L&T in power transmission JV with South Africa's Befula Investments
23 September 2010
Engineering and construction major Larsen & Toubro (L&T) along with Befula Investments of South Africa will set up a joint venture company `Larsen & Toubro T&D (P) Ltd`in South Africa, to tap power transmission and distribution opportunities in that country.
Befula Investments (Pty) Ltd, a Durban-based general engineering and investment company, is in the business of structural and plate fabrication, tank manufacture, including cranes and material handling equipment.
L&T and Befula will collaborate on areas, including turnkey execution of power transmission lines, sub-stations, rural electrification, power distribution, and industrial electrification in South Africa.
Befula Investments and its associates have a wide network access to resource pools for labour and services across multiple sectors, including labour sourcing, site location of labour, logistics and supply chain management support.
"The agreement brings together L&T's vast experience in power transmission and distribution and Befula's country knowledge and local networking capabilities. The JV will effectively leverage the strengths of both the companies to tap rapidly emerging opportunities in South Africa," said K V Rangaswami, president (construction) and member of the board of L&T.
With an installed capacity close to 44000 MW South Africa is facing a severe peak period power shortage of around 3,000 MW, which is expected to grow 6 per cent every year, L&T said in its release.