Japan’s Toshiba says it has completed its acquisition of power transmission and distribution assets previously owned by Indian manufacturer Vijai Electricals.
Toshiba (Tokyo, Japan) had first announced takeover plans regarding Vijai (Hyderabad, India) in September 2013, revealing that it would pay about $200 million for the Indian company’s energy businesses, which include power transformer, distribution transformers and switchgear assets.
The Japanese industrial giant had originally aimed to complete the acquisition by November 2013 but the transaction has evidently slipped into early 2014.
Toshiba has indicated that it will set up a new subsidiary called Toshiba Transmission & Distribution Systems (TTDI) to run the acquired businesses and provide them with its latest design, development and production capabilities.
It plans to supply a wide range of transmission and distribution products globally, as well as in India, and says the takeover will help it make a “full-scale entry into India’s transmission and distribution market”.
Toshiba is looking to capture 20% of the Indian market within the next five years and says that by 2015 it aims to build a JPY700 billion ($6.7 billion) global transmission and distribution and smart-grid business.
That business is to make use of TTDI as well as established transmission and distribution manufacturing facilities in Japan, Brazil, China, Russia, Malaysia and Vietnam.
It will also be able to draw on the global sales channels of Toshiba and Landis+Gyr (Zug, Switzerland), the Japanese company’s smart-energy subsidiary.
Toshiba says TTDI will be headquartered in Andhra Pradesh in India and employ about 4,500 staff.
According to the Times of India, Vijai Electricals was established in 1973 to manufacture and sell electricity distribution transformers, but it expanded its transmission and distribution business in 2006 when it entered the power transformer and switchgear businesses.