OZOP Energy’s fully owned subsidiary Power Conversion Technologies Inc., PCTI, and Precision Power Products (PPP) have entered into a Technology Development Agreement. PCTI would like to introduce you to PPP and their group of associated companies and share with you why PCTI is partnering with this synergistic company. With a GDP ranking third in the world [b], India has one billion more people than the U.S. [a]. With almost two decades of experience and an impressive customer list, Precision Power Products is an excellent partner for PCTI. The Technology Development Agreement (TDA) allows PPP to purchase products from PCTI and repackage them into larger components and/or resell them in India under the PPP brand. Based on Precision Power Products’ evaluation, their five-year revenue opportunity projection is placed at $124 million.
Precision Power Products’ primary products are rectifiers, control systems, sensors, embedded systems, software development (GUI and firmware), and power electronics development. They are a heavy hitter whose customers include India’s army, navy, and coast guard. The Defense Laboratory, which has developed nuclear radiation monitoring systems for the armed forces of India, is a customer of PPP, as are the nine Defense Public Sector Undertakings (PSUs) under the administrative control of the Department of Defense. With the world’s fourth largest military [d], India is one of the world’s biggest importers of defense equipment [c]. Among India’s navy is the world’s eighth largest submarine fleet [d] which fits well with PCTI’s expertise in manufacturing submarine battery chargers. Besides submarines, billions of dollars of national and international military assets, such as jet aircraft, connect to PCTI equipment to keep troops around the world mission-ready. A working relationship between PCTI and PPP will make both partners more likely to land lucrative military contracts.
However, India’s military is not the only attractive market for PCTI/PPP. Getting back to those 1.3 billion people and their huge GDP, manufacturing has emerged as one of the high growth sectors in India. The Indian government has launched an initiative to make India a global manufacturing hub and give international recognition to its economy. The goal of this “Make in India” initiative is to create 100 million new manufacturing jobs by 2022. India is fast becoming the hub for hi-tech manufacturing giants such as GE, Siemens, HTC, Toshiba, and Boeing which have either set up or are in the process of setting up manufacturing plants there [e]. Tech giant Samsung expects its online business in India to grow 35 percent this year [f].
PPP is perfectly suited to continue taking advantage of this explosive growth in the manufacturing sector. It makes much of the hardware and equipment that is essential to manufacturing plants. Large industrial machines use a lot of power and PPP makes both high voltage and low voltage distribution switchboards which are designed to distribute electrical power to various equipment/systems. They also make the human machine interfaces (HMI) necessary for the operation of manufacturing lines. These touch enabled, single board graphical user interfaces (GUIs) control various types of equipment and conform to industry standard protocols. Equipment that requires high amperage direct current (DC) electricity, such as electroplating in automobile manufacturing, needs high power rectifiers which PPP sells. And for machinery that would suffer catastrophic damage should the power supply fail, PPP makes auto changeover switches (ACOS). These provide the factory with an automated system to changeover from the primary supply to an alternate one, such as a generator or battery bank, should the primary supply get interrupted or become unhealthy. The changeover occurs automatically and within a settable time period.
PPP is a leader in developing Interactive Technical Manuals (IETMs), which are digital manuals for the maintenance, training, and operation of equipment or military hardware. They are designed with an interactive user interface and usually contain illustrations or videos. IETMs are portable electronic libraries containing up to thousands of pages of maintenance schedules, procedures, and trouble-shooting guides. The searchable nature of a digital document allows users to locate the technical information they need quickly while the graphics take the guesswork out of the procedures; i.e. a picture is worth a thousand words! The digital nature of IETMs provides a user friendly and accurate method of updating records such as the dates of when scheduled maintenance or repairs were performed. PPP can provide IETMs up to Class V, the highest and most technical class. These provide extensive interactions for the user, including multimedia. Class V IETMs integrate with their systems and the input from users will update the content displayed for subsequent users.
