TOTAL
INDUSTRY REVENUE
It is estimated that the UPSs worth INR 4957.00 crores was shipped to
end users during the fiscal 2013-14. However over all organized
industry revenue was estimated at INR 4757 crore.
There is huge amount of secondary sales involved
in this. Since the industry is scattered with over 200 unorganized
players it is difficult to pin point the actual sales to end-users.
GROWTH in 2013-2014 over previous year.
Revenue wise : Industry grew by 6.53%. A dip in growth of nearly
0.78% over previous years growth.
Volume wise : Industry grew by 19.27% over previous year. This is
a clear indicator of shrinking margins.
- Revenue from the unorganized sector accounts
for over 200 crores. Thanks mainly to scores of manufacturers
mushrooming in B & C class towns & cities.
- Online UPS sales picks up. Online sales
account for nearly 87%. Contributing a significant increase in
revenue. There is nearly 45% increase in sales of 10kVA plus UPSs.
- Offline & line interactive UPS show a drop in
growth of 5% in volume terms and not have not been a significant
contributor in increase in revenue terms, it increasingly becoming a
low margin a high volume game. In revenue term they contributed
nearly 11% to the Total Industry revenue. This does not include
Inverters sold under the tag of Home UPS.
- Exports on rise as compared to previous year.
Many leading once aim at exports. Of the Indian companies, Numeric
emerges as Indian MNC and leading exporter.
- Reverse Auction is haunting the UPS
manufacturer, who are already squeezed for margins.
Softdisk strongly believes that Good value for
money should be preached at all possible levels for the price conscious
end-user. This can be achieved only by end-user-education about the
quality of product and service priorities, specially for the price
conscious once. The end-user should be made to realize the requirement
of a quality UPS system for the safety of his equipment. Industry should
deny participation in reverse auctions. Maintenance should be only with
original manufacturers TPM should come when original manufacturer says
no to service. This way every company will be assures of their service
revenues and concentrate on sales activity. Customers should know the
One snag in the UPS, and the costly electronic equipment could bid you
bye. Maintenance by original equipment manufacturer would mean faulty
component will be replaced by the exactly the same new component. There
by avoiding undue risks.
Softdisk has been the flag bearer in educating the
masses about the need for quality UPS system. The industry should come
together to teach UPS essentials more so in case of SOHO & SME segment
as large and enterprise class is more or less aware of the need to
protect their system. UPS manufacturers should look upon themselves as a
solution provider and not merely as manufacturers or traders, it is then
the entire system will revamp and the small time operators will be
pushed out.
As the markets shows no sign of recovery revised market
estimates have emerged. The Indian UPS (uninterruptible power supply)
segment has revised its estimates to expect around 7 percent growth rate
in the coming year 2014-15, this is based on the performance of first two
quarters of the current fiscal. Also there was weakening of Rupee, against
the dollar. Resulting in further panic and what to do with dollar prices
roaming just around INR 60 a $, the dollar prices have now stopped
spiraling upwards brining a bit of calm amongst the UPS manufacturers. We
kept assuring the Captains of the industry that 68 will not be stable but
be ready to some thing around INR 60 per dollar with the change in Govt.,
which is what we are currently witnessing.
When Prime Mininster talks about infrastructure at par
with the developed world. Power continuity & quality are main
ingredients for a successful urbanized society having smart cities. With
emerging IT market & Cloud computing charges increasing. The growing
need of e-commerce, the evolution of data centres and the ever increasing
number of servers have all increased the need for having a well addressed
Power Electronic Industry.
We States like Uttar Pradesh we observe a paradigm
shift from irregular power no power. The number of power grid breakdowns
reported over the last two years stand testimony to this fact and hence we
see a shift towards alternative energy sources, be it Renewable green
energy or power generated thru nuclear energy. The New Power Minister Mr.
Piyush Goyal has clearly indicated the preferential treatment to Renewable
and Nuclear Power. To add to the wows, there is further shortage of fuel
West Asia is increasingly becoming unstable due to to ISIS war making even
Gen-sets go dry. Hi-Tech cities of Delhi, Mumbai & Chennai, Bangalore
have been facing severe power cuts.
