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Fuji Electric India, the 100 per cent subsidiary of Japanese $8.3 billion power and electricals giant Fuji Electric, is mulling its foray into the solar inverters and batteries business in India. This move is part of the company’s larger strategy to leverage the parent company’s expertise in established business segments and gradually roll them out for India.
While the plans discussed are still under initial stages to include setting up a facility for manufacturing and assembly of different components into Megawatt-scale solar inverters, according to Sriram Ramakrishnan, Managing Director of Chennai-based Fuji Electric India, quoted in a news media report. This expansion plan is a part of Fuji Electric (FE) 2.0 strategy unveiled in November last year.
The company is currently focussed on expanding its three existing product segments – Uninterrupted Power Supply (UPS) systems, Variable Frequency Drives (VFD) that boost energy efficiency and automation products.
The overall size of the solar inverter market in India currently stands at around Rs 1,750 crore annually and is expected to grow significantly on the back of a rapid growth in solar power generation capacity over the new few years. The country is aiming to ramp up installed base of solar power generation capacity to 100,000 Mw by December 2022.
According to Ramakrishnan, the company is looking at entering into emerging applications in the areas of energy storage, electric vehicle charging, inverters for megawatt scale solar power plants with cutting edge products, technology and services with increased focus on energy efficiency. It’s estimated that the FE 2.0 strategy will help propel the company’s India division revenues from the current Rs 660 crore annually to 1,500 crore by 2024.
Alongside the company is also working towards devising a strategy to boost sales from markets outside of Japan from the existing 25 per cent, or $2.1 billion, to 35 per cent over the next few years, as per news media report.