Prolec-GE to exit India operations at discount

Had acquired Indotech Transformers for close to Rs 350 cr

Prolec-GE, the Mexico-headquartered transformer manufacturer, is understood to be looking at exiting its business in India, four years after it acquired the Chennai-based Indotech Transformers for Rs 350 crore.

Prolec-GE, a JV between Xignux, a major Mexican industrial group and General Electric, is one of the largest transformer manufacturers in the Americas, offering a complete line of transformer products that cater to generation, T&D .

During May 2009, Prolec-GE, as part of its emerging markets push, had acquired close to seventy-five per cent of the publicly-held Indotech Transformers for around Rs 350 crore. Indotech Transformers was established in 1976 and manufactures a range of distribution transformers and various special application transformers, mobile sub-station transformers and sub-stations.

Senior investment bankers who are aware of the ongoing discussions indicated that Prolec-GE is in discussions with various players and interestingly also with the earlier promoters of Indotech Transformers from whom Prolec-GE had acquired the business.