The term "switchgear" broadly refers to a family of
electrical switching devices that can make or break an
electrical circuit. Switchgear typically comprises
disconnectors, fuses and circuit breakers. Switchgear is used
not only to de-energise equipment but also to stop (isolate)
electricity supply to the equipment to carry downstream
maintenance work.
In addition to simply making and breaking an electrical
circuit, there are devices that are used to protect the electrical
circuit and the equipment therein. These devices are collectively
known as control gear and could include devices like relays,
motor-protection appliances, etc. Nowadays, control gear is
heavily based on electronics. For instance, digital relays are fast
replacing conventional (electro-mechanical) relays.
Switchgear and control gear are indispensable not only in
power transmission and distribution, but anywhere where
there is need to access and control electricity supply.
Switchgear could include anything from a simple domestic
switch to a high-tension circuit breaker. However, when one
talks about switchgear, domestic switches do not form part,
but isolation and/or circuit-protection devices like circuit
breakers and earth-leakage current detectors are considered.
Performance of Switchgear Industry: 2008-09 to 2010-11 |
|
Weight |
Market* |
y-o-y % change |
|
(%) |
(`crore) |
2008-09 |
2009-10 |
2010-11 |
Switchgear |
15.2 |
8,864 |
0.0 |
14.5 |
21.0 |
Power Contactors |
1.9 |
1,108 |
-17.8 |
41.0 |
29.0 |
LT Circuit Breakers |
3.7 |
2,158 |
-1.0 |
29.4 |
19.0 |
MCBs |
3.0 |
1,749 |
9.7 |
23.0 |
8.0 |
S/F and F/S Units |
0.6 |
350 |
-11.1 |
5.3 |
4.0 |
HT Circuit Breakers |
6.0 |
3,499 |
2.4 |
-5.8 |
28.0 |
Total for electrical eqpt industry |
100.0 |
58,315 |
2.7 |
11.3 |
14.0 |
Source: IEEMA *Estimated industry size in 2010-11 |
Control panels, technically known as electrical distribution
control panel, are used to house switchgear and control gear.
Power factor correction is becoming an integral part of
electricity consumption. In line with this, automatic power
factor correction (APFC) systems and panels also constitute
switchgear and control gear, in the broader sense. For
commercial and industrial power consumers, switchgear and
control gear is always used in the form of control panels. The
switchgear industry can be broadly classified as "high voltage"
and "medium and low voltage". The HV category has only large
and established players—including multinationals. It is the LV
& MV class that is characterized by small and medium
enterprises, apart from a sprawling number of players in the
unorganized sector.
When it comes to installation of switchgear by industrial
power consumers, it is usually the control panel fabricator that
is the last link of the business chain. An electrical control panel
fabricator designs and produces a panel customized to the
requirement of the industrial consumer. The final consumer
can specify the choice of switchgear or leave it to the panel
fabricator. This is true of LV and MV switchgear. When it
comes to HV switchgear, it is usually the manufacturer that
takes care of housing and installation; fabricators usually cater
to LV and MV gear. The relatively larger players in the panel
fabrication industry also sometimes act as system houses for
switchgear manufacturers. These fabricators qualify as
original equipment manufacturers for housing the company's
switchgear.
INDUSTRY SIZE & GROWTH RATES
The size of the Indian switchgear industry is estimated be
8,864 crore in 2010-11, according to statistics released by
IEEMA. This does not include domestic switches. The
switchgear segment accounted for around 15 per cent of the
total electrical equipment industry. IEEMA statistics further
suggest that switchgear industry grew by 21 per cent in
FY11, making it amongst the highest growth in recent years.
In FY10, it had grown by 14.5 per cent while it recorded
stagnation in the recession-struck FY09. Much of the overall
growth in FY11 came from an impressive performance of
two product lines—power contactors and HT circuit
breakers. Both these sub-segments posted around 28 per cent
growth in FY11. The switchgear industry also turned out to
be the fastest growing segment in the electrical equipment
space in FY11.
