& Toubro Ltd (L&T) today signed an agreement to acquire the switchgear
businesses of Tamco Corporate Holdings, including Tamco Switchgear Malaysia Sdn
is the demerged switchgear unit of Tamco Holdings.
addition, L&T will also acquire three of Tamco''s other switchgear manufacturing
subsidiaries - Tamco Shanghai Switchgear Co Ltd in China, Tamco Electrical Industries
Australia Pty Ltd in Australia and PT Tamco Indonesia in Indonesia.
is a significant move forward in L&T''s plans of reinforcing its position as
a major player in switchgear business," said, R N Mukhija, president, operations
and member of the board, shortly after he had signed the acquisition agreement
between L&T and Tamco Holdings in Kuala Lumpur this morning.
has a strong presence in the medium voltage (MV) category. With this acquisition,
L&T will be able to offer a comprehensive range of MV switchgear in India
and international market. This deal meets our requirements on both fronts of technology
acquisition and market access. L&T''s process improvement initiatives will
help achieve cost efficiency and contribute to synergy benefits."
is a major player in MV switchgear in Malaysia. Its Middle East and Malaysian
markets together contribute to over 50 per cent of its revenue.
this acquisition, L&T Switchgear will have access to the fast growing MV switchgear
markets like the Middle East and the EPC contractors that have approved use of
Tamco''s products. This synergistic acquisition will enhance L&T''s capability
in both LV with MV categories, and will allow it to offer turnkey solutions to
domestic MV Switchgear market is currently growing at 15 per cent per annum. This
growth rate is expected to increase further in the next five years on account
of initiatives like the Electricity Bill of 2003, and power sector reforms.
says the national focus on the fast tracked incremental power generation programme
will provide a strong impetus to spur the demand for MV switchgear leading to
an increase in the growth rate of these products.
natural growth in Malaysia, in other international markets Middle East and China
offer attractive business opportunities due to their high growth rates. Indonesia,
too, could be the next emerging market due to growth in the Oil & Gas sector.
The Chinese market is expected to grow at 15 per cent, while the Middle East markets
are growing at about 18 per cent.
is among the leading global manufacturers of low voltage switchgear, with the
scale, sophistication and product range that meet international standards. It
has a track record that includes the supply of intelligent switchboards, systems
and service to major industrial projects. In addition to its leadership position
in the Indian market, the Company has a growing presence in overseas markets.
It has four manufacturing facilities for switchgear operations in India and one
each in China and Saudi Arabia.