We Anticipate 20 Per cent Growth In India In 2023, Says President Of Delta Electronics India
We spoke to Benjamin Lin, President of Delta Electronics India about the company's future plans in India & how they will deal with recession, here's what he said-
Can you give an overview of Delta to our readers?
Delta India has been operating since 2003. Delta Electronics India is a leading power and energy management company in the country. Delta operates in three business categories: Power Electronics, Automation, and Infrastructure. It has a legacy of operating in India with market leadership in telecom power solutions, renewable energy solutions, and display solutions.
It is also a leading provider of Industrial Automation Solutions, UPS & Datacenter Solutions, EV Charging Solutions, Rail Transportation Solutions, Energy Storage Solutions, DC Fans & Blowers, and Components. With fourteen regional offices, four manufacturing facilities (Rudrapur, Gurgaon, Hosur, and Krishnagiri) and two R&D centres (Gurgaon and Bengaluru), Delta has a strong presence across India with more than 200 channel partners.
The company has been awarded ISO 9001:2008, ISO 14001:2007, and OHSAS 18001:2008 certifications for Quality, Procedures, and Environmental management.
The outlay for investments in the future as far as India operations are concerned? How much capital investment you are planning to make in the next 3-5 years?
We are currently implementing an investment of around USD 500 million in Krishnagiri for an upcoming new manufacturing facility. Further, we are also investing in a new R&D building and headquarters in Bengaluru. In the short-term, we wish to accelerate our top-line growth driven by key segments like EV, data centre, and industrial automation, which have abundant potential in India. We are already pioneers in telecom power solutions and display solutions, indeed. Furthermore, we also wish to enter into new segments and businesses in India as we have a strong inheritance of cutting-edge technology and power electronics from Delta worldwide.
Which sectors will see a larger allocation of capital in India?
The new plant will provide us with state-of-the-art technology and on-field training to cater to global demand. Our investments in Tamil Nadu are in-line with the company’s vision to boost India’s development while supporting the "Make in India" initiative.
The new factory in India is an important project for Delta. It not only supports Delta’s commitment to India’s economy but also presents a significant opportunity for our strong growth in India. Overall, India's infrastructure and logistics are ideal for our company's operations.
What is timeline for the $500 million investment?
We would like to fulfil the investment before 2027. We are going to start manufacturing in Krishnagiri. Our complex at Krishnagiri has the potential to house more factories for both domestic and international markets with the SEZ. So it is only a matter of time before we utilise this potential further. We are bringing in more products from our different business groups in India to be manufactured in Krishnagiri for export as well as for use in the global market.
How much of $500 million will be towards setting-up EV charging infrastructure in India?
We have over 40+ years of experience and can deliver energy-efficient charging solutions, including AC EV chargers and DC quick chargers. In Delta’s charging solutions, we offer very high performance and power efficiency of up to 95 percent, and we also have global safety certifications for our products. We are manufacturing these products at our plant in Rudrapur. We have a strong R&D team for manufacturing, and we have engineers in Bengaluru as well. We have already finished installing 6000 chargers in India this year.
How many EV chargers do you plan to setup in the next couple of years?
We are focused on the current progress and are also observing developments in the EV industry in India keenly. We are also looking to offer charging solutions for e-buses and e-two-wheelers, but I won’t be able to give an exact number. Our goal is to reach a 40 per cent market share in India.
How much of a challenge is of standardisation when it comes to an EV charging ecosystem and has that kind of synchronisation been developed already?
As mentioned earlier, we need to have international safety standards and certifications in place for EV chargers. Our chargers are developed by Delta globally and we have enough experience of working closely with many companies. We are complying with the many standards that are demanded on a global scale and in India, we are adhering to the standards in place.
How do you see the Impact of recession and economic scenario on India operations?
There is speculation that 2023 won't be a favourable year as a result of inflation and exchange rates. However, we believe India has a lot of potential and opportunity, and for Delta, we anticipate 20 per cent greater growth in India in 2023. We expect to see more growth in India when compared to other regions, and the country presents a large market size for Delta to grow in next year.
The sectors of the economy in India which you serve, where do you find the maximum traction considering you have a well-diversified portfolio? Which sector is giving you the maximum revenue and see more value coming in from?
This is the first year for 5G in India and we have been pioneers in telecom power solutions in the country for our partners, which include Reliance Jio, Airtel, and BSNL. All these telecom players have made significant investments in 5G solutions, and it will benefit both our telecom power and datacenter solutions businesses. India is experiencing a very strong trend of digitalisation as well. Telecom power solutions and datacenter solutions make up the majority of Delta's contribution to India, these developments will be a very encouraging indicator for us in the upcoming year.
A lot of Taiwanese companies are now coming to manufacture in India, and our industrial automation business too will see a lot of uptick, and we offer a robust product portfolio to help these companies setup and scale their operations in the country. This too will become a good opportunity for us in 2023.
