Su-Kam Power Systems is in the final stages of negotiations to acquire a solar panel maker and an announcement to this effect is likely by the end of next month.
The planned acquisition will help the inverter major to own manufacturing capacity of panels to become a major player in solar energy applications.
“We are looking to acquire a panel manufacturing company.
We are in the final stages of negotiations with one domestic firm, which has production capabilities,” Su-Kam Power Systems Managing Director and CEO Kunwer Sachdev told PTI.
The company has launched solar inverters, which charges the battery with solar energy, and offers products with a wide range, he added.
“Currently we are sourcing only the panels of an inverter from other makers and rest all are produced by us. With this acquisition, we will have that capacity as well and will not require to source anything from outside,” Sachdev said.
Without specifying, he said the discussions are in the final stages and the announcement is likely by the end of March.
Asked about the possible size of the acquisition, Sachdev said: “We are yet to finalise it, but it will be less than Rs 100 crore.”
Su-Kam Power Systems currently offers solar inverters for households and offices with a wide range of backup capacities with prices starting from Rs 20,000.
“This fiscal, we are expecting Rs 100 crore sales from our solar businesses. In 2013-14, our target is to have a revenue of Rs 300 crore,” Sachdev said, adding that the company is aiming to earn Rs 1,000 crore annually from the solar division in the next five years.
Su-Kam Power Systems is looking to close 2012-13 fiscal with a total revenue of around Rs 1,100 crore, compared to Rs 700 crore in the last financial year, he added.
Last year, the company had joined hands with Israel-based Gamatronic Electronic Industries to manufacture and sell industrial power back-up solutions in India.
In October, the two companies had initially inked a distribution and servicing agreement for Gamatronic’s products in India and decided to form a joint venture within next six months to locally produce them at Su-Kam’s plant in Gurgaon.