.

Vijai was established in 1973, to manufacture and sell electricity distribution transformers. The company employs over 6,000 people.

"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," said Takeshi Yokota, Corporate Vice President of Toshiba. "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."

India has recorded year-on-year GDP growth of over 5 per cent 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 Rs.25,157.23 crore ($4 billion) by 2015.

The acquisition will be completed in November 2013.

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