Power Backup Market in India - 2010

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Power Backup Market - India
Introduction
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
Categories
Market
Generator
UPS
Inverter
Drivers
Drivers &
Challenges
Competition
Executive Summary
Domestic
Size (2008)
CAGR (2008-12e)
INR 57.5 bn
15%
INR 25.0 bn
19%
INR 23.0 bn
15%
Chronic power deficit; widening supply-demand gap

Demand from telecom sector
Growth in desktop user base
Challenges
Increasing cost of raw materials
Competition from unorganised sector
Lack of consumer awareness
Large unorganized sector across all three product segments

Generators: Major players - In portable segment, Honda Siel and Birla Power are leaders while in
the stationary segment Kirloskar, Cummins, Greaves Cotton, and Mahindra Powerol
UPS: APC, Numeric Power, Microtek, and Emerson account for 54% of low-capacity UPS
Inverters: Su-Kam, Microtek, Luminous, Genus are leading companies
POWER BACKUP MARKET IN INDIA 2010.PPT
Market Overview
Segments
Drivers & Challenges
Competition
Private Equity Investments
Key Developments
3
Device
Description
Generator /
Gen-set
Combination of an electrical generator

and engine, which run on fuels like diesel
or gasoline, to generate backup power
UPS
Battery-based device providing

immediate power backup in case of
power failure. Typically used for IT
equipment
Inverter
Electric or electro-mechanical device

converting DC (direct current) from
batteries to AC (alternating current)
Power backup devices include comprise generators, UPS

and inverters
End-use
Size (2008)
Industrial and large residential

complexes while portable gensets are used by smaller
establishments like shops
INR 57 bn
PC users like SME & small

office/home office (SOHO)
setups, shops, home users,
BPOs, retail chains etc.
INR 25 bn
SME & SOHO setups, shops,

home users, BPOs, retail chains,
hospitals etc.
INR 23 bn
Generators
Generators are
are the
the largest
largest product
product segment
segment in
in India
India
Power backups
Home
Small UPS
(below 5 KVA)
UPS
Market segmentation: End-user based
Commercial
Generators
Inverters
Portable generators
Medium
(5-30 KVA)
Portable
Mid-end
(2.5 KV and 3.5 KVA)
Inverter
(6001400 VA)
Large
(30 KVA and above)
Stationary
High-end
(above 5 KVA)
Market segmentation: Product based

Power Backups
Generators
UPS
Portable
(0.5-6KVA)
Stationary
3-15 KVA
15-125 KVA
>125 KVA
Inverters
Small
<5 KVA
Low-end
(600-1,400 VA)
Medium
(5-30 KVA)
Mid-end
2.5 KV and 3.5 KVA
Large
>30 KVA
High-end
>5 KVA
Battery-based backup
Market Overview
Segments
Competition
Key Developments
7
Generator Market Overview
Stationary generators, largely used in industrial and large

commercial locations, are driving generator sales
Market Size & Growth
Market size (2008): INR 57.5 bn

Expected growth rate : 15% 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
INR bn
120
80
60
100.6
+15%
100
57.5
76.0
66.1
87.5
40
20
0
Product Sub-segments
Stationary
(<125kVA)
Stationary
(>125kVA)
Upper Estimate
182,000
230,000
2009e
2010e
2011e
2012e
Segment Share
INR
Portable
21,000
(0.5-6kVA)
2008
Lower Estimate
680,000
Above 700,000
Portable
10%
90%
Stationary
Source: Newswire Today Kirloskar GREEN Received the Frost & Sullivans India Genset Industry Excellence Voice of Customer Award December 2007 ; India Markets
Generators :Industry; Primary interviews with dealers
UPS Market Overview
UPS market is the fast growing power back-up market with

demand for huge volumes
Estimated market size in 2008: INR 25 bn
INR bn
Estimated market volume in 2008: UPS < 5 kVA: 2.1 mn

units; Overall: 4.6 mn units
60
Growth rate in value is slower than volume suggesting

