According to reports, Socomec has adopted a local manufacturing game plan for its UPS business in India, moving away from its strategy of importing a substantial proportion of products, as the 443-million euro French manufacturer of low voltage electrical network products seeks to be more competitive in pricing as also to reduce the impact of rupee fall.
The company has added a new line in its manufacturing unit at Gurgaon to produce UPS products, and has just launched Delphys MP Elite, its first India-built UPS that will be available in the range between 80 kv and 200 kv for enterprises.
“We have been importing our UPS products from France and when rupee depreciates, costs go up and hit us. The local manufacturing will make us more competitive. We are also thinking of producing more products in India,” said Olivier Tremouille, Managing Director, Socomec Innovative Power Solutions Pvt Ltd. (SIPSPL), Indian arm of Socomec.
Socomec also in the process of localising some of the parts for UPS. It hopes to have a local content up to 30 per cent over a period of time. The Gurgaon line can produce about 500 units annually, and the capacity can be ramped up depending upon the demand.
Along with local production plan, the company is also broad-basing its coverage to more segments for UPS products. It is also planning to penetrate deeper into categories such as industrial, building, infrastructure and renewable energy.
“We are particularly bullish on industrial segment and aim to boost our market from 25 per cent to about 40 per cent in the segment over the next few years,” said Jayaraman Mohan, Director, SIPSPL.
Socomec presently has a market share of five per cent in the Indian UPS market, which is estimated at about Rs.3,000 crore. It seeks to double it in the next three years. It also hopes to increase the revenues to about Rs.400 crore by 2016 from Rs.147 crore now.