— Madan Lal Sharma, Managing Director,
SG Control & Switchgears Pvt Ltd
Gurgaon-based
SG Control & Switchgears Pvt Ltd is a leading
manufacturer and exporter of wiring accessories, electrical
protection equipments, electric power controller, voltage power
components, circuit protection devices, etc. It caters to diverse
needs of low-voltage industrial and domestic segments.
Madan Lal Sharma, in an interaction with Renu Rajaram, speak
about his company and products, demand and supply of products,
and problems faced by the industry.
What is the current size of the Indian switchgear industry and at
what rate do you think the industry will grow in next five years?
The Indian switchgear industry is currently valued a little above
10,000 crore. The industry's approximate growth should be
around 8 per cent in the medium term.
Given the huge investment in the power sector (including T&D),
how do you see the prospects for the switchgear and control gear
industry? What will be the principal growth drivers?
The industry's prospects are very much on the positive side. India
has a huge supply and demand shortfall in terms of power
generation, hence with several green lights to major projects by
the government for power generation and distribution, we can
expect an upward shift in the industry, not to mention rural
electrification drive moving on to a high gear plus a boom in the
building and the telecom sector, which will also prove to be added
growth drivers for the industry.
What is the share of your company in the Indian switchgear
market?
The share of our company is currently about 1.5 per cent.
What are the capacities of your manufacturing facilities?
Currently most of the manufacturing activities are being
done in-house at our two plants in Haryana. The entire
process—right from casting, moulding, stamping, painting
subassembly, final assembly, testing etc—is done there. We
have a fully equipped R&D facility where we have designed
and developed over 400 different products that are currently
part of our product basket.
Tell us about your latest products introduced in the market.
We have recently come out with new wiring accessories range for
the builder segment. Apart from that, there are various products in
the industrial LV switchgear category's also like polycarbonate
plug and sockets up 63A IP 65.
What are the main challenges that the Indian switchgear industry
currently faces and what type of government support would you
expect towards remedial measures?
As per my views, the most critical problem which is now becoming
common problem with the industry is shortfall in manpower apart
from that there are various other issues like absence of a real
export promotion policy by the government poor infrastructure
shortage of power supply, etc.
What is the current investment in upgrading capacities of
switchgear and control gear production and how much of it goes
to R&D?
At present we are upgrading our R&D facility where bulk of
the investment will be dedicated. Apart from that, we are
also investing substantially in retooling and new
product development.
China's role in India's power equipment industry has always
been a burning and controversial issue. What is the scenario as
far as the switchgear and control gear segment goes?
China is a major threat in the LV segment and is mainly being
promoted by the unorganized sector due to cost sensitive Indian
markets. Chinese are compromising on their quality and that
will give a negative impact in the long run. On the other hand, in
the other segments such as HV or EHV, China has no presence.
How has the Indian switchgear industry been
doing in terms of exports? Which countries have
led India's export growth?
Right now the bulk of the exports from India are
going to Middle East, Europe and Africa. It is
likely to remain that way but right now the
international market is sluggish.
Over the years, do you perceive any change in the procurement
policies of government utilities?
The trend today is towards turnkey contracts; therefore direct
procurement by utilities is slowly ending. With new reforms in
the power sector procurement polices are taking a positive turn
towards modernization.
What is your view on the present state of
domestic testing facilities for switchgear and
control gear equipment?
Well, in my opinion it can improve and it should
be improved. It is long overdue.
Do you think Indian manufacturers of switchgear and control
gear are investing sufficiently in R&D? Is this satisfactorily
reflected in a regular churn-out of superior products?
I cannot say this for all companies, but as far as we are
concerned, yes we are investing a sufficient amount in R&D. I
also know that some industry leaders are investing a lot in R&D
also and these companies are really doing a mind-blowing job in
coming up with innovative products.