V-Guard set to buy overseas company

Kochi: Kerala-based manufacturer and marketer of electrical and electronic products, V-Guard Industries, is set to acquire an overseas company in the online UPS (uninterrupted power supply) manufacturing segment.

Addressing the media, executive director Mithun Chittilappilly said talks were in advanced stages with 3-4 overseas companies, including from Taiwan and EU. The deal is likely to be finalised within 7-8 months.

He said the company was planning to set up a new plant at Coimbatore in Tamil Nadu, which would go on stream within 12 months after the deal is done. The plant would produce UPS with a capacity of 5KV to 800KV for which the company has earmarked Rs 30 crore.

The annual market for online UPS in India, which is growing at 25-30 per cent, is estimated to be in the range of Rs 1,500-2,000 crore. The company is targeting to corner 10 per cent share of the domestic market in this segment within 2-3 years of operation. The company currently produces UPS with a capacity of 600 VA – 5 KV.

The company is testmarketing its new product Home UPS/Inverter in the state and is likely to launch it by February. This will be rolled out in the four southern states in the first phase.

The two wiring cable units of the group at Coimbatore and Kashipur in Uttarakhand will start commercial production by next January. The company had raised about Rs 65 crore in February through an IPO to fund the expansions.