Regional transformer distributor embarks on expansion drive
By Jacktone Lawi, October 13, 2022
Tanelec Limited, a subsidiary of TransCentury is investing $15 million (Sh1.8 billion) into regional expansion over a five-year period. The utility firm is injecting the investment in a bid to impact and control the manufacturing and distribution of transformers, switchgears, and metering units in East and Central Africa region.
Tanelec Ltd Group CEO, Zahir Saleh said the expansion plan is hinged on the implementation of the firm’s three key business strategy focus areas which includes an increase in power supply and power quality to the consumers leveraging on building and contractual of power and infrastructural supplies in the region.
It will also leverage big data mining analysis and helping utility companies derive intelligence from this data for the benefit of the end-users,” he added.
Currently, Tanelec Limited has the capacity to manufacture about 14,000 distribution transformers per year at its factory in Arusha, Tanzania. In addition, the company is able to repair up to 500 transformers per month/6,000 units per year.
TransCentury Group CEO Nganga Njiinu said Tanelec is one of the most profitable businesses in the group and are very proud of its achievement.
“The company is contributing about 40 per cent of our total earnings as a group and we will continue supporting its expansion strategy in the East and Central Africa market,” he said.
The company is currently the predominant provider of distribution and power transformer refurbishment and repair service in the region boasting the largest and most equipped repair center.
In Tanzania and Rwanda, have 90 per cent market share with Zambia accounting for about 75 per cent of market share.
For the Kenyan market, we have started making inroads having established our Tanelec Limited Kenya office recently and we are hopeful that will be able to get a sizable piece of the market in the near future considering the products that we have already introduced in the market,” added Saleh.
– Jacktone Lawi