French electrical group Schneider Electric has acquired 74 per cent of Indian manufacturer Luminous, it has been announced.
Luminous provides inverters, UPS and power storage systems to help homes and businesses deal with frequent power cuts. Its portfolio includes inverters for homes and small and medium enterprises, deep-cycle batteries, uninterruptible power supply (UPS), physical infrastructure solutions for IT & telecoms, renewable energy systems (wind, solar) and engineering design & support services. The company also has a strong service network covering all parts of India.
The Indian inverter and power storage market, which is estimated to be worth around €800 million, is growing by more than 20 per cent each year, Schneider said.
With a strong presence in India, Luminous employs approximately 3,000 people at eight sites across India and one in China. It posted revenues of around €170 million for the fiscal year ending March 2011.
Luminous boasts a customer base of three million existing inverter users. It also has access to clients in government and telecoms.
Schneider said the acquisition will allow it to strengthen its local research and development capabilities and benefit from a cost-efficient industrial footprint in India. It will also balance its geographical exposure in India and provide access to the diffused distribution network, which complements the existing IT distribution channels, the company said.
Commenting, Laurent Vernerey, executive vice president of Schneider Electric's IT business, said: "This acquisition is another significant step for Schneider Electric to become a leader in new economies. The group will further strengthen its position in India, attain critical size in the fast growing Indian inverter market and further consolidate the global leadership in its IT business.
“Luminous will also provide a platform to expand the inverter market into other new economies, in particular Middle East, Africa and South-East Asia.”
Rakesh Malhotra, founder and chairman of Luminous, added: “Both companies share common values and passion to provide our customers with innovative products in [the] home electrical space. We strongly believe that our customers, business partners, employees and other stakeholders will greatly benefit from this combination in the years to come.”
From a group perspective, Schneider Electric’s total sales in India are expected to exceed €700 million as a result of the acquisition, turning India into the number seven country in terms of group sales, with a headcount of approximately 11,500 on payroll.
Headquartered in Rueil-Malmaison near Paris, Schneider Electric achieved sales of €20 billion in 2010. The company employs approximately 110,000 people worldwide.
