The Chennai-based power electronic company Numeric Power Systems Ltd has chalked out Rs 25-crore capex for recently-acquired Amex Alloys to expand production capacity.

“We have already invested Rs 15 crore to build new machine shops and another Rs 10 crore will be pumped in to set up other processing facilities” said Mr R. Chellappan, Managing Director, Numeric Power Systems.

The Rs 13-crore Amex Alloys is a steel foundry, manufacturing mainly alloy steel castings and valves — specifically for the oil and gas industry. Last December, Numeric acquired 92 per cent stake in this company for a consideration of Rs 4.2 crore.

Following this, Numeric has been investing in capacity expansion of this facility. “Our target is to take the turnover of the company to Rs 35 crore during the current financial year,” Mr Chellappan said.

Talking about the group's flagship business, UPS manufacturing, he said Numeric aims at 15 per cent growth this year. According to him, the UPS market size in India is Rs 3,500 crore and Numeric commands 13-14 per cent of this market. “We intend to garner at least 17-18 per cent share of this market by the end of the current financial year.”

He said the emergence of LCD (liquid crystal display) monitors in commercial establishments and the growing market share of laptops have brought down the UPS requirement in this sector by at least 20 per cent. Particularly, UPS sizing and kVA ratings of UPS systems have come down as LCD monitors consume less power than conventional CRT (cathode ray tube) terminals. “However, this loss will be compensated by the manufacturing sector, as ever-increasing process automation needs UPS support,” he explains.

Solar power

Besides, the company is also focusing more on solar power business. Though this division's contribution “is not so big”, Mr Chellappan says this unit is expected to contribute at least Rs 100 crore by the end of next year.

He sees a great potential for solar-powered UPS systems in the country as “many users are keen on converting their UPS into a green system”. Numeric has an opportunity here to convert these existing UPS systems into solar UPS systems.

For the quarter ended June 2011, the company posted a net profit of Rs 9 crore on a turnover of Rs 120 crore. It has manufacturing facilities in Chennai and Salem in Tamil Nadu, Puducherry, and at Parwanoo in Himachal Pradesh.

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