power backup - india - sample

Power Backup Market - India

February 2009

2POWER BACKUP MARKET – INDIA.PPT

SAMPLE

Executive summary

Drivers

�Chronic power deficit; widening supply-demand gap

�Demand from telecom sector

�Growth in desktop user base

Market

Drivers &

Challenges

Competition� Large unorganized sector across all three product segments

�Generators: Few leading organized players; unorganized sector comprise of OEAs– In portable segment, Company A and B are leaders while in the stationary segment Company C and D are

some of the major players

�UPS: Company X, Y and Z account for x% of low-capacity UPS

� Inverters: AA, BB and CC are leading companies

Challenges

� Increasing cost of raw materials

�Competition from unorganised sector

� Lack of consumer awareness

�Devices: Generators or Genset, battery-based Inverters and Uninterrupted Power Supply (UPS)

�End-user segments: Commercial (generators, inverters, UPS) and Residential (inverters and UPS)

�Wide range of products manufactured domestically

� India developing as an exporter of generators and inverters

Introduction

CAGR (2004-07)Value (2007)CAGR (2008-12)Size (2008)

z%INR – bnz%INR – bnInverter

y%INR – bny%INR – bnUPS

x%INR – bnx%INR – bnGenerator

ExportsDomesticCategories


•Market Overview

•Segments

•Drivers & Challenges

•Competition

•Key Developments


SAMPLE

Power backup devices comprise generators, UPS and inverters

Generator /

Gen-set

Combination of an electrical generator

and engine, which run on fuels like diesel

or gasoline, to generate back up power

Industrial and large residential

complexes while portable gen-

sets are used by smaller

establishments like shops

INR -- bn

UPS

Battery-based device providing

immediate power backup in case of

power failure. Typically used for IT

equipment.

PC users like SME & SOHO

setups, shops, home users,

BPOs, retail chains, server

rooms etc.

INR -- bn

InverterElectric or electro-mechanical device

converting DC (direct current) from

batteries to AC (alternating current).

SME & SOHO setups, shops,

home users, BPOs, retail chains,

hospitals etc.

INR -- bn

Device Description End-use Size (2008)

Generators are the largest product segment in India.Generators are the largest product segment in India.


SAMPLE

•Stationary: Primarily run on diesel

�<125 KVA used in large residential & commercial complexes, hotels, hospitals

�>125 KVA used in large core sector industries, process industries

•Portable (0.5-6KVA) run on:

�Petrol

�Diesel

�Kerosene

Product sub-segments Segment share

Stationary

x%

Portable

y%

Stationary generators, which are largely used in industrial and

large commercial locations, are driving generator sales

Generator market overview Market size & growth

•Market size (2008): INR XX bn

•Expected growth rate : x% p.a up to 2012

•Generator sales are declining as inverters gain

preference since the latter are:

�More efficient & cost effective

�Pollution-free

�Easy to operate and do not require fuel

0

20

40

60

80

100

120

2008

B

2012

+x%

A

INR bn

Source:


Demand for UPS for desktops

Demand from telecom operators

Power shortages and demand supply

gap in India

DriversCompetition from unorganised sector

Lack of consumer awareness

Rising input costs – battery; packaging

Challenges


SAMPLE

Unorganized sector comprising of assemblers dominates the

market with few, large players in the organized sector

Generator competition Portable Genset Sales (Organized)

Stationary Generators (Organized)

• Fierce competition from unorganized players, which

compete on price, and Chinese imports

• In stationary generator segment:

� Leaders: AA, BB, CC

� Others: X, Y, Z

• Few organized players in portable gensets

� A and B Power are market leaders

� ABC entered the market in 2008 instead of supplying

through assemblers

• Unorganized segment comprises Original Equipment

Assemblers (OEAs)

� Have exclusive understanding for sourcing engines from

manufacturers

� Buy engines and alternators for assembly and sale to

customers

� Major OEAs are dominate their respective regions:

– Mumbai: Powerica

– Delhi: Jakson, Sudhir and Bhaskar

– Chennai: Power Electrics

– Bangalore: DPK

Source: India Markets ” Generators :Industry “; Religare Technova Company Financials Database; Company Annual Reports

XY

2006

XY

2007

XY

2008

A

B

No. of Units Sold

More than x% of organized market is accounted for A and B

combined

Units Sold (sales in INR mn)

D (d)D (d)Z

C (c)C (c)Y

B (b)B (b)X

A (a)A (a)W

20082007Company

* Production figures; sales data unavailable


Thank you for the attention

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