IN RE: TERRA TRANSMISSION AND DISTRIBUTION INDIA (P.) LTD Vs. STATE

JUDGEMENT

(1.) ON 30th September, 2013 the Competition Commission of India (hereinafter referred to as the "Commission") received a notice under sub -section (2) of Section 6 of the Competition Act, 2002 (hereinafter referred to as the "Act"), given by Terra Transmission & Distribution India Private Limited (hereinafter referred to as "Terra" or the "Acquirer"). The notice was given pursuant to the execution of a Business Transfer Agreement entered into, inter alia, between Terra and Vijai Electricals Limited (hereinafter referred to as "Vijai") on 6th September 2013 (hereinafter referred to as the "BTA"). As per the information given in the notice, the proposed combination relates to the acquisition by Terra of the distribution transformers, the power transformers, and the switchgears businesses of Vijai operated from the Rudraram plant of Vijai (hereinafter referred to as the "Relevant Business"), pursuant to the BTA.

(2.) THE proposed combination falls under Section 5(a) of the Act.

(3.) AS per the details given in the notice, Vijai, an unlisted company incorporated in the year 1980, is engaged in the manufacture and sale of electrical transmission and distribution equipment such as distribution transformers (14,607 MVA capacity plant located at Rudraram and 4,000 MVA capacity plant located at Haridwar), power transformers (24000 MVA capacity plant at Rudraram), switchgears (11850 units capacity plant at Rudraram) and cables and conductors (plant at Haridwar). Vijai is also involved in the rural electrification and extra high voltage projects. Further, as stated in the notice, the Rudraram plant of Vijai also houses the copper sheet and copper wire rod manufacturing facility and the amorphous metal manufacturing operation facility, which supplies raw materials to the distribution transformers business of Vijai. However, these facilities will be retained by Vijai pursuant to the proposed combination. Post -combination, Vijai will also continue to operate the rural electrification and extra high voltage projects along with the distribution transformers business from its Haridwar manufacturing facility.