L&T-Kanoo venture opens Saudi unit
Dammam, May 6, 2008
L&T Electricals Saudi Arabia Company Limited (LTESA) has inaugurated its switchboards manufacturing facility in Dammam, Saudi Arabia.
The company is a joint venture between Larsen & Toubro International FZE (LTFZE) and Yusuf Bin Ahmed Kanoo.
LTESA will engage in designing, engineering and manufacturing of conventional and intelligent power and motor control systems with automation in the Low Voltage (LV) and Medium Voltage (MV) categories, as well as offer project equipment comprising allied products, to Saudi Arabia’s infrastructure, oil and gas, and industrial sectors, said a statement.
Through LTFZE, Larsen & Toubro Limited (L&T), India’s leading engineering and construction company, joined hands with Saudi Arabia’s reputed house of Kanoo in March 2006 to offer a range of high end electrical and automation systems to Saudi Arabia and other markets. LTESA operated from hired premises. The inauguration of L&T’s own premises will strengthen operations.
The factory at Dammam Industrial Estate II was inaugurated by R N Mukhija, president – Operations & Member of the board of L&T, and Abdul Aziz Qassim Kanoo, deputy chairman of Saudi Arabia YBA Kanoo. Senior officials present on the occasion included the directors of LTESA Board, S C Bhargava, Bader Kanoo and S K Mukherjee.
Speaking on the occasion, Mukhija said: “LTESA is poised to bring L&T closer to customers and offer solutions and service with enhanced efficiency in the fast growing market of Saudi Arabia. I am sure the association between L&T and Kanoo, two prestigious business institutions, will grow beyond business and strengthen the bonds between Saudi Arabia and India.”
The inauguration of the LTESA facility comes close on the heels of L&T completing the integration process of the switchgear facilities of Tamco of Malaysia, which it had acquired in October 2007.
L&T had entered into a share sale agreement in October 2007 with Tamco Corporate Holdings Bhd towards the acquisition of latter’s de-merged switchgear business, Tamco Switchgear Malaysia Sdn Bhd along with Tamco’s switchgear manufacturing subsidiaries -- Tamco Shanghai Switchgear Co Ltd in China, Tamco Electrical Industries Australia Pty Ltd in Australia and PT Tamco Indonesia in Indonesia.
The Saudi facility along with Tamco’s facilities in Malaysia, Indonesia, China and Australia marks the progressive globalisation of L&T electrical business, and ensures that it has a wide footprint to service some of the fastest growing markets in the Asia Pacific region as well as in the Gulf countries, said a statement.
LTESA has built the Dammam manufacturing facility on a 15,000 sq. meters plot with an office and shop floor area of 7000 sq m. The facility has three air conditioned modules for manufacturing, having state-of-the-art powder coating plant, CNC punching machine, CNC bending machine, testing kits and assembly area. –TradeArabia News Service