The United Kingdom’s largest UPS supplier, Chloride Group, has entered India through a 90 per cent stake purchase in the Pune-based UPS maker, DB Power Electronics Pvt Ltd, at an approximate cost of Rs 253 crore. The deal follows a four-year-old strategic partnership between Chloride Group and DB Power Electronics for sales and servicing of Chloride Group products in India, Nepal and Bangladesh.
With this deal, Chloride Group has acquired a majority shareholding in DB Power Electronics and will take over three manufacturing units in Pune and Satara, along with a research and development facility in Pune city. DB Power Electronics had reported revenues worth Rs 270 crore.
Its Satara unit manufactures around 450 UPS units a month, while the number is 150 in the case of DB Power’s Pune plant. The company's second manufacturing unit in Pune deals with customised products and serves approximately 250 customers according to specified requirements.
Speaking to Business Standard, DB Power Electronics Managing Director Pradeep Pimple said: “The move has come out of the global market requirements jointly faced by both the companies. The buy-out of DB Power by Chloride Group will enable both companies to address the global market through a diversified portfolio of products. To begin with, DB Power will continue to manufacture UPS units below 250kVA strength, while the higher versions would be made and sold by Chloride Group.”
The Chloride Group initially bought a 49 per cent stake in DB at a cost of Rs 156 crore and later increased it to 90 per cent. The total deal size now stands at Rs 253 crore, Pimple added.