Empower Industries to ink JV with SPS Inc., USA

Empower Industries India Ltd has announced the launching of sophisticated power electronics products involving power conversion / regulation technology employed in Space satellite Research and Defence operations as mobile and tactical electric power. This 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., which are employed in commercial and industrial sectors as well, 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 display and digitally illuminated environment. To start with the Company intends to manufacture High Powered Power supply and advanced Power Supply for LED televisions through a Joint Venture arrangement with an internationally renowned firm, viz. SPS Inc., USA. These products are presently manufactured by ABB, Siemens and Emerson. During the course of several deliberations, SPS Inc. who has won a 5-year global contract amidst stiff international competition for supply of the said products in USA, has approached the Company for technical and 100% marketing arrangement under a Joint Venture with the Company. Negotiations for a Joint Venture between the Company and SPS are in the final stages, after which the Company will set up a separate manufacturing facility for Power Supply / Power conversion equipment which are patented under various international laws.

The High Powered Power Supply contract accounts for a turn-over of Rs 700 Million in the next five years, whereas the sales generation for Power Supply for LED Televisions is placed at Rs 1500 Million for the said period.

It will be observed from the above that by undertaking the manufacture of these new products for which the Company has a committed buyer in the form of SPS, the Company 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 creating high presence into futuristic technology of the world and thereby enhances the value of shareholders' stake in the Company.

Source : Equity Bulls

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