GE, Crompton Greaves may be eyeing TRIL stake :: Angel Broking

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GE, Crompton Greaves may be eyeing TRIL stake
The promoters of Transformers & Rectifiers India (TRIL) are believed to be talking to
prospective buyers to sell a part or majority of their stake in the company. The promoters,
the Mamtora family, own about 77% stake in the company, which manufactures a wide
range of transformers. GE and Crompton Greaves are tipped to be potential buyers
interested in buying a stake in TRIL. The company had reported net profit of `40cr on
revenue of `541cr for the year ended March 2011. GE has already acquired a majority
stake in Chennai-based InfoTech Transformers (ITT) through GE Prolec. According to news
reports, GE may consider selling its stake in ITT and buy TRIL’s stake. GE Prolec plans to
make India a supply base for Middle East, Africa and the rest of Asian markets. We believe
this likely consolidation would be beneficial for the Indian transformers industry due to the
present overcapacity scenario. We maintain Buy on Crompton Greaves with a target price
of `300.