Toshiba Corp on Tuesday announced that it would acquire a majority stake in Indian power distribution transformer manufacturer Vijai Electricals.

Japan-based Toshiba said it would acquire the stake in the Hyderabad firm for $200 million (Rs 1,260 crore). The deal is expected to help Toshiba in expanding its reach in the fast-growing power transmission & distribution sector of India.

Takeshi Yokota, Toshiba's corporate vice-president, said the acquisition would not only help the company achieve its aim of securing a 20 per cent of Indian market share within five years but also help it in reinforcing its position in the global market.

Announcing the acquisition, Yokota said, "It will support us not only in the Indian market, where we aim to secure a 20 per cent market share within five years, but in reinforcing our position in the global market, by strengthening our worldwide network."

Describing the acquisition as an essential part of the company's global T&D strategy, Yokota added that T&D market size would likely increase to more than $4 billion by the year 2015.

The transaction is expected to be completed by November this year.