V-Guard zeroes in on 2 foreign UPS cos for buy

Font Size

Print

Feedback

Email

Discuss

Kochi, Nov 18 : Kerala-based electronic equipment manufacturer V-Guard Industries is looking for an overseas acquisition to shore up its presence in the industrial UPS segment. Industrial UPS (online UPS) segment in India is estimated to be worth over Rs 1,500 crore annually and seen growing at a healthy pace of 25-30%.

V-Guard has shortlisted two companies, one in Taiwan and another in European Union, that have the technology and capacity to construct large UPS systems for companies where data storage and safety is of prime importance, Mithun Chittilappilly, executive director of V-Guard said. The company is assisted by a merchant banker and has earmarked Rs 30 crore for acquisition and construction of the plant, he added. The plant is slated to come up in Coimbatore.

“Currently, the industrial UPS sector is dominated by small brands with limited distribution and service network. V-Guard with its strong network of sales and service can get a good share of the market,” Mithun said.

V-Guard is the leader in voltage stabilizer market in India selling about 12 lakh units in a year. The listed company had a turnover of Rs 292 crore in the last fiscal and is projecting a turnover of Rs 375 for the current fiscal.

The new factories of the company for manufacturing building wire cable at Uttarakhand and L T Power control cable at Coimbatore are almost on the completion stage and are expected to commence the trial production by the end of December 2008.

The other projects, pilot production plants for water heaters and fans at Himachal Pradesh and distribution centre at Hubli and Vijayawada are expected to be completed by first half of next fiscal.

Group company, Veega Holidays and Park, has shelved its plan to construct an amusement park in Panvel near Mumbai, due to the hindrance in acquiring land, Mithun said.