Switzerland-based Iskraemeco Group that recently sold its smart meter manufacturing unit in India to Kaynes Technology India Ltd, has planned to establish a new software development centre in India that will focus on electricity metering and data processing.
This suggests that Iskraemeco, despite the sale of its electricity meter manufacturing company, will continue to maintain its presence in the subcontinent. The proposed software development centre will further strengthen the company’s global operations, Iskraemeco said in a statement.
The sale of Iskraemeco India is in line with Iskraemeco Group’s broader strategy of focusing on energy and water management solutions using digital platforms such as Symbiot Head-End Systems (HES) and Symbiot Meter Data Management (MDM), Iskraemeco said.
In addition, the two groups – Iskraemeco and Kaynes Technology – are studying further possibilities of cooperation in the development of innovative energy solutions. This opens up new opportunities to expand the partnership in both the Indian and global markets.
Background
Kaynes Technology India Ltd recently entered into a formal agreement to acquire 100 per cent equity stake in Iskraemeco India Pvt Ltd, for a total consideration of around Rs.42.98 crore. Iskraemeco India Pvt Ltd is currently owned by Iskraemeco Holding Switzerland AG and Slovakia-based Iskraemeco Merjenje IN Upravljanje Energije, DD.
Iskraemeco India Pvt Ltd was incorporated in October 2019 with the objective of supplying, installing and carrying out O&M of smart meters. The company recorded a sales turnover of Rs.65.42 crore in FY24.
Rationale
The broad objective of Kaynes Technology’s acquisition of Iskraemeco India is to establish a presence in the smart meter manufacturing space. Kaynes Technology was already associated with Iskraemeco in that it supplied EDSM (electronics system and design manufacturing) and ODM (original design manufacturer) services to Iskraemeco India.
Management views
Here are some views expressed by the senior management of Kaynes Technology India Ltd during an investor call recently convened to discuss the acquisition of Iskraemeco India Pvt Ltd:
- The purpose of the acquisition is to secure orders in the “device” area; Iskraemeco India will give Kaynes the desired scale.
- Kaynes is expecting that there is an order pipeline of 11 crore smart meters that will be awarded to various AMISPs under RDSS
- Power Grid Corporation of India Ltd (PGCIL), as an AMISP, has placed an order for 3.5 million smart meters for deployment in Gujarat, on Iskraemeco. This order will now be executed by Kaynes Technology
- The smart meters manufactured by Iskraemeco India Pvt Ltd will continue to have the “Iskraemeco” brand, to start with
- Kaynes expects to supply meters to those AMISPs that do have their own manufacturing capabilities
Featured photograph is for representation only
