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Invensys buys out India's CG Powerware

Powerware International, the Indian unit of Invensys Power Systems, said on Thursday it had bought out CG Powerware from Indian electrical appliances maker Crompton Greaves Ltd for an undisclosed sum.

"Powerware International, part of $2.3 billion Invensys Power Systems, has increased its equity in the Indian company CG Powerware to 100 per cent from 51 per cent by acquiring the shares of Crompton Greaves," Invensys said in a statement.

CG Powerware was a 51-49 per cent joint venture between Powerware International and Crompton Greaves. Invensys Power Systems is a division of Invensys Plc, a power control and energy storage products firm.

The firm did not state the amount paid to Crompton Greaves for the 49 per cent stake.

Powerware International, which markets uninterrupted power systems, said that it hopes to corner 10 per cent of India's $200-million UPS market by 2003.

"We will invest $15 million over the next five years in India and target a 10 per cent market share by the third year of operations," Dan Squiller, president of Power Conversion at Invensys Power Systems, said in the statement.

"The other segments that we would address through competitive pricing are the small and medium enterprises and the small-offices and home-offices segment," Squiller added.

The firm said that it would use India as a manufacturing base, taking advantage of the country's low labour costs, and export products to other Asian countries in a year or two.

"We hope to commence production by April," said Deepak Sharma, managing director of Powerware.

The firm said it hoped to see 20 per cent growth in both sales and revenues per year.

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