Powerware buys 49% equity from CG in CG Powerware

Powerware buys 49% equity from CG in CG Powerware
ENS ECONOMIC BUREAU

JAN 18: The JV, which has been renamed as Powerware International now, has become the 100 per cent subsidiary of Powerware. The company, which was so far marketing Powerware UPS (uninterrupted power supply) products in India, is now setting up a manufacturing facility near Delhi.

Addressing a press conference here on Thursday, IPS president (power conversion) Dan Squiller said that the company is planning to invest around $15 million for Indian operations in next five years.

"Powerware target a 10 per cent market share of Indian UPS market by 2003 and the company has decided to invest $15 million to achieve these targets. Recognising that the Indian industry offers huge potential and there is tremendous scope for growth for us, we have decided to set up a manufacturing facility in India by April this year," said Mr Squiller.

The company has already received approval from the Centre for the proposed investment and setting up manufacturing facilities, he said adding that the company will also explore the possibility of exporting its products to other Asian countries.

He said that the manufacturing base in India will bring down the cost of product giving a leverage to the company in the market in terms of price. Moreover, the locally designed and manufactured products will be more suitable to the Indian environment and weather conditions, he added.

Mr Squiller said that the company will concentrate more on the small and home office (SOHO) and small and medium business segment in the Indian market. The company will manufacture lower power range of UPS in India initially and continue sourcing the high end products from other international units. However, the Indian facilities will gradually be upgraded for the high end products as per the demands in future, he added. The company currently has four manufacturing base in Asia: in Malaysia, Japan, China and Thailand.

Speaking at the conference, Powerware International India managing director Deepak Sharma said: "As a beginning to the new company, Powerware has bagged an order from Sterlite to support their optical fibre plant in Aurangabad. Worth approximately $1.5 million, the order is the single largest order in the Indian industry".

Powerware offers a range of UPS, power management software and service. These products are being sold for networking, PC, financial, medical, industrial, voice and data communications, military and aerospace applications -- wherever continuous power is essential to daily operations.