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PRESIDENT: PERFORMANCE HIGHLIGHTS alt="tata lieb-1.jpg (36037 bytes)" border="0" hspace="2" vspace="2"> |
Tata Liebert Ltd (TLL), which manufactures and markets UPSs and precision air
conditioning systems, notched up a turnover of Rs 85.98 crore, growing at 17.4 percent
during the last year. TLL is a 50:50 JV between Tata Group and Liebert Corp., a wholly
owned subsidiary of Emerson Electric, a Fortune 500 company. Significant backward
integration efforts in magnetics and PCBs have had a definite impact on the profitability.
Tata Liebert has a wide range of UPSs from 250 VA to 4800 VA. These products are
available in offline, line interactive, and online models. The UPSs cater to diverse
markets including infotech, telecom, banking, petrochemicals, medical instrumentation, and
industrial applications. The smaller range is marketed through channel partners. Up to a
year-and-a-half back, telecom was a segment which held a lot of promise. But the policy
uncertainties and delay in the start-up of many services have reduced the immediate
potential. The infotech sector is doing well and so is banking. The company has also been
able to address the power needs of the process industry. TLL also undertakes significant
agency business selling to software export houses and other STPs.
One of the major initiatives that the company has taken is to offer power management
solutions after a study of the existing power systems and load pattern. Rather than
selling it as a product alone the approach is to offer a total solution. The company is
positioning itself strategically to develop clean power consciousness in Indian industry.
Later, this could form a part of the company's service and consulting offerings.
The channels continued to bring in nearly 55 percent of the company's revenue. The
channel expansion was taken up last year because the company decided to focus on product
launches. As a result, the year saw a lot of product introductions in the online category
during the year. Once these products are lined up, the channels would be expanded. As a
product strategy, the company has downsized into lower rating capacities like 1 kVA, 1.5
kVA, and 2 kVA.
TLL was awarded the ISO 9001 certification by DNV in September 1997 for design,
development, manufacturing, supply, installation, and servicing of UPSs and precision air
conditioning systems. Also, new power bank lines for 3 kVA, 5 kVA, and 6 kVA are being
added.
In 1998-99, the company plans to start exports under Liebert brand name to South East
Asia, Australia, Far East, and Middle East. The service offerings will be given a major
thrust so that it will be treated as a product. Under this, new service offerings have
been planned. One such service is UltraCare, a 24-hour power management service that
guarantees power uptime of 24 hours. In the current year, the company is confident of
retaining its growth rate at around 20 percent.