a reduction in end-user prices:
45
By value - 19% p.a ; By volume - 25% p.a
30
Sub-5 KVA segment is the largest because of its

popularity in SME and SOHOs
Increased laptop sales at the cost of desktop sales has
affected UPS sales in < 1 kVA segment
Pricing of Segments
Mid-End
(5-30kva)
High-End
(>30kva)
70,000
Unit mn
Value
20
50.1
+19%
42.1
15
35.4
25.0
4.6
29.8
11.2
7.2
5.8
9.0
10
5
0
2008
2009e
2010e
2011e
2012e
Segment Share
INR
Low End
1,500 55,000
(<5kva)
15
Volume
Upper Estimate
Lower Estimate
350,000
Large (>30 KVA)
Medium (5-30 KVA)

Above 400,000
25%
50% Small (<5 KVA)
25%
Source: Dataquest Power Play" August 2008; Communications Today Indian UPS Industry June 2006; Communications Today Uninterrupted Power Supply Market;
Primary interviews with dealers; DQTop20 2009 Industry Analysis UPS : Power Brake, Aug 2009
Inverter Market Overview
The market for inverters includes households, shops,

commercial establishments, other institutions
Inverter market size (2008): INR 23 bn
Growth rate: 15% p.a
Inverters are of three basic types based on the
quality of its electrical output: Sine wave, modified
sine wave and square wave
Square wave inverters command 85% of the market
Pricing of Segments
Mid-end
(2.5-3.5 KV)
High-end
(>5KV)
Upper Estimate
10,500
22,000
INR bn
Volume
50
6
35.0
26.5
23.0
1.7
1.5
30.4
20
10
40.2
+15%
40
30
Unit mn
Value
2.0
2.6
2.3
2008
2009e
2010e
2011e
2012e
Segment Share
INR
Low-end
2,250
(600-1,400 VA)
Inverter market serving households, shops and commercial

establishments is growing at 15% p.a.
Lower Estimate
High-end
1400VA
15%
Mid-end
5%
26,000
Above 46,000
15%
800VA 50%
35%
80%
Low-end
600VA
Source: Communications Today A burgeoning industry February 2008; Communications Today Synergizing strengths in data center solutions March 2008; Rediff
News Demand for inverters to rise by 25% April 2007; Primary interviews with dealers
10
Thriving EXIM Market
EXIM market for generators and inverters had been growing

steadily and began falling only due to the recession
Export Data Generators & Inverters
High quality and performance of products is

establishing India as a manufacturing base to cater to
local and export demand
Since 2005, inverter and generator exports have been
growing
Leading Indian manufacturers have started focusing

on the export market by creating products at par
with international standards
Cummins invested INR 200 mn, in a new export-oriented
unit with capacity to produce 50,000 open and closed
generator sets annually
Generator and inverter imports from China account

for a major share of imports primarily due to the
availability of cheaper alternatives
Global economic conditions in 2008 affected the
EXIM market
Significant decline in generator and inverter exports
Generators
Inverters
-21%
INR bn
15
+139%
10
5
14.9
6.5
1.3
2.6
-7%
5.5 4.6
5.1
2.8
1.6
3.7
2005
2006
2007
2008
2009
Import Data Generators & Inverters

Generators
Inverters
INR bn
+23%
15
+17%
11.4
+50%
10
Generator imports fell by 43% in 2009
However, inverter imports had risen in accordance with

the growing need for power backup
3.4
6.4
4.9
1.9
2005
2.3
2006
2.2 2.6
2007
3.5
2008
4.1
2009
Source: Directorate General of Foreign Trade; Business Line Cummins to make India global hub for small gensets January 2008
11
Market Overview
Segments
Competition
Key Developments
12
Power shortages and demand supply

gap in India
Demand from telecom operators
Demand for UPS for desktops
Drivers
Challenges
Rising input costs battery; packaging
Competition from unorganised sector
Lack of consumer awareness
13
Huge Power Deficit
India has been a power deficit country forcing enterprises

and consumers to rely on power backup devices
Demand Supply Gap ~ 17%
Indias power deficit is about 10%, with a peak deficit

of 17% leading to chronic power shortage
Most areas urban and rural areas suffer from
varying degrees of power shortage
Sudden power cuts often lasting for hours or days
Scheduled load shedding
Despite the massive investment in power projects by

government and private sector, demand is forecast
to outstrip supply
Energy (BU)
Average Energy Demand
800
Generation
600
400
200
0
VI
VII
VIII
IX
Future Demand-Supply Scenario
Backup power will be crucial to support

