Schneider Electric is going to infuse over Rs 400 Crore into Luminous Power Technologies for accelerating manufacturing of power backup, home electrical and residential solar products
Schneider Electric, one of world’s leading power conditioning and industrial automation players, has announced an infusion of over Rs 400 Crore into Luminous Power Technologies, its Indian subsidiary dealing in power backup, home electrical and residential solar products & solutions. The investments will be used to pursue aggressive growth plans of Luminous, which would double the battery and inverter production capacity, and ramp up its solar business. This massive infusion of funds would also generate new employment opportunities in the country.
Luminous, a Rs 3,500 Crore company, currently manufactures 3.12 million batteries annually. With the fresh funding, it plans to expand the production to 5.1 million by 2025 and increase its capacity by 63 percent. It also plans to develop a new plant that will support the production of Tall-Tubular Batteries (TTB). The plant will be set up in two phases – the first phase will see the manufacturing capacity of 30,000 TTBs, which will be further ramped up to 65,000 in the second phase. Luminous has also planned to pump in Rs 185 crore for capacity building for manufacturing next-generation inverter and battery.
Vipul Sabharwal, Managing Director, Luminous Power Technologies, says, “The power backup and home electrical market demand in India is experiencing robust growth, especially with a large population transitioning to a remote working/ work-from-home environment. Despite the pandemic and subsequent lockdowns, we were able to achieve high business value, engagement and expansion. We’ll continue this momentum and are eyeing a double-digit YoY growth to reach Rs 5,000 Crore revenue in the next three to four years”. “Together with Schneider Electric, we plan to complement this growth vision, by investing over Rs 400 Crore to expand our manufacturing capabilities and specialized business divisions. This’ll also help us maintain our AtmaNirbhar and Make in India principles of backward integration and employment generation”, explains Sabharwal.
Together with Schneider Electric, we plan to complement this growth vision, by investing almost Rs 400 Crore to expand our manufacturing capabilities and specialized business divisions. This’ll also help us maintain our AtmaNirbhar and Make in India principles of backward integration and employment generation.
Vipul Sabharwal
Managing Director
Luminous Power Technologies
The new investment will also help maintain and build further its Atmanirbhar principles – as 90 percent of its products are made in India and manufactured in-house. Luminous will expand its existing seven plants in the country and will set up two new manufacturing plants, generating direct employment for more than 2,000 people and supporting over 10,000 people and their families indirectly. The new funds will also help bolster the company’s backward integration philosophy of key components, which is expected to come alive in the next 12-18 months.
At the same time, a significant part of the investment will be focused on Luminous’ Solar business, its fastest-growing segment, which it expects to get 40 percent of the company’s sales from, by 2025. While the company is big on deploying rooftop solar solutions for residential and commercial buildings, the new funding will help it deliver better experiences to its customers through high-quality products, easy installation, and excellent services.
Manish Pant, EVP, Schneider Electric & Member of the Luminous Board also adds that Luminous is in the high growth Prosumer business and we will be investing significantly in the next few years to scale this business up even more. Interestingly, investments have been self-funded since it was acquired by Schneider Electric a decade back. Currently, over 25-30 percent of its profits are reinvested in the company, which is expected to go up to 50 percent in the coming years.
Qaisar
