Gec Sells Two Arms To Ge Elect For Rs 75.5 Cr
GEC Alsthom, the power equipment major, has sold its low voltage components and engineering plastic businesses to GE Electrical Distribution and Control India Pvt Ltd for Rs 75.5 crore.
The company has stated this in a notice to the stock exchange on Friday.
The statement said "the businesses have been acquired by GE Electrical Distribution and Control India Pvt Ltd."
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The low voltage components business comprises fusegear, controlgear and switchgear products.
The low voltage business had been in trouble for some time now.
The company had mentioned in the annual reports of 1995-96 and 1996-97 that it is exploring the possibility of entering into a strategic alliance with an internationally well-known company in this business.
The performance of the low voltage business was severely affected due to adverse cash conditions in 1996-97 as well as delays and postponement of various projects.
However, the group's export performance improved in 1996-97.
The performance of the group in 1997-98 was expected to be at the same level as in the previous year.
The company has stated in its 1996-97 annual report, "Although the low voltage division has a wide range of products, in order to compete effectively with the Indian as well as the world's leading companies in this field, it is necessary to extend the range of products.
"Some new ranges of products such as fuse switch units are under development. However, a greater variety of products are needed to meet the market requirement."
Apart from the low voltage business, GEC Alsthom is also in the transmission & equipment manufacturing business. The company is also in the transformer business. It has a transmission and distribution division as well besides an industrial equipment division.
GEC had previously transferred its furnace business to its wholly owned subsidiary, Danieli India. Subsequently, 51 per cent of Danieli India was transferred to Transtrielle Beteiligung, a Luxembourg-based company.