Wednesday, September 11, 2013: It is being reported that Toshiba Corp. has agreed upon buying major stakes of Vijai Electricals Ltd.’s electricity transmission and distribution business. This deal will amount to about $200 million, which will encourage the Japanese electronics conglomerate’s transmission and distribution business in the country.
For those who don’t know, Vijai is an India-based company that develops electricity-distribution transformers. The company says that besides a strong base in the Indian market, it has strong presence in both Europe and Africa.
Under this deal, Toshiba will form a new company that will handle the acquired business. It will also integrate Toshiba’s design and manufacturing technologies for transmission and distribution systems, reports WSJ.
Toshiba has reportedly said that it will also enter into other flourishing markets in India like power-electronics systems and railway power-supply systems.
“The acquisition is necessary for our global transmission and distribution strategy, and Vijai’s products and sales channel provide us with an ideal fit for our transmission and distribution business in India and beyond,” Takeshi Yokota, Toshiba Corporate vice president told WSJ.
According to data shared by Toshiba, the transmission and distribution market in India is expected to rise to over $4 billion by 2015.
