24 October 2019

Interaction: Hemant Sikka, President-CPO, Powerol & Spares Business, Mahindra & Mahindra

 

Our prominent USP is the relentless focus on our customer

 

Mahindra Powerol recently announced the extension of its higher kVA Diesel Generators (DG) range with the launch of 400/500/625 kVA DG powered by Perkins 2000 series engines. This new range of Generator sets with 12.5 Litre to 18 litre Perkins engine is the latest addition to the Mahindra Powerol's higher kVA series. On this occasion, HEMANT SIKKA, PRESIDENT — CPO, POWEROL & SPARES BUSINESS, MAHINDRA & MAHINDRA in a Tete-a-tete with ROHAN AMBIKE about the growth drivers of the Generator industry, the company’s offerings and the changing trends that will drive the market in terms of technology and market.

 

 

 

Briefly give us an overview of the Generators & Engines industry, the latest technology trends, and the current business drivers?

 

The entire industry size for the Diesel Generators is close to 1.1L volume and approximately of `6,000 crore. Mostly all players follow the emission norms laid down by Central Pollution Control Board (CPCB). Following can be noted as the growth drivers:

 

  • Grid Reliability – Unpredictable and unstable in many parts of country.
  • GDP & Economy Growth – Demand increase
  • Change in Lifestyle – IT and requirement of uninterrupted Power
  • Statutory and Safety – Necessity of Genset as Emergency Power source
  • Rental & Power on move – No other better option

 

 

 

What are the types of Generators & Engines offered by your firm. Cutting edge technology featured in your products. What distinguishes your products from competitors.

 

The company entered the field of power generation in 2001-02. Since inception, Mahindra Powerol has made rapid strides in the Indian Genset industry within a very short span of time. Mahindra Powerol DG sets are the first choice of Telecom majors across India and overseas market. The brand dominates the Indian Telecom Industry for the last 11 consecutive years.Mahindra Powerol power diesel generating sets from 5kVA to 625 kVA. Our 125 kVA gas genset is the country’s first indegious gas genset in the market.       

 

Perkins® 2000 Series electronic engines are renowned in the market for their world class quality & efficiency. They are turbocharged and air-to-air charge cooled with certifications up to Euro Stage IIIA/U.S. EPA Tier 3 and to India's CPCB-I1 emissions standards. Developed from a proven heavy-duty industrial base, the engines offer superior performance and reliability. These engines are an ideal choice for customers looking at prime and standby power DG range of 400-625 kVA.

 

All our DG’s are CP and CP2 compliant. In terms of fuel efficiency, we believe and our customers believe that we have the most fuel efficient engines. This is as all our engines are Automotive Engines. The more the efficiency of the engine, the lesser is the carbon footprint. The third point- we are the first ones to launch the first Gas based Genset in the country. There is 0 particulate matter or hydrocarbon emission. The price of the gas Genset is `9.5 lakh and the similar diesel Genset will cost around `6 lakhs. It is 50 per cent expensive; however the payback is less than a year. If we run the Genset just 4 hrs a day, within a year, we have a complete pay back.

 

The new range of DG Sets is equipped with Mahindra's unique DiGi-SENSE technology which makes it a Smart DG. The performance of Smart DG sets can be monitored real-time remotely from anywhere, thereby improving the uptime of the DG Sets.

 

 

 

Detail us about the market share of the company in the Generator segment.

 

Starting from FY 2002, the business has grown exponentially to become a `1400 crore business in FY 2017-18. Today, engines from Mahindra Powerol power diesel generating sets from 5kVA to 625 kVA.

 

The market size is very well and is growing. The market today is at 10 per cent and the lower KVA segment went to 2 per cent last year. We believe that the thrust that the government is putting in the infrastructure and construction industry and with the new projects that are coming up, the IT industry has also bounced back and we have a lot of data structures coming up has boosted the need for having a Genset.

 

Of the three nodes—400/500/625 kVA, the market is worth `700 crore and it is growing very fast. I won’t be surprised if the market reaches the `1,000 crore mark in the coming months. This is going to gallop. This is a customer led development in India.

