L&T acquires Malaysia''s Tamco Switchgear from Tamco Corporate Holdings

Tamco Switchgear is the demerged switchgear unit of Tamco Holdings.

In addition, L&T will also acquire three of Tamco''s other switchgear manufacturing subsidiaries - Tamco Shanghai Switchgear Co Ltd in China, Tamco Electrical Industries Australia Pty Ltd 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," said, R N Mukhija, president, operations and member of the board, shortly after he had signed the acquisition agreement between L&T and Tamco Holdings in Kuala Lumpur this morning.

"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."

Tamco is a major player in MV switchgear in Malaysia. Its Middle East and Malaysian markets together contribute to over 50 per cent of its revenue.

With this acquisition, L&T Switchgear 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. This synergistic acquisition will enhance L&T''s capability in both LV with MV categories, and will allow it to offer turnkey solutions to customers.