Softdisk which has the history of constantly upgrading its information thru
various surveys has been monitoring the UPS industry for well over two and a
half 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 6.21% is expected to cross
6500 crore mark by March 2019. This include around 200 crores of sales coming
through unorganized sector. By March 2019 the industry is expected grow by 6.45
% which is higher in comparisons with overall market growth which grew by 5.27%
in the previous fiscal. A growth of over 1% over last year. For sure 18-19 will
outperform the previous three 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 that 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 & SPCUs. 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 2018-19 the total end user sales should at around 6500 Crore.
A GREAT ACHIEVEMENT IN THIS COMPETITIVE
PRICING TIMES.
This is exclusive figure for UPSs (Sales, Services & Maintanence) & Power
Electronic Devices, excluding cooling solutions, home UPSs and other add-ons
with GST. This is suggestive of the fact that India’s growth engine has started
functioning, at a bit faster then previous financial.
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 post GST implementation & Complaince,
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 to 3 % 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
Softdisk believes that the current expected rate of increase by approximately
6.45% & overall turnover by March 2019 including unorganized sector will touch
6500 crore mark. However nearly 250 crore of this will be through unorganized
sector surely indicating that end user consumption of organized companies
product will in all probability will cross 6200 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
600 companies under
various vertical and talking to over 350 people who are direct decision makers.
All 600 plus companies we talked to had near 200 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 20 kVA (around 60 %) & Three phase UPSs
(around 40%). Off all this Modular UPSs share is about 35%.
Demand for Industrial UPSs will slowly rise. Rest of the revenue 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. But this
trend is mainly for Corporate, IT & ITES companies. 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. (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. Overall North will contribute 24 to 26% of
expected 6500 crore by March 2019.
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 2000 crore INR to
the UPS revenue of the country by March 2019. Off this Karnataka, Tamilnadu &
Kearla 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 : Nearly 1400 crore revenue will be generated by the sales of
UPSs
in
the East by March 2019. Govt. buying will dominate, many a planned projects will
start getting executed. In the overall scenario East will be contributing
somewhere between 20 to 22% of total revenues by March 2019.
WEST : In the west overall contribution will be some where between
24 to
26%
of the total national UPS revenue. West will pocket over 1600 crores of the
total revenue of 6500 crore by March 2019. 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 30% 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 9% approximately 728.72 crore INR. Other major contributor being
the government sector which is expected contribution being well over 1357.42
Crore, nearly 23% of the total UPS revenue. indicating a gain of 2% over
previous year. IT / ITES & BPO sector contribute as last year The sector is
expected to net 868.10 Crores, a share of nearly 14% in the overall UPS revenue.
While Corporate buying shows the decerase of 2% in percentage in percentages
terms & is expected to grow at the rate of approximately 9% netting revenue of
above 734.54 crore. Over all increases of nearly 50 crore in revenue terms.
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 400 crore. Hospitality sector will have there
own share of the pie. SMB segment contributing over 800 crore nearly 13% 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 over
800 crore indicating that its effort to educate the masses over the period of
last two & half decades, has finally started paying dividends. You pat us or
not, we are certainly patting our back.
- Sai Krishnan
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