Large manufacturing base and growing industrial output
Business continuity in small enterprises, offices and
commercial establishments such as retail
GW
Peak
400
200
0
315
Base
197
120
101
71
75
107
Supply
Demand
Demand
2007
255
147
112
173
Supply Demand
2012e
197
Supply
2017e
As
As in
in the
the past,
past, continuing
continuing power
power shortage
shortage isis the
the fundamental
fundamental long-term
long-term driver
driver for
for
backup
backup power
power market
market in
in India
India
Source: Ministry of New and Renewable Energy (MNRE), Central electricity Authority; Birla Power Solutions Ltd. Prospectus" March 2006
14
Telecom operators and desktop user base are some of the

key target segments for inverters and UPS
Demand from Telecom Operators
New Tower Additions
The rapidly growing telecom sector is one of the

largest customer segments
Dec-08
Generators and invertors are used at towers and

network management facilities with the latter gaining
preference
Significant network expansion with new towers will
drive demand for backup power
Indus Towers (owned by Bharti, Idea, and Vodafone), and
Reliance will lead expansion
Demand for UPS from Desktop Sales

Growth in desktop sales is a driver for UPS sales in
homes and offices
Growing share of home desktops creates a sizeable
target market for sub-5KVA UPS
Desktop sales, however, appear to be stagnating as
growth in sales of notebook outstrips that of
desktops
Since 2003-04, desktops grew by 16% p.a. vs. 116% for
notebooks
172,000
New
5%
8% 5%
9%
192,000
Indus Towers
RTIL
GTL
52%
Bharti Infratel
21%
Mar-10
BSNL
Others
364,000
Desktop Sales in India

mn units
Home share
6
4
Total
5.5
5.5
5.5
40
4.6
30
3.6
3.0
20
10
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Source: Voice & Data Power Management: The Balancing Act March, 2008; Dataquest UPS: Surging Ahead With Power July 2005; MAIT Press release PC sales in the
first-half of 2008-09 cross 3.69 million units; Internet users exceed 54 million, February 2009
15
Increasing Cost of Battery and Packaging
Impact
Increase in battery prices is a major challenge since lead-acid batteries are used in UPS
and inverters
Lead constitutes almost 70% of the cost of a battery
Dependent on imports, which accounts for 40-50% of domestic lead demand
Lead prices quadrupled between 2004 and 2007
Although prices have come down to 2006 levels, volatility still exists and will continue to
be a concern area
In addition, increase in packaging costs is also pressurizing input costs
LME Lead Prices - Historical

4000
3000
USD/Tonne
Rising input costs, primarily lead and resultant battery

prices, is a concern for inverter and UPS manufacturers
2000
1000
0
01/01/06
30/07/07
25/02/07
23/09/07
20/04/08
16/11/08
14/06/09
Increasing raw
material costs
effecting the
UPS and inverter
manufacturers
Battery prices
increased by 5-10%,
thrice in 2007; lead
prices after falling has
seen a rising trend
which will impact the
battery market
10/01/10
Source: Metalprices.com ; The Financial Express High prices slow India lead imports, aid recycling ; Business Line Demand for inverters seen rising April 2007
16
Competition from Unorganized Sector
The unorganized sector remains a challenge to the branded

