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TATA LIEBERT ltd - Producing Solutions

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DQI Bureau
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PRESIDENT:
Peter J Baptista * PRODUCTS AND SERVICES: UPSs color="#FF0000">*
FINANCIAL COLLABORATION: 50 percent equity with Liebert Corp. color="#FF0000">* START-UP YEAR: 1993 * EMPLOYEES: 313
* DEALER OUTLETS: 28 * QUALITY
CERTIFICATION: ISO 9001 * ADDRESS: Plot C-20, Road No. 19,
Wagle Industrial Estate, Thane 400604 * TEL: 5328405, 5302388
* FAX: 5328358, 5300829  

PERFORMANCE HIGHLIGHTS

  • Bottomline figure of Rs 3.96 crore, at sales of
  • Rs 85.98 crore.
  • Addition of many new products in online category.
  • Thrust on service offerings.
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    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.

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    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.

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