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Follow UsPower solution major Numeric Power Systems Ltd has closed the financial year
2002-2003 (October-September) with a turnover of Rs 153.81 crore, registering 37
percent growth over the previous year. This is much higher than the industry
growth and the company attributes its success to strong product portfolio,
technology tie-up with MGE UPS Systems (Merlin Gerin, France), quality support
and service network. However, Numeric is not a much-publicized and channel-savvy
company in the market till now. To create a better visibility in the market and
ramp-up its business fortunes, Numeric is betting on the channels. During this
year, the company will primarily focus on channel initiatives to drive its
business, especially in the SME segment. e-Governance and school IT projects are
the other critical areas it has identified for growth, while overseas business
will bring volume and value for the organization. Driving these initiatives from
the forefront, R Chellapan, Managing Director of Numeric, dreams of building a
major corporate brand and identity in the lines of multi-national companies.
Managing the company for almost two decade, Chellapan brings with him wide
knowledge on the power solutions industry.
His 13 years work experience in Sri Ramakrishna Steel Industries Ltd and
Ashok Leyland Ltd at various positions had helped him with strong technical
background and industry knowledge. He is basically an engineering graduate in
electrical & electronics science. Chellapan promoted Numeric in the year
1984 for manufacturing and providing UPS. Within 10 years, Numeric got on to the
top league and also became a public limited company in 1994. The company claims
to be the No. 1 online UPS manufacturer in the country for the last nine years.
In 1996, Numeric entered into a partnership agreement with MGE UPS Systems, a
global leader in UPS systems. This has helped them to offer solutions starting
from 0.2 KVA to 4800 KVA UPS systems and be a one-stop shop solution provider
for the customers. Talking about its future growth and roadmap for the coming
years, Chellapan shares his vision and strategic plans with S Gopikrishna, of
The DQ Week, to transpire Numeric into a leading corporate brand both in the
domestic and overseas markets. Here are the excerpts:
How important is IT industry for Numeric in its business?
Nearly 40 percent of business comes purely from IT while an equal size is
earned from BFSI segment. However, the large BFSI orders also revolve around IT
and automation projects in the industry. We work with all major IT companies
such as Microsoft, Dell, IBM, HP, Oracle, Novell, Infosys, Wipro, CTS, Visual
Soft etc. We also provide solution to PC manufacturers and System Integrators in
fulfilling their orders. So, IT industry is key for any power solution company.
What would be your focus area for the next year?
Numeric will primarily focus on e-governance and school IT projects for the
next year and we will work closely with leading vendors and system integrators
in the country, who are bagging these orders. Numeric can meet their demands of
providing quality and reliable solution through its strong expertise and
technology products.
Explain your product offering and strengths?
Today, Numeric is the only leading company which is quite strong in all
categories and ranges of solution. We offer solution starting from 0.2 KVA to
4800 KVA UPS systems, and our partnership with MGE UPS Systems (Merlin Gerin,
France) has helped us to achieve this status. While low-end requirements are
purely addressed by us, we provide MGE UPS for hi-end market. Recently, we have
launched 20 new models under Digital HP Series which are superior in technology
and cost-effective solution. Digital HP Series would be ideal for e-governance
and other IT projects working on intelligent network and providing remote
management facility. Our products have additional features such as USB interface
and SNMP connectivity and come in convenient models for floor mounting and rack
mounting. We offer end-to-end solution and total power protection for servers,
PCs and networking devices. Numeric is also known for its R&D strength and
we have scaled up our investments here.
Detail your strategic initiatives to create brand
visibility and increase business?
We are going to invest significant amount of time and money in improving our
channel network. Channels are now highly important to us to create better brand
visibility, increase business and address more segments. Recently, we formed two
core groups–Numeric Power Partners (NPP) and Numeric Power Solution Providers
(NPSP) for having more focus in channel business. NPP will basically supply to
the vast reseller base in the country and we have about 22 power partners to
drive the volume business, while NPSP are value partners who provide total power
solution to the customers, mainly to SME and corporate. Earlier, we were doing
more of direct sales and this new model will help us for better reach and
volumes. However, we will continue to hold certain key national accounts where
multi-location delivery and service are needed. Also, Numeric is increasing its
area office from present 75 to 100 before mid-2004, which will take care of
sales and service activities.
Give your roadmap on export business?
Recently, Numeric has set up its manufacturing plant in Sri Lanka
considering the overseas opportunities. Sri Lanka plant will be a 100 Export
Oriented Unit (EOU) catering to Middle East and African markets. We are already
doing business in Mauritius and we have supplied products even to the US and
European markets. This year, we have done exports to the tune of Rs 6 crore and
within next two years, 20 percent of our business will come through exports.
Overall, we expect at least 20 percent growth every year for the next five
years.