Fuji Electric to buy India's Consul Neowatt Power Solutions in growth drive
TOKYO, NNA - Fuji Electric Co. will acquire Consul Neowatt Power Solutions Pvt. Ltd., a major power electronics manufacturer in India, to explore business opportunities in a strategically important market where the Japanese electronics maker is seeking to boost sales five-fold.
The Tokyo-based company said Thursday it had agreed with the management team of the Indian company as well as Peepul Capital Fund III LLC and individual shareholders to purchase their entire shares in the Indian company for an undisclosed sum.
When the acquisition is completed by the end of August, Fuji Electric will directly hold a 99.99 percent stake in Consul Neowatt, while Fuji Electric's Indian unit will own the rest.
Fuji Electric launched Fuji Electric India Pvt., a sales company, in 2009, and opened a low-voltage AC drives factory in 2016 and Fuji Gemco Pvt. Ltd., an engineering company, as a joint venture with a local company also in 2016.
The Japanese company has been developing its industry solutions business mainly to improve productivity and to save energy for its clients in India.
By combining Consul Neowatt’s power supply systems with Fuji's energy management systems, the company will offer such solutions for data centers, social infrastructure, buildings and factories, according to a press release.
With the acquisition, Fuji Electric aims to boost its sales in India to 20 billion yen ($186.8 million) in the fiscal year ending in March 2024 from 4 billion yen in fiscal 2018. Consul Neowatt had sales of 6.7 billion yen in fiscal 2018.