players owing to the lack of consumer awareness
India has a huge presence of unorganized manufacturers across the genset, inverter, and UPS
product segments
These players primarily compete on price by providing cheaper alternatives to branded
products
Organized manufacturers are therefore under pressure to maintain or reduce their prices to
effectively compete
However, quality and after-sales service is a major issue with these products, which in turn
leads to dissatisfied customers and a loss of trust in the industry as a whole
Lack of Consumer Awareness
Consumer knowledge and selection criteria for power backup products is poor
Consumers tend to overlook important technical details such as resistive loads, type of
lubrication, safety features, and other parameters
This not only leads to people buying the wrong product for their needs but also leads to
operation and maintenance issues
Impact
Inability to raise
prices or charge
premium for
better products
Consumer
education is
necessary to
grow home
segment
Source: Communications Today Synergizing strengths in data center solutions March 2008 ; Construction World (Indian Edition) Feature Generators June 2007
17
Market Overview
Segments
Competition
Key Developments
18
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

compete on price, and Chinese imports
In stationary generator segment:
No. of Units Sold

6,635
2006
Leaders: Kirloskar, Cummins, Mahindra Powerol and

Greaves Cotton
Others: Atlas Copco, Caterpillar, Wartsila
Few organized players in portable gensets

Honda Siel and Birla Power are market leaders
Greaves Cotton 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 like Cummins, Kirloskar etc.
Buy engines and alternators for assembly and sale to
customers
Major OEAs dominating their respective regions:
Mumbai: Powerica
Delhi: Jakson, Sudhir and Bhaskar
Chennai: Power Electrics
Bangalore: DPK
Birla
59,219
12,612*
2007
59,150
5,797
2008
Honda Siel
62,227
2009 NA
44,257
More than 90% of organized market is accounted for by
Honda Siel Power and Birla Power combined
* 18-month period ending 30 September 2007; NA - Not Available
Stationary Generators (Organized)

No. of Units Sold
2007
1,325
Mahindra Powerol
Cummins
8,781
7,455
9,204
8,878
10,476
2008
1,110
Kirloskar
Greaves Cotton
16,943
26,183
2009
5,154
15,648
2,055
Source: India Markets Generators :Industry ; Religare Technova Company Financials Database; Company Annual Reports
19
UPS competition
Organized vs. Unorganized
India has more than 300 suppliers in the UPS market

The organized branded UPS market is more or less
dominated by APC, Numeric and Emerson
Organized players focus on performance, reliability
and after-sales service
Large unorganized players competes primarily on
price and are predominant at the lower-end of
product spectrum
Market Share - Organized (>30kVA)

Others
8%
Numeric
18%
52% Emerson
22%
APC
Unorganized sector has a large share in the market although

leading brands are competing on basis of quality and service
Organized 55.4%
44.6% Unorganized
Market Share - Organized (<5kVA)

APC
18%
Others
38%
18% Numeric
4%
10%
5% 8%
Powercom
Microtek
Wep Emerson
Source: Newswire Today Uninterrupted Growth The Indian UPS Market January 2009; Dataquest Power Play" August 2008; DQTop20 2009 Industry Analysis UPS :
Power Brake, Aug 2009
20
Inverter competition
Organized vs. Unorganized
Entry of small local manufacturers and cheap Chinese

products is fuelling competition
However, branded players are gaining market share
quickly by:
Offering better after-sales services
Constantly upgrading their products technologically
Other major players who entered this market are:

D-Link under brand name Digi-Power
Texonic instruments under brand name ICE
APC India
Dominated by the unorganized sector with four leading

companies competing on brand equity, quality, and service
Organized 40%
60% Unorganized
Revenues of Major Players

Revenue (INR bn)
Luminous
6.0
Genus
5.7
Su-Kam
Microtek
5.0
1.7
( FY 2009)
( FY 2009)
( FY 2010e)
( FY 2008)
Source: Rediff News Demand for inverters to rise by 25% April 2007; Communications Today A burgeoning industry February 2008
21
Company
Birla Power
Solutions Ltd.
Honda Siel Power

