This industry has weathered many
challenges over its history, and not
only survived, but also prospered.
However, the nature of challenges
the industry faces today is getting
more complex.
Costs: rising input costs, labour costs,
unprecedented volatility in the prices of
key metals like copper — both base metal
prices as well as due to foreign exchange
fluctuations
Free trade & Rising imports: As of Mar
2011, the estimated import figure was
Rs.690 crore (11 per cent of the total
market), while the export figure was
Rs.115 crore. Importantly, exports have
been showing an increasing trend over the
years.
Standards: From the introduction, the
usage of motors is widespread, but there is
a flip side to this. It is estimated that
motors consume 65 per cent of the power
in industries. That is a staggering figure,
and consequently it makes the "efficiency"
of motors the most vital topic for the
industry as a whole. The latest efficiency
norms are IE2, IE3 and IE4, in which the IE2
corresponds to the earlier EFF-1 or high
efficiency standard.
Technologies: In this industry,
technologies are usually driven by
standards and in today's scenario, the
development of technologies for
manufacturing higher efficiency motors,
and investing in advances testing facilities
to validate the output (there are changes in
the standards here too) are the biggest
challenge the industry faces today.
Raw Materials: Apart from the volatility in
costs, the availability of key raw materials
like Copper and Steel is expected to
become a challenge in the coming years.
The supply of rare earth materials, used for
permanent magnets, is already scarce.
Ironically, both will be needed in
increasing quantities for the manufacture
of IE3 and IE4 motors in the future.
Green Manufacturing: The environmental
standards (ISO 14000 or equivalent) will
need to be more vigorously implemented
and monitored in the coming years. All
manufacturers (and their vendors) will
need to reduce their effluents and their
waste gas emissions — even after taking
into account the growing production
figures. Even small areas like usage of
packing wood will need to be focused
upon to comply with the current and
expected norms in the near future. |