Power Electronic Industry Analysis, 2007

Just a few weeks ago, there was a Western grid power break down, whole of Madhya Pradesh, Maharastra, Gujarat were in state of black out, trains have come to a stand still and what’s more even certain call centers bore the brunt for few hours. Business transaction worth hundreds of crores were affected. So we talk about infrastructure at par with the developed world.

Power continuity & quality are main ingredients a successful urbanized society. 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.

The theory of computer breakdowns being caused by electrical line disturbances is fast loosing its importance as 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. Even the Silicon city of Bangalore and the Hi-Tech Mumbai & Chennai remained without electricity during the floods caused by recent rains. 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 15 years, since we have been surveying the Power Electronic Industry. 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. 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. From highly fragmented to some consolidation. However there are still around 850 players, the competition is stiffer, SOHO business are purely made out of relationship or branding. This is where the mid range players have been the most suffers.

And to this new era of where most of he manufacturers have been prompted to outsource there production either in part or in full to the companies from far east (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 at least in lower kVA categories.

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, especially upto 20 kVA systems.

This year it was clearly visible that the industry is going through a phase of metamorphosis with biggies getting bigger and those not having organized marketing strategies being marginalized.

Here we emphasize to our readers that service capabilities and just the price must be criterion for selection of UPS systems. The electronics, no matter imported or Indian, needs proper and preventive maintenance. It is not purchase it, install it and forget it sort of thing.

Currently UPS (Unin—terrupted Power Supply System) is classified under Chapter 8504.4029 of Customs Tariff. Basic duty is exempted vide Notfn No;25/2005 SL. No;4 if used for Computer/Telecom Applications. Our fight is still on, We have approached the Union Commerce & Industry Minister Mr. Kamalnath to press the industry demand to bring the entire range of UPS systems imported to be exempted from duty, this will help clear a lot of mess.

Be it govt. or the Corporate or the manufacturers themselves, all have acknowledged our efforts and have started consulting Softdisk for their decision making efforts.

This year Softdisk surveyed 710 companies from all angles, turnover, growth, marketing network, quality certifications, sales under various ratings, customer support and even contacted the customers to have their view point. Awarding points to know how the companies are fairing and also companies were ranked on the basis of Users’ Satisfaction Survey on various parameters. For the first time online voting was carried out which yielded tremendous response. Helping us increase our sample size to 6477 which came across all industry verticals and not just the top few. Fresh SD Users’ Satisfaction Ratings have been given according to the user’s perception of various installations we visited, or had the views from.

 

Survey Highlights

TOTAL INDUSTRY REVENUE

Over all industry revenue was estimated at 2735 crores INR. Since the industry is scattered with over 400 unorganized players it is difficult to pin point the actual sales to end-users.

However it is estimated that the UPSs worth 2300 crores INR was shipped to end users during the fiscal 2006-07.

GROWTH in 2005-2006 over previous year.

Revenue wise : Industry grew by 26 % up from 18.37 % in 2005-2006. A growth of nearly 8.0% over previous years growth.

Volume wise : Industry grew by 41% over previous year. This is a clear indicator of shrinking margins.

Revenue from the unorganized sector accounts for over 350 crores. Thanks mainly to scores of manufacturers mushrooming in B class towns & cities.

Online UPS sales picks up by nearly 42%. Contributing a significant increase in revenue. There is nearly 20% increase in sales of 10kVA plus UPSs.

Offline & line interactive UPS register a growth of 14 % in volume terms but not have not been a significant contributor in increase in revenue terms, it increasingly becoming a low margin a high volume game.

CVT nearly phased out, Only Elent survives, the other few exceptions being Bhurji and Data Guard and Starvision are the other few.

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.

Number of foreign players on rise. Almost all the top 20 players have a foreign hand either directly as a subsidiary / JV / Technical Tie-up or a distribution arrangement. Foreign brands net 54% of total UPS revenues.

Rising prices of battery is a cause of concern for major UPS manufacturers.

TPM, the new mantra for smaller companies. Even the biggies have taken service component as serious business opportunity. Service outsourcing to other companies is the new mantra for the market leaders. However those keeping service to themselves maintain an edge.

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. One snag in the UPS, and the costly electronic equipment could bid you bye. 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.

SD Awards
SD's UPS AWARDS
SD's UPS Awards 2023
Survey Highlights
How They Faired
SD's Power Electronic Industry Analysis,
Year Ending March 2023
SD's Top 10
Power Electronic Companies
SD's Top 10
Indian Power Electronic Companies
SD's Top 5
Online UPS Manufacturers
SD's Top 3
Line-Interactive UPS Manufacturers
SD's Top
Home UPS/CVT/Inverter Company
Special Awards
SD's UPS SURVEY
SD's UPS Users' Choice Awards 2023
Companies to Watch
SD Users' Satisfaction Rating
SD's SOLAR AWARDS
SD's Solar Market Analysis 2023
SD's Top 5, Indian Rooftop Solutions Company of the year ending March 2022-2023
SD's Top 3, Indian Grid Sharing Solar Power Solution Provider of the year 2022-2023
SD's Top 5, Indian SPCU (Non String) Manufacturers of the year 2022-2023
SD's Top 3, Indian Off-Grid / Hybrid Solar Power Solution Provider of the year 2022-2023

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