Announces JV with Engineering Firm, Gemco Controls Limited
Seeks to expand business operations & double turnover in industrial infrastructure and power electronic device business in India by FY2019
New Delhi, September 6, 2016: Japanese electric & thermal energy major Fuji Electric Co., Ltd. (TSE:6504) (“FE”) 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 Gemco Pvt. 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.
Through this alliance Fuji Electric India is looking to set itself apart by offering systems solutions in sync with its “Innovating Energy Technology” philosophy. Gemco is a leading engineering firm in India with a successful track record of delivering Automation Control Systems to steelmakers as well as companies manufacturing paper, tube, wire & cable, sugar and a variety of other material. By tapping into Gemco’s outstanding engineering, manufacturing capabilities & far flung market reach, the company intends to jumpstart sales in Industrial Automation systems with it’s offerings of low/ medium voltage inverters, PLC’s, sensing & condition monitoring products, monitoring control systems, motors, and other Fuji Electric products that have already been successful in the industrial infrastructure sector.
Speaking about the JV, Mr. Kenzo Sugai, Executive Vice President and Elected Corporate Director, Fuji Electric Co. Ltd., Japan said, “India is a significant market for us and the joint venture with Gemco is a reflection of our commitment towards the Indian market. To grow in India, we have to evolve our operations so as to become solution provider & manufacturer. As we do in the Japanese market, we also intend to extend business domains by utilizing the current business groups & creating as many SBUs as possible. With India pushing ahead with a double-digit production-driven growth strategy, 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. This makes us extremely optimistic about India. Fuji Gemco is a stepping stone to leap to Social Infrastructure from Industrial Infrastructure.”
Mr. Shoumitra Chatterjee, Chief Executive Officer/President, Fuji Electric India Pvt. Ltd and Chairman Fuji Gemco Pvt. Ltd. said, “Fuji Electric began its India operations in year 2009 and till now we have been doing extremely well in the country. We are delighted today to join hands with Gemco for expansion of business operation in India. Through this tie up with Gemco, Fuji Electric aims to boost sales through the solutions route inexpensively, leverage Human Resources to create a new Fuji to establish locally required business model to drive growth, technology, manufacturing, marketing & solution delivery capabilities. We seek to double our existing sales revenues in industrial infrastructure and power electronic device business in India by FY2019.”
Mr. Mahesh Sachdeva, Managing Director, Fuji Gemco Pvt. Ltd., said, “We are extremely happy to be associated with Fuji Electric in India. Fuji Electric is known for its state-of-the-art technology and innovation in electrical and thermal energy technology. The joint venture combines our engineering and marketing expertise with the technological prowess of Fuji Electric to provide reliable industrial infrastructures. We expect an exponential sales increase by leveraging G’s stand alone business. We intend to enter industrial solution markets to end users and infrastructure with engineered drive system/configured drive, process automation, instrumentation system, etc. We seek to maximize Fuji’s components through the solutions and showcase solutions to end users to create EU pull in the most vibrant Japanese industrial /investment corridor (DMIC). We look forward to a fruitful and long term association with Fuji Electric in India.“
Fuji Electric India has a Drive Factory & Competency Center in Bhiwandi, which was set-up in June 2016. 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 form of its current level.
About Fuji Electric
Fuji Electric continues to evolve in step with the times and with society, with technology as the driving force. Since its foundation in 1923, Fuji Electric has innovated energy technology to make broad contributions to the world in the fields of industrial and social infrastructure. With electric and thermal energy technology as core technologies, Fuji Electric contributes to the creation of responsible and sustainable societies through its five business segments: Power and Social Infrastructure, Industrial Infrastructure, Power Electronics, Electronic Devices, and Food and Beverages Distribution. Fuji Electric is led by Mr. Michihiro Kitazawa, President and Representative Director. Fuji Electric India Pvt. Ltd. is a 100% subsidiary of ‘Fuji Electric Group’. Fuji Electric India was established in 2009 and is headquartered in Mumbai with a Pan-India presence.
About Gemco Controls Limited
Established in 1980, Gemco is one of the leading and oldest manufacturer of Power Electronics, DC Drives and Automation system for various Industrial applications like Wire and Bar Rolling Mills, Hot Strip Mills, Cold Rolling Mills, Steel and Strip Processing Lines, Wire Drawing Machines, Cable Machinery, Printing and Packaging Machines, Sugar Mills, Machine Tools etc. In the last over 35 years of operations Gemco has successfully commissioned over 1000 systems in all parts of India and over 25 countries overseas including Kenya, Malaysia, Bangladesh, Russia, Iran, Vietnam , China, Indonesia, Ivory Coast, Cameroon, Kuwait, Pakistan, Nigeria, Zambia, Saudi Arabia etc. Gemco’s range of products include DC Drives upto 4000 HP, Electrical control Panels, PCCs, MCCs, Battery Chargers, Harmonic Filters etc.
Situated on National Highway Gemco has a modern and large manufacturing facility with inhouse capability of Design, Engineering, Assembly, testing and on site commissioning
services. With impressive track record of satisfactory performance of all its installations for long time and its capability to offer cost effective world class solutions, Gemco is considered as a preferred source for Automation systems by OEMs and End users.