— Brijnandan Mundhra,
Executive Director, Shree NM Electricals Ltd
From a humble beginning way back in 1930,
Shree NM Electricals
Ltd has today grown to be India's biggest dealership for a very wide
range of electrical products. With 18 warehouses pan India and an
inventory of
40 crore, Shree NM is geared to meet diverse
business needs.
Brijnandan Mundhra talks to Electrical Monitor
on the company's eventful journey, and gives insights on business
intricacies. Adding to its existing stronghold in most parts of India,
the company is now sharpening its focus on the northern and
eastern markets. In just three years down the line, Mundhra sees
Shree NM marking its presence in all major states.
To begin with, tell us in brief about the various electrical products
that Shree NM Electricals deals with, your geographical reach and
size of operations.
Shree NM Electricals Ltd is the largest distributor of electrical
products in India. Established in 1930 and with 17 offices
throughout India, we dealt with nearly 6,300 customers last year.
Our product range includes wires, cables & conductors, motors, DG
sets, switchgear, lighting, capacitors, jointing kits and cable
glands. With 18 warehouses across India and an inventory of
materials in excess of
40 crore, we are geared to ensure that all
business needs of our clients are met to utmost satisfaction.
Please elaborate on your dealership for switchgear, in terms of
product range and companies represented.
Currently we represent Schneider Electric and HB Electro
Control in the switchgear and control gear range. The product
range dealt by us includes mini circuit breakers and distribution
boards, moulded-case circuit breakers, air circuit breakers,
contactors, relays, starters, variable speed drives, energy
meters and capacitors.
On the medium voltage (3.3kV to 33kV) range, the products we
deal in are indoor and outdoor circuit breakers (both vacuum and
SF6 types), ring main units (RMUs) and packaged power stations.
Schneider Electric is making big inroads in the LV and MV
switchgear market. How to do you therefore see the Schneider
dealership?
We feel honoured and proud that Schneider Electric, the global
specialist in energy management, has recognized our strength in
pan-India distribution and particularly our hold on contractors.
This distributorship augurs well for us because we now have a wellrounded
product basket that will get us even closer to our
customers and clients.
We believe that real estate development has created a huge
demand for low-voltage switchgear and protection gear like MCBs, MCCBs, RCCBs, etc. What is your view and how
are you gearing up to meet this demand?
We will have to give you a little guarded
response here as this involves the foundation
of our strategy! There is an explosion in
demand firstly because of new constructions,
and secondly, the upwardly mobile existing
homes and establishments are very favourably
disposed for upgrades. Now, whereas there
are umpteen numbers of manufacturers to
meet the needs, the brands represented by us
are neither cheap nor are they run-of-the-mill
products. Hence we are seeking out the discriminating and quality
conscious clients through our old retailers and dealers, servicing
architects, consultants and contractors. This is being done not only
in metros but also in A & B class towns. By helping them to plan and
stock variety; we are creating a new and preferred kind of
relationship with these dealers and retailers.
How do you deal with the growing tribe of switchgear
manufacturers? What criteria do you usually adopt to accept
dealership of a product?
We believe that in the growing and expanding market in India,
everybody will find their solace and place, and we welcome them.
We are the conduit between the manufacturer and the user. New
entries are healthy for our business. Having perhaps the best all-
India accesses to market, most, if not all new entrants, end up
contacting us. However, we entertain only those who come to fill up
a gap, or have a unique product. We prefer those
manufacturers that have a niche in their offering, and also
those who could enhance the value-add to our customers.
Having said this, we must record that this does not happen
everyday or often.
What are the typical challenges that dealers and distributors of
electrical equipment face, and how do you address them?
Most of our distribution market is fragmented, and serviced
largely by proprietary local entrepreneurs. Many years agoabout
15 to be precise-we were one of them.
The exploding market in India is attracting now, a new
breed of marauding distributors from abroad, who are
looking for mergers and acquisitions countrywide. They have
deep pockets, access of multinational brands, and above all
the wherewithal of the technique of crashing distribution
cost and overhead not only by economy of volume, while
taking over servicing of technology and procurement on
behalf of the customers.
Many good distributors—local and regional—will cease to
exist, as they will find it expedient to sell and fade out or may be
venture into new areas. As for ourselves, we are their first
target for partnership, and it gives us tremendous satisfaction.
But deep within, we are confident that we know what we need
to do in order to stay independent and yet prosper.
We understand that Shree NM Electricals has a sourcing office
in China. Tell us more about this and also the role of low-voltage
Chinese electrical equipment in the Indian market.
The Indian electrical manufacturing industry is matured and
very strong. This industry is expanding and
building capacity. As the gap between demand
and supply diminished, we have seen a distinct
change in customers to reaffirm their love for
products of Indian origin. On the other hand,
rising value of Yuan against the US Dollar,
Chinese consciousness towards cost and a bit
of greed for profit has eroded the potential to
import Chinese electrical products to India.
Our sourcing office was mainly coordinating
our procurement of electrical motors. We have
temporarily shut down this office.
The electrical equipment industry is expected to grow a healthy
rate in keeping with rising investment in the power sector.
Reflecting this, please summarize your geographical expansion
plans for the years to come.
We are currently following a multitude of parallel strategies
in expansion. In the markets that we are strong and mature,
we are focusing on selling our complete product basket to the
existing clientele and simultaneously creating focused teams
to handle segments wherein we were not present. In the
markets that we have entered recently, namely North and
East, we are focusing on increasing our base of clientele
there and gradual addition of new branches and stock
points. In brief, you can be rest assured that you will see
Shree NM in nearly all the major states of India within the
next three years!