Market Research Report : Power Backup Market in India 2012


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Inadvertent power outages, thunderstorms, electrical circuit failure, blackouts, spikes and many other issues trouble the electricity supply in India. Herein rises the importance of clean, uninterrupted source of power supply. Power Backup devices in the form of gensets, UPS and inverters provide consumers with that solution.

The report begins with the introduction section which offers a brief insight into the installed capacity of electricity in India and the demand-supply gap in terms of electricity generation in parts of India. The different types of power backups are also defined. A market segmentation of power backup devices’ are shown both product based as well as end-user based. The market overview section provides an insight into the Indian gensets market followed by the UPS and inverter market, highlighting the market size and growth. Market segmentations of various power backups are also shown.

An analysis of the drivers explains the factors for growth of the power backup industry. Demand for power backup devices is expected to increase with increasing deficiency in Indian energy sector. Rising disposable income and growing demand from telecom generates huge demand for power backup segment. Demand from the rural sector plays a key role in the growth of the market. The key challenges include competition from unorganized sector and lack of brand awareness and threat from imported Chinese products. Decrease in Growth of Desktop Sales is leading to slower growth in SOHO and SME UPS segment.

Various sectors which creates great demand for power backup devices like the Banking sector, IT/ITeS, Health care sector, Organized retail sector and Hospitality sector is also described.

A brief overview of the current trends prevalent with the power backup market is given which includes use of solar technology, capacity based planning and solar hybrid generators. Key associations which are working towards the development of power electronics in India like the Indian Diesel Engine Manufactures Association, UPS Manufacturers & Dealers Association and Bureau of Energy Efficiency are briefly mentioned.

The competition section begins with the Porter’s Five Forces Analysis, illustrating the competitive rivalry, bargaining power of suppliers and buyers and threat of new entrants and substitutes. It outlays the competitive landscape of the power backup market in India briefing about the domestic players existing in the market. This section provides a three dimensional analysis of domestic key players’ revenues, profits and market capitalization. The report also features brief profiles of major domestic players in the market and a snapshot of their corporation, financial performance along with the key financial ratios, business highlights and their product portfolio providing an insight into the existing competitive scenario.

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Market Research Report : Power Backup Market in India 2012

