Headquartered in Hyderabad, Vijai Electricals manufacture and sells power and distribution transformers.
Toshiba is also planning to establish a new company that will absorb the acquired business, and will also enter other growing Indian markets, 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.
Calling acquisition necessary for the its global T&D strategy, Toshiba Corporate vice president Takeshi Yokota said Vijai’s products and sales channel will provide the company with an ideal platform for its T&D business in India and beyond.
"It will support us not only in the Indian market, where we aim to secure a 20% market share within five years, but in reinforcing our position in the global market, by strengthening our worldwide network," Yokota added.
Vijai chairman Dasari Jai Ramesh said, ”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."
The transaction is scheduled to complete in November 2013.
