Power Electronic Industry Analysis, 2010

We had predicted in June 2010 that UPS Industry will cross 5000 crore mark by March 2012, we seemed to be hitting the nail on the head, Markets have started blooming and Sensex are on a high, infact as I write this Sensex has touched 21000 mark. Our earlier prediction had gone hay wire, as if we had castled an evil eye on our own prediction. Global Economic Meltdown occurred and our prediction were all blown out of the window. It seems we may be off target by over 1000 crore. That’s huge, is’nt it? but recovery has been fast and we expect to 5000 Crore Mark by March 2012.

India is plunging head-long into an energy crisis that may cripple the country's burgeoning economy if the government does not act fast. unless Govt. takes necessary steps to resuscitate the electrical power generation industry. On this count, Nuclear Deal India had with the US, more importantly India getting NSG Waiver at Vienna after long deliberations and oppositions from certain countries is a welcome sign as it has opened gates for Nuclear Power Plants, 27 of them stated to be coming up by 2020. Also the Push in the Green Energy (Solar & Wind) augers well for the Indian UPS Industry as Power Quality & Continuity will be the most sought after thing in years to come. So not withholding the resent economic meltdown, the ray of hope the Power Electronic Industry in the country remains unperturbed.

As the markets show sign of recovery revised market estimates have emerged. The Indian UPS (uninterruptible power supply) segment has revised its estimates to expect a 16 percent growth rate in the coming year 2010-11, this is based on the performance of first two quarters of the current fiscal.

So as we talk about infrastructure at par with the developed world. Power continuity & quality are main ingredients for 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 and hence we see a shift towards alternative energy sources, be it green energy or power generated thru nuclear energy.

To add to wows, there is further shortage of fuel. Even Gensets are going dry. Hi-Tech cities of Bangalore, Mumbai & Chennai 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, many more companies will start taking the solar route.

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 18 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. What we are seeing now is a shift towards alternative energy sources say SOLAR, WIND 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. From highly fragmented to some consolidation. However there are still around 800 players, 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 he 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.

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.

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 not 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. 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. 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.

Direct discussions were held with nearly 342 users by visiting their installations and over 500 users were surveyed telephonically the result of this survey 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. So that it becomes easier for us interact with them.

Survey Highlights

TOTAL INDUSTRY REVENUE

Over all industry revenue was estimated at INR 3905 crores, There is huge amount of secondary sales involved in this. Since the industry is scattered with over 350 unorganized players it is difficult to pin point the actual sales to end-users. However it is estimated that the UPSs worth INR 3626 crores was shipped to end users during the fiscal 2009-10.

GROWTH in 2009-2010 over previous year.

Revenue wise : Industry grew by 11%. A raise in growth of nearly 5% over previous years growth.

Volume wise : Industry grew by 20% over previous year. This is a clear indicator of shrinking margins.

Revenue from the unorganized sector accounts for over 300 crores. Thanks mainly to scores of manufacturers mushrooming in B class towns & cities.

Online UPS sales picks up. Online sales account for nearly 89%. Contributing a significant increase in revenue. There is nearly 25% increase in sales of 10kVA plus UPSs.

Offline & line interactive UPS show a drop in growth of 7% 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 9% 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.

Several new including Moser Bear & Intex have pitched in with products in the Offline UPS Market.

Number of foreign players on rise. Most of the top 20 players have a foreign hand either directly as a subsidiary / JV / Technical Tie-up or a distribution arrangement. Foreign brands net 68% of total UPS revenues.

Quoting of very low prices by certain companies is a huge cause of worry of most UPS manufacturers. However many a companies have realized that there is no point doing business without Margins.

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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