Home > Electrical Equipments > Electrical Equipment Industry: Opportunities Galore

Electrical Equipment Industry: Opportunities Galore

The growth in the Indian electrical industry seems sustainable as most of the transmission and distribution projects, mainly by Power Grid Corporation, are on in full swing. With financial year 2011-12 being the last year of the current five-year plan, infrastructure projects are likely to gather further momentum, driving growth for electrical equipment.Also, the target of adding 120 gigawatt of power capacity in India during the 12th plan period (2012-17), will offer immense opportunities for this sector. Opportunities also lie in exports of electrical equipment as India’s share in global exports of these equipment is merely 1%.

The electrical equipment industry includes cables, switchgears, transformers and other large electrical products.

According to the Indian Electrical and Electronics Manufacturers’ Association (IEEMA), an industry association comprising manufacturers of electrical, industrial electronics and allied equipment), the electrical equipment sector recorded growth of 14% in actual terms and not value terms.

Policy initiatives to speed up power sector development, revival of housing projects and other projects helped the industry grow.

  • Demand for capacitors recorded a huge 35% growth in 2010-11 due to enhanced focus on power quality which requires discoms (power distribution companies) to install capacitors with certain improved standards.
  • Rotating machines segment which includes low tension & high tension motors and alternators registered a 11% growth. Share of energy-efficient motors is rising in this segment from sectors like paper, textiles and pharmaceuticals due to stringent energy efficiency norms.
  • Continued demand from cement, steel, original equipments manufacturers (OEMs), construction and infrastructure sectors led to 20% growth in low voltage switchgear products like contactors, miniatures circuit breakers, among others.
  • The cables segment registered highest growth of 16%, mainly due to 32% growth recorded by the control & special purpose cables segment.
  • Higher domestic demand drove the growth in the transformer segment. This segment includes power and distribution transformers, both of which registered a healthy growth. 

 

Growth Indices for Electrical Equipment Industry          (% Y-o-Y Growth)   
 Product Weightage 2010-11
 Rotating Machines 10.8 11
 Switchgears 15.2 21
 Cables 24.4 16
 Transformers 25.3 15
 Energy Meters 3.1 15
 Transmission Lines 20.4 4
 Overall IEEMA Growth Index 100 14

 

Advertisements
Categories: Electrical Equipments
  1. December 17, 2011 at 9:29 pm

    Lots of good information here. thanks.

  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: