This undated photo showed CG Power Systems Indonesia's manufacturing facility in Bogor, West Java. (Photo courtesy of CG Power Systems Indonesia)
Egypt's Elsewedy Takes Over Indonesian Company Selling $60m Worth of Transformers a Year
BY :JAKARTA GLOBE
MAY 12, 2021
Jakarta. Elsewedy Electric, a multinational Egyptian electric company, has acquired a power transformer maker in Indonesia, marking the multinational company's entry into Southeast Asia's largest economy.
Elsewedy Electric completed the purchase of 95 percent interest in CG Power Systems Indonesia for an undisclosed sum in a virtual meeting on May 6, the company said in a statement on Monday.
CG Power Systems Indonesia was a subsidiary of a bankrupted Belgian company previously controlled by India's CG Power and Industrial Solutions.
CG Power and Industrial Solutions's 2019-2020 annual reports showed that the Indonesian company made 4.4 billion Indian rupee ($60.5 million) in sales and 11.7 million Indian rupee in profit for the year ended in March 2020.
“This acquisition marks our strategic entry into Indonesia, and we believe the two companies complement one another almost perfectly and boast a unique product portfolio,” Hany Gamal, the managing director of Elsewedy Electric Indonesia, said in the statement.
CG Power Systems Indonesia is the first manufacturer in Southeast Asia capable of producing power transformers up to 500 megavolt ampere (MVA) 550 kilovolt (V) capacity. The company also provides design, delivery, and installation services for the transformers it produces.
Elsewedy said the acquisition would not alter CG Power Systems Indonesia's structure and technology, nor the quality and delivery of the latter's products and services.
Gamal said the company plans to invest more in Indonesia, which the company saw as a key region in its strategy.
Himawan Samodara, CG Power Systems Indonesia's operations director, said the acquisition would extend Elsewedy Electric's and CG Power Systems Indonesia's "combined reach in the fastest-growing segment in the market.”
Elsewedy Electric controls 27 manufacturing facilities in 15 countries, generating 46.4 billion Egyptian pounds ($2.1 billion) in revenue and net income of 3.0 billion Egyptian pounds in 2020.
CG Power Systems Indonesia became the 6th power transformers manufacturing facility in Elsewedy Electric portfolio and its first in Southeast Asia.
According to the company's LinkedIn page, CG Power Systems Indonesia was first established in 1990 as Pasti, a joint venture between Belgian transformer maker International and local company Arya Sada Perkasa.
Arya Sada Perkasa ended the joint venture in 1996, handing over full control to its partner that changed the company name to Pauwels Trafo Asia.
CG Power and Industrial Solutions took over the Pauwels group in 2005, changing the latter's name into CG Power Systems Belgium and the Indonesian entity's name to CG Power Systems Indonesia.
In Belgium, the Commercial Court declared CG Power Systems Belgium bankrupt and put up all of the company's units, including CG Power Systems Indonesia, for auction.