Chennai-based Indo Tech transformers is likely to be acquired by General Electric India. The acquisition will benefit GE to a large extent by consolidating its manufacturing presence in the power sector. A part of Rs 240-crore Indo Tech group, Indo Tech Transformers was engaged in supplying distribution and power transformers to the state electricity boards (SEBs) which used to incur huge revenues for the company. Recently the company has decided to concentrate more on the industrial and export segments.

 

The flagship unit of Indo Tech group, the company is reported to have a very good profit track record. Indo Tech transformers recorded 43 percent rise in net profit during the first half of this year. With this, the company accumulates a net profit of Rs 24.63 crore against Rs 17.14 crore in the same period last year. Apart from these, the net sales of IndoTech transformers have also increased to Rs 119.38 crore.

 

The company has four manufacturing facilities spread across Palakkad in Kerala, Thirumazhisai and Kancheepuram in Tamil Nadu. Since its inception in 1976 by PE Subramaniam the company is engaged in producing a range of distribution and power transformers. The acquisition of Indo Tech transformers by GE will place it in a favourable position as Indo Tech has been showing consistent profit over the last few quarters.