Softdisk which has the history of constantly upgrading its information thru various surveys has been monitoring the UPS industry for over two decades now. We have become synonymous with the UPS Industry and are constantly on the lookout of data. According to our latest findings, the Indian UPS market is which grew by 16% in 2010-2011 which prompted us to predict the industry revenue to touch 6000 crore mark by March 2013 has failed to live upto expectations, the sluggish rate at which the industry grew in 2011-12, & the pace at which it is growing now makes us believe that it at most cross 5200 crore mark by March 2013. The industry grew by 11% and is expected to grow by 13% in coming year, this is based on the data of first quarter of 2012-13. It is expected to touch INR 5200 crore mark by the year ending March 2013 including the unorganized segment. This is exclusive figure for UPSs & Power Electronic Devices, excluding cooling solutions, home UPSs and other add-ons. This is suggestive of the fact that India is not un-touched by the economic slowdown the world over, considering the fact that the Indian IT spending has also dipped by over 10% during the corresponding period. India has been able to maintain a double digit growth can be attributed to the increased awareness to protect their costly electronic equipments and the critical power situation in most parts of the country. These estimates have been generated by a survey when the industry was seemingly passing through a tough phase after experiencing a year of high which was a very successful year, and hence might have a 2% aberration. The growth of 11% is the second highest growth rate after Chinese (14% percent growth), A sign of Asian dominance as American & and the European market are going thru a sluggish period during these times. It will be a great opportunity for the US & European countries to focus on India. The report calls this slow growth as a consolidating factor in the Indian UPS market. We advice the US and European markets to now recognize India as a consumer of UPSs and become complete solution providers rather than just being a supplier. However the competition is going to be more stiffer, it will be a challenge for the Indian UPS Manufacturers to pitch in with right product and solution for different vertical and come out with conscious pricing in the wake of heavy consolidation seen by MNCs. What still will be a telling factor, will be the after sales support and providing zero down time. Claims of near zero down time have never been accepted by Softdisk, as we constantly come across customers who have faced downtime problems even with the best of brands.

What the consumer looks today is the best response time. Nearest point of support, and the ability to provide replacement backup in case of delay. No wonders, today the customer is lot more conscious when he chooses a product, he looks beyond pricing. Softdisk advices the end-custumors to go for spares audit at the nearest service point before making a purchase decision.

The report has been generated by talking to more then 200 companies under various vertical and talking over 150 people who are direct decision makers. All 200 plus companies we talked to had near 500 employee strength and have presence in almost all the regions in the country.

India has comes of age, as its rural areas become increasingly developed its time the UPS vendors no longer assume India as merely a 5-6 city market but as a lucrative market in its totality. A few MNC may be an exception to this. The firms in India will have to make great leaps in application integration. In addition, India's cultural diversity, fragmented state governments, and socio-economic disparities make it a microcosm of the broader South Asia region.

Softdisk expects, smart vendors to use India as a testing ground for new business models and strategies to try out models for the next wave of emerging economies.

Though India & South East Asian economies are closely connected to each other through trade and cross

investment, they differ enormously in their levels of economic development and the state of their IT infrastructure. For example, while India, Korea and China show tremendous enthusiasm for the SaaS model, Japan and Hong Kong appear reluctant to abandon traditional development and licensing models in favor of SaaS.

NORTH : Last year the over all Northern market had grown by 9%, we expect it to go up by 3 to 4%.

Leave apart power continuity, availability of Power especially in states of UP & Rajasthan has been a point of concern. There will a marked raise in Government purchase in the north. Followed closely by IT, ITES and BPO segment. SMB will also be a significant contributor especially in the state of UP and Rajasthan. Overall the North will contribute 26 to 28% of expected 5200 crore by March 2013.

SOUTH : Here a surge of nearly 4% is expected in coming two years. From current share 26% south will grow at a rate of 31 to 33% and will contribute 1700 crore INR to the UPS revenue of the country by March 2013. Off this Karnataka & Tamilnadu will be the major contributor. Other then Banking, one can expect Corporate buyinices to be contributing morg and IT / ITES, BPO's & Serve to revenue in these states. Education, Health Care & Hospitality will be another major contributor.

EAST : Nearly 900 crore revenue will be generated by the sales of UPSs in the East by March 2013. Govt. buying will dominate and Industrial Process Automation will pickup sales in 2012-13, as many a planned projects will start getting executed. In the overall scenario East will be contributing somewhere between 16 to 18% of total revenues by March 2013.

WEST : In the west a jump in growth by 6 to 8 percent is expected. Overall contribution will be some where between 23 to 25% of the total national UPS revenue. West will pocket nearly 1300 crores of the total revenue of 5200 crore by March 2013. With Gujarat developing fast, it will be a major contributor to the West’s revenue beating Maharashtra. Corporate buying and IT / ITES, BPO's & Services & Industrial Process Automation will be major contributor nearly 800 crore of revenue will be churned out by this sector. SMB will be a major contributor in Madhya Pradesh.

Vertical wise bifurcation indicates IT, ITES & BPO services & the Govt. sector will be the major contributor contributing some 936 crore INR each, indicating a gain of 3% for IT / ITES & BPO sector as against a raise of 6 percent in Government buying from current level of 12%. Today 18% of revenue generated by UPS sales comes from Govt. buying. While Corporate sales will account 936 crore while over 884 crore will be due to sales to Industrial process automation, a clear increase of nearly 9 percent from the current level. The trend indicates that those selling higher kVA ratings will be the one to watch out for as they may clinch the bigger deals. Those coming up with cutting edge technology will be at an advantage. Companies selling to Govt. concerns will be at a benefit. Banking, Insurance & Finance sector will grow at a steady pace of 9%.

Research & Educational Institutions along with Healthcare and Hospitality sector will have there own share of the pie. For the small UPS systems, there is still a lot to vie for. With nearly 7.0% at stake. SMB segment contributing 364 crore augers well for the small players with commitment to quality.