Softdisk which has the history of constantly upgrading its information thru
various surveys has been monitoring the UPS industry for well over two decades
now. We have become synonymous with the UPS Industry and are constantly on
the
lookout of data. According to our latest findings, the Indian UPS market which
is currently growing at just over 9.04% is expected to cross 5800 crore mark by
March 2017. This include around 200 crores of sales coming through unorganized
sector. By March 2018 the industry is expected grow by 10.54 % which is huge
in
comparisons with overall market growth which grew by 6.53% in the previous
fiscal. A growth by nearly 3.57% over last year. For sure 15-16 has outperformed
the previous two fiscals. How individual companies benefit depends solely on
their approach.
Companies looking for bottom line will have to face pressure form companies
looking to improve top line. How ever if survey is a an indicator than private
sector will open up during & post festive season making it little suitable for
those looking for bottom line. Banking sector will be a cause of concern as they
insist on lowest bid.
I had lot of complaints of not getting proper service, I met DIT purchase of
many banks explained them that service is related to purchase price, when
companies sell at very low margins they find it difficult to service after 2
years.
There is further scope of consolidation, with big companies not hotly pursuing
lower kVA products. Also the amount of consolidation taking place in the
Industry, probably is due to fact the more & more UPS companies are
experimenting with solar enabled UPS. This time a lot of emphasis was given on
low key players who are in search of different market share for example like
Cosmic, Powernet, TPC, Arrow, Suvik, Vespra, ARVI to name of few.
In financial year 2015-16 the total end user sales should at around 5400 Crore.
A GREAT ACHIEVEMENT IN THIS RECESSIVE TIMES.
This is exclusive figure for UPSs & Power Electronic Devices, excluding
cooling
solutions, home UPSs and other add-ons. This is suggestive of the fact that
India’s growth engine has started functioning, albeit a bit slowly.
To counter the increasing prices of batteries many a companies have started
sourcing the batteries through OEMs, although still the quality conscious
customer insists on branded batteries.
These estimates have been generated by a survey when the industry was
seemingly
at the end of a tough phase where we had mixed reaction form manufacturers and
customers alike. through a tough phase after experiencing a tremendous drop in
Rupee against the US$ and hence might have a 2% aberration.
A sign of Asian dominance as American & and the European market are
going
thru a sluggish period during these times. It will be a great opportunity for
the US & European countries to focus on India. The report calls this slow
growth
as a consolidating factor in the Indian UPS market. We advice the US and
European markets to now recognize India as a consumer of UPSs and become
complete solution providers rather than just being a supplier. However the
competition is going to be more stiffer, it will be a challenge for the Indian .
Softdisk believes that the current expected rate of increase by approximately
10.54% & overall turnover by March 2017 including un organized sector will
touch
5800 crore mark. However nearly 200 crore of this will be through unorganized
sector surely indicating that end user consumption of organized companies
product will in all probability will cross 5400 crore mark even at the worst of
its performance.
BIS compliance is another key factor, in reducing the competitions and
increasing margins. More Modular UPS will be in demand and line interactive
market will slowly decline it will difficult for companies to maintain the
current sales level. Modular UPS allows end user to invest according to their
actual load, and to upgrade their systems while their business grows, without
hampering uptime, reliability, availability. The market demands UPS system with
high efficiency even at partial load to reduce the operating cost and to be a
part of green revolution.
The report has been generated by talking to more then 700 companies under
various vertical and talking over 300 people who are direct decision makers. All
700 plus companies we talked to had near 250 employee strength and have
presence
in almost all the regions in the country. There is an indication for more demand
for single phase up to 10 kVA (around 40 %) & Three phase UPS up to 60
kVA
(around 45%) Above 60% demand for (around 10 %) Off this Modular UPS and
share
is about 30% demand for Industrial UPSs. Rest being accountable for services and
other equipments.