PPP also excels in software and firmware development with its in-house team of highly trained engineers and software developers. All PPP manufactured products contain software and firmware developed in house. With a state of the art test setup and licensed debugging tools available, development of software and firmware can be provided for third party solutions. Their software is developed following appropriate ISO standards and licensed tools for development, debugging, and production are provided; All software is extensively tested, cross-platform compatible with Windows and Linux, and certified by a third party licensed software tester if requested.
As our dearly departed friend, Billy Mays, might have said, “But wait, there’s more!” The TDA brings with it more than just a partnership between the two companies. It also means a relationship with all of PPP’s “associated companies:” Bravitek, Enman Automation, S. S. Control systems, Deogiri Electronic Cluster, Manu Electricals, and Inverbras. These companies have varied levels of PPP equity or a PPP founder’s majority stake. They are each independent with their own corporate structures and directors; Indian law dictates that intercompany transactions are maintained at “Arms Length”. However, this still enables PPP to have the scalability of operations and influence over these companies’ quality, priorities, and operations. This cluster of associated companies is a potent team with a symbiotic combination of product portfolios. Their combined customer base extends beyond India to Australia, SE Asia, Africa, South America, Europe, and The United States and includes such names as Mercedes Benz, Goodyear, Kohler, Siemens, Pfizer, and Rail Coach Factory.
Bravitek supports Precision Power Products with embedded hardware and software and develops products based on cutting edge technology for the defense and industrial sectors. Besides providing the Indian navy with a Battery Monitoring System (BMS) for submarines, Bravitek is developing several other monitoring and control systems for submarines and surface ships. They have also developed real-time simulators for military applications with graphics, algorithms, and hardware and specializes in different types of electronic fuses for ammunition.
Enman Automation provides services to manufacturing companies to help improve their productivity, reduce costs, and enhance quality. They specialize in products for the automation of industrial systems that range from custom-designed, bundled components to large, turnkey integrated projects. They provide the components and control panels for process control systems, energy management, agricultural monitoring, and water management. They are a leader in the field of Supervisory Control and Data Acquisition (SCADA). This is an industrial computer system that monitors and controls a process. In the case of the transmission and distribution elements of electrical utilities, a SCADA system will monitor substations, transformers, and other electrical assets. Their intelligent motor control centers (iMCCs), are an assembly of motor starters and controllers in a common structure. These are centralized hubs comprising motor control units sharing a common power bus. Each section of an iMCC contains soft starters, feeders, transformers, adjustable frequency drives, overload relays, circuit breakers, and panel boards. Integrated instrument packages, software development, and protection engineering are some of their other offerings.
Like Enman Automation, SS Control Systems also provides products for industrial automation. Besides SCADA systems and iMCCs, they specialize in switchboards, control and relay panels, intelligent points of common coupling (iPCC), distribution boards, programmable logic controllers (PLCs), distributed control systems (DCSs), and changeover switches. They make battery chargers, mobile rectifier trailers, and load banks which is a piece of electrical testing equipment used to simulate an electrical load, to test an electric power source without connecting it to its normal operating load. Working from their 54,000 square foot facility, their one hundred or so employees strongly emphasize their customer service attitude.
Deogiri Electronic Cluster is a Printed Circuit Board (PCB) specialist. From start to finish, they are on the leading edge of design, prototyping, assembly, and testing of PCBs. Their new state of the art, 46,000 square foot facility will allow for rapid prototyping, simulation, and testing. An impressive range of testing is available including temperature, humidity, shock, vibration, and environmental stress screening. They are community minded in that they provide Common Facility Centers (CFCs) where entrepreneurs turn technological information and ideas into products and services. They have CFCs for electronics manufacturing, for electronics design and testing, for electronic cabinets and enclosures manufacturing, and one for Training and Innovation to support start-ups, academia, focused training to enhance student employment, and industry specific training for professionals.
