NEW DELHI: France's Schneider Electric will buy 74% in inverter-maker Luminous Power Technologies for Rs 1,400 crore, making its eighth acquisition in two years in the rapidly-growing market.
Luminous Power would continue to operate with the same management and brand. Luminous had debt of Rs 240 crore at the end of March, earned Rs 1,100 crore revenue during the year, and employs about 3,000 people at nine sites in India and China.
ET had first reported Schneider's approach on April 1.
Schneider Electric India managing director Olivier Blum said the joint venture would provide the company a strong platform to reach out to Indian consumers that is growing at 20% every year. The company plans to piggyback on Luminous brand to launch electrical appliances including switchboards in India. Luminous at present has presence in Bangladesh, Pakistan and Nigeria. Blum said the deal would help Schneider tap Luminous' 25,000 retail outlets. The company seeks to foray into Middle East , Africa and Asia markets.
Post acquisition, Luminous would continue to function as a separate entity, Blum said. Following the deal, India would become seventh largest market for Schneider in the world. Together, Schneider and Luminous would have around 11,500 employees in the country. Schneider earned revenues of about Rs 4,500 crore from its India operations in 2010. Schneider has made eight acquisitions in India in the past 24 months. Two transactions of APW President and Digilink were completed this year.
