Power solution major Numeric Power Systems has recently floated a new company called Socomec-Numeric. It is considered to be a major development since Numeric tie-up with French technical collaborator Merlin Gerin came to an end recently. Following the exit of Merlin Gerin, Numeric decided to have a separate entity for the hi-end power solution segment, which was hitherto addressed through the tie-up. Forming a new entity - Socomec-Numeric, has several strategic reasons for R Chellappan-managed Numeric Power Systems.

Now, the low-end and mid markets will be directly and exclusively addressed by Numeric, while the hi-end segment will be dedicatedly addressed by Socomec-Numeric. "There are several reasons behind forming a new entity. Earlier, Merlin Gerin was believed to be holding some minor stake in the Rs 280-crore Numeric, though the tie-up was only for hi-end markets. Now, Numeric will address the low-end and mid markets on its own, while the newly formed joint venture company will take care of the hi-end segment," according to official sources.

According to market sources, Numeric has lost some major orders from its existing clients to the competitors, for non-availability of technically superior products from Merlin Gerin. "Though, the news (rumors) in the outside world was Numeric surviving only because of its technical tie-up with Merlin Gerin, the reality was different. Numeric has built a strong product range in 1-1 (phase) and 3-1 categories over the last 20 years, which even the MNC could not match in both technical and price factors. Though, Merlin Gerin had some offerings for the hi-end market, it did not have IGBT rectifier and other key technical features to meet the demands of new economy companies and 24/7 requirements. In the process, they were losing orders for hi-end products (mainly in 3-3 (phase) category) even from their existing customers," said a source close to the company.

Meanwhile, Merlin Gerin's announcement about direct entry into the Indian market and lot of other policy related issues made Numeric to look for a new tie-up. Socomec-Numeric assures to offer technology superior products (green mains/pollution free utility) with salient features such as IGBT rectifier/inverter, DSP based technology, no de-rating for IT loads, perfect input sine wave, high input PF, very low input THDi, good power quality, generator-friendly and hi-efficiency/availability systems. The products would be available from 30 KVA up to 4.8 MVA range. "Now, the gap will be closed and Numeric would emerge as a strong player in all segments," quipped the source.

The newly floated Socomec-Numeric will function from the same office where Numeric Power Systems is located, while it will maintain an individual P&L statement and function as a separate strategic business unit (SBU). Socomec-Numeric will also have a new team directly controlled by the managing director R Chellappan. Socomec is also a French company like Merlin Gerin.

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