Power Backup Market - India
February 2009

Executive summary
Devices: Generators or Genset, battery-based Inverters and Uninterrupted Power Supply (UPS)
Introduction 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
Domestic Exports
Categories
Market Size (2008) CAGR (2008-12) Value (2007) CAGR (2004-07)
Generator INR – bn x% INR – bn x%
UPS INR – bn y% INR – bn y%
Inverter INR – bn z% INR – bn z%
Drivers & Drivers Challenges
Challenges
E
Chronic power deficit; widening supply-demand gap
L
Demand from telecom sector
P
Growth in desktop user base
Increasing cost of raw materials
Competition from unorganised sector
Lack of consumer awareness
Competition
SAM
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
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•Market Overview
•Segments
•Drivers & Challenges
•Competition
•Key Developments
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Power backup devices comprise generators, UPS and inverters
Device Description End-use Size (2008)
Industrial and large residential
Combination of an electrical generator
Generator / complexes while portable gen-
and engine, which run on fuels like diesel INR -- bn
Gen-set sets are used by smaller
or gasoline, to generate back up power
establishments like shops
UPS
PLE
Battery-based device providing
immediate power backup in case of
power failure. Typically used for IT
PC users like SME & SOHO
setups, shops, home users,
BPOs, retail chains, server
INR -- bn
M
equipment. rooms etc.
Inverter
SA
Electric or electro-mechanical device
converting DC (direct current) from
SME & SOHO setups, shops,
home users, BPOs, retail chains, INR -- bn
batteries to AC (alternating current). hospitals etc.
Generators are the largest product segment in India.
Generators are the largest product segment in India.
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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 INR bn
•Expected growth rate : x% p.a up to 2012 120
+x% B
•Generator sales are declining as inverters gain 100
preference since the latter are: 80
LE
A
More efficient & cost effective 60
Pollution-free
MP
Easy to operate and do not require fuel
40
20
0
Product sub-segments
•Stationary: Primarily run on diesel SA 2008
Segment share
Portable
2012
<125 KVA used in large residential & commercial y%
complexes, hotels, hospitals
>125 KVA used in large core sector industries,
process industries
•Portable (0.5-6KVA) run on:
Petrol
x%
Diesel
Kerosene Stationary
Source:
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Challenges
Rising input costs – battery; packaging
Competition from unorganised sector
Drivers
Power shortages and demand supply Lack of consumer awareness
gap in India
Demand from telecom operators
Demand for UPS for desktops
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Unorganized sector comprising of assemblers dominates the
market with few, large players in the organized sector
Generator competition Portable Genset Sales (Organized)
• Fierce competition from unorganized players, which No. of Units Sold
A
compete on price, and Chinese imports X
2006 B
Y
• In stationary generator segment:
X
Leaders: AA, BB, CC 2007
Y
LE
Others: X, Y, Z
X
• Few organized players in portable gensets 2008 Y
A and B Power are market leaders
through assemblers
MP
ABC entered the market in 2008 instead of supplying
More than x% of organized market is accounted for A and B
combined
• Unorganized segment comprises Original Equipment
Assemblers (OEAs)
SA
Have exclusive understanding for sourcing engines from
manufacturers
Stationary Generators (Organized)
Company
Units Sold (sales in INR mn)
2007 2008
Buy engines and alternators for assembly and sale to
customers W A (a) A (a)
Major OEAs are dominate their respective regions: X B (b) B (b)
– Mumbai: Powerica
– Delhi: Jakson, Sudhir and Bhaskar Y C (c) C (c)
– Chennai: Power Electrics Z D (d) D (d)
– Bangalore: DPK
* Production figures; sales data unavailable
Source: India Markets ” Generators :Industry “; Religare Technova Company Financials Database; Company Annual Reports
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