Clean power is the lifeline of any infotech system. And given the unreliable power situation in most Indian cities, UPS manufacturing has become a lucrative proposition for intrepid entrepreneurs. With IT penetration on the rise and the power situation not showing any signs of improvement, the UPS business continues to hog the limelight. However, lack of quality awareness at the consumer level and standardisation pose threats to the industry, feel many in the industry.

A global study by international IT major IBM reveals that a typical computer is subject to at least 120 power-related problems per month. Power fluctuations can lead to problems such as loss of data, hard disk crash, burnt motherboards and hardware degradation. "Network file-servers constantly writing on disks areparticularly susceptible to power fluctuations," says a hardware engineer.

Adds S K Saini of Delhi-based Karvs Electronics: "Complex operating systems require sophisticated power management which includes the ability to maintain the integrity of data files and execute safe shutdowns."

Given a low start-up cost, the UPS business remains largely unorganised, dominated by small players. There are more than 550 recognised vendors, both domestic and MNCs, operating in the UPS market which is valued at approximately Rs 450 crore. According to industry estimates, the market is growing at a consistent rate of around 30 per cent over the last two years and is expected to keep the same pace in future.

An investment of Rs 5 lakh can do for a start-up in the UPS business, feel many entrepreneurs. Though a technical background is not essential in the business, knowledge of engineering does come in handy, feels Sameer Mathur of Delhi-based Datex Electronics. However, one needs to scale up operations over time to makea mark in market, he adds.

For instance, Saini of Karvs Electronics who started out two years back, recorded sales in excess of Rs 1 crore after the first year of operation and expects a 40 per cent increase in business in the current financial year.

"Given the rate at which the demand for UPS is growing it is time to organise the industry," feels Mathur. While the small players enjoy a localisation advantage, the foreign players have been flexing their marketing muscles. Mathur, however, feels that MNC products are not able to tackle the low voltages and intermittent fluctuations well. He says that the Indian UPS manufacturers are able meet the technical challenges of running electrical appliances in low voltages.

In matters of design too small players are giving foreign companies tough competition, says Saini. At present, Karvs is planning to introduce UPS-related software with the system.

The market holds tremendous potential for new entrants mostly due to its low start-up cost. However, given thecut-throat competition, only those with technical knowledge should enter the field, feels Mathur.

"Servicing in this sector holds the key to edge out other companies," feels Mathur. At present, Datex is offering a two-year free-of-cost onsite warranty. But Saini feels otherwise. "Innovative designs keeping in mind Indian conditions are going to be the USP of future generation UPSs," he adds. Saini too agrees that entrepreneurs giving better services will call the shots.

Some entrepreneurs are worried about the on-going piracy of design in the industry. "Copying of designs has hit the industry in terms of technical upgradation," says Saini. As a result, users get poor quality products and end up spending more on maintenance. "This has created the need for having basic minimum technical norms for manufacturing," says Saini.

Lack of clear-cut standardisation norms is helping the gray market grow, feel many in the industry. "The marketing strategy of many gray market operators is to confuse the customer bynot telling the truth about the performing capacity of the system," says Saini. Most entrepreneurs feel that there is a need to have an agency to study all the safety standards and variance in quality.

Some UPS vendors suggest that the regulatory body should prepare general specification draft for UPS systems in consultation with the manufacturers, electricity authority, department of electronics and other regulatory bodies. They also feel that specifications of imported UPS system need to be redefined to suit the Indian scenario and environmental conditions. Adds Saini: "The regulatory body should also certify the product and periodically check its conformity to the stipulated basic minimum specification."

ABC of UPS

There are three types of UPS systems - off-line, line-interactive and on-line. An off-line UPS provides an alternative source of power in case of a power failure or fluctuation. In this context, power is directly supplied from the mains to the UPS system. The system automaticallydetects a drop in the voltage or current and switches the battery into the circuit by cutting off the main power line, thereby allowing the battery to supply the required power. For this changeover, the time taken is less than 4 milliseconds. The UPS automatically switches the PC on to the mains once normal power supply gets restored.

In case of an on-line UPS, power for the system is supplied by the battery which in turn gets power from the mains. It serves the purpose of avoiding any kind of disturbances in the flow of electricity. An on-line UPS is priced higher than the off-line one as this uses more electronic spell.

The line-interactive UPS checks the condition of main power and functions accordingly. It regulates the fluctuations in voltage and brings the power supply to normal. If the changes in voltage are quite frequent, it switches over to the battery mode.