Leviton bets on energy management
Leviton India will introduce an integrated channel program for its network integrator partners to cross-sell energy management solutions.
Said Rajiv Kapoor, Country Director, Leviton India & SA, “Today, the gross margins a network integrator makes on structured cabling is around 16 percent on the bill of materials. Add to that the increasing labor costs and the margins fall to single digit. By contrast, energy management solutions offer margins of 35-40 percent.”
Kapoor said that for partners who are looking at the energy management solutions space, building skillsets will be the only challenge. “You need a strong knowledge of electrical engineering, especially the science behind low voltage engineering. We will enable IT partners who are willing to make investments in skillsets.”
During the year, Leviton plans to enable 12-15 of its 100+ certified partners to sell energy management solutions. The typical project cost of an energy management solution in a large enterprise is around $100,000, and services account for nearly 30 percent of the bill value.
Leviton expects the demand for energy management solutions to shoot up after new regulations which are being tabled at the state and central government levels, come into effect.
Leviton claims that the ROI for energy management solution is very strong and which if articulated well, can increase adoption. “Typically, the ROI for an enterprise is 12-18 months. But for a commercial building, an airport, hotel or mall, it can be achieved within a year,” he said.
Leviton will handhold any partner who is willing to invest and shows long-term commitment to build expertise in energy management solutions. Mumbai-based Sigma Byte Computers and Bengaluru-based EEE Network, which were traditionally strong IT network integrators, have already picked up some large energy management solution orders, Kapoor informed.