Elsewedy Electric has entered the Asian market through its acquisition of shares in two companies involved in the transformer sector in Indonesia and Pakistan, valued at $60m.
In a statement to the Egyptian Exchange (EGX), the company said that it acquired 95% of PT CG Power Indonesia, which specialises in manufacturing electrical transformers in Indonesia.
The company has a production capacity of 10,000 MW, and provides maintenance services for the duration of the transformers’ lifetime, in addition to the construction of transformer substations.
Elsewedy added that it has acquired 100% of Validus Engineering PVT LTD, a company specialising in manufacturing electric power transformers in Pakistan.
It also said that it plans to introduce its power inverters technology to boost the growth of the Pakistani company, in order to reach a production capacity of 5,500 MW.
Elsewedy pointed out that these additions to the company’s business portfolio raises the total of its transformer plants to six factories. It will more than double the annual production capacity to 30,000 MVA.
The company stated that the acquisition provides an opportunity to penetrate the Southeast Asia and Australia markets, and coincides with the group’s new phase of growth and continuous expansion.
The company recorded a net profit of EGP 3.02bn during 2020, compared to EGP 4.02bn in 2019. Its revenues declined during the past year to EGP 46.4bn, compared to revenues of EGP 46.62bn recorded in 2019.
