Reliance Capital buys 26% in VTSL
Reliance Capital (RCL) has picked up 26% stake in Victory Transformer & Switchgear (VTSL), a fully-integrated transformer manufacturing company, for Rs 75 crore.
VTSL is a Hyderabad-based company, promoted by Vaddineni Venkatappaiah Naidu in 1996. It is currently managed by his son - Mahindra Vaddineni. A Reliance Capital spokesperson declined to comment.
The company primarily manufactures power transformers, but it is vertically integrated and manufactures related products such as unitised substation, transformer core, vacuum circuit breaker, insulators and transformer oil. The company supplies to state electricity boards across India and to major EPC contractors.
The company’s revenue has grown at a CAGR of 89% over the last two years, and it has an order book of over Rs 200 crore. VTSL is raising funds for expanding the existing transformer capacity and is considering acquisitions in the near future.