France-based MNC acquires Indian SME

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Saurabh Gupta | 05 Jun, 2009
A France-based MNC, Schneider Electric, has acquired an Indian SME, Conzerv Systems.

Schneider Electric announced on Thursday that it has signed an agreement to acquire Conzerv Systems, the recognized market leader in energy efficiency in the Indian Market, serving industrial and commercial end-users in particular.

Conzerv, stated as small and medium enterprises in early nineties, pioneered the design and manufacture of digital energy meters in India. Today, as the market leader with proven technologies and solutions for energy audits & energy management systems, it generates sales in excess of € 10 million and employs 337 people.

Conzerv has won the prestigious award for being the Most Ethical in Business Practices, in the SME Manufacturing Sector for 2005.

With this acquisition, Schneider Electric will significantly reinforce its position to capture opportunities in the fast growing energy efficiency field in India. Conzerv products will also further complete Schneider Electric's offering in power monitoring for its international markets.

Russell Stocker, Executive Vice-President of Schneider Electric's Asia-Pacific Operating Division commented, "Together with Conzerv, we now have in India a unique energy efficiency portfolio comprising of audit and measure, active remediation, and monitoring. We are very excited as the combination of products, technologies, channels, markets, and above all talent will transform us into a formidable force in the energy efficiency arena in India and further accelerate our development in this area."

Hema Hattangady, Vice Chairman & CEO, Conzerv added, "We feel delighted and proud to become part of the Schneider Electric family. Teaming up with Schneider Electric will help us to complete our India vision and expand the reach of our offer by leveraging Schneider Electric’s presence across the globe."

Conzerv Systems is a two-decade old firm with a top line of Rs 70 crore run by a couple - Hema and Ashok Hattangady - with active backing from venture capital firm Indus Ventures, run by former Hindustan Lever chairman T Thomas.

The company, which was started as Enercon, was subsequently christened Conzerv Systems when it actively took up efforts to offer solutions on how to manage the usage of electricity in an organization.

The completion of the transaction, subject to conditions precedent and approvals, is expected to occur soon. This acquisition meets Schneider Electric’s Return on Capital Employed criteria.