Toshiba Corp. will buy the power transmission and distribution business of India's Vijai Electricals Ltd. for about $200 million by November to bolster its business in India and other areas overseas.
Toshiba will set up a new company to absorb the acquired business, which commands the top share for power and distribution transformers, Toshiba said Tuesday.
Established in 1973, Vijai has major footholds in Europe and Africa. Toshiba said the new firm will also enter other growing sectors in India, including power electronics systems and railway power supply systems.
Toshiba said the deal will give it a chance to jump into India's power transmission and distribution market, which is expected to grow from $3.5 billion in fiscal 2013 to over $4 billion by fiscal 2015.