Regal Beloit Surely Shows its Goals in Emerging Markets

Implications:  There are few major players in the world of electric motors for household appliances and HVAC(commercial and residential) systems. The market in Asia growth at an average rate of 15%. This creates an opportunity for components OEM to provide appliances with electrical motors and that is where recent acquisitions of Regal Beloit perfectly fit in.

Analysis:  There are few fairly large companies that provide electric motors for various residential and commercial HVAC systems, as well as household appliances: Regal Beloit, AO Smith Electric Products Company (both US based), EBM PAPST (German based, with strong Swedish connections), Ocean-Broad-Motor Co., Ecectric Core & Motor Co. Ltd, and Gold Effort Electric Motor Mfg Ltd. ( all are People's Republic Of China based). On the other side, if one can take a good look at the appliance and HVAC market development, he can clearly see that HVAC and appliance market in Asia grows by the rate of 10-20% per year depending on a particular segment. This growth needs to be supported by avaialbility of needed and vital components, such as electric motors. And that is where recent acquisition of Alstom motors fits in. It looks like Regal Beloit works very hard to appropriately position itself in the growing markets. With recent acquisitions of GE HVAC electric motors division, FASCO motors (formerly part of Tecumseh Products Co.) and now most recent of Alstom motors and fans in India the company enhances its present in emerging fast growing Asian market.