The $8.3 billion energy and power electronics major Fuji Electric (FE) of Japan, which acquired Consul Neowatt, a UPS firm, a few months ago, has charted India 2.0 growth targeting a CAGR of 20 per cent over a period of five years, backed by a product and manufacturing expansion programme.

The company has set a revenue target of ₹1,500 crore by FY24 for the Indian unit, up from ₹668 crore (combined revenue of Fuji Electric and Consul Neowatt) in FY19.

Fuji started its India operations with a sales office in 2009 (Consul Neowatt, started in 1981) and has established itself as a strong player in the UPS product segment with more than 4 lakh installations in India and other countries. It has four factories and an R&D centre with wide service network supported by huge service staff. In June this year, Fuji acquired Consul and the combined workforce strength is about 1,000 (of which 800 were with Consul).

“The 2.0 plan will leverage Consul Neowatt’s extensive sales and service to expand the customer base for FE products. The combination of FE’s technology and brand and Consul Neowatt’s low-cost manufacturing, wide service network and access to end customers across sectors will help us to become a leading player in the market,” Sriram Ramakrishnan, Managing Director of Fuji Electric India, said here.

FE sees an addressable market size of more than ₹10,000 crore, which it wants to target through a multi-pronged product strategy. The company will be focussing on three major areas — power quality devices, variable frequency drives and process automation equipment.

FE will also launch its data centre UPS product in the Indian data centre market. It will move to local manufacture of VFD products instead of the local assembly in order to be cost-competitive in the market.

The company will also leverage Consul’s R&D operations in Pune to customise FE’s global products for the Indian market.

Ramakrishnan said there would be co-development of 3-phase UPS product range in India leveraging its R&D for exports to ASEAN, West Asia and African markets.

Earlier, Kenzo Sugai, Executive Vice-President and Elected Corporate Director of Fuji Electric said the company would want to grow rapidly in India as part of the group’s global growth strategy, which has a strong Asia contribution.

Fuji Electric will explore the possibilities of producing high power chargers meant for electric buses or electric cars depending upon the growth and demand in the Indian EV space in the future.

Related Topics