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GE T&D India announced after market hours yesterday, 23 December 2019, that its undertaking consists its rights in the leased land, identified movable and immovable properties, as per the terms of the business transfer agreement executed in this regard, subject to such consents as may be required to close the transaction.
The deal will result in optimising the utilisation level of the transformer manufacturing factories in the company and consolidation of the company's transformer manufacturing related operations in India. Workers at the Naini manufacturing facility will be provided the opportunity of continued employment with the buyer.
The power transformers business at Naini had a turnover of Rs 406.10 crore out of the total turnover Rs 4218.80 crore turnover of the company during the financial year ended 31 March 2019, being 9.6% of the total turnover. The net book value of fixed assets of the Naini facility was Rs 58.30 crore as on 31 March 2019, being 4.1% of the net worth of the company. The company has net worth of Rs 1428 crore as on 31 March 2019.
The business transfer agreement was executed on 23 December 2019 and the deal is expected to complete by around 15 February 2020. The company will receive Rs 25 crore from the sale of undertaking.
On standalone basis, the company reported a net loss of Rs 30.69 crore in Q2 September 2019 as against a net profit of Rs 51.48 crore in Q2 September 2018. Net sales declined 17.3% to Rs 821.07 crore on YoY basis.
GE T&D India is a major player in the power transmission and distribution business - a product portfolio ranging from medium voltage to ultra high voltage (1200 kV) for power generation, transmission and distribution, industry and infrastructure markets.
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