Move may aid Indian firm scale up, go international: MD
Japanese electronics company Murata Manufacturing has taken 5% stake in Versa Drives, a Coimbatore-based company that specialises in motor control products and energy-efficient appliances, for an undisclosed amount.
Sundar Muruganandhan, managing director, Versa Drives, told that the two companies signed the agreement last week.
Supply to OEMs
Almost 70% of the business of Versa comprises supply of motor drives to original equipment manufacturers (OEMs) in the domestic market and the rest is manufacture and sale of energy-efficient appliances under the brand name Superfan.
Apart from the investment, Murata “will give us exposure to international market, make the motor drives more compact. We will make the core product and get their expertise to go international and to scale-up,” he said.
So far, Versa was supplying to OEMs. Now, the company can sell in the open market. “We make motor drives and the application can be for any sector.
“Electric vehicles is a new option we have. We see potential there,” he added. Recently, Versa had built a new factory here, with space for expansion. The company had started further expansion.
Hiroshi Iwatsubo, executive vice-preisdent of Murata, Japan, said in a media statement, “We see a great potential in Versa Drives’ motor control product line.
“Murata is keen to enter energy management and storage business with high performance and high efficiency new products that solve a lot of energy issues of today and we believe that India is an excellent place to focus on that effort.”