News Releases
Toshiba Corporation Signs MOU with Bharat Heavy Electricals Limited
on Collaboration in the T&D business
TOKYO—Toshiba Corporation (TOKYO: 6502) today announced that Toshiba and Bharat Heavy Electricals Limited (BHEL) have signed a memorandum of understanding (MOU) to enter into discussion on establishing a joint venture company in the transmission and distribution (T&D) equipment business. Going forward, Toshiba aims to set up the joint venture to a target date within June this year.
Driven by strong economic growth and progress in building essential social infrastructure, the Indian T&D business market is expected to see annual demand growth of over 10% in coming years, and to grow to approximately 400 billion yen by 2015. Under the MOU signed today, Toshiba and BHEL, India's largest T&D equipment and system manufacturer, intend to set up a joint venture company in India for manufacture of T&D equipment and systems in India and sales and marketing in India and overseas.
Toshiba is establishing a global T&D business that is particularly strong in emerging countries that can expect further growth. In promoting this strategy the company has expanded its manufacturing operation in China and established Toshiba Transmission and Distribution Systems Brazil Ltd. Toshiba will accelerate globalization of its T&D business, and targets an overseas sales ratio of 75% in fiscal year 2015.
Outline of Bharat Heavy Electricals Limited
| Established: | 1964 |
| Capital: | 4.9 billion in Indian rupees (approximately 9.7 billion yen, as of March, 2009) 68% owned by the government of India |
| Location: | New Delhi, India |
| Chairman and Managing Director: | Mr. B.P. Rao |
| Employee: | Approximately 45,000 (as of March, 2009) |
| Net Sales: | 280 billion in India rupees (approximately 550 billion yen, as of March, 2009) |
| Business: | Manufacture and sales marketing for transformers, insulated switchgears and generators |