Tokyo-headquartered Fuji Electric is set to acquire power electronics manufacturer Consul Neowatt Power Solutions in a bid to expand its power electronics systems business in India.
Tokyo-headquartered Fuji Electric is set to acquire power electronics manufacturer Consul Neowatt Power Solutions in a bid to expand its power electronics systems business in India. The firm has entered into agreement with Peepul Capital Fund III and individual shareholders for the transaction. Reports indicate the transaction happened at Rs 720 crore.
Consul Neowatt Power Solutions (CNPS) is a manufacturer of uninterruptible power supply (UPS) systems in India with its headquarters in Chennai. It was founded in 1981 and has about 810 employees. The firm supplies power electronic solutions to customers across industry verticals in manufacturing, healthcare, social infrastructure, and other segments requiring power quality solutions.
The company acquired Pune-based Megatech in 2013 and merged with Neowatt in 2014. Post that, the company’s name was changed from Consul Consolidated to Consul Neowatt Power Solutions in 2014.
Post the acquisition by Fuji Electric, the new company is to be named as Fuji Consul Neowatt Power Solutions in which 99.99% will be held by Fuji Electric while 0.01% will be held by Fuji Electric India.
Fuji Electric is globally developing its core business of power electronics systems and considers India as one of the key focus areas for its global growth plan. Fuji Electric established Fuji Electric India, a sales company, in 2009, and opened a low-voltage AC drives factory in 2016. That same year, Fuji Electric also established an engineering company (Fuji Gemco) as a joint venture with a local company.
The company indicated in a statement that it will expand its power electronics systems business in India, targeting mainly the manufacturing industry and the data centre market, which has been booming in recent years, by leveraging CNPS’ network of sales and service centres across the country. Fuji Electric will also leverage the manufacturing infrastructure and product development capabilities of CNPS for the development of price-competitive products specifically designed for demanding site and power conditions.
Fuji Electric India and Fuji Gemco have factories in Mumbai and Faridabad, respectively. The acquisition of CNPS’ factories (Pune and Chennai) gives Fuji Electric a large manufacturing presence in India.