ELECTRICAL CONTROL PANELS
As earlier discussed, it is the control panel fabricators that form
the last-mile connectivity in the switchgear and control gear
business chain. The panel fabrication industry is a huge
activity in India, with a domineering number of players in the
unorganized sector. It is estimated that the panel fabrication
industry is worth around
5,000 crore per year. The number of
players in the industry escapes estimation thanks to the vast
presence of micro-enterprises. The value addition provided by
panel fabricators is estimated at roughly half of the size of the
switchgear industry.
Panel fabrication is largely an informal industry in India. The
presence of a large number of players simply reflects the nonexistence
of entry barriers. Switchgear panels do not get the
attention they deserve as they are not as critical as the
switchgear they house. As such, there is a ready market for
panels even if their standards are not up to the mark. The
lowest end of industrial power consumers usually deal with
fabricators in the unorganized sector. It is only as the size of the
industrial consumer gets bigger does insistence on quality
grow proportionately.
The panel fabrication industry also faces a typical "end of
line" challenge, as explained by Soeb Fatehi, President, Control
Panel & Switchgear Manufacturers' Association (COSMA) in a
recent interaction with Electrical Monitor. A switchgear panel is
usually treated as an insignificant percentage of the total
project cost and hence it does not get due attention during the
project planning and design stage. As cost allocation to
switchgear panels is usually inadequate, there is extreme
pressure on the supplier to work within the available
resources. This leads to quality compromise seeping in.
Secondly, switchgear panel designs varied widely across the
vast number of suppliers. Due to budgetary and other
constraints, fabricators usually end in making customized
panels for end-users. There is very little scope for
standardization. If switchgear panel designs could be
standardized, panel fabricators could get their product typetested
and certified. This would not only bring about
significant formalness in the industry but would also help
panel fabricators to move up the value chain, and even match
global quality standards. The informality of the panel
fabrication business has become its undoing and is preventing
small and medium players from being globally competitive.
Good switchgear panel |
A good electrical (switchgear) control panel design is not based on
general arrangement and elegant appearance alone. Mechanical
rigidity, busbar support, formation of fabricated components and
mounting of switchgears and instruments should also be taken into
consideration. Ventilation is the most important aspect for
designing control panels for giving cooling effects to the current
carrying equipments. Several suppliers insist on short circuit test
for switchgear panels to check the rigidity of mechanical and
electrical design. But it does not end there. One should check
whether the design is as per relevant specification of the test
carried out. There should be some published standardisation
based on Indian specifications. Engineers should take utmost care
while designing switchgear panels looking at these parameters,
ensuing that Indian products match international standard.
(Based on views expressed by Kumar Bose, Managing Director,
Switch Build Engineers Ltd, Nagpur, in a previous interaction with
Electrical Monitor)
|
Lack of national standards is also impinging upon the
industry's growth, Fatehi feels. "The National Electrical Code,
which was last published in 1985 and due for replacement by a
new code, is still not in the hands of industry. BIS must hasten
all processes and seek support from government and industry
to overcome obstacles impeding the release of the new code.
Whereas industry wants to always willingly comply and serve
the consumer and the nation, we must place ourselves as
responsible players, second to none globally," Fatehi observed.
DEMAND DRIVERS
Switchgear and control gear is an indispensable component of
an electrical circuit-traversing the entire value chain right from
a power generation plant to a power socket. As such, the
switchgear industry finds applications from the supply side
(generation, transmission and distribution of electricity) as
well as the demand side (consumption of electricity). Hence,
the demand for switchgear will be proportionate to asset creation in the power sector as well as in the consumption
sector-infrastructure, industry, real estate, etc.
Power Sector: In the XII Plan period, India is expected to
see an investment of
11.35 trillion in its power sector with
generation accounting for
5 trillion, transmission
2.4 trillion
and distribution, the remaining
4 trillion. The total outlay for
the XII Plan will be around 7 per cent higher than that in the XI
Plan period (see table.)