Manu Electricals is an integrated electronics manufacturing services company. Boasting a factory area of 40,000 sq. ft. area with a work force of 120, they design and manufacture electronic assemblies (circuit boards of all of components soldered in place). Besides their massive manual insertion line, they have a surface-mount technology (SMT) line, a method in which the electrical components are mounted directly onto the surface of a printed circuit board (PCB). Manu Electricals is capable of handling PCBs from 50mm x 50mm to 610mm x 510mm; high-density PCBs, complex SMT, chip on chip line, is Restriction of Hazardous Substance (RoHS) compliant, offers single and multi-layer printed circuit boards, has automated placement for single and double-sided assemblies, provides ball grid arrays; flexible circuit assemblies; has fine-pitched quad-flat packages (QFPs), with both passive and SMT connectors.
Inverbras is a power electronics company that makes automatic changeover systems, junction boxes, fuse panels, master controls, power supply panels, transformers, and power supply units. They are involved with IP (internet protocols) and telephony; IoT; robotics; software solutions; installation, integration, and maintenance of power, RF, communication systems, and security systems.
Taken together, this team of companies presents the ability to make and outfit a wide range of industrial and military electronic and electrical equipment. Besides lucrative military projects, PPP has its hands in other high power applications such as ship building, electric vehicles, and alternative energy. Partnering with PCTI opens doors to an even wider range of fields, and with India’s “Make in India” initiative, there is great potential for large economic rewards.
As mentioned earlier, India has a lot of people. Moving all them from Point A to Point B offers the PCTI/PPP team a golden opportunity in both the commercial transportation industry as well as with electric vehicles. India has announced a ban on the sale of fossil-fuel cars by 2030. These electric vehicles need charging stations, not only for when travelers are far from home, but the fact that 50 million homes in India have no electricity, these vehicle owners will need a place to charge their cars when they are home and while traveling [g]. There are also many busses and trucks moving throughout India’s cities which will be moving towards electrification as well. Here PCTI’s expertise with battery chargers will be useful. The Indian government is moving to install electric-car charging stations at its 69,000 state-controlled gas stations. Oil-ministry guidelines already call for new gas pumps to include one alternative-fuel option, and many gas stations are opting for EV charging to satisfy that condition. Lack of charging infrastructure remains one of the biggest hurdles to electric-vehicle adoption in most countries, but this could be especially crucial for meeting India’s ambitious electrification goals [h].
More importantly, however, India’s automobile manufacturing sector is expanding rapidly. Honda’s Indian subsidiary is working on an electric vehicle for the market, and Suzuki, India’s most popular automaker, is teaming up with Toyota to develop an electric vehicle as well. That’s important, because more than four in 10 new cars sold in India last year were made by the giant Maruti Suzuki company [g]. Kia has announced plans for a new $1 billion assembly plant in southern India to build electric cars [i]. Interestingly, ride-sharing company Ola is moving to get into the field of electric vehicle manufacturing. It recently agreed with manufacturer Tata to purchase an electric version of the Nano, famously the world’s least expensive vehicle, for its Delhi cab fleet. Uber has signed a partnership to purchase its new fleet of electric vehicles from Indian auto manufacturer Mahinda. Even auto giant Ford is involved. It was the first U.S. car manufacturer to import a mass-market car from India for sale in North America: the 2019 Ford EcoSport [g]. The Indian auto industry’s growing size and strength will require a huge investment in its infrastructure and manufacturing capacity. That means a lot of types of products that PCTI/PPP provides.
Moving goods around India is another match for PCTI and PPP. About 1.3 billion metric tons of cargo are handled by Indian ports annually. Around 70 percent of trade by value and more than 95 percent by volume across the country is done through maritime transport [j]. PCTI is a leading provider of shore power solutions for maritime cargo ports. With shore power converters, ships can plug into converters to provide power to their ships at foreign ports. This solution is ideal for international shipping where the frequency of the power source available needs to be converted to correctly power the at-berth ship’s electronics. Solid state shore power converters cut fuel costs, reduce fuel emissions and air pollution from generators, and eliminate unnecessary noise. They can be custom built to a port’s specifications, up to 2MVA.
