Techno Power Systems, a leading
producer of APFC panels based in
Chennai, has planned to expand
its operations to Kerala and Karnataka.
In an exclusive interaction with
Electrical Monitor, L. Babu, Managing
Director, Techno Power Systems, said,
"We have fabrication and R&D facilities
in Chennai, and now we intend setting
up new facilities at Bangalore in
Karnataka and also in Kerala."
Automatic Power Factor Correction (APFC) panels are
extensively used by industrial consumers of electricity, in
order to maintain a high power factor ratio. Explaining the
concept of power factor, Babu observed, "Power factor is the
ratio between actual load power (KW) and apparent load
power (KVA). It is a measure of how effectively the current
is being converted into useful work output. It is an indicator
of the efficiency of the supply system."
Several state power utilities are taking steps to ensure
efficient power consumption, mainly by industrial
consumers. State government-owned distribution
companies, Maharashtra and Tamil Nadu, for instance, are
imposing stiff penalties on consumers that do not maintain
a healthy power factor ratio. Babu believes that this move
will spur the demand for power factor correction solutions.
"Yes, there will always be demand for a power factor
corrector as more and more electricity boards are imposing
penalties," he elaborated. Some industry players also believe
that while imposing penalties is a good step towards energy
efficiency, power utilities should also think on the lines of
rewarding industrial electricity consumers that succeed in
consistently maintaining a high power factor ratio.
Dwelling on the state of the APFC panel industry, Babu
had pertinent observations to make. He said that most of
the APFC panel makers are still in the small-scale sector
because the demand is not spontaneous. "A customer comes
to us only when he is faced with a penalty from the state
government utility," Babu observed. An industry analyst
supported this view and noted that if industrial consumers
were to support power factor correction, as a matter of
choice rather than a reaction to penalty, the demand for
APFC panels and capacitor could go significantly.
Regarding demand drivers, Babu said that his company
Techno Power Systems sells majority of its products to
industrial consumers using CNC and lathe machines. On
another note, Babu dismissed the existence of Chinese
competition in the Indian APFC panel industry. An
industry observer explained that Chinese suppliers would
not find the market appealing as it is customized and
fragmented, and as such, does not offers economies of scale.
On his growth plans for Techno Power Systems, Babu
noted, "We have to promote all types of panels for us to
improve and grow further."