Investment will focus on doubling manufacturing capacity, generating new employment & scaling solar business
Schneider Electric plans to infuse Rs 350 crore to Rs 400 crore in its Indian subsidiary Luminous Power Technologies. The investments will be used to pursue growth plans of Luminous which entail doubling the battery and inverter production capacity, generating new employment opportunities, and ramping its solar business.
“Luminous is in the high growth Prosumer business and we will be investing significantly in the next few years to scale this business up even more,” said Manish Pant, EVP, Schneider Electric and Member of the Luminous Board.
Luminous currently manufactures 3.12 million batteries annually. With the fresh funding, it plans to expand the production to 5.1 million by 2025 and increase its capacity by 63 per cent. It also plans to develop a new plant that will support the production of Tall-Tubular Batteries (TTB). The plant will be set up in two phases, the first phase will see the manufacturing capacity of 30,000 TTBs, which will be further ramped up to 65,000 in the second phase. Luminous is also eyeing to direct Rs 185 crore towards building the capacity towards upgrading technology for battery and next-generation inverter manufacturing.
Luminous also plans expand its existing seven plants in the country and will set up two new manufacturing plants, generating direct employment for more than 2,000 people. The new funds will also help bolster the company’s backward integration philosophy of key components, which is expected to come alive in the next 12-18 months.
A significant part of the investment will be focused on Luminous’ Solar business, its fastest-growing segment, which it expects to get 40 per cent of the company’s sales from, by 2025.
Commenting on the expansion plan, Vipul Sabharwal, Managing Director, Luminous Power Technologies said, “The power backup and home electrical market demand in India is experiencing robust growth, especially with a large population transitioning to a remote working/ work-from-home environment. Despite the pandemic and subsequent lockdowns, we were able to achieve high business value, engagement and expansion.”
He added, “We will continue this momentum and are eyeing a double-digit YoY growth to reach INR 5,000 crore revenue in the next three to four years. Together with Schneider Electric, we plan to complement this growth vision, by investing almost INR 400 crore to expand our manufacturing capabilities and specialized business divisions. This will also help us maintain our Atma Nirbhar and Make in India principles of backward integration and employment generation.”