Toshiba-Mitsubishi Electric to buy Indian subsidiary of AEG Power Solutions

Toshiba-Mitsubishi Electric Industrial Systems plans to buy the Indian subsidiary of Dutch electrical machinery maker AEG Power Solutions, for about Rs75.2 crore ($12.4 million) by the end of June.

Toshiba-Mitsubishi Electric Industrial Systems, an equal joint venture between Toshiba and Mitsubishi Electric, aims to tap the growing photovoltaic market in India by manufacturing power converters, a core component used in large-scale photovoltaic installations.

The Indian subsidiary of AEG Power Solutions Private Limited manufactures power converters for solar power generation and other products for the Indian market.

It has a state of the art 80,000 sq ft production site in Bangalore with a capacity to manufacture products generating 400 MW per year. The business sold involves both manufacturing and sales and represents annual revenues of €12.39 million and 85 employees.

''The AEG PS Group is continuing to concentrate its scope and efforts on its core businesses and markets. This divesture is a significant milestone in the ongoing reorganization process of AEG Power Solutions. We are delighted to have a partner that will continue to provide to our customers an equally high standard of capability and expertise as well as give a long and prosperous future for the highly talented Indian colleagues,'' said Jeffrey Casper, CRO and member of the board of AEG Power Solutions.

Under the deal, Toshiba-Mitsubishi Electric Industrial Systems will acquire 100 per cent of the share capital of AEG Power Solutions India PVT Ltd.

The Indian solar market for power converters is expected to grow by about 40 per cent annually, and Toshiba-Mitsubishi Electric Industrial Systems, which holds a global market share of around 5 per cent, is targeting annual sales of $135 million in India in five years from the current $5 million.