  1. 1. Insert Cover Image using Slide Master View Do not distortPower Backup Market – India (Sample)October 2012
  2. 2. Executive Summary  The Power backup market comprises mainly of Gensets, UPS and Inverters  Genset market for 20‐‐ stood at INR X bn and is estimated to grow with a CAGR of xx% till 20‐‐  The Indian UPS market stood at INR Y bn in 20‐‐ and is expected to grow at yy% till 20‐‐ Market  Inverters along with its battery had a market of INR Y bn in 20‐‐ and is expected to grow at zz% till 20‐‐ Drivers LE   Challenges Drivers &  Challenges MP – India remains energy deficient – Increase in disposable income – Demand from telecom operators – Threat from imported Chinese products – Competition from unorganized sector and  lack of consumer awareness SA – Increase in rural demand – Decrease in growth of desktop sales  Use of Solar technology Trends  Capacity based planning  Solar Hybrid Generators   Indian Diesel Engine Manufactures Association Associations  UPS Manufacturers & Dealers Association   Bureau of Energy Efficiency  Major PlayersCompetition Company A Company B Company C Company D Company E Company F POWER BACKUP MARKET IN INDIA 2012.PPT 2
  3. 3. •Introduction•Market Overview•Drivers & Challenges LE   MP•Sector‐wise Demand SA•Trends•Associations•Competition•Strategic Recommendations•Appendix POWER BACKUP MARKET IN INDIA 2012.PPT 3
  4. 4. Power backup devices include comprise generators, UPS and inverters Device Description End‐use Industrial and large residential  Combination of an electrical generator   Generator /  complexes while portable gen‐sets are  and engine, which run on fuels like diesel  LE Gen‐set used by smaller establishments like  or gasoline, to generate backup power shops  MP SA Battery‐based device providing  PC users like SME & small office/home  immediate power backup in case of  UPS power failure. Typically used for IT  office (SOHO) setups, shops, home users,  BPOs, retail chains etc. equipment Electric or electro‐mechanical device  SME & SOHO setups, shops,  home users,  Inverter converting DC (direct current) from  BPOs, retail chains, hospitals etc. batteries to AC (alternating current) POWER BACKUP MARKET IN INDIA 2012.PPT 4
  5. 5. Stationary generators, largely used in industrial and large commercial locations, are driving generator salesGenerator Market Overview  Market Size & Growth (Value)• Indian genset’s market was pegged at INR X bn in 20‐ ‐ INR bn x6   xx• The market is expected to grow at a CAGR of xx% till  x5 x4 LE 20‐‐ x3 x2• Generator sales are estimated to decline as inverters  x1 P gain preference since the latter are:  More efficient & cost effective M  Pollution‐free   Easy to operate and do not require fuel SA• Generators are mainly of two categories  Portable 2011 2012e 2013e 2014e 2015e 2016e  StationaryMarket Segmentation :Value‐ Wise (2011) Market Size & Growth (Volume) 15‐375KVA ‘000 c 375.1‐750KVA XX X6 X5 X4 >750KVA X3 X2 X1 b a 2011 2012e 2013e 2014e 2015e 2015e POWER BACKUP MARKET IN INDIA 2012.PPT 5
  6. 6. Expansion of the Indian UPS market is driven by the growing need to protect sensitive electronic devices and its dataUPS & Battery Market Overview Market Size & Growth (Value)• Indian UPS market was valued at INR Y bn in 20‐‐ and  is expected to grow with a CAGR of yy% till 20‐‐ INR bn• Sub‐5 KVA segment is the largest because of its  yy y6 popularity in SME and SOHOs y5  Increased laptop sales at the cost of desktop sales has  y4 y3 affected UPS sales in < 1 kVA segment y2 y1  • South India is expected to be the largest market for  E UPS with a market share of ‐‐% of the total Indian  market• UPS are broadly categorized into  Standby UPS Systems  Line‐Interactive UPS Systems P L 2011 2012e 2013e 2014e 2015e 2016e  On‐Line UPS SystemsMarket Segmentation :Value‐ Wise (2011) S AM mn Market Size & Growth (Volume) Y6 a c YY Y5 d Y4 Y3 e Y2 Y1 b Small (<5 KVA) UPS System Battery Medium (5‐20 KVA) Large (>20 KVA) 2011 2012e 2013e 2014e 2015e 2016e POWER BACKUP MARKET IN INDIA 2012.PPT 6
  7. 7. Inverter market serving households, shops and commercial establishments is expected to flourishInverter & Battery Market Overview Market Size & Growth• The market for inverters includes mostly households,  shops, commercial establishments, other institutions INR bn• Inverter along with its battery had a market size of  z6 INR Z bn in 20‐‐ zz z5• CAGR for the forecasted period is expected to be  z4 around zz% z3 z2• Inverters are of three basic types based on the  z1   quality of its electrical output: LE  Sine wave  Modified Sine wave  Square wave 2011 2012e 2013e 2014e 2015e 2016e inverter market MP• Square wave inverters command around ‐‐% of the  S A Segment Share: Value‐Wise (2011) d c 200‐250VA 600‐650VA SOHO &  SME  800‐850VA segments 1400‐1500VA Industrial  segment b a POWER BACKUP MARKET IN INDIA 2012.PPT 7
  8. 8. Drivers & Challenges – Summary  Challenges LE   Competition from unorganized sector  P Drivers and lack of consumer awareness M Threat from imported Chinese  India remains energy deficient A products Rising Disposable Income Demand from telecom operators S Decrease in Growth of Desktop Sales Increase in Rural demand POWER BACKUP MARKET IN INDIA 2012.PPT 8