People, as well as cargo, often travel by ferry. In fact, India has over fifty ferry lines operating domestically [k]. Ferries are diesel fuel intensive and India is motivated to reduce its air pollution. The ferry is the perfect application for electric ships and many countries are converting their ferries to all-electric. For example, the Qi-Fu No. 1 is an all-electric ferry operating in Taiwan, SE Asia’s first electric ferry. The high exhaust emissions and the noise levels of diesel ferries drove the port city of Kaohsiung to invest in the Qi-Fu No. 1 [l]. Following suit, India has awarded Cochin Shipyard a contract for the construction of 23 hybrid-electric passenger ferries for operation in Kerala State. Each ferry will be 72 feet long and carry up to 100 passengers. The vessels could run for up to one hour on fully electric mode powered by lithium titanium oxide batteries, which could be fully recharged in as little as 15 minutes’ time [m]. Since most ferries are moderate sized ships with shorter routes, range is less of an issue. They also have set points of departure. This means that the berths at each port can be equipped with the proper battery chargers to recharge the ship while passengers and vehicles embark or disembark. PCTI has the know-how and manufacturing capability to provide the shore power charging stations needed for this burgeoning application.
As stated earlier, millions of households in India do not have access to electricity. This fact along with India’s ambitious drive to reduce air pollution creates a fantastic opportunity for PCTI and PPP. India’s renewable energy market is one of the fastest growing in the world. With a desire to increase their energy independence and meet their projected 2040 demand of 15,820 TWh, renewable energy is set to play an important role. India was ranked fourth in wind power, fifth in solar power, and fifth in renewable power installed capacity as of 2018. As a part of its Paris Agreement commitments, the Government has set an ambitious target of achieving 175 gigawatt (GW) of renewable energy capacity by 2022 [n].
However, renewable energy sources are notoriously fickle. The wind doesn’t always blow, or it blows too much. The sun doesn’t always shine. Hydroelectric dams cannot be turned on or off as needed. Large scale energy storage overcomes this by allowing power to be consumed at a different time than it was generated through a process known as “time shift”. These storage assets have declined in cost 74% since 2013 and are projected to continue a steady 8 percent per year decline through the mid 2020s. “The largest price drop in utility-scale lithium-ion storage systems occurred between 2014 and 2015, plummeting 29 percent. The following year saw a 26 percent price decline, and last year, 12 percent. As hardware costs fall, the utility-scale system price is expected to continue its decline, dropping 36 percent by 2022” [o].
DC to AC inverters are essential in transforming DC power from renewables into AC that can be “shipped” to households and storage facilities. On a mass utility-scale, clean energy relies on these industrial grade inverters to transform and store sustainably sourced power so it is ready to meet demand at any moment. With over 29 years of experience in the game, PCTI’s product scope, as well as the high power range that we address uniquely, suits the company to address renewable energy storage options on both a commercial and mass utility-scale.
Solar DC to AC inverters make it possible to use solar and other renewable energies to power our lives. This can be done through grid-tied or off-grid inverters. Grid-tied inverters serve as a sort of bank for entities using solar power. It allows them to harness solar power through photovoltaic panels, invert it from DC to AC, and send any unused energy to the grid. Independent microgrids offer a perfect solution for India’s burgeoning renewables market. They can be built almost anywhere and serve remote areas or areas prone to power disruption. Or they can be relied upon to maintain power to manufacturing facilities for which power loss would be catastrophic. Taken together, PCTI and PPP are excellent synergistic partners to offer this technology to India.
The TDA between PCTI and PPP offers investors an exciting opportunity to tap into the enormous and growing economy of India. The U.S. Department of State notes: “The United States and India have shared interests in promoting global security, stability, and economic prosperity through trade, investment, and connectivity. The United States supports India’s emergence as a leading global power and vital partner in efforts to ensure that the Indo-Pacific is a region of peace, stability, and growing prosperity.”[p] Considering PPP’s relationship with the Indian military, PCTI/PPP stands to prosper through the sale of a wide range of electronics and electrical hardware. The booming manufacturing sector is a very attractive and potentially lucrative avenue for the sale of their combined products portfolio. And India’s commitment to clean energy and green transportation is a perfect match for PCTI, PPP, and PPP’s associated companies.
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