CHENNAI: Fuji Electric eyes a bigger share in the Rs 10,000 crore AC drive and automation equipment market in India, as one of its key markets - China slows down, a senior executive of the company said.
Fuji Electric India, part of Japanese automation and energy multinational corporation, on Tuesday opened a fully automated facility to manufacture AC drives and printed circuit boards (PCB) with the capacity to produce 1.2 lakh drives and 2 lakh PCBs a year at Rs 150 crore investment. It has a built-up area of 65,000 sq. ft.
Speaking to the press after the inauguration, Shivaji Waghmare, Fuji Electric India's chief executive said, “Demand will go up, a lot of scope in electric vehicles, li-ion batteries, energy storage and energy efficiency and these drives required to save energy. This is a measured market, but still, there is a demand.”
It has made efforts to completely localise its supply chain, except semiconductors, to become price competitive and provide customised products for domestic customers and anticipate an uptick in demand in the next five years. It also plans to increase exports from India to South East Asia, Middle East and African markets.
Its annual revenue is likely to cross Rs 1,050 crore in 2023 financial year (FY) and targets Rs 1,500 crore revenue in FY25, out of which nearly Rs 500 crore is expected from its Chennai manufacturing facilities and the rest from its UPS and energy-related products in the Pune facility.
Fuji caters to lift, cement, oil and gas, metro, railway and industrial electrification projects, data centers, HVAC segment and heavy industries. It is ambitious to open another at-scale manufacturing facility for drives and UPS, solar power storage solutions in the next two years. Fuji supplies components like Li-ion batteries, power distribution units, and static transfer switches for data center players.