3-phase large UPS systems give Consul Neowatt the edge

Using its manufacturing units in Chennai and Pune to support its ‘build to operate’ model of business, the B2B power-backup solutions player caters to a diverse mix of verticals. Sriram Ramakrishnan, CEO and MD, who came on board in 2012 after an investment by Peepul Capital, has been expanding beyond its traditional strengths. 

“Apart from focusing on core engineering industry (auto majors), banking and healthcare segments, we have added new segments such as process industries (Pharma – Natco Pharma, Cipla), plastic manufacturing companies (milk-bags producing customer in Daman) and food processing sector (Coca Cola and Unibic),” he says, outlining the strategies and growth plans of Consul Neowatt. From being a trading entity, Consul has become a manufacturer with a pan-India presence, which has been possible following the acquisition of Pune-based Neowatt two years ago, he says, claiming that the company is the number one supplier in the domestic UPS market, which is estimated to be Rs 3,600 crore. 

“We were supplying smaller UPS – uninterrupted power supply, but our excellent R&D base has enhanced our capabilities, making us compete against MNCs such as Emerson, Schneider Electric and Legrand Electric,” he said, adding 80 per cent of its product range, including the next-gen UPS products, were done using the in-house design and manufacturing capabilities. Though it is not into volume game, the company’s three-phase large UPS systems have given it an edge in the market where it competes with heavyweights. 

“We have leveraged our technology strengths by routing supplies through OEMs – Wipro GE, Siemens and Philips that has given us a huge advantage in the diagnostic medical equipment business,” Sriram says, adding the company had installed over 1,500 Falcon brand of UPS in India and overseas. 

These UPS are capable of functioning in harsh climatic conditions in installations like power, nuclear, cement, steel and oil and gas plants. A strong votary of the ‘Make in India’ programme, the company relies on its designing and manufacturing capabilities to service the market. 

“Our expertise can be seen from our relation with GE Healthcare, as our products have been protecting GE Healthcare equipment like CT Scan machine from the day GE started operations in India,” he said.

Eyeing a turnover of more than Rs 300 crore for the fiscal ending 2017, Consul Neowatt has also drawn its strategy for tapping infrastructure, government projects, core IT and ITES services business. 

“We have made inroads in the Metro and Smart City projects. One out of 5 ATMs is powered by our products for our clients such as Tata Communication, FSS and Mphasis, who are rolling out solutions for banks. We are also present in the RBI data centres, which was possible as are in their approved vendors’ list. In Uttar Pradesh, the emphasis on infrastructure projects provide us more opportunities. We have supplied to cancer hospitals in Lucknow, says Sriram. With a year-on-year growth of 25 to 30 per cent in a stagnant market, he is confident of breaching the Rs 500 crore mark by 2019. 

“We would like to grow more in West and North and in the latter region, we have been seeing our growth ranging 70 to 80 per cent YOY. We also are keen to tap the East market,” he said. Consul Neowatt is also eyeing South Asia, Middle East and Africa regions as part of its overseas expansion plans. “Currently, international sales from Sri Lanka, Nigeria and Dubai, constitutes 5 per cent of our overall sales,” he said.