The biggest boost to the low-voltage switchgear industry
will come from the power distribution sector where the XII
Plan outlay is nearly 30 per cent higher than that of the XI Plan
period. The Centrally-sponsored Rajiv Gandhi Grameen
Vidyutikaran Yojana (RGGVY), which envisages nationwide
electrification of villages, can be a big demand driver for lowend
switchgear like domestic circuit breakers apart from
switchgear associated with power substations.
India is moving to the 1,200kV power transmission regime
with Central transmission utility Power Grid Corporation of
India already in the midst of developing a test line of this ultra
high voltage in Madhya Pradesh. As India moves to higher kV
categories in power transmission, the demand for high-end
switchgear will rise. This gives an opportunity to existing
players to move up the value chain.
Industry & Real Estate: The industrial sector is a big
demand driver for low and medium voltage switchgear. A
smart revival in projects investment in the manufacturing
sector therefore bodes well for the switchgear industry.
According to a survey made by ProjectsToday
(
www.projectstoday.com), the outstanding projects
investment in the manufacturing sector rose by an appreciable
20.9 per cent in June 2011 from its level
a year ago. Industrial investment has
maintained its momentum and has by
now obliterated all the ominous
slowdown symptoms of 2008. In fact,
even overall projects investment including
other sectors like energy,
infrastructure, irrigation, etc-was up 16
per cent in June 2011.
Power Sector Outlay |
(`crore) |
|
XI Plan |
XII Plan |
Generation |
591,734 |
495,082 |
Transmission |
140,000 |
240,000 |
Distribution |
309,077 |
400,060 |
Others |
18,104 |
--- |
Total |
1,059,515 |
1,135,142 |
Apart from conventional switchgear
and control panels that are used by
industrial consumers, there will be a
clear increase in the usage of automatic
power factor correction (APFC) panels.
This is because several power utilities are imposing penalties
on industrial power consumers that do not maintain a
healthy power factor ratio. Apart from "escaping penalties",
industrial consumers are also getting conscious of energy
efficiency and are known to be installing power factor
correction solutions voluntarily.
Revival in the real estate market—both commercial and
residential—also appears to have set in. This will further
bolster the demand of low voltage switchgear. Over the recent
past, there have been innovations in the LV switchgear market.
For instance, conventional circuit breakers are being replaced
by residual current breakers and earth leakage breakers. An
industry source explained that while conventional circuit
breakers disconnect the circuit in times of overload and shortcircuit,
residual breakers stop electricity supply when an
"electrical shock" is detected. Earth leakage breakers disconnect
power supply when faulty or inadequate earthing is detected.
There is clearly a trend in residential low-voltage switchgear
where human safety, and not just circuit and equipment
protection, is being given due importance.
EPILOGUE
The Indian switchgear industry has evolved considerably over
the years and is clearly headed for a dynamic future. The sheer
growth in power generation and consumption will propel
demand of switchgear in the coming years.
The recent years have seen significant innovation in the low,
medium and high-voltage switchgear industry. Generally
speaking, switchgear now has become more compact,
intelligent and energy-efficient. In the
medium voltage range, vacuum circuit
breaker has been a big expression of
modern technology. VCBs are now
being made even in the high and extrahigh
voltage range. Gas insulated
switchgear (GIS) has successfully
replaced air-insulated switchgear (AIS),
resulting in reduced footprint of
switchgear. Besides, modern GIS and
AIS is also doing away or reducing the
use of environment-unfriendly sodium
hexafluoride (SF6) gas.
The biggest challenge ahead of the
industry lies in the high-voltage segment. As power
generation capacity increases, power T&D infrastructure will
grow and will also become more complex with fault rates
threatening to rise. This warrants the need for efficient highvoltage
switchgear and its periodic maintenance. At this
juncture, it is also important to note that industry experts
foresee a shortage of skilled manpower for upkeep of highvoltage
outdoor switchgear. Availability of spares and services,
easy diagnostics, efficient after-sales services are soft areas that
would govern the prospects of high-voltage switchgear.
