TMEIC to Buy India-based PV Inverter Manufacturer
Toshiba Mitsubishi-Electric Industrial Systems Corp (TMEIC) announced April 28, 2014, that it has concluded an agreement with the Netherlands-based AEG Power Solutions to acquire its Indian subsidiary.
TMEIC is the largest manufacturer of large-scale PV inverters in Japan, and AEG Power Solutions is a Europe-based long-established power electronics company.
AEG Power Solutions India, which TMEIC will take over, is based in Bangalore and manufactures and sells PV inverters in India. In India, the market for solar power generation is rapidly expanding, and the market for PV inverters is also expected to grow by 40% per year.
TMEIC, which aims to increase market shares overseas such as in North America, China and India, plans to increase its PV inverter sales in India to ¥7 billion (approx US$68.5 million) by 2018 by leveraging the acquisition.
TMEIC also intends to start production of devices for driving electric motors at the Indian subsidiary after the acquisition and use the subsidiary as a strategic base for expanding its motor drive business in India along with a motor manufacturing plant that TMEIC is planning to build in Bangalore.
AEG Power Solutions was derived from AEG, an electronics company established in the 1880s in Germany. The number of employees and sales volume of the Indian subsidiary are about 90 and one billion rupees, respectively. The total investment made for the acquisition is estimated to be about nine million euro.