One of the leading power electronics companies in India,
Numeric Power Systems Ltd sold its UPS (uninterruptible power supply) system
business to Legrand of France for Rs 837.08 crore. NPSL said its board of
directors approved on February 9 sale of the UPS business of the company to Indo
Asian Electric Pvt Ltd, a wholly owned subsidiary of Legrand France SA, for Rs
837.08 crore.
The deal includes Numeric's subsidiaries in Sri Lanka (Numeric
Lanka Technologies Pvt Ltd) and Singapore (Numeric Power System Pte Ltd). The
board also approved the sale of the UPS business undertaking of Numeric Power
System Pte. Ltd (100 per cent subsidiary), to an affiliate in Singapore of
Legrand France S.A., for an aggregate $4,500,000. To give effect to this
transaction, the parties concerned have entered into a Business Transfer
Agreement. The company will continue to carry on the other activities like green
energy - solar and wind power, iron and alloy foundry production, LED lighting,
etc.
The €4.25-billion Legrand is an electrical and digital building
infrastructure company. The board had recommended a “special dividend” out of
the proceeds to its shareholders. On the NSE the share of Numeric closed at Rs
281.50.
Legrand's India subsidiary, India Asian Electric Pvt Ltd has
bought the business from Numeric along with the rights to the brand name,
trademark and the IP”, Mr R. Chellappan, Managing Director, Numeric Power
Systems, told a press conference.
Mr Chellappan said that Numeric would also transfer three of
its nine manufacturing and trading facilities — two in Puducherry and one in
Parvanoo (in Himachal Pradesh), to Legrand.
“As for now, the management of the UPS vertical will remain
with the Numeric’s present management, and all our 2,600 employees will be
intact with the brand”.
What makes eyebrows go up is that the UPS vertical has been the
company's core business, contributing over 90 per cent of its Rs 535-crore
turnover (for 2010-11). Where will the company deploy these funds?
Apart from the ‘special dividend', a substantial portion of it
will also be invested in growing the company's green energy (solar power)
division. “In fact, we are in talks with a couple of players in the solar power
industry,” he said. Besides solar power, Numeric also has play in the steel
castings industry with Amex Alloys, which it acquired in 2011.
Numeric is one of the leading UPS brands in the country with 16
per cent share of the overall UPS systems market. “Our market share was 20 per
cent in the online UPS market and we command over 75 per cent in the BFSI
(banking, financial services and insurance) business segment,” Mr Chellappan
said.
Numeric Power Systems, which has just got richer by Rs 830
crore after divesting its core business UPS systems, says its immediate
engagement will be with solar energy.
While not wishing to give out details, the company's Managing
Director, Mr R Chellappan, said that the company is looking at presence in two
areas – EPC jobs and storage systems (batteries).
“We know the solar business,” he said, pointing out that apart
from building two 1 MW plants, Numeric has done close to 1,000 rooftop solar
plants across the country. For one of the 1 MW plants, Numeric is its own EPC
contractor.
The plant, near Coimbatore, would be put under the “REC
scheme”. The other plant, near Sivaganga, is almost ready for commissioning..
The electricity it generates will fetch Rs 18.45 a unit.
Mr Chellappan said that the company has capacity to take 25 MW
worth of EPC jobs. As a company that has dabbled in batteries for long, Numeric
now wants to produce battery packs for storing solar power.
He said that a rooftop system would cost around Rs 200 a watt,
all costs included.
Numeric Power Systems Ltd has informed the BSE that the board
of directors of the company at its meeting held on February 24, has approved the
change in name of the company subject to the shareholders’ approval and consent
of the Union Government.
Consequent to the above, it was resolved to hold an
extraordinary general meeting at 4 pm on March 21 for the purpose of obtaining
the approval of the shareholders on the proposed change in name.
Commenting on this, Mr Yves Martinez, Managing Director,
Legrand India, said: “It is our objective that Numeric, Legrand and Indo Asian
Switchgear will keep their current network, product catalogue, teams, commercial
terms, and continue to develop fast on their own.”
Legrand intends to accelerate the growth rate of all brands, by
continuing sustained growth investments - such as launch of new products,
addition of commercial manpower and international expansion.
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