Control Panel & Switchgears

ABB in talks to buy out L&T’s electrical business

ABB, the Swedish-Swiss multinational, is in discussions with L&T to acquire its electrical and automation division. The division that generated revenues of Rs 4,650 Cr and operating profit of a little over Rs 700 Cr in 2016-17 is expected to be valued at Rs 14,000-18,000 Cr. ABB owns 75% in ABB India, its locally listed arm, and the acquisition will help the Zurich-headquartered firm consolidate its position in the country. The ABB Group has a market capitalisation of $57 billion and revenues of $35.5 billion. ABB and L&T both declined to say anything about the discussions, with the spokespersons of the companies saying they do not comment on speculation and rumour. According to ET, L&T was seeking a valuation of Rs 18,000 Cr for the entire business, which includes the Indian operations as well as subsidiaries in Malaysia, Saudi Arabia and the UAE. ABB has offered over Rs 14,000 Cr, and discussions are on to arrive at a final figure.

Rising demand for switchgears in India

India Switchgear Market (2017-2022) Report says that, growing T&D network and rural electrification program coupled with infra development are the key factors driving the switchgear market in India. Govt schemes & initiatives such as UDAY & DDUGJY are expected to further fuel the growth of switchgear market in the forecast period. According to 6Wresearch report, India switchgear market is projected to reach $3.7 Billion by 2022. According to Niti Ayog, the GoI is planning to reach a renewable energy capacity of 175 GW by 2022. Further, govt initiatives to increase the penetration of clean energy is also a major source of growth for the switchgear market in India. LV switchgear dominated the overall India Switchgear market and also reflects the highest growth due to rapidly growing commercial & residential sectors. In MV, AIS holds the major revenue share, however, gas insulated switchgear is expected to increase its market share. The NR accounted for the largest revenue share in the country during 2015-16 followed by the WR. Uttar Pradesh, Tamil Nadu and Haryana states dominated the market with around 53.82% market share in terms of power sector investments in 2016. According to the report, during 2016-22, the NR and SR regions are anticipated to witness highest growth rate. 

ABB India bags order from Bangladesh

ABB India has won an order worth around Rs 178 Cr, from Power Grid Company of Bangladesh Ltd (PGCB), the country’s leading transmission utility, to support the country’s power infra expansion and meet its growing electricity needs. As part of the project, ABB India will build 2 new substations and upgrade 2 existing substations, all located in the south eastern parts of Bangladesh. The order was booked in the first quarter of 2017. The design, engineering, system integration and supply of key products will be executed in India, another e.g of making in India for the world. The substations will add around 535 MW of transmission capacity, enough to power more than 250,000 households and contribute to the govt’s target of providing access to electricity for its population of around 165 million, by 2021. ABB will build and commission one 132kV/33kV air insulated switchgear substation in Kachua, one 132kV/33kV gas insulated switchgear substation in Kalurghat and upgrade two existing 132kV/33kV AIS substations into GIS substations in the Comilla and Modhunaghat areas. ABB will also provide substation automation systems and fiber optic communications. 

V-Guard to acquire GUTS Electro-Mech

Kochi-based electrical appliances manufacturer V-Guard Industries Ltd plans to pick a majority stake in domestic switch gears & current transformers maker GUTS Electro-Mech Ltd. V-Guard Industries, which is backed by private equity firm Nalanda Capital, has already got the in-principle approval to make the investment in the Hyderabad based company. The investment is subject to completion of due diligence and obtaining the necessary regulatory approvals, it said.

Veto Switchgears & Cables bags order

Veto Switchgears and Cables Ltd has received an order of 6 lacs pieces per annum. The Company is in the process of establishing a LED factory in its existing facility in Vasai, Maharashtra. The production is estimated to start from Oct’17, with an estimated CAPEX of 2.5 Cr for the production of Panel Lights, Tube Lights, Flood Lights etc. The factory’s total estimated turnover is Rs 30 Cr/annum. 

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