Question-and-Answer Session
[Operator Instructions] Your first question comes from the line of Jim Lucas with Janney Montgomery Scott.
James Lucas - Janney Montgomery Scott
Thanks, good afternoon guys.
Randall J. Hogan - Chairman of the Board, Chief Executive Officer
Hi, Jim.
James Lucas - Janney Montgomery Scott
And thank you very much for all the detail today. Two questions here, on technical products you touched on the end markets, but could you speak a little bit about some of the benefits if your getting them already of the GBU, combining electronic and electrical given some of the historical fits and starts you had on the electronic side.
Randall J. Hogan - Chairman of the Board, Chief Executive Officer
Right, we got your comments. As you were referencing we combined the electronic and the electrical under [inaudible] the longtime leader of the electrical side of the business. The first benefit is he has done lot of G&A consolidation leveraging the expertise and capability in electrical to help take the cost out. The SG&A actually its higher in electronics, even though the margin in lower. So, it's clearly a big opportunity on the SG&A side. The second is, is that we had electrical plants, particularly owns in Mexico which were frankly running at 98% capacity in the electric side and running at 50% to 60% on the electronic side. So we are getting better leverage of the utilization there and also we are taking a broad technical products view on the growth side, so there is inferences in India and in China we are well rescued towards electronics, right now we are getting more of an effort on electricals. I think they are off to a really, really good start to get more cost benefit and growth benefit from it.
James Lucas - Janney Montgomery Scott
Okay. And from a strategic standpoint, I mean, clearly this was a very nice transaction with a new joint venture, you had the one divestiture earlier in the year, can you talk about from a managerial standpoint, how you are feeling about the portfolio today and are you in a position to pursue or are you even looking at anything along this scale, currently?
Randall J. Hogan - Chairman of the Board, Chief Executive Officer
You mean something of a similar size?
James Lucas - Janney Montgomery Scott
Yes.
Randall J. Hogan - Chairman of the Board, Chief Executive Officer
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