The power backup market in India is characterized by the dominant presence of the unorganized sector. Wondering how it will affect the overall growth of the market? Check out the snapshot of our market research report on the Power Backup Market in India.

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2. 2
Market definition and segmentation
PowerbackupmarketinIndia
Robust growth of the Indian economy is fuelling the demand for power across sectors. However, inadequate supply of power has resulted in project delays in different sectors. Lack of resources like coal
and gas which are the primary raw materials for power generation, aggravates shortage in power supply. The demand and supply gap that is faced by the different regions within the country provides a
huge scope for the growth of the power backup market in India.
Diesel generator Uninterruptible power supply (UPS) Inverter
• 15-30 KVA
• 40-82.5 KVA
• 82.5- 125 KVA
• 125-250 KVA
By Type
By End-user
By End user-
wise
segmentation
of 15-250 KVA
• Prime power
• Power backup
• Construction
• Infrastructure
• Rental
• Schools
• Banks
• ATMs
• Fisheries
• Telecom
• Hospitality
• Commercial complex
• Residential
• Small restaurants
• Manufacturing/Industries (mining,
glass, tyre etc.)
• South India
• North India
• East India
• West India
By Region
End user-wise
revenue split
• Government
• BFSI (banking, financial services and
insurance) sector
• Others (others refers to sectors apart
from Government and BFSI)
• South India
• North India
• East India
• West India
By Region
By Type • Organised
• Unorganised
By Type • Mid-end (2.5 KVA and 3.5 KVA)
• High-end (above 5 KVA)

3. 3
Executive summary
Market
overview
Drivers
Challenges
Competitive
landscape
XX XX
504.6
2015 2018 2023
• Growing demand for power backup solutions
• Evolution of the rural sector
• Government initiatives favoring rapid industrialization
• High competition and pricing challenges
• High cost of diesel generators
• Adverse economic and environmental conditions
• Lack of consumer awareness
• The market is consolidated in nature, with the presence of few market players holding the major market share
• Moreover, since these power products have considerable prospects in the coming years, various small players manufacturing
uninterruptible power supply systems, diesel generators, and inverters have a golden opportunity to enter this growing market
and put forth their products, which are equipped with new technology, thereby increasing the competition in the Indian market
• The Indian Power Backup Market is primarily driven by the rising instances of power grid failures and rapid industrialization
• Diesel Generators (5KVA-75KVA) account for the majority of the market share because of their low costs and industry wide usage

4. 4
Power Backup Market in India – Overview
XX
XX
XX
2015 2016 2017
XX
XX
XX
XX
XX
504.66
2018 2019 2020 2021 2022 2023
India historical market revenue (INR
Bn)
India revenue forecast (INR Bn)
CAGR (2015–2017): XX%
CAGR (2018–2023): 11.28%
Revenue by segment (INR Bn)
The power backup market in India is expected to grow from INR XX Bn. in 2018 to INR 504.66 Bn. in 2023, expanding at a CAGR of 11.28% during 2018–2023.
 The Power Backup Market in India is characterized
by the dominant presence of the unorganized
sector. The reduction in the price gap between the
products manufactured by the organized and
unorganized sectors has triggered a growth in the
awareness about product quality and reliability
among consumers
 A price-sensitive consumer base compels organized
players to reduce their prices to compete against
the unorganized manufacturers effectively. The
Indian power backup industry is facing stiff
competition from the import of power backup
products as well
Key
Market
Observations
Dieselgenerator
UPS
Inverter
XX
XX
2018 2023
XX
XX
2018 2023
XX
XX
2018 2023

5. 5
Power Backup Market - Inverter
XX
XX
XX
2015 2016 2017
XX
XX
XX
XX
XX
XX
2018 2019 2020 2021 2022 2023
Historical market revenue (INR Bn) Market revenue forecast (INR Bn)
CAGR (2015–2017): XX% CAGR (2018–2023): XX%
XX%
XX%
XX%
Inverter
UPS
DG Sets
2018
INR XX Bn
XX%
XX%
XX%
Inverter
UPS
DG Sets
2023
INR XX Bn
Revenue share by segment (2018 and 2023)
Inverter accounted for a revenue
share of XX% of the power backup
market revenue in 2018
The demand in the Indian inverter market
increased due to a strong push from the
government to accelerate the National Solar
Mission, launched in June 2008.
The attitude of the rural consumers also fuels the
growth of the inverter market. The ease of
operating an inverter even under low-voltage
conditions is fueling its adoption.
Market
trends
The industry is witnessing a shift towards new
technologies and designs to support more
sophisticated appliances. Inverters are used as an
alternative power source for non-critical applications,
such as elevator backup systems, data centers, etc.
Inverters of 5-30 KVA are being used in emergency
lighting systems on shop floors. In 2017, a big player
like Huawei was shipping more than 1.5 GW of its
inverters in India, consequently becoming the leader
in this market. This company is one out of all the
other leading players that are innovating extensively.
Most of India’s vast solar parks are being constructed
using centralized solutions.
Key
market
observations

