Power semiconductor industry in India: industry analysis, market penetration plan

Abstract

The power electronics industry in India is growing steadily and is of the order of 187million USD. However the market is crowded already due to the intense competition between large Integrated Device manufacturers and specialty component vendors. The following are the finding from the market analysis:-? Consolidate high power market position in IGBT. However invest in resources to develop low power MOSFET products. UPS is our major revenue source here but runs a high risk as the online enterprise market is declining. Target offline home segment growing at 69% y-o-y for at least the power IC initially.? Communication and Consumer electronics (including lighting) constitute 65% of the market where we are almost non-players. Enhance existing product for CFL and target large makers such as OSRAM, Asian Electronics, Crompton Greaves etc to offset this.? Target chargers market for mobile phones and hubs these are low design intensity products. Partner with a local company to generate new designs for this based on Infineon Technologies products.? High power transmission segment is a significant growth opportunity due to increasing privatization. Target companies such as Reliance Power and Tata Power. Also influence design at state electricity companies through such agencies as KPC(Karnataka Power corporation ltd) that do design and are independent enough from government control but have huge influence on purchase decisions.? Target MNC design centers such as GE India, Invensys etc who are nodal centers for global designs. GE is a classic case as MCB s is a growing market and is designed here. This will also help in feedback loop for us to improve products.? Strategy of using distributors is good but from the survey results awareness is poor. This gives us a good opportunity to have demand creation by promotion, sales visits etc.? Sales strength of Infineon Technologies India pales in comparison to established players such as TI etc. Increase sales strength through dedicated Key account managers for large orders and reduce dependency on sister companies such as Bosch etc. Given this it is appropriate that local design though low volume is slated to grow significantly in all areas especially auto and defense industries. Thus it is recommended to partner with OEM companies who are strong in this space. However it seems we are dependant for 70% of our sales from distributors. To increase loyalty new incentive schemes could be introduced that are described later. Further it is also envisioned that creating a B2B portal for power electronics engineers could also lead to becoming a market aggregator with a parallel advantage of pushing low volume sales to our distributors directly through this channel.