Toshiba to acquire major part of Vijai's business for $200 million

About Toshiba Toshiba India Private Limited is a 100% subsidiary of Toshiba Corporation Japan, It was established in September 2001. The business operations of Toshiba India Private Limited in India encompass the following business domains:

PC Business (notebook computers) TV Business(LED TVs, LCD TVs) Home Appliances Business (Refrigerators, Washing Machine) Office Automation (Multi Functional Printer / Bar Code Printer) Thermal & Hydro Power Plant Systems Engineering Business Social infrastructure (Industrial Systems, Railways, Security & Automation, Smart Community, Transmission & Distribution System) Semiconductor & Storage Business Outline of Toshiba India Private Ltd:

Company Name: Toshiba India Pvt. Ltd. Address: Toshiba India Pvt. Ltd., 3rd Floor, Building No. 10, Tower - B, Phase - II DLF Cyber City, Gurgaon - 122 002 Haryana, India. Managing Director: Kenji Urai. Headquarter: Gurgaon. Main Branch Offices: Mumbai / Bangalore / Chennai / Hyderabad / Kochi.

About Vijai Electricals Ltd

With a commitment to continuous improvement, paving a way for vertical integration, the Research & Development wing of Vijai has been painstakingly working round-the-clock to develop new products, better and improvised manufacturing processes, usage of modern technology and enhanced materials for the benefit of customers. This would prove not only economical in terms of cost and energy but would also give an all time superior product to provide total satisfaction to the end user. Continuous Magnetic Field Annealing and Delta Core Transformers, the patented technologies of Vijai are steps in this direction. VIJAI ELECTRICALS LTD is equipped with the latest Design and Engineering technologies and is definitely one of the best in the world. Vijai caters to international specifications believing in product quality and customer satisfaction. Adherence to the customer specification is the companys motto. Nevertheless, Vijai doesn't hesitate to educate its valued customers by coming out with valid and relevant deviations. Vijai has a team of qualified and experienced design engineers, software engineers and skilled design draughts men trained in advanced AUTOCAD, AUTOLISP and other areas. Software wing of its engineering department has successfully developed computer programs for Electrical Design calculations enabling millions of iterative calculations converging to a very optimum design. This is done exclusively for National and International tenders with capitalization of loss parameters. Vijai' s vision is to achieve complete set of design calculations, bill of materials and constructional drawings, all with a single click of a mouse. Vijai has a variety of design options for different types of conductor and core materials. A massive data bank has already been established based on the previous test results. Chairman: Headquarters: Employees: Sales: Businesses: Dasari Jai Ramesh Hyderabad, Andhra Pradesh, India About 6,000 About US$250 million Design, manufacturing and sales for distribution transformers, transmission transformers and switchgear. Construction of power transmission and distribution lines. Production of twisted wire for power distribution.

About Deal Toshiba Corporation has announced the acquisition of Hyderabad-based power and distribution transformer company Vijai Electricals Ltd. Toshiba buys the major part of Vijai's electricity transmission and distribution (T&D) business for about Rs.1,257.86 crore ($200 million). In parallel, Toshiba will establish a new company that will absorb the acquired business, and also integrate Toshiba's state-of-the-art design and manufacturing technologies for T&D systems. The new company will also enter other growing markets in India, 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. Toshiba will position the new company as a core production base for expanding its T&D business in India and the global market, alongside its other bases in Japan, China, Brazil, Russia and Southeast Asia. Vijai was established in 1973, to manufacture and sell electricity distribution transformers. The business has grown on the strength of the company's high quality production capabilities, which have allowed it to win the top share in the Indian market and major footholds in both Europe and Africa. Vijai further expanded its T&D business in 2006, when it entered the power transformer and switchgear businesses, and through the business activities Vijai has manufactured and supplied the world's highest voltage class ultra-high voltage 1200 kV power transformer. "The acquisition is necessary for our global T&D strategy, and Vijai's products and sales channel provide us with an ideal fit for our T&D business in India and beyond," said Takeshi Yokota, Corporate Vice President of Toshiba. "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." Dasari Jai Ramesh, Vijai's Chairman added "I'm delighted to reach agreement with Toshiba, a global company. 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." India has recorded year-on-year GDP growth of over 5% since 2003, and long-term capital investment is expected to continue to counter current infrastructure shortages in key areas, including electricity and transportation. The T&D market size is expected to rise to over US$4 billion by 2015.