The Indian electricals industry
is estimated to have grown by
16.6 per cent during the first
quarter (April to June) of FY12, a
study by Indian Electrical &
Electronics Manufacturers'
Association (IEEMA) said. The
growth is a shade lower than the
corresponding 16.7 per cent seen in
Q1 of FY11. The industry growth
measured by IEEMA is based on the
sales performance of its 750-plus
members.
The growth in Q1 of FY12 seems
to have been driven by certain
segments like cables, capacitors and
energy meters. Cables grew a
whopping 59.5 per cent (see Table 1)
while capacitors and energy meters
registered gains of 20.4 per cent and
17.3 per cent. On the other hand, the
transmission line segment suffered a
fall of 9.1 per cent during Q1 of
FY12. Key industries like switchgear
and transformers could record only
modest gains.
Table 1: Performance in Q1 (y-o-y % change) |
| Segment |
FY11 |
FY12 |
| Rotating Machines |
22.9 |
9.3 |
| Switchgear |
32.3 |
2.7 |
| Cables |
15.0 |
59.5 |
| Transformers |
14.3 |
5.6 |
| Capacitor |
12.6 |
20.4 |
| Energy Meters |
12.3 |
17.3 |
| Transmission Lines |
7.8 |
-9.1 |
| Overall |
16.7 |
16.6 |
Vimal Mahendru, President,
IEEMA, noted that the industry was
passing through a challenging phase.
On one hand there was the huge
opportunity and yet, the challenge
of meeting this inspiring goal within
the balance time of this financial
year was becoming a daunting task.
While the electrical equipment
industry was geared with
production capacity, it seemed that
procedural delays in releasing timely
tenders and contracts, and runaway
cost escalation due to price of
commodity inputs were holding
back electrification of the country.
Ramesh Chandak Vice President,
IEEMA said that there has been a
decrease in growth during the first
quarter of this year, barring rotating
machines, cables and capacitors.
This is a matter of concern for
IEEMA. This may be due to the
rising interest cost and liquidity
position. "We expect the situation to
improve in the coming quarters,"
noted Chandak.
In this last year of the ongoing XI
Plan period, about 15,000 mw of new
power generation capacity is
expected to be commissioned and
most of the transmission and
substation projects at 400kV and
below are likely to be completed
despite the fact that most of the
HVDC and 765kV projects are likely
to spill-over to the XII plan period, a
statement by IEEMA noted.
Since it calls for large quantities of
power equipment, bunching of orders
with quick deliveries is not ruled out.
IEEMA maintains that the Indian
electrical equipment industry needs to
be very alert in the wake of global
competition and adverse impact of
any import duty reduction.
In FY11, the size of the Indian
electrical equipment industry was
estimated at
58,315 crore, having
grown by 12.7 per cent from
51,730
crore in FY10 (see Table 2).
Table 2: Industry Size |
| Segment |
`crore |
% growth |
| 2007-08 |
45,370 |
16.6 |
| 2008-09 |
46,935 |
3.4 |
| 2009-10 |
51,730 |
10.2 |
| 2010-11 |
58,315 |
12.7 |