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Crompton Greaves Ltd is selling its power transmission & distribution business outside India to First Reserve International Ltd, USA

India: Crompton Greaves Ltd, in filing to National Stock Exchange and Bombay Stock Exchange of India has announced that the Company has received and accepted binding letter of offer for the acquisition of the European, North American and Indonesian activities of the power segment division of the company by First Reserve International, a US Private Equity Fund, for an enterprise value of INR 8.5 billion. This move is aimed in reducing global debt. Crompton Greaves Ltd ‘s global debt stood at INR 18 billion as of FY2015.

TechSci Research depicts that sale of Power Transformers & Distribution business of Crompton Greaves will lead to further consolidation of global power distribution and transformer business. Outside India, the Company has manufacturing facility at Bogor Indonesia, Tapioszele, Hungary, Mechelen Belgium, Washington Missouri, USA and Winnipeg Canada. As on FY2015, the Power Transformer product line of the Company has a total global installed capacity of approximately 80,000 MVA per annum. 

According to released report of TechSci ResearchGlobal Power and Distribution Transformers Market Forecast and Opportunities, 2020”, The market for power transformers had the largest market share by value in 2014 and is forecasted to have around 60% of the total market share in power and distribution transformers market in 2020. The power transformers market has the highest CAGR of 6.2%, during 2015-20, followed by distribution transformers which is forecasted to grow with a CAGR of 5.1% during 2015-20.

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