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As part of its business expansion in India, Chennai-based Socomec Innovative Power Solutions, a wholly-owned subsidiary of France-based power solutions provider Socomec Group, is in the process of setting up a manufacturing base in the country.
Announcing the roll-out of Delphys MP Elite, the first UPS product from the company’s Gurgaon plant, Oliver Tremouille, managing director of Socomec Innovative Power Solutions, said “We are looking for an acquisition or partnership in India. We are in talks with companies. What we are looking at is the expertise or good technical assets in the Indian market".
He, however, refused to comment more on the plans.
Socomec has so far been importing UPS’ from overseas facilities. Now, with the launch of the facility in Gurgaon, it expects to start manufacturing of more products from the local site. This would help the company reduce the impact of import duties and currency fluctuations. It is expecting a cost reduction of around 20 per cent in the locally-made products, when compared with the imported products, he added.
The rupee depreciation, which has affected most of the industries in the country, has affected the margins of the company too, said Mohan Jayaraman, director, Socomec UPS India.
The company has so far invested around euro 3.75 million (approximately Rs 31.8 crore now) in India. It is planning to target segments like building, critical-building, infrastructure, renewable energy and original equipment manufacturers (OEM).
It expects revenues to rise from the current Rs 147 crore to Rs 400 crore by 2016.
While a majority of the company's business was coming from its UPS business, the share of the segment would be around 50 per cent by 2016, as its other business -- which is to sell solar inverter, switches and boxes -- is expected to grow along with the overall revenues, he added.
Tremouille said, "In order to meet the market requirement, we planned to produce it locally. This is an initial step and will consider feasibilities to produce other products in India". There is enough headroom for the company to expand the facility, he added.
