Toshiba expanding electrical power business in India

Acquires a majority stake in Vijai Electricals.

Japan’s Toshiba Corporation said it bid to acquire a majority stake in Hyderabad-based Vijai Electricals for US$200 million is part of a move to enhance its production base in India.

Toshiba and Vijai Electricals announced they have agreed to Toshiba's acquisition of the major part of Vijai's electricity transmission and distribution (T&D) business. The acquisition will be completed this November.

Toshiba will establish a new company to absorb Vijai's T&D business and also integrate Toshiba’s design and manufacturing technologies for T&D systems.

The new company will enter other growing markets in India, including power electronics systems such as high voltage direct current power transmission and railway power supply systems.

Takeshi Yokota, Corporate Vice President of Toshiba, said the acquisition is an ideal fit for Toshiba’s T&D business in India and beyond. He said the agreement will Toshiba secure a 20% market share in next five years.