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
3POWER BACKUP MARKET – INDIA.PPT
•Market Overview
•Segments
•Drivers & Challenges
•Competition
•Key Developments
4POWER BACKUP MARKET – INDIA.PPT
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.
5POWER BACKUP MARKET – INDIA.PPT
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:
6POWER BACKUP MARKET – INDIA.PPT
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
7POWER BACKUP MARKET – INDIA.PPT
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
8POWER BACKUP MARKET – INDIA.PPT
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