Analysis of the Sri Lanka Diesel Genset Market

Rising Opportunities from Hospitality and Infrastructure Sectors

P66D-14
May 2013
 Contents

Section Slide Numbers

Executive Summary 4
Market Overview 10
Total Diesel Genset Market -
• External Challenges: Drivers and Restraints 20
• Forecasts and Trends 29
• Market Share and Competitive Analysis 38
5–12.5 kVA Diesel Genset Segment Breakdown 46
15–75 kVA Diesel Genset Segment Breakdown 55
75.1–375 kVA Diesel Genset Segment Breakdown 64
375.1–2,000 kVA Diesel Genset Segment Breakdown 73
The Last Word 82
Appendix 85

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 Executive Summary

• The total diesel genset market in Sri Lanka for 2012 was valued at $ million in terms
of revenue and in terms of units.

• The market is poised to grow at a CAGR of per cent and is expected to reach
$ million by 2019.

• The diesel genset market in Sri Lanka is dominated by prominent global diesel genset
suppliers. All of them are represented through their local distributors and dealers in Sri
Lanka except Lanka Ashok Leyland PLC, that has its own sales office in the country.

• In terms of revenue, Cummins is the market leader with a share of per cent,
followed by Caterpillar with per cent.

• Other major suppliers include FG Wilson, Tempest, Kirloskar Oil Engines Ltd. (KOEL),
Lanka Ashok Leyland PLC, Volvo Penta, Mahindra Powerol, MTU, Pramac, Greaves
Cotton, Power Pro generators, Green Power Technology Pvt. Ltd.

• Genset suppliers witnessed intense price competition in the – kVA and – kVA
segments. The key reason is the presence of more than Chinese suppliers in these
ranges, selling gensets at prices almost per cent to per cent cheaper than Indian
suppliers and per cent to per cent cheaper than European suppliers.
Source: Frost & Sullivan

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 Executive Summary (continued)

• Growth in the telecom sector is expected to be a major driver for – kVA and –
kVA range gensets. Banking, Financial Services, and Insurance (BFSI), real estate,
infrastructure, supermarkets, education, and retail are also expected to drive the –
kVA and – kVA range of gensets.

• The – kVA and – kVA segments are expected to drive the growth of
Sri Lanka diesel genset market during the forecast period.

• After the end of the civil war, Sri Lanka is witnessing rapid development in roads,
highways, ports, commercial buildings, tourism, and airports.

• The Sri Lankan Government is planning to set up special economic zones in the
northern and eastern province, through joint initiatives with the Chinese and the Indian
governments. New industries coming up in these areas are expected to drive the
demand for diesel gensets.

• Telecom operators are expected to invest in modernizing the network by introducing

4G-LTE services and building capacity and coverage to support greater demand in
Sri Lanka.

• Prominent local and international hotel operators are expected to expand, renovate, and
open new hotels to take advantage of Sri Lanka’s growing tourism sector.
Source: Frost & Sullivan

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 Executive Summary—Market Engineering Measurements

Total Diesel Genset Market: Sri Lanka, 2012

Market Overview

Market Size at
Market Market Average Price
Market Stage End of Forecast
Revenues Units/Volume Per Unit
Period

Growth $ M $ $ M

(2012) (2012) (2019)

Base Year Compound Degree of

Customer Price Market
Market Growth Annual Growth Technical
Sensitivity Concentration
Rate Rate Change

% % %
(% of market share held by
(CAGR: 2012–2019) (scale: 1 [low] to 10 [High]) (scale: 1 [low] to 10 [High]) top 3 companies)

Decreasing Stable Increasing For a tabular version click here.

Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan

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 Executive Summary—Market Engineering Measurements
(continued)

Competitor Overview

Number of
Competitors

-plus

(active market competitors in

base year)

Decreasing Stable Increasing

Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan

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 Executive Summary—CEO’s Perspective

Power crisis caused by over-dependence

on hydropower for power generation is the
1 major concern for economic development
in Sri Lanka.

Sri Lanka imports most of the diesel

2 gensets from UK, India, and China.

End users are expected to be influenced by

3 prompt after-sales services, strong brand
name, and competitive prices.

The region lacks in technical skills, such as

4 maintenance and repair capabilities.

Commercial and infrastructure projects will

5 be the major drivers in near future.
Source: Frost & Sullivan

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 Market
MarketDefinition
Overview—Definitions

• Diesel Genset: A diesel genset is a packaged combination of a diesel engine, an alternator, and
various ancillary devices such as base, canopy, sound attenuation, control systems, circuit breakers,
and starting systems.

• Diesel gensets can be classified into three categories:

o Stand-by Diesel Gensets: Gensets used for supplying emergency power during normal power
outages. Typical applications are emergency power plant in hospitals, offices, factories, and so on.

o Prime Power Diesel Gensets: Prime power is the maximum power available at a variable load for
unlimited number of hours. Typical applications of these gensets can be seen in remote mining or
construction sites, and so on.

o Base Load Diesel Gensets: These gensets are used for supplying continuous power to a
constant load up to the full output rating for unlimited hours. No sustained overload capability is
available for this rating. These are generally not applicable to every genset models, and are
available with a very few suppliers.

Source: Frost & Sullivan

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 Research Aim and Objectives
Market Overview—Definitions (continued)

1
Research Objectives
Market estimations in terms of total revenue and unit
sales for the Sri Lanka diesel genset market
( kVA– kVA) for 2012

Research Aim Market segmentation in terms of major kVA ranges,

analysis of market trends and dynamics
The aim of this research service is to present a
3
comprehensive overview of the current market
environment for diesel generator sets in Sri Competition analysis across various kVA ranges
Lanka, as well as to highlight and explain the
impact of market developments on future
4
growth
Analysis of end user trends

5
Provide insights into the market drivers and market
restraints and determine their impact on the future
market demand for diesel gensets market
projections
Source: Frost & Sullivan

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 Market Overview—Definitions (continued)

Geographical Scope
This research service covers the Sri Lanka diesel genset market

Product Scope
Diesel Genset market coverage by Power rating:
5–2,000 kVA Research Period:

Market segmentation by Power rating: The study period is from 2009 to 2019

• 5–12.5 kVA • Historic–2009 to 2011

• 15–75 kVA • Base Year–2012
• 75.1–375 kVA • Forecast–2013 to 2019
• 375.1–2,000 kVA

Application Scope
This research service focuses on diesel gensets for primary and standby applications.

Source: Frost & Sullivan

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 Market Overview—End-User Definitions

End–user Segment Particulars

Telecom Gensets used in telecom towers for standby power applications

Manufacturing and Small, Medium and large-scale industries such as garment, process industries,
Industries chemical plants, and pharmaceuticals
Government and
Post offices, rural banks, and Government offices
Defence

Real Estate Commercial and residential buildings

Hospitality Hotels, resorts, restaurants, eating joints, and so on
Highway, and other projects, construction contractors, and on-site power at large
Infrastructure
construction sites
BFSI, Government and Defence, Hospitals, Airports, Petrol Sheds/Pumps,
Others Include
Temples/Monasteries, Domestic households, and IT/ITeS

Source: Frost & Sullivan

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 Market Overview—Key Questions This Study Will Answer

What is the current state of the diesel genset market in Sri Lanka?

What is the size of this market in terms of revenue and units?

Is the diesel genset market growing, how long will it continue to grow, and at what rate?

What are the main market drivers, restraints and industry challenges impacting this market?

Who are the major competitors in the Sri Lanka diesel genset market?

Source: Frost & Sullivan

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