  9. 9. Demand‐Supply gap in power distribution is the primary reason for boom in power backup marketIndia remains energy deficient Impact• Point 1• Point 2• Point 3• Point 4• Point 5 LE   Peak Power Shortage MP Per Capita Power Consumption GW a a b SA KWh c b d 2010 2015e 2010 2015e POWER BACKUP MARKET IN INDIA 2012.PPT 9
  10. 10. Trends – Summary   Use of Solar technology LE   MP Trends SA Capacity based planning Solar Hybrid Generators  POWER BACKUP MARKET IN INDIA 2012.PPT 10
  11. 11. Solar technology is the next evolution in the Indian inverter marketUse of Solar Technology• Point 1• Point 2 Players are   • Point 3 trying to gain  LE• Point 4 additional  profits from  MP solar inverters Types of Solar Inverters Stand alone SA • Point 1 • Point 2 Solar Inverters Grid connected • Point 1 • Point 2 POWER BACKUP MARKET IN INDIA 2012.PPT 11
  12. 12. Major Public Companies ‐ Summary Net Profit/Loss55,000 Size of the Bubble represents Market 50,000 Capitalization in INR mn m145,00040,000 m235,000 LE   P30,000 M25,000 m3 A20,000 S m4 m515,00010,000 m6 m7 5,000 m9 m8 0 ‐25,000 ‐20,000 ‐15,000 ‐10,000 ‐5,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 Total income Company A Company C Company E Company G Company I Company B Company D Company F Company H Note: All figures are in INR mn and are based on the latest financials available POWER BACKUP MARKET IN INDIA 2012.PPT 12
  13. 13. Public: Domestic Company – Company A (1/3)Company Information Offices and Centres – India Corporate Address Address Tel No. +91‐11‐ 4757895656Fax No. +91‐11‐42594199278Website New Delhi  Year of IncorporationTicker Symbol 19‐‐ 517‐‐‐ LE  Stock Exchange ‐‐‐‐ MP Head Office SAProducts and ServicesCategory Products/ServicesCategory 1 Product 1, Product 2, Product 3 Key PeopleCategory 2 Product 1, Product 2 Name Designation xx Chairman yy M.D. zz Director vv Additional Director POWER BACKUP MARKET IN INDIA 2012.PPT 13
  14. 14. Public: Domestic Company – Company A  (2/3) Financial Snapshot Key Ratios y‐o‐y change  Total Income Net Profit/Loss Particulars  2011 2010 2009 2008 INR units INR units (2011‐10)20,000 c d 500 Profitability Ratios a b Operating Margin ‐ ‐ ‐ ‐ ‐15,000 Net Margin ‐ ‐ ‐ ‐ ‐ 010,000 Profit Before Tax Margin ‐ ‐ ‐ ‐ ‐ R1 R2 R3 -500 Return on Equity ‐ ‐ ‐ ‐ ‐ 5,000 Return on Capital Employed ‐ ‐ ‐ ‐ ‐ 0 -1,000 Return on Working Capital ‐ ‐ ‐ ‐ ‐   20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Assets ‐ ‐ ‐ ‐ ‐ E Financial Summary  Return on Fixed Assets ‐ ‐ ‐ ‐ ‐ L Cost Ratios P The company incurred a net loss of INR d units in FY 20‐‐, as compared  Operating costs (% of Sales) ‐ ‐ ‐ ‐ ‐ to net loss of INR c units in FY 20‐‐ Administration costs (% of  ‐ ‐ ‐ ‐ ‐ M The company reported total income of INR R4 units in FY 20‐‐,  Sales) Interest costs (% of Sales) ‐ ‐ ‐ ‐ ‐ registering an increase of m% over FY 20‐‐ A The company earned an operating margin of f% in FY 20‐‐, an increase  Liquidity Ratios S Current Ratio ‐ ‐ ‐ ‐ ‐ of g percentage points over FY 20‐‐ Cash Ratio ‐ ‐ ‐ ‐ ‐ The company reported debt to equity ratio of d in FY 20‐‐, a decrease  Leverage Ratios of h% over FY 20‐‐ Debt to Equity Ratio ‐ ‐ ‐ ‐ ‐ Debt to Capital Ratio Key Financial Performance Indicators ‐ ‐ ‐ ‐ ‐ Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐ Indicators Value (dd/mm/yyyy) Efficiency Ratios Market Capitalization (INR mn) u Fixed Asset Turnover ‐ ‐ ‐ ‐ ‐ Total Enterprise Value (INR mn) Asset Turnover ‐ ‐ ‐ ‐ ‐ v Current Asset Turnover ‐ ‐ ‐ ‐ ‐ EPS (INR) w Working Capital Turnover ‐ ‐ ‐ ‐ ‐ PE Ratio (Absolute) x Capital Employed Turnover ‐ ‐ ‐ ‐ ‐ Improved Decline 14
  15. 15. Public: Domestic Company – Company A (3/3)Key Business Segments Key Geographic Segments A B L M N100% X1 X2 X3 X4 100% a1 b1 a2 b2 a3 b3 a4 b450% Y1 Y2 Y3 Y4 50% c1 c2 c3 c4 0% 20‐‐ 20‐‐ 20‐‐ 20‐‐ 0% LE   20‐‐ 20‐‐ 20‐‐ 20‐‐Business Highlights MP ADescription  NewsOverview S • Company A is a INR ‐‐ bn Company established in collaboration with globally renowned ‐‐ • The company has manufactures Generators, Multipurpose Engines, Chemicals, Yarns, Pipes, Consumer  Durables, Precision Cutting Tools etc.  • BPSL got ISO 9002 certification in October 19‐‐, and has also been awarded ISO14001 certificationCollaborations • Company A collaborated with ‐‐ for manufacturing of diesel generators with ‐‐ brand of EnginesExpansion Plans • The group is planning to diversify and enter the IT industry POWER BACKUP MARKET IN INDIA 2012.PPT 15
  16. 16. Thank you for the attentionThe Power Backup Market – India report is part of Research on India’s Energy and Utilities Series.For the complete market research report, contact us at:Phone: +91 33 4027 6214/15E‐Mail: sales@netscribes.comFollow us on:About Netscribes, Inc.Netscribes, Inc. is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes, Inc. is a one‐stop shop designed to fulfil clients’profitability and growth objectives.Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction. POWER BACKUP MARKET IN INDIA 2012.PPT 16