L&T & Befula Investments to join hands in SA
Larsen & Toubro (L&T) and Befula Investments (PTY) Ltd of South Africa have signed a Share Holders Agreement to incorporate a Joint venture company Larsen & Toubro T&D SA (Pty) Ltd in South Africa to capitalize on the Power Transmission and Distribution opportunities in South Africa.
With an installed capacity close to 44000 MW South Africa is facing a severe peaking demand shortage in electricity. The current peak demand shortage is approximately 3,000 MW and this is expected to grow 6% every year. Thus there is a long felt necessity of huge generation capacity additions. Sizeable investments are lined up by the Government to cater to major generation capacity addition and augmentation of Transmission & Distribution Network in the next five years. The Transmission Lines are expected to be in 400 / 765 kV class to service the major load centers and strengthen the National Grid for balancing of power and to minimize instances of shut downs.
Recognising this opportunity and to exploit the business potential existing in the country, L&T has signed the Share Holders Agreement with Befula Investments (PTY) Ltd – a leading general engineering and investment company located in Durban having core strengths in general engineering with structural and plate fabrication, tank manufacture including cranes and material handling equipment.
Befula Investments with its associate partners have a wide network access to resource pools for labour and services across multiple sectors including Labour sourcing, site location of labour, logistics and supply chain management support.
The agreement was signed by S Rajavel, Executive VP (Electrical & Gulf Projects OC), L&T with Ravi Desai – Director, Befula Investments (PTY) Ltd at Chennai in the presence of KV Rangaswami, President (Construction) and Member of the Board, L&T.
Through the agreement the two companies have agreed to collaborate on areas including turnkey execution of Power Transmission Lines, Sub-Stations, Rural Electrifications, Power Distribution, and Industrial Electrification in South Africa.
KV Rangaswami, President Construction and Member of the Board, L&T said: "The agreement brings together L&T’s vast experience in power transmission and distribution and Befula’s country knowledge and local networking capabilities. The JV will effectively leverage the strengths of both the companies to tap rapidly emerging opportunities in South Africa."