Empower Industries to exploit potential in power electronics industry

Empower Industries India Ltd has announced that encouraged by the tremendous market potential which remains largely unexploited, the Company is in the process of diversifying its activities into other green field areas. As a major step in that direction, Empower has identified power electronics industry involving advanced power conversion and regulation technology used in Space Satellite Research, Defence operations and High-end power utilities, through a Joint Venture arrangement with an internationally renowned firm, viz. Smart Power Systems, Inc., (SPS), USA. The technology is embedded in a wide range of products such as High Powered Power Supply, Amplifiers & Comparators, Diodes & Rectifiers, Switches, Power Drivers & Controllers, Voltage Regulators, Transistors, Temperature management equipment, etc., where power is conveniently manipulated to produce the required level of energy to operate high powered mechanical devices or machines or even to produce audio and visual effects and digitally illuminated environment.

Besides the above sectors, Power Electronics Equipment play a pivotal role in the commercial sector. In this modern era of automation, power is an integral part of any process and in order to ensure supply of power in precise measure, these products play a very important role, just like what is blood to a human body. In highly sensitive industries like Banking, Hospitals, etc, power / energy supply is required continuously without any interruption in order to preserve and maintain data or life saving devices and the above products fulfill this requirement, leaving no scope for substitution.

Another area where power electronics can be used effectively is through replacement of manual manufacturing operation by a total industrial automation process. Automation accounts enormously for superior level of production of any kind of goods in terms of cost, quality, precision, volume and time Programmable Logic Controllers, a boon from power electronics technology, offer fast and convenient control of manufacturing automation in that a unit would be able to save substantially on overheads.

Having chosen the hi-tech products, Empower was in the look-out for technical support for manufacturing the said products in India. These products are presently manufactured by ABB, Siemens and Emerson. During the course of several deliberations, Smart Power Systems, Inc., (SPS), USA who have won a 5-year global contract amidst stiff international competition for supply of the said products in USA, has approached Empower for manufacturing support under a Joint Venture Arrangement with Empower. The technology for the said products is patented in USA by SPS which is owned and managed by Mr. Pradip Bhagwat, CEO, who is technically qualified besides a specialised experience of 30 years in the field. In view of the superior technology, Empower will be able to offer a challenge to other manufactures in India as well as abroad, in terms of quality, precision and price.

Negotiations for a Joint Venture between Empower and SPS are underway, after which Empower will set up a separate manufacturing facility for Power Supply with a Capital outlay of Rs 100 lakh. While the HPPS contract assures a business of US $ 2.5 million per annum for the next 5 years, SPS has indicated its requirement for Power Supply for LIGHT EMITTING DIOD Television, at 50,000 pieces per month for the next 5 years. Besides Power Supply Units, the Company will take the opportunity to develop gradually the manufacturing and marketing of other new products mentioned earlier.

It will be observed from the above that by undertaking the manufacture of these new products for which Empower has a committed buyer in the form/name of SPS, Empower stands to benefit substantially in terms profitability and reputation in the international market.

In view of the above substantial benefit accruing through High Technology Joint venture, the Board of Directors is confident of rewarding the Shareholders remarkably very soon.

Source : Equity Bulls

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