L&T- Mitsubishi’s JV looking to acquire BGR-Hitachi’s JV: Report

19 Mar 2013

Larsen and Toubro (L&T) - Mitsubishi Heavy Industries (MHI)’s Joint Venture (JV) Company reportedly is looking to acquire units set up jointly by BGR Energy Systems and Hitachi Power Europe GmbH. Further towards this development, MHI India is also examining the assets.

Interestingly, these reports of potential sale come amidst uncertainty over land acquisition, power sector policies and the poor health of state-owned electricity distribution utilities, all of which have resulted in orders drying up for equipment makers.

BGR Energy Systems, in August 2010, inked two joint venture agreements (JVA) with Hitachi of Japan and Hitach Power Europe GmbH, Germany, a Hitachi subsidiary, to set up a boiler and a turbine manufacturing facility in Tamil Nadu. While, in BGR-Hitachi TG, BGR has a 51% stake in the turbine unit, the remaining is held by Hitachi. In BGR-Hitachi Boilers, BGR holds 70% stake in the boiler unit, with the remaining being held by Hitachi.

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