How Generator companies generate extra profit?

Big generator

India is the 3rd largest electricity producing country in the World, with installed power generation capacity of 249,488.31 MW. But daily generation is only to the tune of 135,000 MW and India’s per capita power sector consumption is around 940 kWh, which is among the lowest in the World ( global average 3000 kWh).

On the other hand, power demand is steadily on the rise in India, as it is getting more urbanized and industrialized.  To tide over huge gap in supply and demand, industrial and commercial establishments continue to depend on generators and captive power plants for their power needs.

‘The big deterrence for industries in India is lack of optimal basic infrastructure. For example, we’ve our own captive power plant in our Bengaluru facility’, said Ms. Kiran Mazumdar Shaw, MD Biocon, in a recent interview.

Power shortages cost India’s GDP to about USD 68 billion. Industries investment on power backup arrangements will continue to rise and they will choose power backup products which are more reliable than just being economical.

Power backup generator manufacturers can establish their reliability in the market,

  1. By delivering high quality generators which are durable
  2. By guaranteeing that generators face less downtime through preventive maintenance
  3. By ensuring generators are up & running in shortest time in case of break downs

Out of the three factors above, the last two belongs to the Aftermarket space.

Most of the manufacturers produce the same quality generators and commit the same performance from them. But, their differentiation is by the quality of their Aftermarket services. Manufacturers having an upright Aftermarket services are the clear winners.

Preventive maintenance for engine generators plays a critical role in maximizing reliability, minimizing repairs and reducing long term costs. Preventive maintenance in generators consists of the following operations:

  • General inspection
  • Lubrication service
  • Cooling system service
  • Fuel system service
  • Servicing and testing starting batteries
  • Regular engine exercise

IT systems are available which can keep track on all the operations and alert the customers or manufacturers when they are due. It is generally a good idea to establish and adhere to a schedule of maintenance and service based on the specific power application and the severity of the environment. For example, if the generator set will be used frequently or subjected to extreme operating conditions, the recommended service intervals should be reduced in systems accordingly.

Shorter TATs can be ensured only when customers are able to register the complaint with the manufacturer quickly and then by manufacturer sending the nearest right technician with right tools to address complaints. Manufacturers need to have simpler systems in place for customers to register complaints quickly and a complaint registration acknowledgement should be sent to customers swiftly, even before customer hangs up their phone. Manufacturers should also have systems to capture service history and operational hours of generators, using which it will be easier to predict type of complaint and then send nearest right technician with right tools.

Delivering good Aftermarket services will enhance customer satisfaction and support in establishing credibility, along with perennial profit by parts sale and service throughout the life cycle of generators. IT Systems can also help in preventing warranty leakages and a sustained goodwill in the market will lead to more repurchases from the customers.

Contact us to know more:

Email: sales@questinformatics.com   Web: www.questinformatics.com

Quest Informatics is an Aftermarket IT product and services specialist company having more than two decades of experience in supporting Fortune Global 500 Companies. Quest Informatics was awarded as the Aftermarket Brand of the Year-2014, by Silicon India.

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