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"Resellers will be an extended arm of our sales force"

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DQC Bureau
New Update

Asa Davis, VP, APC GlobalAsa Davis joined American Power Conversion in 1987. Since then he has handled various assignments in sales and software development. Next he became director of strategic marketing and was promoted as VP of sales. He then went on to become VP of information systems in 1997 where he is responsible for leading APC's corporate information systems team worldwide. Asa was in the country recently to study the market and also to address the IT Asia Millennium held in Mumbai recently. He spoke to CI about APC's initiatives for the Indian market.

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What is APC's assessment of the size of the Indian UPS market? Where is APC placed in this market?

We rely on the numbers given by market research agencies like IDC. According to such sources and the general print sources, the UPS market in India is pegged at Rs 750 crore. The growth of the this market is about 35 to 40 percent. 

APC is a leading UPS vendor in India, particularly for the IT industry. For the transactional business we follow a two-tier distribution model. We partner the top distribution companies for IT products and peripherals, namely Compuage, Datapro, Ingram Micro, Redington and Tech Pacific. They in turn leverage their extensive channel network for redistribution.

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For the relationship business involving the high KVA solutions a fair bit of technical consulting is involved and we have three high power partners, namely L&T, Anand Control Systems and Choice Solutions, who engage customers directly for their large KVA requirements. We have also addressed systems integrators to recommend cutting-edge power solutions from APC along with IT infrastructure. 

Keeping in close touch with our customers directly and through channel, and keeping them happy is the key to achieving revenue and market share growth.

APC has come with many products recently like PnotePro, Symmetra etc. Do you think that these products will work in the Indian conditions effectively?

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APC's vision is about "Ensuring availability wherever data is created, transmitted or stored". We will continue to launch products and solutions to address this vision. We would also like to be seen as an end-to-end power protection solutions company. We are keen to bring world-class products and technologies to India. Being very specialized, our products are designed to provide total protection from power problems to improve the availability and manageability of IT networks. 

Besides, power problems are universal. The market for such products will grow very quickly in India with corporates expressing the need for mission critical availability currently sought for data center, ISP, ASP, Internet and

business-critical network applications. 

Are all your products available in India?

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All APC products manufactured worldwide (for the ambient voltage standard of 230 volts) are available in India. Power problems, which are prevalent across the globe, apply to India too. We need to develop a market for these products and educate our customers about these new products and technologies. Our products are readily available at competitive prices. 

How do you compare Indian UPS market with those of other countries?

In mature markets you tend to see fewer but stronger players. In India for the lower end segment, there are many vendors. The price points are low, and quality standards need to be looked into. All APC products conform to international standards to address all markets. 

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Since problems associated with power are finite and universal, customers look for reliability. As the velocity of business increases, business availability emerges as a key competitive advantage. This drives companies to ensure the reliability of their IT networks. We hope to see this trend in India as well.

Does your manufacturing unit at Bangalore cater to the needs of other Asian countries? 

This manufacturing unit addresses the market demands of India as well as several other countries. We also have other manufacturing units in Asia. We are very happy with the quality we are able to achieve here. This plant is closer to our customers in India and helps us respond faster to customers. Cost competitiveness is also an important gain from this plant as the huge import tariffs can be avoided.

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Which other countries have APC manufacturing units in Asia?

Besides India, we already have manufacturing units in Philippines and China. 

What is APC's revenue from the Asia Pacific region? What strategies do you have to increase this revenue?

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Asia Pacific is the fastest growing region for APC and grew by 40 percent as compared to last year. The US market is fairly mature. Channel engagement and keeping customers happy is our key task. Also technology dissemination helps customers take decisions to make their IT infrastructure more reliable.

With the transition in business models, many dealers are setting up their own e-ventures, instead of sticking to their conventional role as channel partners. This is happening in light of the fact that more and more vendors are looking at e-biz as an emerging option.

What does APC have to say about this?

In our business the interaction between channel partners and customers is information-intensive and customized. There is a fair bit of consulting involved as mentioned earlier. Given this background we do not see the Internet reducing our dependence on channel partners. 

E-business initiatives from our distributors / channel partners on the other hand will help reduce their transaction costs and automate order processing. It will also help them spread their reach among resellers/customers across the country. 

That will benefit them greatly leading to faster turn-around time in the crucial area of customer service. This initiative will also have a positive and welcome impact on their margins. We will be happy to see more and more of our channel partners embrace e-biz as a consequence.

Sunila Paul in Bangalore

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