India 7th March 2025: BSE & NSE listed Quality Power Electrical Equipments Limited (QPEEL) (BSE: 544367; NSE: QPOWER) is pleased to announce the successful majority acquisition of Mehru Electrical and Mechanical Engineers Pvt Ltd (MEMEPL), a leading manufacturer of high-voltage instrument transformers for utilities, industries and power transmission networks. This acquisition represents a strategic milestone, aligning with Quality Power’s long-term vision to expand its technological capabilities, USP, manufacturing scale and global market reach.

Transaction Overview

Quality Power has acquired 51% of the share capital of Mehru for a total cash consideration of Rs. 120 crore, through a Share Purchase Agreement. Trilegal advised Quality Power on the transaction documentation and legal due diligence.

Commenting on the Acquisition of Mehru, Mr. Bharanidharan Pandyan, Joint Managing and Whole-time director, Quality Power, said:

“We are pleased to announce the majority acquisition of Mehru Electrical & Mechanical Engineers, a company with an outstanding legacy in high-voltage instrument transformers. This was one of the main objectives of the recently concluded IPO and I am pleased to share that we have honoured our commitment with lightening speed. From a product portfolio stand point, this strategic move reinforces Quality Power’s commitment to cutting-edge technology, precision engineering, and market leadership in high-voltage equipment.

Mehru’s expertise in oil-filled and dry-type instrument transformers up to 500kV aligns perfectly with our vision of delivering world-class power equipments solutions. With the growing global demand for grid stability, FACTS, and renewable integration, this acquisition positions us strongly in a multi-billion-dollar market energy products market where the barriers to entry are high due to stringent technical requirements and regulatory compliance.

What makes this acquisition even more compelling is Mehru’s highly skilled workforce, whose deep domain knowledge and engineering excellence have earned customer trust over decades. By integrating Mehru’s technology with our advanced manufacturing and global supply chain, we are creating a powerhouse of innovation, reliability, and customer-centric solutions.

With this synergy, Quality Power is now better equipped than ever to serve utilities, industries, and infrastructure projects worldwide with superior, high-precision electrical equipment.”

Mehru Transaction Strategic Rationale

1.  Enhanced Product Development: Accelerates innovation through advanced R&D capabilities, driving the development of next-generation high-voltage equipment, including smart monitoring and digital integration solutions
2.  Expanded Product Offerings: Strengthens Quality Power’s portfolio by integrating Mehru’s expertise in instrument transformers with its existing range of shunt reactors, power transformers, line traps, and FACTS (Flexible AC Transmission Systems) solutions, enabling comprehensive high-voltage equipment offerings
3.  Turnkey Solutions for Metering and Protection Applications: Expands capabilities to provide fully integrated solutions for power grids, renewables, and industrial applications.
4.  Skilled Workforce: Gains access to Mehru’s team of over 100 engineers, reinforcing a total skilled workforce of more than 500 personnel to drive technology advancements and large-scale project execution
5.  Geographic Expansion: Extends market reach through Mehru’s established customer base in Southeast Asia and Africa, further enhancing global presence
6.  Capacity for Large-Scale Projects: Strengthens manufacturing capabilities, optimizing production capacity and operational resilience to efficiently execute large-scale projects in power transmission and distribution

Synergies Driving Growth and Innovation

1.  Complementary Product Offerings: Mehru’s precision-engineered instrument transformers enhance Quality Power’s power quality and transmission solutions, creating a fully integrated grid equipment portfolio
2.  Advanced R&D & Engineering: Mehru’s state-of-the-art testing facilities, robust R&D capabilities, and skilled engineering team strengthen Quality Power’s innovation-driven approach, particularly in high voltage products business
3.  Large-Scale Manufacturing: The integration of Mehru’s expansive production facilities expands Quality Power’s manufacturing footprint, supporting both domestic and international demand
4.  Market Expansion: Mehru’s strong relationships with Power Grid Corporation of India (PGCIL), state utilities, EPC contractors, and global customers open new avenues for growth for complimentary Quality Power products
5.  Supply Chain & Cost Optimization: The combination of Mehru’s manufacturing expertise with Quality Power’s vertically integrated supply chain enhances cost efficiencies, project execution, and product reliability

New Product Development & Future Collaborations
Quality Power is committed to developing next-generation instrument transformers with enhanced accuracy, smart monitoring capabilities, and digital integration for modern grid applications. The combined R&D teams will explore cutting-edge solutions, including sensor-based transformers, AI-driven predictive maintenance, and hybrid insulation technologies, aligning with global trends in smart grids and grid automation