Already companies taking the Solar route. It is only a
matter of time when Solar panel prices come down further, many more
companies will start taking the solar route. As on 31 March 2014 according
to figures released by the nation's ministry of New and Renewable Energy
(MNRE) India has a total installed capacity of 2.63 GW. What is required
is that all states in India allow feeding into the the grid and
netmetering possible. We need large scale production of net meters so that
even the house holds can opt for it.
MNRE has finalized regulations for phase 2 of the
nation's National Solar Mission (NSM), however Request for Selection (RfS)
documentation has not yet been released as we are writing this article
writing of this article.
The answer to all this is simple, have a well addressed
Power Electronic Industry addressing the needs of the distraught computers
and their users. Thanks to all this UPS and inverters have grown in vogue,
these are no more subsidiary products sold with computers and costly
electronic equipments.
It is over two decades, since we have been on the
scene, we have been witness to Power Electronic Industry deeds &
misdeeds. We have been an eye-witness to all the changes, from SVS to CVT
and then to UPS and now to what we can call a complete power electronic
solutions provider. What we are seeing now is a shift towards alternative
energy sources say SOLAR, WIND & Bio-Mass etc.
We have seen the industry ups and downs. The era when
our surveys nearly touched the figures of over 1400 manufacturers to today
where many even the semi organized to few of the organized once have been
forced to change their line of business or in view is a large amount of
Consolidation. However there are still around 750 players who call
themselves manufacturers and 480 odd manufacturers turned traders, the
competition is stiffer, SOHO business are purely made out of relationship.
This is where the mid range players have been the most suffers.
And to this new era of where most of the manufacturers
have been prompted to trade the products from the companies from China
& Taiwan. And few have actually pitched in with there own shops
joining the party, thrown to them by the Govt.’s Globalization
philosophy and open economy. Definitely the interest of local
manufacturers is at risk and no wonders they have switched to trading
albeit with excise paid.
But the falling rupee did help some manufacturers to
actually come up with Chinese competitive products made in India.
Softdisk has long been a campaigner of having a well
addressed Power Electronic Industry addressing the needs of the Power
Electronic Equipment manufacturers, constantly egging the Govt. to slash
excise, cut import duty on piece parts and it won’t be any exaggeration
to say that our efforts have yielded positive results. As a result of our
efforts UPS was recognized as IT peripheral, however this back fired as
those with money power, started trading in UPSs with imports from China
& Taiwan. Falling Rupee has put the stop to imports to certain extent.
This year it was clearly visible that the industry is
going through a phase of metamorphosis with most of the Indian biggies
getting acquired in a bid to consolidate and those not having organized
marketing strategies being marginalized. Here we emphasize to our readers
to check the service capabilities of the company they are going to acquire
the product from and not simply go for the price tag.
All have acknowledged our efforts and have started
consulting Softdisk for their decision making efforts. Softdisk has
always been trying its level best to educate the end-users. We have always
maintained that it is for the manufacturers who have to identify the users’
need and provide with cost effective, long term solutions to address them.
No wonders, our readers (the end-users) have positioned us as Power
Quality Consultants. Our mission is to forge partnerships between Power
Protection Equipment manufacturers and end users.
We sent over 18000 direct mailers & the result of
the survey are based on 9529 responses received to our elaborate
questionnaire. The questionnaire in poll format was made available at :
www.sdawards.in
Efforts were not limited here. Our executives visited
nearly 349 installations cross various locations through out India, and
also over 500 installations were touched thru tele-calling. The result
below are based on responses received to our elaborate questionnaire and
not necessarily the view of every individual. There may be many companies
missing out on these ratings, if you feel you are good enough to be rated,
do send us your companies profile with exhaustive client list, contact
person, his address, phone numbers and e-mail address. We will certainly
reach us :
All these have a world wide coverage through our web
sites :
www.softdiskindia.com
www.sdawards.in
So read on to know the most
comprehensive Power Electronic Industry Analysis ever & do revert back
on any discrepancy you observe, after all we are also human. |