Siemens to buy Elpro's isolator unit for Rs 25 cr

Siemens will acquire the isolator business of Elpro International for Rs 25 crore. As part of the deal, Siemens has acquired the manufacturing unit of Elpro International located in Hyderabad.

The newly acquired business will be integrated with Siemens' Power Transmission and Distribution (PTD) division and its 108 employees, comprising officers and workers, will now be part of Siemens.

The isolator division of Elpro International at Hyderabad provides high quality isolators covering the entire spectrum up to 420 kv.

The isolators are used in transmission and distribution lines for isolation of circuit during maintenance or breakdown.

Elpro International, a leader in the isolator business in India, clocked a turnover of Rs 32.9 crore as on March 31, 2006. The company is in the business of surge arresters, metal oxide varistors, isolators and permanent magnets.

"The acquisition is part of our investment-led growth strategy. This new business will enable us to close the gap in our PTD portfolio and further strengthen our position in the growing power sector," said J Schubert, managing director, Siemens.

On the business potential in the power transmission segment, Schubert said, "India has a vast transmission network and constant expansion of this network is inevitable with progressive measures taken by the government. This will continue to present favourable business opportunities for leading players like us."

In the transmission segment, the isolators are the essential component to ensure the overall safety and are confident that this new line of business is a step in the right direction."