Power Cut Fuels Generator - UPS Business Bright

Very Long power cut hours every day has affected every walk of life but there is one sector for which it has spelt good business prospects i.e., those who manufacturing and marketing Generator, Inverters and UPS. In the last few months alone ever since the power cuts started in the State, the demand for small generator sets and inverters went up so high that the industry struggled hard to meet the growing demand.

The worsening power supply situation and the indications that it would take at least a few more months for the situation to really improve led to the growing demand for generators and inverters. Earlier, UPS and battery used to be prohibitively expensive for middle income groups and was seen as a luxury. But, now UPS has become a necessity since the households faced power cuts for at least six to eight hours a day, especially at night, says Naveen Prasad of Kavundampalayam.

While high income groups and affluent families go in for generator sets, which have price tag starting from Rs. 22,000, the middle income groups have learnt to be content with UPS with a starting price tag of Rs. 11,000 onwards. Rajagopal, who deals with locally manufactured UPS, says that the market share is equally divided among the branded UPS and locally assembled ones.

There are four to five branded UPS and a number of players dealing with assembled inverters. On an average, the sale of branded as well as assembled UPS was in the range of 250 to 300 pieces, he added. For a household that required power supply for two tubelights and two fans, a small UPS and a battery with minimum back up would be fine.

Not only households, even small establishments and shops have started going in for UPS for having minimum lighting and fans on in their shops for the convenience of the customers.
The capacity of the UPS depends on the number of power points that it had to give supply and also on the number of hours for which the power back up was needed. Mr. Rajagopal said that inverter industry, i.e., those dealing with assembled ones, was also initially affected because of the power cuts. But, the inverter assemblers have now learnt to assemble the sets during the power cut times and test it whenever supply was available.

When power cuts began leading to huge demand for UPS, the market faced an unprecedented shortage of batteries. Now, the manufacturers and the market have responded by pumping in adequate number of batteries. Dealers involved in marketing generator sets pointed out that their sales have also gone up but because of the initial investment it was not to the extent of UPS. But, in UPS every year the battery needs to be changed whereas the recurring cost in generator sets was only the fuel and that too only when you need to run the generator sets when there was no power supply. As far as generator sales were concerned, those fuelled by petrol were available off the shelf, whereas those fuelled by diesel and LPG were supplied on demand. Earlier, there used to be a long wait for these generators but now the waiting period has been brought down considerably as the industry had stepped up its production besides diverting its stocks to Tamil Nadu originally meant for other States.

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