6. 5
Global key market drivers
Manufacturing, IT, and telecommunication
companies are resorting to automation due to the
increasing demand for high-quality products and
protection of data. These industrial processes are
susceptible and sensitive to power disturbances.
Investments in automation processes in India are
growing exponentially, thus changing the country's
skilled industry. The adoption process of automation
leads to increased productivity and growth which
results in optimization of profits. The urge to improve
efficiency-enhancing operations gives an enormous
boost to the adoption of diesel generators.
Besides the increasing purchasing power of Indian households, the
attitude of rural consumers also fuels the growth of the inverter
market. A comparative study says that rural consumers are no longer
willing to endure 7-8 hour extended power cuts nowadays, thus
leading to a thriving market for the power backup systems
A significant amount of energy generated in India gets lost during
transit. Although power conditions in India have improved a lot in the
recent times, it is still not sufficient to meet the demand for rapid
industrialization and unplanned power outages. This demand-supply
gap in power distribution will create significant opportunities for the
power backup market in India during the forecasted period. The need
to prevent loss of data and a drop in productivity has increased the
demand for UPS systems significantly in several verticals like oil and
gas, petrochemicals and refining, automobiles, etc.
Change in rural attitude
Absence of electrification in industrial areas
Increasing factory automation systems

7. 7
Advent of cost-effective
solar hybrid generators
Rise in demand for
energy efficient UPS
systems
Stiff competition from
the organized sector
Development of UPS
technology
The advent of cost-effective solar hybrid generators has increased its consumer base. Solar
hybrid generators can be produced by combining solar energy with either wind or diesel
energy. Solar hybrid generators can be of two types - solar PV and Wind, and solar PV and
diesel. Solar PV and Wind consists of a wind generator, solar array, battery tank, inverter, and
cables. The Indian government announced a policy for wind-solar hybrid projects, thereby
accelerating the pace of activity in the renewables industry to meet the country’s target of
installing 175 GW by 2022.
In India, the market is expected to witness an increase in green data centers. Enterprises now
have greater awareness regarding how their actions impact the environment, which leads to
the building of energy-efficient infrastructure and technology. Thus, the popularity of green
data centers is creating a ripple effect on the Indian economy, boosting the growth of the UPS
market as a whole.
Stiff competition from the organized segment has led to a reduction in the market share of
unorganized players. The unorganized part of the robust inverter industry in India is
witnessing a gradual decrease in the market share. This is a result of the various measures
adopted by the players operating in the organized segment of the market. Also, the
consumers are increasingly getting conscious about the product quality, reliability and it’s
ultimate impact on the surroundings. Hence, opting for branded products.
The Uninterruptible Power Supplies products are witnessing revolutionary technical
developments. They are aiding industries in solving power-related issues. UPS systems are
preferred in India since they require less space, thereby leaving more space for the core
business activities
Global key market trends

8. 8
End user-wise segmentation of 15-250 KVA diesel generator
Key market observations
XX%
XX%
0.27% XX% XX% XX% XX%
XX%
XX% XX%
XX%
XX%
XX%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
End user-wise segmentation of 15-250 KVA value (%)
• The telecom market drives more than 40% of the diesel generator
market, followed by construction, hospitality, commercial complex,
infrastructure, and manufacturing
• For financial institutions relying on uninterrupted power to run critical
information systems, events such as power outages can lead to wide-
scale disruption in their enterprise-wide management services
• Owing to advancements in technology, the banking sector has
witnessed a shift from paper to computer-based files, bank tellers to
ATMs, and file cabinets to server racks. The smooth functioning of
banking operations is essential to survive the growing competition in
the Indian BFSI sector. Rising preferences for electronic transactions
has led to an increased demand for power backups
• Hospitals are a major component of the Indian healthcare industry,
generating more than 50% of the total revenue of the healthcare
sector. Provisions for adequate power backup facilities are crucial to
the proper functioning of the different health support systems during
a power outage
• Development of the infrastructure sector will generate the demand
for a wide variety of products such as cranes, pumps, and conveyor
equipment, for different processes, which in turn, will drive the
demand for power backup systems
2018
XX%
XX%
Prime power
Power backup 2017
INR XX Bn

