Delta and the Power Solutions Market

With changing technologies, there is an ever-increasing demand for Power Solutions in the market. Deepak Singh Thakur discusses the position of Delta Electronics within the Power Solutions market in India.

Q:  Can give you a perspective on the condition of the power solutions in India?

A:  First of all, India is in a transformation stage. Not only India, but the global economy is moving towards technology. India as a country is moving towards more digitization. So, when you talk about digitaliza-tion and when you talk about the development of the technologies or adoption of technologies in India, it’s still very low as compared to developed countries. So there’s a huge scope to cover up. This also adds up to various challenges. The industry is becoming more power intensive. And our demand for power, I think by 2025-30, we might require almost 2.5 times to, even three times the power, which is currently available.

Every unit saved is two units generated. So, that way the user will see lots of companies coming up with new products, talking about higher efficiencies, and the government putting lot of regulations, seeking much better efficient products. There are OEM players like us who are investing a lot on R&D in terms of creating these kinds of new products which are much more energy efficient. We just call it smarter and greener.

As Delta, we are a part of the Delta products group, which is the largest ODM and OEM and the World’s Number One Switching Power Supply Manufacturer. And we are a R&D driven company. We spent almost 8% of our revenue in terms of R&D and we have almost 64 R&D centres globally. We are also coming up with a massive R&D centre in India. So, to sum up our work has always been a challenge and it is also an opportunity for us.

Q: What is the requirement of Power today in relation to the immense Data that is generated?

A: The minimum requirement anticipated is 2.5 times. 5G is yet to be implemented in India. Once 5G is adopted, then only you will actually see the adoption of AIs, VRs, and various other technologies like IoT, in the true sense of deployment. The current infrastructures are not so digitized. All the infrastructures of every business will get to change according to the new norms and everything will be about data. This new Data has to be stored somewhere. That storage space needs some power and that power is going to be exponentially higher. So, the power generation is proportional directly to the data generated. So the kind of data boom, which we are seeing in the market, you would have experienced yourself in the past three years. The advent of Facebook, Whatsapp and others, everything is getting into more data, videos, downloads, people playing games. So, this is what the power size will be.

Q: What is the role of UPS in this context?

A: You have to understand everything is getting digital. You need some backup to protect it from power fluctuation. You need an unfettered power supply. The newer side of UPS will come up. The mid size offices and people who never used to have UPS, now have UPS. There is a huge potential. UPS is not going out of the business. In US there was a blackout that resulted in billions of dollars of revenue loss. You have to understand what I am trying to say when I say 100% power is there. So technologies will change but the UPS will still remain. Your paper will go, but your website and your digital destiny will always be there.

Q: What is your strategy that you work with in relation to your customers?

A: We are working on new technologies to understand the new concepts which are coming up, so that we come up with the products which meet those challenges of the customer. That’s why our tagline is ‘Smarter, Greener Together’. So smarter is the newer, smarter technologies. Greener is energy efficient and everything that we do, we do together with out customer.

Q: Can you give a sense of what is the current size of the power market? And Delta’s position within it?

A: Currently the market is around 700 to 800 million. And then it is growing at a rate of around 8 to 9%. But the higher capacities UPS are having a growth of around 10 to 12% CAGR. We are currently working only on the branded market. We are among the top three in the market. But then we are investing in the design and manufacturing, we are perhaps the largest ODM and OEM manufacturers of switching power supplies and also the UPS. We have the widest range of solutions among all players. We always look forward to meet our customers and understand their requrements and provide them with effective solutions.