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Peepul  Capital-backed Consul Consolidated Pvt. Ltd, a Chennai-based manufacturer of UPS Systems and Servo Controlled Voltage Stabilizers, today announced its merger with Pune-based Neowatt Energy Solutions, manufacturer of state of the art power electronic products.

This merger will create India's only full range power electronics company offering products and solutions in power conditioning, power backup, solar, energy conservers and custom power electronic solutions. The combined entity, Consul Neowatt Pvt. Ltd, will now offer comprehensive products and solutions that currently are not offered by any single power electronics company, including mission critical UPS solutions which in India is currently dominated by MNC's and imported products.

Post merger, Neowatt Energy Solutions promoters would have shareholding Consul, in which Peepul has a substantial majority shareholding. However, the company officials did not reveal the shareholding of each of these stakeholders.

Sriram Ramakrishnan, managing director and CEO Consul Consolidated said "with Neowatt, we will be the only company in India to have a comprehensive range of UPS systems, Inverters, Stabilisers, Active Filters and Solar Power offerings".

Last year the company crossed a turnover of INR 200 crore and together the company now targeting a turnover of INR 600 crore in the next three years. Peepul Capital has so far invested around INR 100 crore from 2012, into the company and funding till the company reaches the three-year target, he said. The company would look at increasing its exports from current 2-3 per cent to 10 per cent by entering into markets in South East Asia, Africa and Europe.

He added, Consul will leverage Neowatt's power electronics product development capability and consolidate the R&D efforts with its own DSIR (Department of Scientific and Industrial Research)approved R&D facility in Pune to develop cost effective power conditioning and power backup solutions tailored for Indian requirements.

With this merger, Consul will have access to a range of innovative and art power electronic products like IGBT Rectifier three phase UPS systems from 10 to 800 KVA, solar inverters with net metering and grid export options, Active filters, Static Transfer Switches and Industrial single phase and three phase UPS & Inverters to complement their existing power backup and power conditioning offerings.

Shivaji Waghmare, MD & CTO, Neowatt said, Consul's sales and service network, with direct sales and service personnel in 75 locations across India, provides a platform and synergy to market its products to their base of over 10,000 business customers across various industries.

With the combined business, the Power Electronic Company can now offer a range of power solutions to customers by capitalising on the growth across industry verticals including Oil & Gas, Nuclear and Thermal Power, Data centers, Government, Engineering, Manufacturing and Process Industries, Banking, IT and IT enabled Services, Retail, Hospitality and Healthcare sectors.

The Indian power conditioning and backup market size is poised to cross INR 10,000 crore by 2017-18. This represents an exciting growth opportunity that Consul will tap into, through investments in technology, expansion of manufacturing, addition of distribution channels and acquisition of companies with unique offerings.

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