Currently T&M hardware sales,like any other hardware is suffering the tough environment as the headwinds of declining Rupee,Increasing fiscal defecit,mounting balance of payment due to Commodities like Crude and Gold, are on the horizon.What can be done to survive the times? May be the Services segment can give us a clue as the fresh sales stagnate for most of the companies and installed base can help boost services-most importantly Calibration-revenues.
The basic premises on Calibration services are squarely dependent on couple of factors.There is very high cumulative complex instruments installed base in major sectors: Defense,Telecomm,Education and Research and there is very little calibration activity outside OEM /subsidiary.Also major Customers have traditionally preferred to do it inhou.se . This tendency is mainly due to "Sarkari" approach. Newer OEMs are trying to enter the country and either they dont have local cal centers,or they leverage Asia Pacific regions of their companies. This is where a smart T&M services company can get in and tie it with these OEMs as the third party service provider of T&M services.
If we try to guestimate the potential market size in India,we can do this by looking at Global numbers.Estimated market size should be approx 30 B $ and 2% of this market can be fresh sales per year.This sale is not growing,or slightly declining.But the Global Calibration services revenues are approx 2B$ and if we take 1% of that for India,it is growing,even though a comparatively smaller scale. So I think there is a case for selling these T&M services with lot of Management emphasis here.The beauty is that it is high margin services business and very versatile in nature and vendor neutral but focussed on customers.
The basic premises on Calibration services are squarely dependent on couple of factors.There is very high cumulative complex instruments installed base in major sectors: Defense,Telecomm,Education and Research and there is very little calibration activity outside OEM /subsidiary.Also major Customers have traditionally preferred to do it inhou.se . This tendency is mainly due to "Sarkari" approach. Newer OEMs are trying to enter the country and either they dont have local cal centers,or they leverage Asia Pacific regions of their companies. This is where a smart T&M services company can get in and tie it with these OEMs as the third party service provider of T&M services.
If we try to guestimate the potential market size in India,we can do this by looking at Global numbers.Estimated market size should be approx 30 B $ and 2% of this market can be fresh sales per year.This sale is not growing,or slightly declining.But the Global Calibration services revenues are approx 2B$ and if we take 1% of that for India,it is growing,even though a comparatively smaller scale. So I think there is a case for selling these T&M services with lot of Management emphasis here.The beauty is that it is high margin services business and very versatile in nature and vendor neutral but focussed on customers.
Dear Vishnu
ReplyDeleteI find your blog very interesting.
I'm currently doing a comparative study of calibration service market in different emerging countries.
Would you have some time for a brief phone call so that I could verify certain points with you?
Thank you in advance for your help.
Best regards
Yue
A very well-written post Calibration in India , Calibration in Bangalore , Marble Suppliers , Torque Calibration , Temperature Calibration , Pressure Calibration
ReplyDeleteA very well-written post Calibration in India , Calibration in Bangalore , Marble Suppliers , Torque Calibration , Temperature Calibration , Pressure Calibration
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