Manufacturer News: 10.4.2011

Acquisitions & Dismantlings

Cree’s Ruud unit buys distributor E-conolight: Described as “a leading distributor of lighting fixtures and accessories primarily for use in commercial and industrial settings,” E-conolight has been sold off by its private equity owners, Fulton Capital LLC and Merit Capital Partners. Ruud Lighting, which was recently acquired by Cree Inc., acquired E-conolight from Fulton Capital and Merit.

Disbanding: According to Japan Economic Newswire, Hitachi Ltd., Fuji Electric and Maidensha Corp. have agreed to “disband their joint venture for electrical power equipment” known as Japan AE Power Systems Corp. on April 1, 2012.

Eaton buys distributors: According to Business Day of South Africa, Eaton Corp.’s electrical operation has recently purchased three companies in that country, including CHI Control and Meissner which “had been significant distributors of Eaton products in South Africa for the past 50 years.” The other company is Norsa Electronics.

Combined, the three purchases “gave Eaton five production facilities, eight distributor centers, and five sales offices across sub-Saharan Africa.” The three companies, together, were said to have $54 million in annual sales.

Private equity group buys United Copper: United Copper Industries, which makes building wire and cable and sells through distributors, has been sold by its Mexican owner Grupo IUSA to KPS Capital Partners LP, according to a report in the Denton Record-Chronicle.

KPS Capital Partners LP describes itself as manager of “a family of private equity funds with over $2.90 billion of assets under management, focused on constructive investing in restructurings, turnarounds, and other special situations.”

United Copper Industries posted an FAQ document on its Website, explaining what will happen with the change in ownership. According to that document, “KPS’s goal for UCI will be to accelerate our growth in earnings, through organic growth initiatives, acquisitions and an eventual recovery in commercial and residential construction.

“UCI will concentrate on organic growth initiatives that strengthen our position as an industry leader, continuing to fulfill our promise to customers, as well as accelerating continuous improvement programs and capital projects to improve quality, productivity and marketplace responsiveness.”

Selling: Asia Pacific Wire & Cable Corp., which has stock traded in the U.S., said it was selling its 51% interest in Shandong Pacific Fiber Co. Ltd. The buyer is “a group of investors,” which is paying $2.9 million for the interest. Getting rid of Shandong Pacific Fiber Co., Asia Pacific Wire & Cable Corp. said, “…is an important goal…to enable the company to focus on its core wire and cable business.”

Swiss firm buys in Virginia: Schaffner Group of Luterbach, Switzerland has acquired the Wytheville, Va. dry-type transformer operations of MTC Transformers, according to England Securities. The seller is reportedly keeping its liquid-filled transformer remanufacturing operations in Louisville, Ohio. MTC Transformers is the original parent company of wireless EV charging station marketer Evatran.

India: Facts, Manufacturers and Distribution

Bajaj to reorganize its distribution: Bajaj Electrical Ltd. (BEL), which has roughly $550 million in annual sales, “is redesigning its distribution supply chain so that channel partners invest less and earn more, faster,” according to Sourcing Electricals & Lighting.

Image from www.bajajelectrics.com

BEL has hired consultants to transform the “formidable” supply chain and get rid of waste and inefficiency. Numerically, here’s what “formidable” means:

• 1,000 distributors
• 4,000 authorized dealers
• 400,000-plus retail outlets

Havells India Update

• According to Daily News & Analytics, the company will “expand the product range of its American subsidiary, Havells Sylvania, beyond just lighting solutions and introduce new products, said director, finance, Rajesh Gupta.” In July, the company “started exporting switchgears” and will be selling them soon in Mexico, according to the report.
• A buy recommendation on the company’s stock was posted to TheHinduBusinessLine.com. 40% of Havells’ consolidated revenues come from its Sylvania operation. Cables and wires are bigger than lighting, in revenue terms but “the switchgears segment contributes most to products.”

India, TSG & darkness: A report from Zpryme posted on smartgridresearch.org said:

• 404 million people in India “currently do not have access to electricity”
  • That is 30% larger than the population of the United States
  • According to the CIA’s World Factbook, the estimated population of India as of July 2011 was 1.189 billion, meaning that 33% of that nation’s people aren’t yet served by electrical power.
• The country’s Smart Grid market will be $1.9 billion in 2015, “with the country’s basic infrastructure needs totaling $5.9 billion in the same year.”

TE Connectivity in India: According to the publication Voice & Data, TE Connectivity (formerly Tyco Electronics, owner of ADC Telecommunications) “is the market leader” in structured cabling in India. The publication puts the company’s growth rate (2011 vs. 2010) at 35.4%, giving it a market share of 31.8%. 

Zumtobel, Thorn Lighting and Indian distributors: Zumtobel acquired Thorn Lighting in 2010 and now, according to Sourcing Electrical & Lighting, it is “focused on building up a formidable distributor base for its two brands, Thorn and Zumtobel.” The former “offers high to mid-end products for indoor and outdoor products,” while Zumtobel products are “premium to high-end” and for indoor applications only.

Included in this expanded distribution strategy are, according to Bhaksar Pai, managing director for the company in India, “project distributors in the metros and Tier II cities” for Thorn. “They can be from lighting or non-lighting backgrounds…and should be able to handle small and mid-sized projects.”

Supplier News from Elsewhere

Cooper Power Systems expands in Brazil: With a new production facility to be located just outside of Sao Paulo, Cooper Power Systems, a unit of Cooper Industries, will expand its operations in Brazil. The total investment will top $25 million, the company said, “with initial plans for a LEED-Platinum-certified building.” Cooper Power Systems already operates in Itu and Sorocaba.

Denmark, Echelon & TSG: EnergiMidt, a Danish power co-operative owned by its customers, is offering (via Eltel Networks, an Echelon value-added reseller) “Denmark’s first cloud-based smart metering solution,” based on Echleon’s offering.

Hellerman Tyton expands in UK: Hellerman Tyton built a new “world class” facility at Derriford, according to The Plymouth Herald of the UK. The 48,000 square-foot plant takes the place of a facility built in 1978. Destined to house 130 workers, the facility is one of 34 sites the company has worldwide, the newspaper said. Additionally, the roof of the facility is said to have 700 solar panels.

Jakarta gets “showcase” fuel cell: FuelCell Energy has sold a “sub-megawatt Direct FuelCell module” to its partner in Asia, POSCO Power. That company will, according to a news release, install the module “at a heavily visited waterpark resort in Jakarta.” A news release claims this is the first fuel cell installed in Southeast Asia outside of Korea.

Japanese companies & HEMS: The Home Energy Management System Alliance, according to a July issue of The Nikkei Weekly, was formed by Daiken Industries, Hitachi, KDDI Corp., Mitsubishi Electric, Mitsubishi Motors, NEC Corp., Panasonic, Sharp, Toshiba and Tokyo Electric Power.

Mexico + Taiwan = Solar: Arima Solar of Taiwan will supply concentrated PV solar technology, gallium arsenide semiconductors, and other materials to Baja Sun Energy SRL. Together, the companies have formed what a release called “the first integrated solar business located in Mexico.”