Leading transformer manufacturer Emco Ltd has set up a $20-million joint venture with Edison Power Ltd of South Africa for manufacturing transformers. The venture will tap the emerging market in South Africa and neighbouring countries.

The joint venture has been formally registered with Emco holding 51 per cent equity and Edison holding the balance. The manufacturing unit will come up in Gauteng province of South Africa and would be operational by mid-2009.

Emco would be setting up the unit and providing all the technical know-how. Edison would be responsible for marketing of the products. The capacity of the unit is to manufacture a range of transformers up to 20 MVA, and the total annual capacity would be 2,000 MVA.

The ambition of the venture is to become a reliable power equipment supplier in South Africa and to grow in the region through organic and acquisition route. Apart from routine contracts, major investments planned by Western Power Corridor and capital outlay for huge power transmission and distribution programmes by Eskom, the South African public utility in the region, will give major thrust to the joint venture.

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