DB Power joins hands with UK-based Chloride Power

UK-based UPS manufacturing major-Chloride Power Protection has joined hands
with India's DB Power Electronics. Chloride has taken an equity participation
of 12% in DB Power, which according to Pradeep Pimple, VP-DB Power, will be
increased to 49% over a period of six to seven years.

Explaining why both the companies came together, Pradeep said, "Both
companies have been in the UPS business for so many years and are trusted names
in the industry with a wide range of products. We share the same philosophy of
'never let the customer down', so thought it best to join hands." While
there are some overlaps in the range of products of Chloride and DB Power, both
companies are looking at complementing each other with a different set of
products that are unique to both.

DB Power is also expected to start local manufacturing of advance systems of
Chloride by 2007. "This joint venture will help us expand our basket of
products and address new market immediately. At the same time, Chloride will
also manufacture some of the product which we have at their end. It is a
technology transfer either ways," he said.

With the new set-up, DB Power is focusing on two segments, ie IT
Infrastructure and manufacturing. "For the IT infrastructure segment, we
will be able to provide import duty advantage with Chloride products, and for
the manufacturing segment, we will provide products that are locally
manufactured." For the last three years, DB has grown at a CAGR 20-23%.
With this joint venture, the company hopes to grow 30% this year.

NELSON JOHNY