In an attempt to take on ABB and Siemens in the medium voltage switchgear market, Larsen & Toubro (L&T) acquired the switchgear business of Malaysian company Tamco for about $110 million.L&T currently has “zero per cent” market share in the medium voltage switchgear market. With this acquisition, it expects to garner a 10% share by 2009-10.
L&T has out a 40% market share in low voltage switchgears in the domestic market.
As big-ticket investments in power generation and transmission take place in the country, L&T’s acquisition is timely and provides it a quick entry into a new segment.The acquisition would help double revenues at L&T’s electrical and electronics division to $1 billion by the year to March 2010.For L&T, the low voltage switchgear business contributed $500 million to annual revenues whereas Tamco’s revenues last year were pegged at $102 million.
Read more in The DNA Money article.
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