Toshiba Reinforces Its Transmission and Distribution Business In India

Toshiba Corporation has invested US$30 million in India’s transmission and distribution infrastructure.
Published: Mon 17 Nov 2014

Toshiba Corporation will reinforce its transmission and distribution business in India with a 3 billion yen (approximately US$30 million) investment in new production capacity at Toshiba Transmission & Distribution Systems India Private Ltd (TTDI) in Hyderabad.

India as a strategic base for power business

The investment is part of the company's plan to invest US$100 million in India’s power sector by 2016. According to Dr. Katsutoshi Toda, Chairman & Managing Director, TTDI, "India is a high growth market that Toshiba has positioned as a strategic base for its power-related businesses.”

He adds that Toshiba is seeking to secure a 20% share of the Indian market by 2018, and also reinforce Toshiba Transmission and Distribution Systems (India) Pvt. Ltd. as a core Transmission and Distribution production base for other major markets, including Europe, ASEAN, and Africa.

A new line for large power transformers will come on line in spring 2015, at the same time as the full scale launch of a new line for switchgears. Alongside its existing production line of small-and medium-capacity transformers and low- and medium-voltage switchgears, the new power transformer line will support production of 765kV transformers with a capacity of 500MVA, while the new switchgear line will produce high voltage products.

Toshiba established Toshiba Transmission and Distribution Systems (India) Pvt. Ltd. in 2013 by acquiring Transmission and Distribution business from Vijai Electricals Ltd. with 20.0 billion yen (approx.USD 200-million dollars), and also started operation of a new power transformer facility in Russia in February 2014.

By utilizing the India based operations as part of an integrated global supply network, plus with the worldwide sales network of Landis+Gyr, a Toshiba Group company, Toshiba aims to achieve global sales of 700-billion yen (approx.US$7,000-million dollars) in the Transmission and Distribution and smart grid business in FY2015.

India’s need for electricity infrastructure grows

India continues to record high economic growth and is ranked as one of the largest electricity producing nations in the world – in fact, India is currently ranked fifth in the world. Power generation has grown over 100 fold since independence to 967 billion KWh in 2013-14. Despite this, power shortages (approximately 10% of the nation’s total demand) continue to disrupt the country and these are due mainly to the inadequate utilization of capacity, loss-making state utilities, lack of comprehensive inter-regional transmission links and high transmission losses – mostly as a result of theft.

The government has recognised that the country’s transmission and distribution sector requires major maintenance and upgrades and is promoting measures to increase the number of 765kV substations, toward increasing the country's transmission capacity five times by 2017. This policy is driving demand for large power transformers and high voltage switchgears.

India has also recently signed a power trade agreement with Nepal in order to improve its power capacity. [Engerati - India and Nepal to Trade Electricity.] The Tamil Nadu state power grid is also set for upgrades to handle increased power generation and renewable capacity. [Engerati – Tamil Nadu Seeks To Improve Power Grid.] With these and other infrastructure projects, India can expect to see significant improvements in their power delivery which can only improve their economic development in the future.

Further reading

KnowIndia – Power Generation (an overview)