SOCOMEC TO INVEST 4 MILLION EURO BY 2012

Chennai
The Economic Times

Envisaging a growth potential in the power back up segment, Socomec UPS India, part of Socemec, France, is expanding its operations. The parent has committed to invest 4 million euro over the next three years in the Indian arm, which has lined up a range of uninterruptible power supply (UPS) products.

Besides leveraging its strategic tie-up with Redington, an end-to-end supply chain management company, Socomec is eyeing revenues of Rs 100 crore by March 2009, Socomec UPS India MD Norbert Jacobsen told reporters here on Wednesday.

With 80 percent of its sales coming from the top-end customers in the IT sector such as Cisco, Sify and CTS, Socomec is betting big on the SOHO (small office home office) and small and medium enterprise segments.

"We need to transform this by adopting the direct access strategies. We have 110 people in India and we expect to increase our annual turnover to Rs 200 crore by 2011," he said, noting that Indian customers always looked at service network criteria to conclude their purchases. Hence, the marketing pact with Redington would help it reach its products across the country, especially in tier I, II and III cities.

Hopting to garner 10 percent share of the $600 million UPS market in India, Socomec has struck an alliance with 24 new business partners. It also forayed into the single-phase UPS systems with the launch of 'Green Power' range of UPS. Designed specifically for the IT sector, the products come with 96 percent efficiency, said Socomec Group CEO Michael Carter.

The 325 million euro Socomec has 18 commercial subsidiaries and 2300 employees world-wide. It has eight manufacturing units in five countries and its second plant in China is slated to go on-stream later this year.

On setting up a UPS manufacturing unit in India, Carter said it was too early to take a call on it. It could think of it only after desired volumes are achieved. However, the country's talent pool has made Socomec to set up its global R&D centre in Gurgaon with 30 people. Switchgear products and UPS constitute equal share of the overall turnover.