Su-Kam Power Systems Ltd, Delhi-based maker of power back-up solutions, is in final stages of talks to acquire a 50 MW capacity solar panel maker. The deal, which will be under $19M (Rs 100 crore), is most likely to close by March.
According to Kunwer Sachdev, managing director of Su-Kam Power Systems, at present the company outsources the panels for its products such as solar inverters. The deal will also help the company to bid for solar projects in the future, the mandate of which in some cases only rests with companies that manufacture panels.
“According to government norms, for some projects you can only bid if you are a panel manufacturer. So after we complete this acquisition, we will be able to bid for those projects,” Sachdev told VCCircle. Sachdev further added that using the brand of Su-Kam, the company will be able to increase the capacity utilisation of the facility.
Su-Kam is a manufacturer of power products like inverters, home UPS, online UPS, line interactive UPS, generators, solar range, batteries, battery chargers and battery equalizers.
“At present, the facility is working on a 30 per cent capacity. After we acquire, with our brand we will start selling those modules and take the facility up to 80 per cent capacity utilisation,” he added.
The company will raise the required capital through internal accruals and debt. When asked about the proportion of both, Sachdev said that the company will take a call on that once the negotiations are finalised.
Keeping with its expansion plan, Su-Kam will invest Rs 200 crore in the next three years from solar.
“Apart from this acquisition, we are thinking of doing some projects where we will install our own solar projects and invest in those. However, right now we are in the drawing board stage,” Sachdev said.
The company aims to cross Rs 100 crore in revenue this fiscal year from solar business and is targeting revenues of Rs 500 crore in the next three years. The company as a whole is looking to close 2012-13 fiscal with a total revenue of around Rs 1,100 crore as against Rs 700 crore the previous years.
(Edited by Prem Udayabhanu)