Softdisk Awards

SURVEY HIGHLIGHTS

TOTAL INDUSTRY REVENUE

It is estimated that the UPSs worth INR 7822.22 crore were shipped to end-users during the fiscal 2023-24, a increase of over 547.09 crore over previous fiscal.

However Overall organized industry revenue was estimated at just above INR 7900 crore approx.

An increase of nearly 75 crore (estimated) by OEM & Secondary sales. There is good amount of secondary sales involved in this. Since the industry is scattered with over 100 unorganized players it is difficult to pin point the actual sales to end-users, all this secondary sales does not include batteries and are purely static inverter sales not to end users, but to OEMs.

Industry performance in 2023-2024.

Revenue wise : Industry grew by 547.09 Crore to net revenues of nearly 7822.22 a growth by 7.52%. This shows the customer is becoming very price conscious and companies are also vying for larger share of the pie, where big players benefit and smaller once get crushed.

Volume wise : Industry sales registered an estimated growth being over 7.90%. The growth remained almost the same as the previous year with a slight dip of 0.58% over pervious year growth.

This is a clear indicator of shrinking margins for smaller players. Companies going for bottom line doing great with only a few exceptions while some companies not able to complete order due to lack of components due to geopolitical situation arising due various factors.

Three Phase Online UPS sales has picked up. Online sales account for nearly 94.7%. Contributing a significant increase in revenue. There is nearly 81% increase in sales of 5kVA to 60kVA UPSs, more growth in 3 phase UPS is visible. However sales of Line Interactive UPS remains limited to select few companies who are doing good business.
Offline & line interactive UPS show a drop in growth in 7% in volume terms and not have not been a significant contributor in revenue terms, it increasingly becoming a low margin a high volume game. In revenue terms they contributed nearly 1.25% to the Total Industry revenue.
This does not include Inverter sold under the tag of Home UPS.
However medium & regional players making profits are leaning towards Solar Power Control Units (SPCU) which comes with more profits as compared to conventional UPSs. Remaining being sale of Servos and change of batteries not under maintenance and TPM contracts.

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. Maintenance should be only with original manufacturers, TPM should come when original manufacturer says no to service. This way every company will be assured of their service revenues and concentrate on sales activity. Customers should know that, 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.

SD Awards