Bangalore: In an attempt to consolidate its position in the Indian market, Schneider Electric India Pvt. Ltd, a fully owned subsidiary of the French energy management company that grossed €18 billion (Rs1.23 trillion) in revenue in 2008, said on Thursday it has acquired Meher Capacitors Pvt. Ltd from Meher Group.
Meher Capacitors, which had a turnover of Rs40 crore in fiscal 2009, is Schneider’s second acquisition in India—it had in June purchased the energy audit and metering firm Conzerv Systems Pvt. Ltd, which had a turnover of Rs70 crore in 2008-09.
Schneider refused to disclose the size of the two deals.
“With these two acquisitions, our recently formed energy management business unit in India can address the full lifecycle of any of our customers’ energy efficiency needs,” said Olivier Blum, country president of Schneider Electric in India.
The acquisition is part of Schneider’s strategy to grow its Rs2,000 crore India sales fourfold in five years. The firm’s current exports from India are worth another Rs2,000 crore. Blum says China, one of the top three markets for Schneider, has recovered from the economic slowdown. “India will be the next to recover.”
While the next few months will be spent in assimilating the businesses of Meher and Conzerv, Blum doesn’t rule out more acquisitions next year.
For Meher Capacitors, this deal would mean not only expanding its existing power factor correction (PFC) business—which is about optimizing electronics components and saving energy—five times in the next four years, but exporting to about 100 countries where Schneider is active.
Meher Group chief executive Mustafa Wajid said Meher Capacitors would become the global PFC centre for Schneider, with substantial expansion in its manufacturing and research and development facilities to cater to West Asia, Asia Pacific, South America and Europe.
As part of its corporate social responsibility, Schneider has developed an LED-based (light emitting diode) lighting system for rural entrepreneurs.
“The product is ready; once the patent is granted we’ll support 300 rural entrepreneurs in India by 2012 to develop businesses around it,” said Bernard Golstein, director, marketing and alliances.