Earlier Sehgal was advisor to AEG NGEF. EHG is a wholly-owned subsidiary of Daimler Benz Industries. In fact, the new representative office was a part of AEG NGEF. When the company was sold to GE Electrical Distributors & Controls India, EHG held back the facility while offering all other units to the buyer.

"The decision to set up a representative office in the country comes in the wake of the German firm selling its entire holding in its wholly-owned outfit to GE Electrical last month," a senior company official said. EHG made about Rs 20 crore on the deal, whichincluded the sale of its two manufacturing facilities in Karnataka.

Sehgal is expected to take a final decision on the dilution of EHG stake in the ailing NGEF Ltd. "Since the state-run NGEF is up for sale and scouting for prospective buyers, EHG has plans to offload its equity in former at a proper time. Once NGEF is sold to a prospective buyer, EHG will offload its stake in favour of the suitor to garner more revenue," sources said.

At present EHG holds around 22.6 per cent equity stake in NGEF, the erstwhile partner of AEG-NGEF Ltd. The decision to pull out of the switchgear business worldwide, which was the main operation of AEG NGEF in India, was part of the parent company's - Daimer Benz Industries - strategy to focus on its core areas, according to the officials.