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The visible face of the UPS industry is the organized sector, dominated by
players like APC, Numeric, DB Power, Eaton Power, GE, and WeP. However, the
Indian UPS industry also has elements that are on the margin, yet exercise a
predominant role in the market. This is the unorganized sector that
comprises several hundred
players across the country serving in regional pockets. The distinction between
these two sectors has in no way affected the growth of the organized sector. The
UPS industry is doing better than ever before. This sudden boom is explicable.
Like any other peripheral, the
UPS's market fortunes are closely linked with the performance of the PC
industry. With the desktop PC business clocking growth in excess of 24%, one can
be sure that the UPS sector is heading for another successful year.
This spurt is unlikely to be a temporary burst. A look at the Indian power
landscape has enough pointers to indicate that the UPS market is all set to
thrive in this part of the world, with healthy growth rates y-o-y. New power
initiatives driven by the government and private players have vastly improved
the power scenario. Yet, most of the Indian states continue to reel under
scheduled and unscheduled power blackouts. Steps towards liberalization have not
aided the overall short supply of power which is presently 10%. Moreover, the
quality of the power has also been an issue. For instance, the voltage
fluctuations are a major cause for concern. Nevertheless, on an optimistic note,
the UPS industry is witnessing a healthy growth.
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UPS:
The Top Players
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Vendors
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Units
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2004-05
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2005-06
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APC
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221,411
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349,297
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WeP
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112,621
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165,112
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Numeric
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70,752
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112,589
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Microtek
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65,556
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80,613
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Powercom
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26,143
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68,699
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TVSE
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36,781
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9,453
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Others
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410,989
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553,412
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Total Units
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944,093
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1,339,175
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Total Value (Rs
crore)
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477
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698
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Source: IDC India,
2006
Note: Market share by channel shipments for UPS up to 5.1 KVA |
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UPS Systems up to
5.1KVA has grown by 46% by value. The consumer segments that drove growth
are SOHO and mid-end enterprises |
Ground Realities
The performance of the UPS industry in India over the last two years reveals
the market segmentation across different KVAs. For instance the entry to mid-end
UPS market, which is the most competitive is the space that is addressed by
largest numbers of vendors- both organized and unorganized. This segment power
back capacities typically starts at 500VA and goes up to 5.1KVA and is targeted
at SOHO to mid-end enterprise consumers. The higher end of the UPS market starts
from capacities of 5.1 KVA and goes up to 4,800KVA. In the last few years the
UPS market is more aligning towards established branded players as the consumers
increasingly look at the brand. This is due to the fact that power back up is
seen as a critical back end enabler. The high end UPS consumers are from large
enterprises, who go in for a mix and match of power back up devices. This kind
of segmented market composition did not exist a few years back and this is also
putting pressure on the un-organized
UPS sector.
Understandably, Mumbai, New Delhi, Chennai, Kolkata and Bangalore are the
largest markets for UPSs as these cities are also the largest consumer of PCs.
However, this year, vendors saw a shift towards B- and C-class cities such as
Pune, Chandigarh, Lucknow, Hyderabad and Jaipur, which are fast becoming global
hubs in terms of R&D, ITeS, BPO, retail, and manufacturing. Given the
criticality of operations undertaken in these sectors, there is an increasing
need for a comprehensive network of uptime solutions, including enterprise-class
UPSs.
Power to the Center
In the previous year, one of the key trends was the shift from use of micro
UPSs to centralized setups. This year saw an escalation of this trend with large
enterprises opting for centralized power backup architecture. The concept of
offering custom backup solutions has gained momentum. These trends signify that
UPS is becoming a key component of an enterprise's IT architecture rather than
just a peripheral device. The market leader, APC, as expected, had a huge grip
on the market with its focused offerings cutting across large enterprises, SMBs,
service providers, government, education and SOHO. Estimates peg APC's market
share at 26% in the segment up to 5.1KVA. The key emphasis APC laid over the
year was in rolling out products
with a small form factor with higher VAs. APC also focused on manageability and
created products that are rack mountable. With a wide gamut of products, APC was
witness to a good response to all its power backup solutions. Page(s) 1 2
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