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Final Distribution products
A perspective 2015-16
Why is everyone talking about it ?As old as the history of switchgear goes , the protection devices has only changed its form factor
and size over the years. Owing to better material and ergonomics products have grown smaller ,
efficient and economical by design.
So as the protection level moves from source to load the size and versatility decreases but market
competition increases; for e.g. : If there are 12 Major ACB manufacturers , it comes down 20
significant MCCB brands and at least 30 known MCB options
ACB MCCB MCB
Total LV Switchgear Market is
approximately :ì 8370 Crores
What does this account to ?
Top 4 players control more than 60% market
Highly competitive market dominated by
unorganized domesticsupplier
Key MarketParticipants
CompetitiveTrends
• Highly-competitive market, with L&T, Schneider Electric, and Siemens controlling over 50% of the market.
• Low-end and price-sensitive end users tend to drive the unorganized LV switchgear sector.
Key End Users
• Industries / OEMs• Utility based discoms• Construction (residential and commercial sectors)
• Infrastructure (such as ports and airports)
Power
Conta
ctors
LT AC
B
MCB
SFU &
Disc
onne
ctors
Rest
LV Sw
itchg
ear
HV Sw
itchg
ear
-20
-15
-10
-5
0
5
10
15
20
25
6.6
-4.8
19.3
-14.7
5.62.5
Switchgear % growth in 2014-15Market Trends
Overall LV Switchgear industry Growth was 5.6 %But MCB and modular devices demand grew
by 19% beating all estimates
Exchange rate over the entire year
Plastic material cost Conducting material cost
With depreciating rupee and material cost hitting a plateau , developing in-house product became more viable
Havells30%
Legrand15%
HPL8%C&S
10%L&T5%
Schenider6%
SIEMENS3%
ABB2%
Others22%
How’s the MCB market like ?1. Havells with its multiple range of MCB : X PRO and Eurobreaker
versions controls the majority of market owing to its 250 plus
dedicated showrooms, 2500 dealers and more than 100000 retail
outlets in India
2. Legrand with its longest known legacy of MCB and modular devices
manages to be on the second position with its technologically
advanced products and good equity with dealers and interior
designers across the country
3. HPL and C&S are the most aggressive players in the market who are
banking on their long hauled government department accounts and
small scale panel builders
4. L&T , Schneider and SIEMENS are popular but are yet to make a
significant dent in the MCB market
Estimated market size of MCB , DB and allied products in India is ì 1400 ~ ì 1500 Crores
The world is not enoughNorth America & Latin America market shows consistent demand for good quality economical products
Kenya , Tanzania , Uganda , Nigeria, Ghana Egypt and Libya continues to show good potential
Benefits of exporting over
1. Product improvement as per international standard
2. Benefits in import licensing / duty exemption
3. Export related duty drawbacks
4. Establishment of brand as a global brand
5. Definite push to overall sales
Product acceptanceCrossing the CHASM
Leverage the existing dealer network of lighting and appliances to find our ‘early adopters’
Create / develop product differentiations like aesthetics of Legrand or bi-terminations and or performance of Havells MCB
Create a sub dealer / electrician incentive scheme which directly benefits the end user as they are biggest influencers
Create cross marginalization of products when an existing Orient user buys our MCB or such product
Market SegmentationRetail
Market
Industrial Market
Demands :1. Activations through conferences2. Key Account Management3. Skirting with key consultants and
government officials4. Should have complementary industrial
product references
Demands :1. Activations through ATL and
BTL methods; via media agencies
2. A theme based promotion , like energy saving , environment friendly , reliability , etc.
3. Dealer , Subdealer , Electrician scheme and incentive policy
Some print Ad example
Showcasing the aesthetic DB range Showing complementary products
Some print Ad example
Educating the importance of RCBOs Exhibiting the company’s strengths
ConclusionA launch strategy is as custom designed as a suit for an occasion , it depends on
the purpose , growth plan , core philosophy and portfolio decisions
Now, I have here endeavored to come out with the most befitting strategy based
on a complete outsider view using some insights of the industry; which by all
means should set you up at around ì 45-50 Crores of revenue in coming years
So, I request the reader to use your own discretion while reading this report and
exculpate me for any misinterpretation or prejudice if is apparent in the document
Thank you for your patience to read this through