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Over the past two years, the Indian UPS industry has
witnessed cases of multinationals entering or furthering
their presence in India through the inorganic and organic
route. The most striking case of inorganic growth has been that of
Luminous Power Technologies, considered as amongst the largest
domestic players in the UPS and inverter market. In
June 2011, Schneider Electric acquired 74 per cent
stake in Luminous in a deal worth over $300 million. Over the past
twenty years of its existence, Luminous successfully created a
strong distribution network with over 25,000 points of sale, pan
India - a factor that found favour with Schneider.
Japanese business conglomerate Hitachi acquired majority
equity stake in Gujarat-based Hi-Rel Power Electronics Pvt Ltd, in
May last year. The company, since renamed to Hitachi Hi-Rel
Power Electronics Pvt Ltd, has announced its plans to setting up a
new manufacturing unit at Sanand in Gujarat for manufacture of
medium voltage inverters.
In February this year, France-based multinational Legrand
acquired the UPS business of Chennai-based Numeric Power
Systems Ltd for around Rs.830 crore. Numeric, apart from a strong
nationwide dealership, had a significant share in the
financial services segment. It is learnt that Numeric
has installed power backup systems in over 75 per cent of ATMs
pan India.
A notable case of organic growth has been that of Europe-based
RPS SpA, the world's fourth largest UPS manufacturer, entering
India through a joint venture. In February 2011, it teamed up with
the Prime Group to form a JV Riello PCI India Pvt Ltd that would set
up new facilities for the manufacture of UPS systems, to be sold
under the Riello/Aros brand name.
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