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IEEMA is actively engaged in promoting usage of capacitors

Venugopal Pillai ,  Wednesday, August 03, 2011, 16:07 Hrs  [IST]

Shylendra Kumar.jpg— Shylendra Kumar, Chairman, IEEMA—Capacitor Division

Shylendra Kumar who chairs the Capacitors Division of Indian Electrical & Electronics Manufacturers' Association (IEEMA) observes that the prospects for the capacitor industry are encouraging, governed by the sheer pace of power capacity addition. Although the industry is growing, as it did by over 30 per cent in 2010-11, the volume of capacitors consumed in India is highly incommensurate with the true potential. The industry could do better if other demand drivers like power quality and harmonics mitigation are exploited to a greater extent, he feels. An interview by Venugopal Pillai.

We understand that the capacitor industry, as measured by the performance of IEEMA companies, grew by over 30 per cent in 2010-11. What factors have been responsible for this high growth and what are prospects for 2011-12?
Yes it did, the capacitor industry as measured by the production volumes of IEEMA members did grow by 32 per cent in 2010-11 compared to 2009-10. The same is mainly powered by higher growth in LV capacitors segment which contributed to about 44 per cent growth and followed by HV capacitor production which reported 18 per cent growth. The demand for low voltage as well as high voltage capacitors in India is generally good but the production volumes are a mix of domestic supply and also large amount of exports especially in the LV Capacitors as some of the reporting companies are global hubs and supply for global markets. However, the domestic consumption of LV capacitors both MPP type and APP type capacitors has increased due to large utility tenders and also industrial growth. PGCIL does provide large volumes for HV due to projects in series compensation and HVDC filter capacitors.

Prospects for 2011-12 remain at the same level of growth in the domestic market which is estimated around 15-20 per cent for LV and around 10 per cent for HV. Production volumes for global markets will obviously depend on the global market scenario in US and Europe. While the markets for Indian capacitors in Middle East, Africa and South East Asia will remain good.

How has been the growth IEEMA membership (in the capacitor industry) in recent years?
In the recent years there has been 4-5 new additions to IEEMA membership.

Talking about high-tension capacitors, what is the health of the Indian industry? Are Indian suppliers competitive enough in the domestic and global market?
The health of Indian industry in HV capacitors can be rated as good with respect to growth in volumes but it is far from satisfactory when it comes to price levels which is continuously falling and is a matter of concern.

At the present price levels, the competitiveness of Indian capacitors is rather good both in domestic and global markets. Chinese entry into Indian capacitor market is so far limited. Competitiveness with respect to Chinese capacitors still needs to be evaluated.

Given that a capacitor is a crucial product with respect to achieving efficiency in power consumption (higher power factor), how do you gauge the prospects of the capacitor industry, generally speaking?
With the growth in power sector and the additions of mega watts (MW) which is certainly growing in a healthy manner, the additions of MVArs (Capacitors) to improve the power factor and thus improve the efficiency of power utilization has a very good prospect for growth. Additional prospects for capacitors are arising above the factors like focus on power quality, harmonic mitigation and improvement in productivity by improving power quality.

Untitled - 25.jpgWhat would be the industry's major growth drivers?
The capacitor industry's major growth driver is the growth of the power sector itself. Also as already mentioned, power quality issues and raising levels of non-linear loads such as inverters/converters/power electronic devices, etc. lead to high harmonic content in the power system and hence the need for both HV and LV filters (both passive and active) will be another major driver. The link between productivity in sectors like steel, aluminum, cement and automobile to the quality of power meaning power factor, maximum demand, THD (Total Harmonic Distortion) is increasingly recognized and will also drive the usage of filters, SVC and dynamic compensators, all of which will help further growth.

We observe from CEA statistics that India's shunt capacitor installation programmes by power utilities are progressing rather slowly. Do you think this depresses the growth prospects of the capacitor industry?
Yes, it is a fact that the Indian shunt capacitor programmes like APDRP projects and the installation of shunt capacitors in some utilities have really slowed down as compared to the growth in the MW which does upset the production plans of the capacitor industry. Large substation tenders are planned by SEBs without capacitors being a part of it many a times. Capacitors are added (sometimes not) at a later date, whereas in China capacitors are an integral part of substation package specification.

We perceive that a large number of capacitor manufacturers are in the SME category. What is your view and what has been your approach in inducting them into the IEEMA fold?
In LV capacitors it is estimated that more than 30 per cent LV capacitor production comes from SME category. While some of them can be classified as unorganized and low quality manufacturers, not all of them are bad. The Quality Cell of IEEMA is continuously engaged in motivating and training SMEs to improve the quality standards and also reward outstanding achievements by SME on a regular basis and give them visibility to motivate them to a higher level of quality position. SMEs who qualify a minimum level of entry criteria are inducted into IEEMA on a regular basis.

What are the typical challenges that the Indian capacitor industry faces and what has been IEEMA's role in addressing some of these concerns?
One of the major concerns in the recent past has been raising input material costs coupled with falling market price levels. IEEMA plays an important role in updating and revising the price variation clause (PVC) which to some extent gives coverage to the capacitor suppliers in covering their increased materials costs and labour costs.

Although the capacitor segment sees relative growth year on year, the actual volume of capacitors that are really needed to bring down the transmission and distribution losses are much below the required level. It is well known that our T&D losses are very high and given the MW generation and utilization factor can certainly be improved by usage of capacitors. Even the levels of harmonics in many industries are so high that the quality of power (distortion of sine wave) creates a lot of premature failures. The installation of filters however is far below the required level. IEEMA is trying to address this by conducting CAPACIT seminars, programmes like DRUM, etc. to increase the awareness level and benefits that can be derived out of connecting capacitors to their systems.

IEEMA is also planning representations to utilities and large industries to promote usage of capacitors.

As Chairman of IEEMA's capacitor division, what would be your three biggest priorities?
The priorities for IEEMA are mainly:
  • Increase awareness amongst the utilities as well as industries regarding efficient usage of power and the role of capacitors in achieving the same.
  •  Improve the bad image of capacitors created by unorganized sector due to high failure rate by raising the qualifying requirements for supplying capacitors and also improve the quality processes of SMEs through IEEMA Quality cell.
  • Organizing seminars, platforms and training courses involving capacitor manufacturers, testing and research institutions like CPRI / ERDA and also liaison with BIS committees like ET 29 (which formulates Indian Standards) to discuss and improve standards of technology, standardization and product quality.
 
                 
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