Schneider Electric acquires 74% stake in Luminous

Schneider Electric has signed an agreement to acquire a 74% equity in Luminous Power Technologies, a provider of inverters, UPS and power storage systems in the Indian market.

Luminous is a player in the €800 million Indian inverter and power storage market that is growing at more than 20% a year. The company has a strong presence in India and has a workforce of 3000 employees in eight different industrial sites in India and one in China.

With Luminous, Schneider Electric will become the leader in the Indian inverters and secured power market and gain access to a complementary retail network.

The combination with Luminous will broaden the product portfolio of Schneider Electric, balance its geographical exposure in India and provide access to the diffused distribution network which complements the existing IT distribution channels. The group will strengthen its local research and development capabilities and benefit from a cost efficient industrial footprint in India.

In addition, Schneider Electric will be able to leverage the strength of the Luminous brand as a platform to expand into the inverter market in other new economies and also reinforce its position in the home electrical space through a large number of retail outlets.

Laurent Vernerey, Executive VP – IT business, Schneider Electric, said, “This acquisition is another significant step for Schneider Electric to become a leader in new economies. The company will further strengthen its position in India, attain critical size in the fast growing Indian inverter market and further consolidate the global leadership in its IT business. Luminous will also provide a platform to expand the inverter market into other new economies, in particular Middle East, Africa and South-East Asia”.

Rakesh Malhotra, Founder and Chairman of Luminous says from a small beginning 20 years ago, “Luminous Power Technologies has evolved to become a strong market player in the inverters and power storage space. We are glad to partner with Schneider Electric. Both companies share common values and passion to provide our customers with innovative products in home electrical space. We strongly believe that our customers, business partners, employees and other stakeholders will greatly benefit from this combination in the years to come. The founders will continue to be closely associated with the future growth of the company in India and around the world.”