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Softdisk Findings: Growth Projections for March 2023...
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UPS Industry Records 5.7% Growth...
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Classification of UPS Battery - a Costly interruption?...
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Gender Equity : Not an even match...
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Technology : The new education Enabler...
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Wireless IP-based communications architecture...

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MID-YEAR ANALYSIS
Softdisk Findings: Growth Projections for March 2023

Softdisk has been a witness to the growth of Power Electronic Industry over a period of three decades. We have seen it grow when it was less then a 1000 crore mark when the UPS Industry came as a stabilizing force for Computing Industry and the UPS majors today were in their in their infancy. We stuck to our task of monitoring the industry.

With Modi Government aiming for ATMANIRBHAR BHARAT, and assurances from many countries promising to shift their manufacturing facilities from China to India, the Indian Power Electronic Industry may just cross 7100 crore mark by March 2022, A growth in revenue by over 6.5% from 2020-21. Indian economy will definitely get a boost by 2022 end. Indian Power Electronic Industry will have over 8% growth in the year 22-23. These by crossing 7600 crore revenue mark by March 2023.

Companies looking for bottom line will have to face pressure form companies looking to improve top line. However, if we consider survey as an indicator then private sector will open up post pandemic making it more suitable for those looking for bottom line. Banking sector will be a cause of concern as they insist on lowest bid. We had lot of complaints of not getting proper service, We spoke to DIT purchase of various banks and explained them that service is related to purchase price, when companies sell at very low margins, they find it difficult to serve 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 and 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.

ACHIEVING 7600 MARK WILL BE A GREAT FEAT DURING THIS GLOBAL MELTDOWN.

This 7600 Crore estimate is exclusive figure for UPSs (Sales, Services & Maintenance) & Power Electronic Devices, including SPCUs, home UPSs excluding cooling solutions, and other add-ons with GST is subject to 2% variation either way. Also encouraging is the fact that businesses entities worldwide are targeting the Indian market. Thus, development of infrastructure is certain. 

As more and more entities establish facilities in India, the need of having a pure and un-interrupted power will further increase. More Three phase & Modular ungradable UPS will be in demand and line interactive market will slowly decline make room for long backup home UPS in capacities upward of 3kVA. 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 systems with high efficiency even at partial load and reduced the operating cost.

The report has been generated by talking to more than 196 companies under various vertical and talking to over 430 people who are direct decision makers. All 196 plus companies we spoke too, were having over 200 employees and had presence in almost all the regions in the country. There is an indication for more demand for single phase up to 10 kVA (around 60 %) & Three phase UPSs (around 20%). Off all this, the share of Modular UPSs is about 35%. Demand for Industrial UPSs will rise slowly. Rest of the revenue being accountable for services and other equipments.

Softdisk expects, smart vendors to use India as a testing ground for new business models and strategies to try out new models for the next wave of emerging economies. 

Softdisk has been a witness to the growth of Power Electronic Industry over a period of three decades. We have seen it grow when it was less then a 1000 crore mark when the UPS Industry came as a stabilizing force for Computing Industry and the UPS majors today were in their in their infancy. We stuck to our task of monitoring the industry.

The report indicates that the regional growth will be as follows: 

NORTH: Last year the overall Northern market had grown by 5%, we expect it to go up by 6 % this year. Leave apart power continuity, availability of power has certainly improved over the last five years. There will a no marked raise in Government purchase in the north. (Already visible) Followed closely by IT, ITES and BPO segment. SMB will also be a significant contributor especially in the state of UP, Rajasthan, Bihar and Jharkhand. Overall North will contribute 24 to 25% of expected 7600 plus crore by March 2023.

SOUTH: South is expected to grow at a rate of 32 to 34% and will contribute nearly 2500 crores INR to the industry revenue of the country by March 2023. Off this Karnataka, Tamil Nadu, Telangana & Kerala will be the major contributor. In this Andhra 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 1600 crore of revenue will be generated by the sales of power electronic equipments in the East by March 2023. Govt. buying will dominate, many a planned projects will start getting executed. In the overall scenario East will be contributing somewhere between 19 to 22% of total revenues by March 2023.

WEST: In the west overall contribution will be somewhere between 23 to 24% of the total industry revenue. West will pocket nearly 2000 crores of the total revenue of 7600 plus crore by March 2022. Major contributor will be SME buying will contribute 31% of West revenue, Gujarat & Corporate buying and IT / ITES, BPO`s, IT Services & Industrial Process Automation will be major contributor nearly 25% of revenue will be churned out by this sector. SMB & SOHO will be a major contributor in the state of Madhya Pradesh.

Vertical wise bifurcation:  

This indicates that the financial year 2022-23: Banking, Insurance & Finance sector contributing 7% approximately 532.00 crores INR. Other major contributor being the Government sector with expected contribution being nearly 1672.00 (Direct & thru SI) crores, nearly 22% of the total industry revenue. IT / ITES & BPO sector contribution is expected to net 988.00 crores, a share of nearly 13% in the overall industry revenue. While Corporate buying is expected to grow at the rate of approximately 8% netting revenue of above 608.00 crores, low purchases are primarily due to modular UPS which can upgrade & avoid fresh new purchases.  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. They will be a 14 % revenue generator with revenue around 1064 crores.  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 attract  non modular UPSs non modular UPSs to cater to their  their needs, this sector will contribute nearly 532.00 crores.  Hospitality sector will have a low share of the pie. SMB & SOHO segment contributing nearly 1064 crores nearly 14% augers well for the small players with the small UPS systems with large backups being in demand as most corporate prefer Work from Home. We expect the total revenues to be nearly 7600 crores by March 2023. 

Softdisk is proud of the fact that the SMB & SOHO segment will be contributing 1064 crores indicating that our effort to educate the masses over the period of last three decades, has finally started paying dividends.

SAI KRISHNAN

& RAVINDRA DWIVEDI

SD Editorial Desk

 

 

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