VGUARD: Product InnovationBabu AppunnyMBA, B Tech, Six sigma black beltBabu_c_appunny@yahoo.com+91 40 2713 0107
DisclaimerI prepared this presentation and shared it with V-GUARD team before I was interviewed for VP (Electronics & Power Products) position, the position at which I served the company later. The presentation was not modified later, except for this disclaimer page. The presentation was prepared with the information available at the public domain and the information that I gathered on the job has not influenced the presentation.
India energy trends Huge energy supply/demand gap drives Inverter, UPS and solar solution sales at 15% CAGR• In 20 years India doubled it’s power capacity. But per capita power is just 30% of world average.• India will reach world average by 2040: 30 years opportunity for stabilizer, Inverter, UPS and solar energy solutions• Higher purchasing power drives up UPS growth to 15% and slows stabilizer growth to 0%• 44% of houses in India has no electricity. With higher purchasing power, they will turn to generator or solar energy solutions• The Jawaharlal Nehru National Solar Mission will further push-up demand of solar energy solutions
VGUARD: Technology overlap diagramPower electronics R&D can drive growth in multiple product lines with great future growth Power Electronics Product lines Solar Double Solar water Inverter conversion heater UPS Offline Geysers UPS Line interactive UPS Stabilize r Cables Pumps & Fans Motors New New Legacy product line proposal
VGUARD: opportunity comparison Owing to the higher barriers and better profit margin Double conversion and solar solution offers best returns Growth Entry barrier RemarksGeysers Low barrierSolar water heater 20% Low barrierStabilizer ~0% Low barrierSingle phase UPS 15% Medium: capital and technology barrier Price warDouble conversion UPS High: capital and technology barrier Premium price 15%Offline UPS 15% Medium: capital and technology barrier Price warSolar inverter 10-15% High: capital barrier and new technology Premium pricePumps & Motors 8% Medium: capital barrierFans ~5% Medium: capital barrierCables >5% Medium: capital barrier -mediumInverters for farmers ? Medium: capital and technology No competition as of now
Benefits of solar inverter and double conversion UPS• At 6% company’s profit/revenue is below industry leaders• Geysers, Sola water heaters, cables, stabilizers, pumps & motors and fans are legacy low profit businesses• Share price stabilized around 200. Unless profitable product lines added, share holder expectations cannot be met• High barriers of entry drives higher profit in solar inverter and double conversion UPS• V Guard, well recognized brand, can successfully make huge bets in the market• Investment in Power Electronics R&D can drive new products in multiple product streams, reducing overall R&D investment