9. 9
Uninterruptible power supply (UPS) market – Organized vs Unorganized
Market observation
 The UPS market in India is large enough to accommodate both the organized and unorganized sectors. The unorganized sector caters to price-sensitive consumers and
organized players mostly target brand-conscious consumers
 Government initiatives, including smart cities projects and the national e-governance plan have restricted the demand for UPS systems. With the introduction of GST and
BIS, organized players are playing safely in the UPS market. On the other hand, the unorganized sector is continuously diminishing and has been marginalized because of
low-profit margins
XX
XX%
Organised
Unorganised
2018
INR XX Bn
XX%
XX%
Organised
Unorganised
2018
INR XX Bn
UPS– By organized vs unorganized (value) – (INR Bn) UPS – By organized vs unorganized (volume) (Units in ‘000)

10. 10
Cummins India Limited is the largest manufacturer of diesel and natural gas engines in India. It is one of the most significant
entities of Cummins Group in India. It comprises of three business units - engine, power systems, and distribution. Cummins India
Limited is a 51 percent subsidiary of Cummins Inc., USA
Company snapshot
Key numbers (2017)
Company overview – Cummins India Limited
Founded: 1962
Headquarters: Maharashtra, India
Key People: Anant J Talaulicar (CEO)
Employees: 3674 (2017)
Industry: Manufacturing
Ticker: CUMMINSIND (NSE)
Website: www.cumminsindia.com
Corporate information
84%
16%
Engines
Generator
Sets
Products and services
Geographical presence
EBITDA
17%
Profit margin
36.1%
Net income
INR 7.36 Bn
Revenue (2017)
INR 51.87 Bn
90%
10%
India
Overseas

11. Appendix
11
Research methodology
The study begins with identifying the right research question(s). The question depends on what we are going to achieve by conducting the research or what we want
to convey to the prospective customers through this research. Next we identify the logical steps to arrive at the answers to the question(s). These logical steps form
our research objectives. The research objectives provide us a guideline regarding what information we need to conduct analysis. We strongly believe that clear
objectives will lead to clear results about the given market
The next stage of the research is conducted utilizing the secondary sources of information, process called desk/secondary research. Netscribes Inc. has a considerable
volume of information in both quantitative and qualitative forms, across all major industries and its sectors. Also, we conduct in-depth study of the market,
understanding its key stakeholders, drivers, trends, challenges and opportunities globally covering major regions such as North America, Latin America, Europe, Asia
Pacific, and Middle East & Africa. The key sources consumed for these research include (but not limited to) the following:
 Financial reports published by the key market players
 Government and other official sources including the National Statistics
 National and International trade associations
 Paid databases
 Other reliable sources
The qualitative and quantitative findings from the above stages are brought together by specialists to perform a rigorous analysis. The regional market trends, drivers,
and opportunities obtained during the analysis is compared with regional economic indicators, sector growth rates, population index, etc. to ensure the data
consistency. After ensuring the consistency, these historical and present indicators help us to understand how the market will perform in future. Our proprietary
forecasting model factors in all these indicators to predict the future market accurately.
Primary research complements the secondary research, as and when required, as it helps us to gain insights from the industries directly by communicating with the
senior executives, key opinion leaders and independent consultants who are experts in their industries or specific industry sectors. Such interviews are conducted
across the value chain of the market in question. A survey questionnaire is usually prepared for conducting any primary interview or survey. The questionnaire is
developed with utmost care to fulfil the key research objectives and also to validate the assumptions about the market. This supplements the information otherwise
unaddressed via secondary research. The primary data collection is done by expert interviewers who have specific industry knowledge. Linguists are hired to conduct
interviews in the respondent’s native language. Some of the primary research methods applied at Netscribes include the following:
 In-depth Interviews
 Executive Interviews
 Expert Panels

12. Appendix
12
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13. 13