Diamond Cables acquires Western Transformers to Augment Capacity to 10,000 MVA per annum

Diamond Cables Ltd has announced that the long term vision of the Company is to become a large player in the Power Infrastructure Sector by continuously enhancing its capacity to undertake Turnkey Power infrastructure Projects.

With its in-house capacity to manufacture Transmission and Distribution Conductors and Cables, the Company proposes to completely integrate its Power Infrastructure business, and is proposing to add capacity to manufacture Power and Distribution Transformers.

As a first step towards augmenting its Power Transformer capacity the Company's Board has considered and decided to acquire Western Transformer, a Gujarat based Transformer manufacturer. Western Transformer was established in 1994 with a capacity to manufacture Distribution & Power Transformers from ratings of 10 KVA upto 10 MVA with an installed capacity of 2500 MVA. The acquisition of the said unit would be completed by March 20, 2007.

The Company has an existing order book position of Rs 300 million, which includes order worth Rs 90 million from GEB and Rs 210 Million from other customers.

The Company's Power Infrastructure Group, has a requirement of over 4200 Transformers of 25.63 and 100 KVA class with an aggregate value of over Rs 350 million which will be met by Western Transformers.

The Company proposes to increase its Power Transformer capacity upto 10,000 MVA by March 2008 with product range upto 220 MVA either by setting up a green field project or by acquiring an existing player in the Power Transformer segment.

Source : Equity Bulls

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