Sterlite Power Transmission to demerge its transmission infra business
Power transmission infrastructure developer and solutions provider Sterlite Power Transmission on Friday said it has decided to demerge electricity transmission infrastructure business spread across India and Brazil. The demerged Sterlite Power Transmission Ltd (SPTL) entity will continue to hold the global products and specialised EPC (engineering, procurement and construction) services business as well as the convergence — fiberco business, a company statement said.
SPTL announced the strategic decision to demerge its power transmission infrastructure business (build, operate and transfer model) spread across India and Brazil.
This move comes as part of the company's intent to create 'pure play' business verticals based on end-customer base, investor class and returns.
Pratik Agrawal, Managing Director, SPTL, said in the statement, «The demerger will enable both entities to create independent capital structures, unlock value and attract investors suitable for the distinct growth profiles for each entity. We are confident that this will bring substantial value for our shareholders and help us in creating two world class business entities.»
Globally, it stated, the power transmission network is expected to double in the next 8 years to meet aggressive renewable energy additions.
The demand for power products is expected to remain strong over the medium term amid aggressive global capex earmarked for renewables capacity addition, T&D (transmission and distribution) expansion, benefits from 'China+1' theme and favourable tariff structures in the US, it stated.
The power transmission infrastructure business encompasses the transmission assets in India and Brazil, which will now be transferred to Sterlite Grid 5 Ltd
