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Expert Speaks | April 2017

Customers Needs are Shifting to Standby Power Duty Cycles

Abhinav Gupta - Regional Marketing Manager - South Asia, Perkins, believes that India is now on the world stage as a major provider.

What is the power situation in India? What role do diesel gensets play here?
India continues to witness rapid development but to keep the momentum of growth high, availability of an uninterrupted power supply is a must. India needs electricity to fuel the growth of every industry, be it large-scale or small scale, manufacturing, healthcare or education.

Over time, the electricity deficit in India is continuing to reduce, with some regions now enjoying a surplus of power. Of course challenges remain in the transmission and distribution of power, quality and reliability and last mile connectivity.

Therefore as India's economic activities continue to gather pace, people will still rely on diesel generating sets to meet their standby power requirements. Perkins powered diesel generator sets offer a reliable and high-quality source of power generation, and are widely used for power backup and stand-alone power generation systems.

How is the global diesel generator market shaping up? Where does India stand in comparison?
We have seen that the electricity deficit in India is reducing, with some regions now enjoying a surplus of power. Customers, wherever they are located, require dependable, cost effective electric power generation. In India we have started to see customers' needs shifting from prime power to more standby power duty cycles.

Kindly explain how diesel generators are an eco-friendly option. How can they compete with the emerging renewable energy options?
Perkins engines meet all the applicable emissions standards and noise regulations in India and around the world. We have and continue to make investments in our engines, introducing for example innovative products that deliver more power from smaller packages thereby requiring less fuel.

In addition to our engines, our state-of-the-art manufacturing facilities like Aurangabad, in Maharashtra, were constructed with environmental considerations in mind. We apply stringent environmental practices at all our global facilities, and responsibly source components from quality suppliers.

Which segment has the most scope for or will provide most support in aiding growth of DG sets in India?
As India's economic activities continue to gather momentum, we expect the manufacturing sector to drive the requirement of diesel generation sets. Critical applications such as healthcare, data centeres, housing and real estate will continue to further the demand. At Perkins, we are well positioned to serve customers in these sectors with dependable engines.

What are the major challenges you face in diesel generator market in India?
Customers have many demands for their diesel generator sets, but a lifetime of low cost is an important consideration for any customer. India is one of the most competitive dollar per kVA markets in the world, but customers in India are well informed and appreciate the value that comes with the Perkins package.

What effect has demonetisation had on the segment?
There has been no long term effect on the segment, as dependable power is a critical requirement.

What are your offering in the India market, across the residential/industrial/commercial spaces?
Today, India is an economic powerhouse, its industries producing goods for global consumption. With modern, state-of-the-art manufacturing facilities, embracing the latest technologies and techniques, India is now firmly on the world stage as a major provider of goods and services. We have made significant long term investments in our capabilities and manufacturing facilities. More than $150 million has been invested in our world-class facility in Aurangabad. The facility deploys state-of-the-art technology and innovative processes to manufacture and supply the powerful Perkins 4000 Series engines to the growing Asian customer base - providing reliable power solutions to hospitals, airports, universities, real estate, data centeres and large manufacturing industries. We are a global company with global reach but we pride ourselves on being where our customers are, and understand the different requirements of local markets around the world.

Kindly elaborate on the technologies that you have applied in your offerings specific to the India market?
To serve our customers in the Indian market we have developed world-class products that meet all the regulatory requirements in the region. Our path to the market, our manufacturing strategy and business processes are all designed to keep our customers as the primary focus and to serve them in the most efficient way.

What are the company's business strategies for the India market? Kindly elaborate on your future plans and expansion plans in the country.
Asia Pacific is a huge opportunity for Perkins and we have the right products to meet our customers' requirements. Within Asia, India is of course a very important market. We have heavily invested into our facility in Aurangabad, where our powerful 4000 Series have been manufactured since August 2015. The facility, which serves the Indian an wider Asian market, is a world-class manufacturing environment that we have created to leverage the experience we bring to customers; an experience honed over the 85 years we have made dependable diesel engines which have delighted our customers.

What is your market perspective for India? How do you see the industry in the next 2-5 years?
India is an economic powerhouse, its industries producing goods for global consumption. With modern, state of the art manufacturing facilities, embracing the latest technologies and techniques, India is now firmly on the world stage as a major provider of goods and services. Diesel generator sets are and will continue to be widely used for power backup, particularly in telecom, hospitality, healthcare, Micro Small & Medium Enterprises (MSMEs), manufacturing industries, mining, power plants, real estate and agriculture sector.

With an increasing number of real estate construction projects and anticipated growth in foreign investments in newly launched smart city projects in India, the demand for diesel generator sets is expected to continue to grow. In addition, the growing demand for uninterrupted power supply from manufacturing facilities such as automobile and auto components is also expected to propel market growth over the course of the next five years.


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