Fuji Electric Expands Business Operations in India
Announces JV with Engineering Firm, Gemco Controls Limited
New Delhi, September 6, 2016:Fuji Electric a global leader in energy technology announced a Joint Venture (JV) with Gemco Controls Limited (Gemco), one of the leading manufacturers of Industrial Automation and Power Control Systems in India. The JV establishes a new entity in India – ‘Fuji GemcoPvt. Ltd.’ in which Fuji Electric has a 51% stake. The JV has been established by the company with the aim of expanding its business operations in India. Fuji Electric invested approximately USD 200mn to expand outside Japan business from 2013 to 2015 and one of the investments is Fuji Gemco.
India is undergoing significant economic development. The country has been pushing ahead with a production¬driven growth strategy under its “Make in India” policy with the aim of taking its manufacturing sector from the current 17% to 25% of GDP by 2022. At the same time, Fuji Electric is estimating that the industrial power electronics market in India (which includes industrial infrastructure as well as power electronic devices) is set to grow at 9% a year between 2016 and 2018. Fuji Electric established Fuji Electric India, a sales and marketing subsidiary, in Mumbai in 2009. The company has been selling drive products like low voltage inverters as well as components for temperature controllers and other instrumentation devices, but the rise of companies in emerging markets has made price competition increasingly fierce in the region. Fuji Electric India is now looking to set itself apart by offering systems solutions.
Fuji Electric India will continue with its current business operations while tapping into the engineering strengths of Gemco and acquiring end¬user job references as a means of accessing end¬user markets. Gemco is a leading engineering firm in India and the surrounding area, with a successful track record delivering goods to steelmakers as well as companies manufacturing paper, tube, wire & cable, sugar and a variety of other materials. The company has built its engineering business by taking its in¬house control panels (which are standardized and manufactured at minimal cost) and pairing them with customized software tailored to the needs of its individual customers. Fuji Electric is in the process of constructing a low voltage inverters assembly plant in India, which is scheduled for completion in June. By tapping into Gemco’s outstanding engineering and manufacturing capabilities as well as its extensive sales and marketing channels, the company hopes jumpstart sales negotiations for systems that combine Gemco control panels and locally manufactured low voltage inverters with the medium voltage inverters, motors, instrumentation devices, monitoring and control systems, and other Fuji Electric products that have already been successful in the industrial infrastructure sector. Going forward, Fuji Electric is looking to target metal, mining and mineral sector as well as equipment manufacturers like cranes, press processors, and more. The plan is to increase company sales in the industrial infrastructure and power electronic device business in India from its current level of JPY 3.0 billion to JPY 6.0 billion by FY2018.
3． Partner company overview :
a) Name :Gemco Controls Limited
b) Established : 1980
c) Headquarters : Faridabad, Haryana, Republic of India
d) Representative : Mahesh Sachdeva
e) Employees : 41
f) Key business activities : Design, manufacture of system engineering of industrial infrastructure business.
4．Capital participation :
1) New company name : Fuji Gemco Private Limited.
2) Equity shares : Fuji Electric 51%, founder’s family 49%