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 3.72% but this is temporary
phase due to elections and as the magazine hits the stands growth would have
picked up.
With Modi Government firmly in saddle it is expected to cross 7033 crore mark
by March 2020. Indian economy will definitely get a boost. This include around
200 crores of sales coming through unorganized sector and secondary sales. By
March 2020 the industry is expected to grow by 6.20 % which is lower in
comparisons with overall market growth which grew by 8.90% in the previous
fiscal. However, By 2022 India Power Electronic Industry will have over 10%
growth these are conservative estimates, A dip of nearly 2.70% over last year
will certainly grow up by over 10% by 2022, when we celebrate 150 years of
centenary of Our Father of the Nation. How companies benefit depends solely on
their approach. Most SPCU manufacturers will be florish & will boost growth by
2022.
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 is
happening more at the level of smaller companies. It is not about acquire or
take-over but about co-existence. 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, Miron, Impaq to name of few.
A GREAT ACHIEVEMENT IN THIS COMPETITIVE PRICING TIMES.
This is exclusive figure for UPSs (Sales, Services & Maintenance) & 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 which slowed
down due to elections will start as there is a stable government back in the
saddle which is pro development in infrastructure. 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 & Compliance,
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.
Softdisk believes that the current expected rate of increase by approximately
9.32% & overall turnover by March 2020 including unorganized sector will touch
7000 crore mark including secondary sales. However nearly 300 crore of this will
be through unorganized sector surely indicating that end user consumption of
organized companies product will in all probability will cross 6700 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 450 companies under various vertical and talking to over 500 people who are
direct decision makers. All 450 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 25 to 27% of
expected 6700 crore by March 2020.
SOUTH : Here a surge of nearly 4% is expected in coming two years.
South is expected grow at a rate of 30 to 32% and will contribute over 2100
crore INR to the UPS revenue of the country by March 2020. 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 2020. Govt. buying will dominate, many a planned
projects will start getting executed. In the overall scenario East will be
contributing somewhere between 21 to 23% of total revenues by March 2020.
WEST : In the west overall contribution will be some where between 20
to 22% of the total national UPS revenue. West will pocket over 1500 crores of
the total revenue of 6700 crore by March 2020. Major contributor will be Govt.
buying will contribute 31% of West revenue, Gujarat & Corporate buying and IT /
ITES, BPO's & Services & Industrial Process Automation will be major
contributor
nearly 25% 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 8%
approximately 775.72 crore INR. Other major contributor being the government
sector which is expected contribution is being well over 1456.51(Direct & thru
SI) Crore, nearly 24% of the total UPS revenue. Indicating a gain of 1% over
previous year. IT / ITES & BPO sector contribution is expected to net 931.47
Crores, a share of nearly 15% in the overall UPS revenue. While Corporate buying
shows the results as last year in percentages terms & is expected to grow at the
rate of approximately 7% netting revenue of above 788.16, an increases of over
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 levels in revenue terms. 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 425 crore. Hospitality sector will
have there own share of the pie. SMB segment contributing over 850 crore nearly
14% 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.We expect the total
revenues to be 7032.90 crore, i.e. 7000 crore approx.
Softdisk is proud of the fact that the SMB segment
will be contributing over 850 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.
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