 

 

 

Please provide details on your emphasis on technology, research, design and innovation? What is your focus on technological up gradation in respect of your products? What are the advancements your have introduced or plan to introduce?

 

All gensets are designed at our stste of the art R&D facility at MRV (Mahindra Research Valley) Chennai. Recently we have launched 250 & 320 kVA series of gensets with CRDe technology.

 

 

 

 

To what extent is consumer behavior influenced by cost?

 

Cost is an important factor influencing the purchase decision, it plays an important role specially on purchase of Lower kVA of generators but for HkVA people see many other things like performance, servicing, reliability, fuel efficiency, brand and others, apart from cost.

 

 

 

Provide us details regards to your manufacturing facilities and capacities?

 

We have a manufacturing facility in Chakan near Pune with a flexible manufacturing line and have enough capacity to make the required engines.

 

 

 

 

Tell us about the indigenisation efforts undertaken by the company to meet the market requirements? What is the company’s approach to implementing the ‘Make in India’ drive?

 

We have many USPs, but the prominent one is the relentless focus that we have on our customer. The most difficult of the markets in this sector is the telecom market. If we can be the market leaders for a decade it will be the best support that we can give to the telecom market. The rest are the better technology that we have, plus the better products etc. The exports are expected to bounce back. It is a moment of immense pride on the work done by the Chennai team. They have come up with a DG with a low footprint and a lesser noise. The overall package of the entire DG is going to be very good. We recently launched the Genset in the 250- 320 KV and got a very good response from the Middle East region of the world. We have rose from a revenue of `6 crore and last year we have crossed the mark of`1,400 crore.

 

We have very recently launched the first Gas DG in India. This is the fully CP CP2 complied Gas DG in the 125 kVA range. I am very excited about this. The cost dynamics is 45 per cent cheaper and very less noise. The payback period is less than 18 moths. The feedback for the 250 and 320 KVA is amazing. This is a Navy Star Engine and has been manufactured in our plant in Chakan. The market is very big we are looking at quickly entering in the double digit mark. We are eyeing around 10 per cent market share in this domain at the end of the first year. We have a long way to go.

 

The engines are a critical part, but so is the control is equally critical so is the canopy and the entire package had to be taken into consideration. As per the current agreement, they are sourcing the 2000 series. This was being worked on for around a year and has taken all pains to have the best device for the industry.

 

 

 

Give us an understanding of the post sale services offered by your company?

 

Primarily a service driven industry, the purchase decision of DG sets depends on service network and after sales service commitment. Mahindra Powerol DG sets are supported by one of the widest service network of more than 200 dealers with over 400 touch points nationally.

 

The centralized call centre alert 24x7 is very well equipped to provide immediate support to the customer. The team of experts can help to choose the most optimal and well-suited solution to help the customer in the least time possible.

 

 

 

Which are the areas which will drive your business and tell us of the important projects where your products have been installed with success?

 

Our products in the range of 400 – 625 kVA is newly launched products and we expect that the market will be driven in this sector.

 

 

 

 

How do you expect the market to shape up for the Generators & Engines industry through 2019 onwards?

 

Currently we have a good number of enquiries before we have even launched the project. I would say that if we get an order now, the delivery can take place within a month. The market last year was around `3600 crore.

 

Our market share in terms of revenue is 10 per cent and it is growing. The entire Genset sector is booming. The entire country is growing at 7.5 per cent. The road sector is growing; the data centers are coming up. Plus there is a huge amount of residential projects that are coming up. Each residential complex is our target market as it will require a 320 or a 400 or even a 500 kVA Genset. Hence I am not focused on just one but the entire market. We are targeting everything under the sun.

 

The total market for DG in India is about $1 billion in India. Webelieve that in terms of numbers we will be covering around 98 per cent with this launch.

 

 

 

Future outlook on the industry and from your company’s perspective?

 

With the increasing demand and the growing technical advancements in the generator market, the industry will grow at a CAGR of 10 per cent in the next four to five years.

 




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