It is also believed that India needs to improve its testing
facilities with respect to high-voltage switchgear, as
much as it needs to do with other high-voltage equipment
like transformers. On this count, it is worthwhile mentioning that lack of standardization is hurting the
switchgear panel industry in many ways. First, it compels
fabricators to go in for repeated type-testing, which is
time-consuming and counterproductive. Secondly, it also
gives room for supplying sub-optimal switchgear. When
it comes to LV and MV switchgear panels, the principal
deterrent is the fact that it gets little attention and
incommensurate resources at the time of planning and
design. Hence, as earlier pointed out, suppliers are often
made to work on tight financial budgets. This
compromise on quality, however inadvertent, leads to
domestic suppliers failing to groom into globallycompetitive
entities.
The switchgear industry will also benefit from a change in
mindset. Normally, switchgear is seen as a "non-productive"
asset. While this is true from a purely technical standpoint, the
criticality of switchgear and control gear is always felt in time
of dysfunction. Switchgear could be a non-productive assets,
per se, but it is time to realize that it is switchgear that makes
assets productive.
Low & Medium Switchgear: Overview |
According to a recent presentation made by
the Energy & Power Systems Practice of
Frost & Sullivan (South Asia, Middle East
and North Africa), the total market size for
low and medium voltage switchgear market
in India stood at $1.745 billion (roughly
7,852 crore) in 2010. Out of this LV
switchgear accounted for $950 million,
while MV switchgear accounted for $795
million (see table.)
The report pointed out that for the LV
switchgear market, there is universal
demand. However, industrial consumers
account for most of the consumption,
followed by commercial and infrastructure
segments. The demand from the residential
(real estate) sector is mainly for low-end
products like mini circuit breakers, moulded
case circuit breakers, residual and earth
leakage detectors and distribution boards.
The MV switchgear (3.3kV to 36kV) class
comprises high-end switchgear like indoor
switchgear, outdoor switchgear, ring main
units and unitized substations. The demand
for MV gear is predominantly from the power
sector-power generation and T&D utilities.
High tension consumers from the industrial
and infrastructure space also account for
MV switchgear consumption. In the MV gear
segment, compact (or unitized) substation
is a new product and is gaining significance.
A CSS finds application is areas where there
are space constraints.
The report points out that key success factors
for companies in the switchgear industry
would generally include competitive pricing
and strong after-sales support.
The study also observes that key industry
challenges to the switchgear industry are
fluctuating raw material prices and
uncertainty/delays in implementation of
various power reform initiatives. Factors that
could restrain growth would be the poor
health of state electricity utilities and the
general macroeconomic challenges that
could constrain public and private funding.
On the other hand, growth in the switchgear
industry would be driven by expansion in the
industrial and infrastructure segments.
Besides, expansion in power capacity and
the T&D network would be an additional
demand driver.
Low & Medium Switchgear Industry: A Profile |
|
LV |
MV |
|
(<1.1kV) |
(3.3kV to 36kV) |
Market Size (in 2010) |
$950 mln |
$795 mln |
No. of players |
40+ |
20+ |
Key Products |
Air Circuit Breaker |
Indoor Switchgear |
|
MCB |
Outdoor Switchgear |
|
MCCB |
Ring Main Units |
|
Contactors |
Unitised Substations |
|
Relays |
|
|
Residual Current Devices |
|
|
Distribution Boards |
|
|
Distribution Boards |
|
|
Vacuum Circuit Breaker |
|
End-user segments |
Power Generation Cos |
Power Generation Cos |
|
T&D Utilities |
T&D Utilities |
|
Industry |
Industry |
|
Infrastructure |
Infrastructure |
|
Residential Sector |
|
|
Commercial Sector |
|
Major Players |
Larsen & Toubro |
Crompton Greaves |
|
Schneider Electric |
Alstom |
|
Siemens |
ABB |
|
ABB |
Schneider |
|
Havells |
Bharat Heavy Electricals |
|
Legrand |
|
Source: Frost & Sullivan |
|