Products Ltd.
Business Description
Profiles of Major Players - Portable Generators (1/8)
Birla Power Solutions Limited (BPSL) is a Yash Birla Group Company established in 1984
It was the first company to manufacture portable genset in 1986
Products include portable gensets, multi purpose engines, pumpsets, sprayers, inverters,
batteries, lawn mover and power tiller
Birla Power has a a dealer network of 600 across India and it has sold more than 0.45 mn
gensets
It has a manufacturing plant in Dehradun (Uttaranchal) with a capacity of 0.12 mn smaller
gensets and 75,000 Multi purpose Engines and Higher kVA gensets of 20000 per annum
Financials: Sales turnover of INR 2.24 bn for year ending March 2009
Honda Siel Power Products (HSPP) is joint venture between Honda Motor Co. Japan and Siel
Ltd., with 67% Equity Stake of Honda Motor Co. Japan
Products include portable gensets, engines, brush cutters, water pumping sets, lawn movers
and general purpose engines
Manufacturing facilities of HSPP are located in Rudrapur (Uttarakhand), Pondicherry and
Greater Noida (Uttar Pradesh) with total capacity of 0.17 mn units per annum
It has a network of 800 dealers and 15 area offices across the country
Financials: Sales turnover of INR 2.48 bn for year ending March 2009
Source: Company websites, press articles
Note: This list is not exhaustive

22
Company
Cummins India
Ltd.
Profiles of Major Players - Stationary Generators (2/8)
Cummins Generator Technologies (Newage Electrical India Ltd.), started in 1992 manufactures
brushless A. C. generators in the range of 5 kVA to 2200 kVA
Stamford is the famous brand from the company in this product range
It has manufacturing facilities in Ahmednagar and Pune in Maharashtra
The Pirangut (Pune) facility specializes in manufacturing small generators of capacities ranging
15kVA 140 kVA
Cummins Research & Technology India (CRTI) was established in Pune, India to support the
companys technical centres around the world with computer-aided analysis led design
About INR 657 mn was invested in Cummins Generator Technologies as on 31st March, 2009
Cummins India plans to enter into retail and consumer market by launching small gensets of
range 7.5kVA and 10kVA
The company has a network of 58 service dealers which will undertake support and after sales
service for the existing as well as new products
It plans to expand the distribution channel by setting up a separate retail channel of 300-400
retailers to market these new gensets in the next 18 months
Financials: Sales turnover of Cummins India for the year ending March 2009 INR 34.24 bn

23
Company
Greaves Cotton
Ltd.
It was established in 1859 and is a well-diversified engineering company

Core competencies of the company are in Gensets, Diesel/Petrol engines, Farm & Construction
equipment
Products include portable gensets (500W- 4KVA), dual fuel gensets (30kVA to 400 kVA) and
natural gas gensets (125kVA to 300kVA)
Portable gensets are manufactured in Aurangabad and Ranipet, while other gensets ranging
from 7.5-520 kVA are manufactured in Pune
Manufactured about 2,055 generating sets in the year ending June 2009
Financials: Revenue for the year ending June 2009 INR 11.52 bn

24
Company
Kirloskar Oil
Engines Ltd.
Mahindra &
Mahindra Ltd.
Based in Pune, it is part of Kirloskar group company founded in 1888

It is Indias largest manufacturer of diesel engines, both air-cooled and liquid-cooled and covers
80 different applications across 9 industrial segments
Kirloskar oil engines manufactures diesel generators and Ac generators covering a power
range of 3hp to 11,000hp and 15kVA to 300 kVA
It has a national fleet of over 45,000 Kirloskar Green Gensets for the cellular network towers of
major telecom operators in India
Products are exported to European Union, North America and China
Financials: Annual revenue for the year ending March 2009 INR 21.9 bn
Mahindra Powerol was started in 2002 as part of the Mahindra Farm Equipment Sector
Products include diesel generating sets of range 5kVA to 320kVA and engines
Gensets are manufactured in two state-of-the-art factories in Delhi and Pune with a combined
capacity of over 30,000 gensets per annum
It launched the first bio-diesel genset in the market in 2008 in the range 7.5kVA 62.5KVA
It has about 6000 sites under the Tele-Infra Management project which involves operation &
maintenance of telecom towers
The company sold 52,350 engines and gensets in 2009 as compared to 31,922 in 2008
Financials: INR 5.65 bn for FY 2008

