L&T acquires Tamco Switchgear for $108 mn

Larsen and Toubro (L&T), India's leading engineering, construction and technology company, has bought Malaysia-based Tamco Switchgear Malaysia Sdn Bhd the demerged switchgear buisness of the Tamco Corporate Holdings Bhd for $108 million (Rs 425 crore). 

The two parties propose to enter into three other share sale agreements for acquisition of three of Tamco's switchgear manufacturing subsidiaries - Tamco Shanghai Switchgear Co in China, Tamco Electrical Industries Australia in Australia and PT Tamco Indonesia in Indonesia.

"This is a significant move forward in L&T's plans of reinforcing its position as a major player in switchgear business. Tamco has a strong presence in the medium voltage (MV) category. With this acquisition, L&T will be able to offer a comprehensive range of MV switchgear in India and international market. This deal meets our requirements on both fronts of technology acquisition and market access. L&T's process improvement initiatives will help achieve cost efficiency and contribute to synergy benefits", said R N. Mukhija, president, operations, L&T.

With this acquisition, L&T will have access to the fast growing MV Switchgear markets like the Middle East and the EPC contractors that have approved use of Tamco's products.