Mumbai: Japan’s Fuji Electric Co., Ltd. on Thursday said it has entered into an agreement to acquire 100% stake in Consul Neowatt Power Solutions Pvt Ltd (CNPS), a maker of uninterruptible power supply (UPS) systems.

Fuji is acquiring the company from private equity investor Peepul Capital, which owned the company through its third fund, and other individual shareholders.

According to a person aware of the development, the acquisition cost Fuji 720 crore. He spoke on the condition of anonymity, as he is not authorized to speak to the media.

CNPS main business entails development, manufacturing, engineering, sales, and servicing of UPSs, servo voltage stabilizers, off-grid solar inverters and other customized power electronic solutions.

This is Fuji’s second investment in India. In 2015, it entered into a JV with Gemco Control Systems to make industrial automation systems.

“Fuji Electric 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’s network of sales and service centers across the country," Fuji said in a statement. The company will also leverage the manufacturing infrastructure and product development capabilities of CNPS for developing price-competitive products.

“Fuji Electric is globally developing its core business of Power Electronics Systems and India is one of the key focus areas for FE’s global growth plan," the statement added.

The acquisition of CNPS’s factories (Pune and Chennai) gives Fuji Electric a large manufacturing presence in India. Fuji Electric India and Fuji Gemco have factories in Mumbai and Faridabad, respectively.

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