Apollo, Blackstone to put in final bids for Luminous | Economic Times

Blackstone and Apollo Global Management, two of the world’s biggest buyout funds, are set to submit binding offers to buy Luminous Power Technologies from French group Schneider Electric on Tuesday, the stipulated deadline, people aware of the developments said.Schneider is selling Luminous, a maker of inverters and industrial batteries that it acquired a decade ago, as part of a global portfolio realignment to exit non-core, consumer-centric businesses. The divestment of Luminous comes in the face of rising usage of lithium-ion batteries and a reduced need for inverters as power availability improves in the country. 81643407The changing business realities might further depress the ₹3,500-4,000-crore valuation sought, some analysts and traders said. ET was the first to report on November 25 Schneider’s plan to sell the business. It had acquired 74% of the business for ₹1,400 crore from the New Delhi-based SAR Group and had mandated Citi last year to find a buyer.ET also reported in its January 25 edition that three funds had been shortlisted to buy Luminous. Earlier, potential suitors had included Tata Group company Voltas and Hyderabad-based Amara Raja Batteries and even Bain Capital. Most of them opted out, though some believe Bain Capital might still make a last-minute attempt. Blackstone and Luminous spokespersons declined to comment. Spokespersons for Apollo, Bain and Citi did not respond to emailed queries.Luminous produces lead acid-based industrial batteries and controls 30% of the ₹7,500 crore ($1 billion) battery inverter market in India, competing with Exide Industries and Microtek, among others. What got the funds interested in the company was its pivot towards consumer electricals and appliances.Last month, it started making energy-efficient fans, targeting ₹500 crore in revenue from the overall fans category by 2023 and a 5% market share within two years. The company said it expects 15% of its revenue from ceiling fans to come from the energy-saving category.The company has seven manufacturing units, more than 28 sales offices in India and a presence in over 36 countries, with more than 60,000 channel partners. Luminous posted a profit of ₹141 crore on revenue of ₹3,642 crore in FY20.