Chennai-based electronics equipment manufacturer, Numeric Power Systems Limited, is set to sell its uninterrupted power systems (UPS) division to Indo Asian Electric Private Limited, a wholly-owned subsidiary of Legrand France SA, for a consideration of Rs 837.08 crore.
Both the parties have already entered into a business transfer agreement, and Numeric will continue to carry on its other activities like green energy (solar and wind power), iron and alloy foundry production and LED lighting. At present, Numeric derives 75 per cent of its revenues from UPS.
R Veeramani, chairman, Numeric Power Systems, said the listed Indian company will continue to operate its other existing business comprising alloy steel foundry, iron foundry, complete solar solutions in the areas of roof-top and EPC solutions where it planned to continue to pursue exciting business opportunities in India and overseas.
R Chellappan, managing director, Numeric, added the company would also sell its subsidiaries in Singapore and Sri Lanka.
“With the support of the Legrand team, Numeric UPS will further accelerate its growth in India and overseas by increasing its product bandwidth, expanding applications and providing access to new geographical markets.”
On the utilisation of the proceeds, Chellappan said the company was planning to strengthen its renewable energy business.
“At present, our wind farm produces 1.5 Mw of power, which will be increased to 10 Mw in the next 12 months. Each Mw would require around Rs 6 crore. Besides, the company is planning to expand its solar energy division and is planning to foray into the industrial energy efficiency and storage business,” Chellappan said.