Larsen & Toubro’s Malaysia-based wholly owned subsidiary Tamco Switchgear has acquired Henikwon Corporation Sdn Bhd, a Malaysian manufacturer of low and medium-voltage busduct systems, for an undisclosed amount. The deal will strengthen L&T’s offerings in building and infra segments and ensure a strong customer base for Tamco.
“Henikwon provides a wide range of standard and custom-designed busduct solutions,” said S.C. Bhargava, chairman of Tamco Switchgear. “This acquisition will be complementary to the E&A (electrical and automation) portfolio and make comprehensive offerings for the building and infrastructure segments. It will further enhance our presence in the South-east Asia and in catering to Indian and the Middle East markets,” he added.
With close to three decades of experience, Henikwon is a global player in electrical equipment space and specialises in low and medium-voltage busduct systems – an efficient and cost-effective means of providing motive power that replaces conventional cabling system.
Tamco provides electrical distribution and control solutions to industries and utilities in the MV segment that accounts for 85 per cent of its production. Indonesia and Australia are other global locations that house Tamco’s manufacturing facilities. The company has significant presence in Asia, Australia, Africa and the Middle East, with the latter being the largest export market for the company at present.
The Switchgear business of Tamco was acquired by L&T in 2008 from Tamco Corporate Holdings for $107 million. L&T is a $12.8 billion diversified company with operations in engineering, construction, manufacturing, technology and financial services.
Other M&A deals in this segment include China Power Tianjin New Energy Development acquiring Suzlon Energy Tianjin for $60 million (June 2012); Thermax acquiring Virgo Valves (March 2012); Hammond Power Solutions bagging Pan Electro Technic Enterprise for $16 million (Feb 2012); Novateur Electrical and Digital Systems acquiring Numeric Power Systems for $168 million (Feb 2012); Legrand France’s $4.5 million acquisition of Numeric Power System (Feb 2012) and Mitsubishi Electric’s acquisition of Messung Group of Companies (Jan 2012).
In October 2011, the Ministry of Heavy Industries and Public Enterprises released a note stating the Indian Electrical Equipment Industry Mission Plan 2012-22 and according to this, India is likely to reach an output level of $100 billion from $25 billion in 2010-11.
(Edited by Sanghamitra Mandal)