HVAC Segment Optimistic for Growth in 2010

March 9, 2010 6:13 am

HVAC Segment Optimistic for Growth in 2010
 
Manish Walia, Director,
Delta India Electronics Pvt. Ltd.
 
“With real estates coming up and new office spaces are being set up, the HVAC segment is looking up for the increase in business in 2010 and beyond.”
 
Can you explain about significance of ACREX 2010 for your business segment?
HVAC is always a big segment. As the global economy is on rise, the industries are booming. With real estates coming up and new office spaces are being set up, the HVAC segment is looking up for the increase in business in 2010 and beyond. Delta has a very large product range and can supply products and solutions to the HVAC contractors and HVAC OEMs. They can use our drives and temperature controllers for pumps applications, AHU applications and complete integration systems. Though we do not have BMS, we still have products to be integrated with BMS. This is the first time we participated in ACREX and we are looking for a good RoI.
 
Please tell us about your business activities.
Delta as a group of about 6 million dollar revenue in 2009 and we are into the business of power management solutions in the areas of telecom power supply, UPS, industrial automation, Solar energy, consumer lifestyle power, components and visual displays. We have UPS up to 4.MVA. Under the visual display segment we offer video walls, LED walls and digital signage. We also manufacture DC fans and other components.
 
Delta’s strength in power electronics and extensive knowledge in control technology has made us a leader in the industrial controls marketplace. Beginning with the design and manufacture of variable speed AC motor drives, Delta today offers a wide range of products for industrial applications. With our knowledge and experience in automation control, we focus our expertise on “Drive, Motion and Control”. Our products include AC motor drives, servo drives and motors, temperature controllers, programmable logic controllers, human machine interface modules, optical encoders, and communication converter modules.
 
How do you find industrial automation business in India?
It’s growing! We started direct selling in India only for last 2 years. Even though the global economy was reeling under recession during last year, but I think India was insulated to a large extent driven by local consumption. We showed growth in 2009 and we expect similar or bigger growth in the current year.
 
How did your company performed during the last year?
Though we are a new entrant in the industrial automation market in India, we had a very substantial growth in the segment. Our R&D teams continue researching and developing key technologies, producing innovative products in industrial automation; for example many OEM’s use our automation products for processing machines used in the food industry, textile industry, chemical industry, electronics industry, metal industry and plastic industry. Our automation equipment is also used in the pharmaceutical industry, printing industry, as well as for energy saving air-conditioning and water treatment facilities. In recent years, we have integrated our industrial automation products, developed industrial control networks, and offered integration services to our clients around the world. Delta’s industrial technology and extensive product offerings provide a total solution for machine control and automation.
 
When the entire world was under recession, how do you able to manage such growth in your business?
We see industrial automation business as one of our potential long term revenue contributors as this segment has to grow every time. China and India are the major focus countries for automation. Adaption of new technology for better accuracy and less wastage helped us to retain clients and also strengthen our competence. The complexity of some processes and the demand for flexibility means that automation products need to be precisely in tune with one another for optimum efficiency. We offer customized products to our customers which helped them to suite their interest and also to minimize their operational cost.  We also strive for offering our customers better post sales service. Besides, we have participated in various exhibitions and also arranged few seminars with various customer segments. I believe the pool was there and the reach with many people joining us we were able to get the customer very closely. We have added channel partners, dealers and integrators who helped us to perform better during the last year.
 
What is your market share?
Being a new entrant we are yet to make substantial inroad into this market. But in rise we are in a very good level but still we have a long way to go. We see a lot of opportunity and optimistic to acquire a major market share in coming years.
           
Do you think that removable of stimulus packages would help to grow Indian economy?
The signals which are coming from industry are not too positive. I believe we must still continue stimulus packages for a year more and once the economy is stabilize we can think we reduce or abolishing of such packages.
 
What is your expectation from union budget 2010?
I still feel there would not be many changes even though there is a hint of removal of stimulus packages.
 
Do you have any manufacturing facility here?
We have three manufacturing facilities in India. They are located at Gurgaon, Rudrapur and Pondicherry.
 
Any expansion plan in pipeline?
We are very buoyant about Indian market and economy. Our products have seen successful stint in the Indian market. With long term growth objective and with several new, innovative products and solutions offerings in the pipeline, we are planning big investments in India by opening new office in Gurgaon.
 
Where do you see Delta in next 5 years?
We look at growing at least three to four times of what we are now. As of now telecom power supply is the most established sector of our business that contributes maximum revenue. We would like to expand our business to the fullest potential especially in the new segments like automation, display, UPS and components. I believe there is a lot of stake with us and we are quite optimistic of achieving the projected goal.