Tata Power Exits Tata Liebert

Tata Power has exited Tata Liebert by selling its 50 per cent stake to Emerson Electric of Mauritius for Rs 76.50 crore.

Tata Power stated in a notice issued to the Bombay Stock Exchange that it has sold 45 lakh shares at Rs 170 per share to Emerson Electric. The two sides entered into an agreement to this effect today. The deal is subject to statutory approvals.

The transaction means that Tata Liebert has now become a wholly owned subsidiary of Emerson Electric. Emerson is the parent of Liebert.

"For Tata Power, which is the largest private sector power company in the country, it makes sense to focus on its core business of major initiatives in power, energy and communication infrastructure and exit from activity not directly related to its core businesses," company managing director Adi J Engineer has said in a press release.

Tata Liebert manufactures uninterrupted power supply (UPS) and precision air conditioning systems. These find applications in the telecom, infotech, banking, medical instrumentation and petrochemical sectors. The company's UPS's range from 250 volt ampere to 4800 kilo volt ampere.

Tata Liebert clocked a turnover of Rs 178 crore for the year ended, March 31, 2001. This is a 40 per cent increase over the previous year. The company has projected a revenue of Rs 200 crore for the current fiscal. The company has been growing at a compounded annual growth rate of 38 per cent since inception.

Liebert Corporation is the world's largest supplier of power protection and precision air conditioning systems and is a division of Emerson Electric.

Emerson Electric has developed technology driven solutions for customers in industrial automation, process control, heating, ventilating and air conditioning. The company has over 60 divisions selling products in more than 150 countries with a workforce of about 1.23 lakh.