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The UPS business completes Legrand’s value chain

Venugopal Pillai ,  Tuesday, April 30, 2013, 17:58 Hrs  [IST]

Jean-Charles Thuard—Jean-Charles Thuard, Managing Director, Legrand India

Legrand, the global specialist in electrical and digital building infrastructure, acquired the UPS business of Chennai-based Numeric Power Systems last year. We have Jean-Charles Thuard, who is also the new head of Legrand India, discussing this acquisition. Thuard explains that the new UPS business not only complements Legrand’s existing product range, but also completes it. Developing its presence in the three-phase UPS market is on Legrand’s radar, notes Thuard. An interview by Venugopal Pillai.

Tell us more about the rationale of acquiring the UPS business of Numeric Power Systems – a move, as we understand, that marks Legrand’s entry in the Indian UPS market.
The association brings to the group’s customers, synergies in the areas of power infrastructure, cabling, switchgear and wiring devices with quality power and improved power availability. All this adds up to a comprehensive solution and service package. With the support of the Legrand team, Numeric UPS, the leading brand for UPS in India, will further accelerate its growth in India and overseas by increasing its product bandwidth.

Please explain how the new UPS business complements Legrand’s existing product and services portfolio.
The UPS business complements and completes the entire value chain of Legrand’s electrical infrastructure product portfolio. Moreover, much of the electrical power continuity depends on the complete end-to-end infrastructure solution which Legrand Group is now poised to offer as a complete solution.

What is your view on the Indian UPS market, particularly the low-rating UPS market that is dominated by a plethora of marginal players?
The Indian UPS market is highly competitive with combination of Indian and multinational players. In the low-end from <40 KVA there are as many as 350 players in the market, which is a fairly large number. While some are competing for market share, others are looking at market share and profit as well. While growth opportunities are sizeable in Indian UPS market, factors like price, after-sales-service and delivery are the key differentiating factors in addressing the demand of the low end market.

What would you regard as the major demand drivers for the Indian UPS market?
I would say:
  • Increase in demand from Government, BFSI etc.
  • Expansion in IT & ITES Sector
  • Growth in demand from home, SOHO and distribution business
  • To meet the ever growing demands due to power deficits and its power continuity requirements
Given major e-governance plans and digitization initiatives, do you think that the government could be a major procurer of UPS systems in the coming years?
The government is the biggest buyer in the UPS industry, especially for the various e-governance requirements which are coming up, in the Tier-2 & Tier-3 cities.

We observe that homegrown brands like DB Power, Luminous, Numeric Power, etc have been acquired by multinationals. What is your general view?
The market is consolidating globally and this is being felt in India as well.

How does Legrand India see its UPS business shaping up in the next 3-4 years?
Our aim is to cover all market access in term of verticals and channels. To do so we will take advantage of the very strong presence of Numeric all across India especially its service structure, which is unique. We will take full benefit of being a part of Legrand in bringing expertise and new products particularly to develop our presence in the 3-phase market.
 
                 
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