Electronic and electrical appliances manufacturer, V-Guard, is in talks with a few international companies for production of high-end online UPS units as well as cost-effective and corrosion-resistant water heaters.

Talks are on with a few foreign companies, including a Taiwanese market leader, for transferring the technology to manufacture customised online UPS units which is mainly used in ATMs, mobile telephone towers, hospitals and information technology companies, said Mithun Chittilappally, V-Guard’s ED. “Right now, we mainly produce offline UPS units and the segment has been witnessing an impressive growth while registering a Rs 20 crore turnover,” he added.

While an offline UPS remains idle until a power failure occurs and then switches from utility power to its own source, an online UPS continuously powers the protected load from its reserves, while replenishing the reserves from the AC power.

The online UPS provides protection from complete failure of the utility supply and all common power problems.

“Initially, we will be importing semi-manufactured units, only to raise the quantity of local components to 60-70 per cent within two to three years’ time,” he said, adding this will be undertaken in a phased manner.

Similarly, the Rs 310 crore gross turnover company is also in talks with a few foreign companies as well as Indian ones for the transfer of ‘vitreous enamel coating' technology for water-heaters.

“Talks are going on with some foreign players in the water-heater manufacturing segment, those in the coating manufacturing machinery realm and also some Indian companies which currently use the technology for other applications,” he said.

The new technology is around 12 per cent more cost-effective and more corrosion-resistant than the stainless steel heaters available in the market right now. “There are options before us — either to set up the unit on our own or to resort to contract manufacturing,” he added.

The V-Guard group, which had mopped up over Rs 65 crore from its recent initial public offering, will spend over 95 per cent of that amount on the investments for this year's expansion plans, including the new production units planned for cables, pumps and water-heaters and for setting up distribution centres in the NCR region, Vijayawada and Palakkad.