Survey shows that this shift towards Modular UPS is primarily due to the hot
swapping features & the flexibility they offer in terms of redundancy. The
market demands UPS system with high efficiency even at partial load to reduce
the operating cost and to be a part of green revolution. The firms in India will
have to make great leaps in application integration. In addition, India's
cultural diversity, corporative federalism, and socio-economic disparities make
it a microcosm of the broader South Asia region.
Softdisk expects, smart vendors to use India as a testing ground for new
business models and strategies to try out models for the next wave of emerging
economies. Though India & South East Asian economies are closely
connected to
each other through trade and cross investment, they differ enormously in their
levels of economic development and the state of their IT infrastructure.
The report indicates that the regional growth will be as follows :
NORTH : Last year the over all Northern market had grown by
6%, we
expect it to go up by 8%. Leave apart power continuity, availability of
Power especially in states of UP & Bihar has been a point of concern.
There
will a marked raise in Government purchase in the north. Post Bihar
Elections. (Allready visible) Followed closely by IT, ITES and BPO segment.
SMB will also be a significant contributor especially in the state of UP,
Rajasthan & Bihar if given a special status. Overall North will contribute
24 to 26% of expected 5800 crore by March 2017.
SOUTH : Here a surge of nearly 4% is expected in coming two years.
South
is expected grow at a rate of 31 to 33% and will contribute over 1900 crore
INR to the UPS revenue of the country by March 2017. Off this Karnataka
&
Tamilnadu will be the major contributor. However a new state of Semandhra
&
Telangana will not lag behind but for this supports from the center will be
one big factor. In this Semandhra seems to be at an advantage. Other then
Banking, one can expect Corporate business to be contributing more and IT
/
ITES, BPO's to contribute revenue in these states. Education, will be
another major contributor.
EAST : Over 1200 crore revenue will be generated by the sales of
UPSs
in the East by March 2017. Govt. buying will dominate, many a planned
projects will start getting executed. In the overall scenario East will be
contributing somewhere between 19 to 21% of total revenues by March
2017.
WEST : In the west overall contribution will be some where
between 25
to 27% of the total national UPS revenue. West will pocket over 1500 crores
of the total revenue of 5800 crore by March 2017. Major contributor will be
Govt. buyings will contribute 31% of West revenue, Gujarat &
Corporate
buying and IT / ITES, BPO's & Services & Industrial Process
Automation will
be major contributor nearly 600 crore of revenue will be churned out by this
sector. SMB will be a major contributor in Madhya Pradesh.
Vertical wise bifurcation: This indicates Banking, Insurance & Finance
sector
contributing 11% approximately 638 crore INR. Other major contributor being the
government sector which is expected contribution being well over 1276 Crores,
nearly 22% of the total UPS revenue. indicating a gain of 1% over previous year.
IT / ITES & BPO sector contribute as last year The sector is expected to net
754
Crores, a share of nearly 13% in the overall UPS revenue. While Corporate buying
shows the small drop of 1%in percentage terms & is expected to grow at the
rate
of approximately 11% netting revenue of above 608 crores.
Another major contributor this year will be Industrial process automation with
high capacity CNC Machines being installed high end UPS systems which can use
regenerative load as in put source will be more popular. A clear increase from
the last year level. The trend indicates that those selling higher kVA ratings
will be the one to watch out for as they may clinch the CNC deals. Those coming
up with cutting edge technology will be at an advantage. Companies selling to
Govt. concerns will be at a benefit. Research & Educational Institutions will
be
a key area of interest to those catering to their needs, this sector will
contribute over 638 crore. Hospitality sector will have there own share of the
pie. SMB segment contributing 700 crore nearly 12% augers well for the small
players with the small UPS systems, there is still a lot to vie for, if they
have commitment to quality.
Softdisk is proud of the fact that the SMB segment will
be contributing nearly 700 crore indicating that its effort to educate the
masses over the period of last two decades, has finally started paying
dividends. You pat us or not, we are certainly patting our back.
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