Inverter prices to go north

The grim power situation in Maharashtra is helping to boost the branded power inverter market, which is pegged at Rs 2,000 crore.

The acute power shortage, which has hit the country's financial capital, has prompted companies to ramp up their operations in the region. However, the surge in the demand may also lead to the companies hiking prices.

The power inverters are selling like hot cakes in the state which is facing a power deficit of about 6,000 Mw, with Mumbai too likely to face power cuts.

Vipul Trehan, Marketing Manager, Microtek International, told Business Standard, "The branded power inverter market for Maharashtra, now pegged at 3-4 lakh units, is expected to touch 7 lakh units this year. There is heavy demand for inverters from Navi Mumbai, Thane and Ulhasnagar."

The companies have decided to tap this market by ramping up infrastructure and distribution network in the state.

For instance, Su-Kam Power Systems, another power inverter firm is scaling up its distribution network from 150 dealers to 500 dealers and has stepped up its infrastructure.

It is also in the process of expanding its manpower by appointing dedicated personnel in the region.

The companies are also focussing on marketing and promotions in the state. While Su-Kam has allocated Rs 2 crore On promotions, Microtek has increased its advertising budget by 50 per cent.

This summer could see a double plight this summer with companies deciding to hike the prices. Kunwer Sachdev, CEO Su-Kam Power Systems, said, " The increasing costs of lead, copper and unavailability of MOSFET, an important input component, will lead to price hike. We have already increased the prices of inverter batteries by 7 per cent while another 5 per cent hike is in the offering, Similarly the cost of power inverter is expected to go up 5 per cent."

Though the companies had anticipated a possible power crunch in the state, the inclusion of Mumbai in the load shedding programme has put a demand pressure on the companies. This has led to an increase in the commercial demand for high capacity inverters catering to air conditioners and lift operations.

Morever, the long hours of load shedding are adding to the woes of the customers. There is a four and half hour load shedding in areas with municipal corporation with smaller towns facing seven hour and rural areas bearing power cuts up to 15 hours.

"The additional hours of load shedding is making it impossible for customers to re-charge the inverters."

The batteries get damaged quickly if it recharged often. This has put life out of gear in the interior regions," said a dealer.