25
Profiles of Major Players - UPS (5/8)

Company
American Power
Conversion Pvt.
Ltd.
American Power Conversion started in 1981 and introduced first UPS in 1984
It got acquired by Schneider Electric in 2006
Products include UPS, Surge protection and Power Conditioning, Battery Replacement,
Networking and Cable Solutions, Power Distribution etc.
It has sales and distribution offices throughout the world
Emerson
Network Power
(India) Private
Ltd.
It started in 1993 is a wholly owned subsidiary of Emerson Electric USA

Products include UPS, Precision air conditioning, DC Power Systems, Datacenter Solution,
Automatic Transfer Switch etc.
It is headquartered in Thane and has a strong network of 31 branch offices and more than 60
business partners, network solution partners and resellers across India
Numeric Power
Systems Ltd.
It was started in 1984

Products include UPS, LED Lighting Solutions, Home Power Products, Solar Power Solutions,
Numeric Energy Storage and Special Power Systems
The company has 8 manufacturing units located in Chennai, Pondicherry, Parwanoo and
Colombo (Srilanka)
It has a wide sales and service network in over 220 locations both in India and overseas
Numeric has international operations in Singapore, Srilanka, Mauritius, USA, South Africa
Financials: Sales turnover of INR 4.37 bn for the year ending March 2009

26
Company
Asia Powercom
Pvt. Ltd.
WeP Peripherals
Ltd.
Profiles of Major Players - UPS (6/8)
It is headquartered in Mumbai, India and it represents Powercom Co. Ltd. which is listed on
Taiwan Stock Exchange
Products include UPS, Network Surge Protector, Shutdown Software
It has a network of 15 sales and service branches all over India
Manufacturing takes place in 3 factories in China and Taiwan, they employ 1300 people and has
9 teams for research & development
It was started in 2000
Products include UPS, various types of printers, consumables and printer heads etc.
It has two state-of-the-art manufacturing facilities in Mysore (Karnataka) and Baddi (Himachal
Pradesh)
WeP has a network of 19 direct sales and support offices, more than 200 channel partners
present in 172 locations across India

27
Company
Su-Kam Pvt. Ltd.
Genus Power
Infrastructures
Ltd.
Profiles of Major Players - Inverter (7/8)

Started in 1998, one of the major players in the inverter market
Total six manufacturing plants four in Baddi (Himachal Pradesh) and two in Gurgaon (Haryana)
Got PE funding of INR 450 mn from Reliance India Power Fund in 2006
Products include inverters, UPS, solar-based backup systems, power storage facilities, LED (lightemitting diode) lighting etc.
It expects to achieve an output of 1 mn invertors in FY 2009-10
Export revenues are expected to see a 25% rise to INR 1 bn in FY2009-10 from INR 0.8 bn in FY
2008-09
Share of power backups for home expected to drop to 40% in FY 2009-10 from 55% in FY 200809, while industrial inverters and exports will make up 30% each, compared with 20% and 25%,
respectively, for the same period
Financials: Expected turnover of INR 5 bn for the year ending March 2010
It is founded in 1994, is part of the Kailash Group
Products of Genus includes Inverters, Batteries, Home UPS and Online UPS etc.
Genus has manufacturing facilities in Jaipur (Rajasthan) and Haridwar (Uttaranchal)
It has a large network of dealers in India and has offices in USA, China and Singapore

28
Company
Luminous Power
Technologies
Ltd.
Microtek
International
Pvt. Ltd.
Profiles of Major Players - Inverter (8/8)
It was founded in 1988

