CG signs JV for setting up switchgear manufacturing plant in Indonesia - Angel Broking

Crompton Greaves (CG) has entered into a JV with PLNE, an Indonesian government-owned electricity utility company to manufacture and commercialize High Voltage and Extra High Voltage switchgear in Indonesia. The joint venture will be owned 51% by CG and 49% by PLNE and is a part of CG's global expansion strategy. The JV includes a technology transfer by CG over a period of five years for the production of the entire range of switchgear for the network – from 70kV to 500kV – and will be localized through CG‘s new manufacturing base in Indonesia. The estimated market opportunity of HV and EHV switchgear equipment in South-East Asia and the Pacific Region is predicted to exceed $500 million in the coming years.

We maintain Buy on the stock with target price of Rs. 117.

Source : Equity Bulls

Keywords