New Delhi: Schneider Electric has decided to acquire 74 percent stake in leading inverter-maker Luminous Power Technologies for Rs 1,400 crore.

Schneider plans to expand its business to South Asia, Middle East, Asia and Africa through this acquisition. The French major seeks to strengthen its hold on the market.

Luminous founder Rakesh Malhotra has been appointed Chairman in the new company.  However, Schneider has appointed Manish Pant as Director (Strategy & Alliances).

Malhotra told Dainik Jagran, “We considered the option of raising funds by issuing public shares but ultimately it was decided to create a joint venture. This is big achievement for the company that we have partnered with Schneider which is technically sound.”

“The company will finalize the strategy in the next few days but we want to use the strengths of both the companies collectively. For instance, Schneider specializes in the domestic power tools and Luminous has a strong hold in inverter market,” added Malhotra.
With the acquisition, Schneider will become a leading company in India’s inverter market.

The Indian inverter and power storage market, growing at over 20 per cent annually, is estimated to be worth 800 million euros.
Luminous has recently launched household electrical appliance on an experiment basis in some parts of the countries. It is believed that the products will be launched at national level as well.