Toshiba Corp. and Vijai Electricals Ltd., an India-based manufacturer of power and distribution transformers, agreed to Toshiba’s acquisition of the major part of Vijai’s electricity transmission and distribution (T&D) business for about $200 million. The acquisition will be completed in November 2013.
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).
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.
Vijai, established in 1973, expanded its T&D business in 2006, when it entered the power transformer and switchgear businesses, and manufactures high-voltage 1,200 kV power transformers.