Final Distribution products

A perspective 2015-16

Why is everyone talking about it ?As old as the history of switchgear goes , the protection devices has only changed its form factor

and size over the years. Owing to better material and ergonomics products have grown smaller ,

efficient and economical by design.

So as the protection level moves from source to load the size and versatility decreases but market

competition increases; for e.g. : If there are 12 Major ACB manufacturers , it comes down 20

significant MCCB brands and at least 30 known MCB options

ACB MCCB MCB

Total LV Switchgear Market is

approximately :ì 8370 Crores

What does this account to ?

Top 4 players control more than 60% market

Highly competitive market dominated by

unorganized domesticsupplier

Key MarketParticipants

CompetitiveTrends

• Highly-competitive market, with L&T, Schneider Electric, and Siemens controlling over 50% of the market.

• Low-end and price-sensitive end users tend to drive the unorganized LV switchgear sector.

Key End Users

• Industries / OEMs• Utility based discoms• Construction (residential and commercial sectors)

• Infrastructure (such as ports and airports)

Power

Conta

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LT AC

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MCB

SFU &

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ctors

Rest

LV Sw

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HV Sw

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-15

-10

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5

10

15

20

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6.6

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19.3

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5.62.5

Switchgear % growth in 2014-15Market Trends

Overall LV Switchgear industry Growth was 5.6 %But MCB and modular devices demand grew

by 19% beating all estimates

Exchange rate over the entire year

Plastic material cost Conducting material cost

With depreciating rupee and material cost hitting a plateau , developing in-house product became more viable

Havells30%

Legrand15%

HPL8%C&S

10%L&T5%

Schenider6%

SIEMENS3%

ABB2%

Others22%

How’s the MCB market like ?1. Havells with its multiple range of MCB : X PRO and Eurobreaker

versions controls the majority of market owing to its 250 plus

dedicated showrooms, 2500 dealers and more than 100000 retail

outlets in India

2. Legrand with its longest known legacy of MCB and modular devices

manages to be on the second position with its technologically

advanced products and good equity with dealers and interior

designers across the country

3. HPL and C&S are the most aggressive players in the market who are

banking on their long hauled government department accounts and

small scale panel builders

4. L&T , Schneider and SIEMENS are popular but are yet to make a

significant dent in the MCB market

Estimated market size of MCB , DB and allied products in India is ì 1400 ~ ì 1500 Crores

The world is not enoughNorth America & Latin America market shows consistent demand for good quality economical products

Kenya , Tanzania , Uganda , Nigeria, Ghana Egypt and Libya continues to show good potential

Benefits of exporting over

1. Product improvement as per international standard

2. Benefits in import licensing / duty exemption

3. Export related duty drawbacks

4. Establishment of brand as a global brand

5. Definite push to overall sales

Product acceptanceCrossing the CHASM

Leverage the existing dealer network of lighting and appliances to find our ‘early adopters’

Create / develop product differentiations like aesthetics of Legrand or bi-terminations and or performance of Havells MCB

Create a sub dealer / electrician incentive scheme which directly benefits the end user as they are biggest influencers

Create cross marginalization of products when an existing Orient user buys our MCB or such product

Market SegmentationRetail

Market

Industrial Market

Demands :1. Activations through conferences2. Key Account Management3. Skirting with key consultants and

government officials4. Should have complementary industrial

product references

Demands :1. Activations through ATL and

BTL methods; via media agencies

2. A theme based promotion , like energy saving , environment friendly , reliability , etc.

3. Dealer , Subdealer , Electrician scheme and incentive policy

Some print Ad example

Showcasing the aesthetic DB range Showing complementary products

Some print Ad example

Educating the importance of RCBOs Exhibiting the company’s strengths

ConclusionA launch strategy is as custom designed as a suit for an occasion , it depends on

the purpose , growth plan , core philosophy and portfolio decisions

Now, I have here endeavored to come out with the most befitting strategy based

on a complete outsider view using some insights of the industry; which by all

means should set you up at around ì 45-50 Crores of revenue in coming years

So, I request the reader to use your own discretion while reading this report and

exculpate me for any misinterpretation or prejudice if is apparent in the document

Thank you for your patience to read this through