For Rs 87 Crore, GE T&D To Sell Global Engineering Operation Division To GE India Industrial

CIOReviewIndia Team | Monday, 18 January 2021, 03:31 IST

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On Saturday, GE T&D India announced it has agreed-upon selling its Global Engineering Operations Division (India for Global) to GE India Industrial Private Ltd for an amount of Rs. 87.3 crore.

A BSE filing on this said, “Subject to the approval of shareholders, the company has agreed to sell its Global Engineering Operations Division (India for Global) to GE India Industrial Private Ltd together with the assets and manpower comprised therein along with its corresponding liabilities on slump sale basis on an 'as is where is' basis."

The filing added that the activities of the business were for providing engineering and product and project design services to the global affiliates of GE Grid Solutions and therefore non-core to the company’s business.

There will be the continuation of GE T&D India Ltd’s internal team for supporting such activities of its business. It also announced that it would get Rs. 87.3 crore on completion of the sale of the business.

The sale completion expected date is regarded at the end of the day on March 31, 2021, which is subjected to the satisfaction of the identified conditions of the precedents and approval of the shareholders for the related party transaction.

The business transfer agreement is expected to be implemented on January 29, 2021.

The Global Engineering Operations Division (India for Global) had a turnover of Rs. 85.9 crore out of a total turnover of Rs. 3,158.7 crore of the company during the financial year ended March 31, 2020. It is less than 3 percent of the total turnover.

The netbook value of the fixed assets of the divisions was evaluated at Rs. 13 crore as of March 31, 2020 which is shorter than 2 percent of the net worth of the company.

The overall net worth of the company is Rs. 1,051.5 crore as of March 31, 2020.

The GE India Industrial Private Ltd (Buyer) had a turnover of Rs. 4,042.7 crore during the financial year ended on March 31, 2020 and the overall worth of Rs. 4,747.8 crore as of March 31, 2020.

GE India Industrial Pvt. Ltd. is in the businesses of aviation, renewable energy, gas power, digital energy, propellers, other electrical pieces of equipment, research and development of material science, process technology, engineering, and others.

The company is engaged in the business of products, projects, and systems for electricity transmission and related activities.

Global Engineering Operations Division was a non-core business activity for the company and the sales are expected to help in management for focusing on the core business activities alongside sales’ revenue generation.

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