Salzer Electronics has entered into a technical licensing agreement with Trafomodern, Austria based company. As per the agreement, Salzer will use Trafomodern's technology and design and assistance to manufacture dry type air cooled transformers, chokes and inductors in India.

Dry type transformers is a highly specialised and technical product with applications in Medium & large UPS, renewable energy business, railways, power generation and the marine industry.

The cost of the project is approx. Rs 220 million excluding the land as Salzer has surplus land adjacent to its existing land.

R. Doraiswamy, managing director, Salzer Electronics said, "We are delighted to begin our business relationship with Trafomodern, which is one of the leading manufacturers of electrical solutions in Europe. Using their superior technology, we will start to manufacture dry type transformers in India for our customers here and abroad.”

The business segments that Salzer will market this new product will be to Energy Management (UPS), Metro Rail, Solar Energy, Wind Energy, Industrial Segment and Marine. The estimated business value in UPS is $250mn and the estimated business potential in solar/wind energy is $200mn. The company is also witnessing big opportunities in Metro rail/railways and industrial segment.

Shares of the company declined Rs 0.5, or 0.2%, to trade at Rs 252.40. The total volume of shares traded was 102,027 at the BSE (3.49 p.m., Monday).