Products include inverters, UPS, batteries etc.
India manufacturing plant for inverter and UPS is located in Baddi, Himachal Pradesh
It has global technology centers in India, USA and China which work on latest technologies
It has about 2000 employees and its products are exported to 32 countries worldwide
The company plans for a rapid growth for the next few years aiming at 100% CAGR
Luminous acquired a majority stake in Tritronics India, a Delhi-based online UPS company
It also purchased a majority stake of 87.5 % in UD Energy Systems in February 2009
The company also plans to invest INR 3 bn in domestic acquisitions in future
Financials: Turnover of INR 6 bn for the year ending March 2009
It is a leading player in Inverter and UPS market in India
Product categories include digital & sinewave inverters/UPS EB/UPS E2, high-end sinewave
inverters, line interactive UPS and online UPS
It has 8 manufacturing plants in India, few include Delhi, Sonepat & Gurgaon (Haryana),
Parwanoo (Himachal Pradesh)
Microtek has a strong network with 255 service points, 28 service centers and more than 7000
distributors and dealers spread across India
It exports large number of its products to many countries across globe which includes South
Africa, Afghanistan, Nepal, Iraq, Bangladesh, U.A.E., Pakistan

29
Market Overview
Segments
Competition
Key Developments
30
Date
Private Equity firm
PE investments have taken place but are focused on leading,

organized players with branded products
Deal description
Oct 2007
Standard Chartered
Private Equity
Invested a total of approx INR 2.5 bn for a 11% stake in Powerica, one of the largest
makers of gensets in India
Sep 2007
Goldman Sachs and

General Electric
Invested INR 3.75 bn for 10-15% stake in Gurgaon-based genset manufacturer

Sudhir Gensets
Jun 2007
CLSA Capital
Partners
Funding of INR 1 bn in Delhi-based inverter and battery maker Luminous Power

Technologies
Feb 2006
Reliance Capital
Sponsored a INR 10 bn private equity fund to power equipment company Su-Kam

31
Market Overview
Segments
Competition
Key Developments
32
Key Developments
Date
Key developments
10-Feb-09
Consumer durable major Videocon announced its foray into the power backup equipment space with the
launch of a range of devices, and expects to clock revenues of INR 10 bn by 2011
27-Jan-09
Cummins India plans to enter the retail genset market by launching small power gensets of 7.5 kVA and 10
kVA catering to individuals, households, shops, nursing homes etc.
08-Jan-09
Luminous power technologies has launched a range of eco-friendly inverters and batteries in Tamil Nadu.
The new range of inverters can run air conditioners, refrigerators, microwaves, LCD TVs, coolers, water
pumps, washing machine and all other heavy-duty home appliances
01-Dec-08
Birla power solutions is in the process of expanding its product portfolio and has set a turnover target of
INR 5 bn by 2011-2012. The company is making investments in the inverter business, high kv diesel gensets
and farm equipment. It is planning to increase production capacity at its Dehradun unit for home UPS and
inverters from 3,000 units to 5,000 units from last quarter of 2008-2009
25-Sept-08
Greaves cotton is planning to setup a new plant at an investment of INR 150 mn, it will also manufacture
portable gensets (900 VA to 2800 VA) apart from petrol/kerosene pumpsets (1 hp to 5 hp)
15-Sept-08
Mahindra powerol has launched its B100 bio-diesel generator sets. The generator set uses electronic
controller which ensures start and stop in diesel mode and switches to bio-diesel mode when the
generator set is running
Source: Press articles

33
Thank you for the attention

The Power Backup Market report is a part of Research on Indias Power Industry Series.
For more detailed information or customized research requirements please contact:
Natasha Mehta, CFA
Gagan Uppal
Phone:
E-Mail:
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+65 8448 0449

natasha.mehta@netscribes.com
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ISIEmergingMarketsPDF in-iimbemis from 115.113.11.239 on 2011-03-31 00:16:44 EDT. DownloadPDF.

Power Backup Market - India

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Chronic power deficit; widening supply-demand gap

Large unorganized sector across all three product segments