Fuji Electric Co. Ltd. (FE), headquartered in Tokyo, led by President Michihiro Kitazawa, has announced that, in order to expand its power electronics systems business in India, it has entered into an agreement with Peepul Capital Fund III LLC and the individual shareholders to acquire the entire shares of Consul Neowatt Power Solutions Private Ltd. (CNPS), a major power electronics manufacturer in the country.
Fuji Electric is globally developing its core business of power electronics systems and India is one of the key focus areas for its global growth plan. FE established Fuji Electric India Pvt. Ltd., a sales company, in 2009, and opened a low-voltage AC drives factory in 2016. The same year, it also established an engineering company, Fuji Gemco Private Ltd., as a joint venture with a local company. Since then, FE has been developing the industry solutions business mainly to improve the productivity and to save energy for its clients in India.
CNPS is a leading manufacturer of uninterruptible power supply (UPS) systems in India. It has a strong customer base in India with a proven track record of supplying reliable power electronic solutions to customers across industry verticals in manufacturing, healthcare, social infrastructure, and other segments requiring power quality solutions.
FE will expand its power electronics systems business in India, targeting mainly the manufacturing industry and the data center market, which has been booming in recent years, by leveraging CNPS’ network of sales and service centers across the country. FE 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.
Key measures
- Launch of energy solutions business: While India is experiencing ongoing economic growth and expanding infrastructure construction, improvement in power quality is required for uninterrupted business operations. FE energy solution business will focus on improving the power quality and optimization of energy usage by combining CNPS’ UPS solutions with FE’s energy management systems. FE will propose such solutions for data centers, social infrastructure, buildings and factories, which essentially require a stable and energy efficient power supply.
- Strengthening the manufacturing system for local production for local consumption: Fuji Electric India and Fuji Gemco have factories in Mumbai (western India) and Faridabad (northern India) respectively. The acquisition of CNPS’ factories (Pune in the western region and Chennai in the South) gives FE a large manufacturing presence in India.
FE will now be able to respond faster to customer needs in India with a more efficient production and distribution network by establishing the entire process of production and supply in India – from product development to material procurement, manufacturing, and quality assurance – of AC drives, UPS and other components.