The depressed performance of the electrical equipment
industry continued in the second quarter of FY13.
According to a study released by The Indian Electrical &
Electronics Manufacturers’ Association (IEEMA), the $25-
billion electrical equipment industry posted a negative
growth of 4.1 per cent in the second quarter of FY13,
following the 2.1 per cent decline seen in the first quarter. The
first half of FY13 ended with the industry shrinking by 3.6 per
cent against a positive growth of 7.7 per cent seen in the same
period of FY12. (See table.)
Key industries like transformers, power cables, capacitors
and switchgear that represent 60 per cent of the overall
industry suffered declines. For instance, the transformer
industry shrunk by 16.1 per cent in Q2 of FY13—worse than
7.6 per cent in the immediately preceding quarter. Power
cables and capacitors suffered declines of 14.5 per cent and
38.2 per cent respectively in the quarter under review. The
switchgear industry that showed consistent growth up to the
Q1 of FY13 slipped into negative territory in the second
quarter with a decline of 4.7 per cent.
Power transmission equipment like transmission towers
and conductors displayed positive growth during the second
quarter. While towers showed 6.5 per cent growth,
conductors did even better to notch up a 29 per cent increase.
The transmission towers segment grew also on account of a
better performance on the exports front, the IEEMA study
pointed out.
The rotating machines segment (motors) recovered
slightly, witnessing a positive growth of 0.8 per cent in the
second quarter of FY13 against a negative growth of 2.6 per
cent in sequential quarter Q1 FY13. This is mainly due to
revival in demand for HT motors and LT motors to some
extent due to execution of long pending orders from power
generation and major core sectors.
Untitled Document
PERFORMANCE OF ELECTRICAL EQUIPMENT INDUSTRY |
(% change over previous year) |
|
Apr-Sep |
|
2011-12 |
2012-13 |
| Rotating Machines |
6.3 |
-0.7 |
| LT Motors |
12.4 |
-8.3 |
| HT Motors |
25.1 |
-9.9 |
| Alternators |
-21.5 |
27.0 |
| FHP Motors |
-6.8 |
7.7 |
| Switchgear |
2.4 |
-1.4 |
| Power Contactors |
-6.8 |
-5.6 |
| LT Circuit Breakers |
-2.3 |
8.4 |
| MCB |
21.4 |
6.8 |
| S/F & F/S Units |
3.8 |
0.9 |
| HT Circuit Breakers |
0.0 |
-7.0 |
| Cables |
23.5 |
-14.4 |
| Power Cables: PVC |
-5.0 |
-9.3 |
| Control Cables |
88.0 |
-27.6 |
| Transformers |
4.5 |
-12.7 |
| Power Transformers |
14.8 |
-8.4 |
| Distribution Transformers |
-2.8 |
-16.7 |
| Capacitors |
13.8 |
-32.8 |
| HT Capacitors |
-13.4 |
-24.6 |
| LT Capacitors |
27.4 |
-36.9 |
| Energy Meters |
10.8 |
0.1 |
| Power Transmission |
-3.7 |
14.5 |
| Transmission Towers |
-9.6 |
5.6 |
| Conductors |
3.1 |
25.7 |
| Overall Industry |
7.7 |
-3.6 |
Commenting on the industry’s performance in the second
quarter of FY13, IEEMA President J. G. Kulkarni said “We have
witnessed the second consecutive negative growth in FY13,
and this is an alarming statistic for Indian electrical
equipment industry. Despite having a strong demand for
electrical equipment in domestic market, Indian
manufacturers are uncompetitive in their own country. An
absence of a level playing field in the country for domestically
manufactured equipment vis-à-vis imported equipment has
made it difficult for domestic players to compete with
overseas manufacturers; especially from China, who have
emerged as a clear threat over the years. Imports of electrical
equipment in the country have assumed very threatening
proportions and have now captured 43 per cent of the market
for electrical equipment in India valued at Rs.1.75 lakh crore in
FY12, whereas there is significant domestic overcapacity.”