Despite the onslaught of
imports from China and South
Korea, the Indian electrical
equipment industry did well to clock a
growth of 14 per cent in 2010-11,
according to a special study released
by IEEMA. The study took into
account physical performance of its
members that account for 95 per cent
of the entire T&D equipment
industry. The total size of the
industry, as gauged by IEEMA
membership, was around Rs.58,315
crore in FY11. The industry's growth
in FY11 marked a sharp improvement
from 11.3 per cent in FY1o in 2.7 per
cent in FY09.
Due to increased focus on power
quality and energy efficiency by
utilities, discoms and user industries,
demand for capacitors surged by 35
per cent in FY11. Buoyancy in
demand from PGCIL, independent
power producers, and some utilities
for HV and EHV switchgear including
products like air and gas insulated
switchgear has resulted in a 28 per
cent growth.
Pent up demand of medium voltage
breakers for substation projects resulted
in huge growth of more than 30 per
cent, the IEEMA statement observed.
Low voltage switchgear products like
contactors, miniatures circuit breakers,
Moulded case circuit breakers (MCCB)
continue to witness a growth of more
than 20 per cent due to sustained
demand from cement, steel, original
equipment manufacturers and from the
infrastructure sector.
Quarterly Performance of Electricals Industry: 2010-11 |
| |
y-o-y % change |
| |
Apr-Jun (Q1) |
Jul-Sep (Q2) |
Oct-Dec (Q3) |
Jan-Mar (Q4) |
Apr-Mar (FY) |
| Rotating Machines |
22.9 |
13.0 |
10.4 |
2.5 |
11.0 |
| Switchgears |
32.3 |
26.9 |
14.0 |
16.1 |
21.0 |
| Cables |
15.0 |
7.5 |
30.8 |
12.3 |
16.0 |
| Transformers |
14.3 |
25.0 |
12.2 |
9.2 |
15.0 |
| Capacitor Industry |
12.6 |
38.3 |
58.7 |
37.9 |
35.0 |
| Energy Meters |
12.3 |
29.2 |
21.5 |
1.7 |
15.0 |
| Transmission Lines |
7.8 |
2.2 |
4.6 |
2.3 |
4.0 |
| Total |
16.7 |
15.3 |
15.9 |
8.8 |
14.0 |
| Source: IEEMA |
Cables & Transformers: The
cable and transformer segment
accounted for nearly 50 per cent of the
T&D equipment industry. The cables
sector saw a rise in demand of 16 per
cent; mostly driven by control cables
which saw a growth of 32 per cent.
The demand from power generation
units is on rise. LV and EHV power
cables witnessed a steady growth of
about 10 per cent.
The transformer industry witnessed
an overall growth of 15 per cent FY11
driven largely by domestic demand. On
the other hand, exports, mainly in the
power transformer segment, declined
by 15 per cent. Distribution
transformers segment has seen a
renewed growth of 16 per cent.
Increased participation from organised
sector is visible due to BEE's star
labeling programme), R-APDRP and
CEA's recent recommendations for
utilities to procure minimum 3-star
rated distribution transformers.
Growth of power transformers was
steady at 14 per cent. Even the order
book position was healthy, mainly in
the 200 MVA-and-above category.
Overview: The envisaged 120 GW
addition to installed power generation
capacity till 2017, coupled with necessary evacuation infrastructure for transmission and
distribution sectors, requiring an additional investment of
more than $400 billion in the electricity sector by the end of
the XII Plan, is expected to provide tremendous
opportunities for the Indian industry to seize.
Currently, Indian exports of electrical equipment are
less than 1 per cent of the global trade. With the
electricity sector being a sunrise sector across the entire
developing world, there also exists a significant export
potential for the domestic industry.
Industry experts widely believe the ideal way forward
to sustain the growth momentum would be faster
implementation of the much awaited GST (Goods &
Services Tax), creation of level playing field, increased
focus on exports and SME development. This can lead to
further acceleration in the industry's growth process and
contribute significantly towards reducing the power
demand-supply gap in the country.
Untitled Document
Performance of Electricals Industry: 2008-09 to 2010-11 |
|
Weight |
Market* |
y-o-y % change |
|
(%) |
(Rs.crore) |
2008-09 |
2008-09 |
2010-11 |
| Rotating Machines |
10.8 |
6,298 |
-3.5 |
13.3 |
11.0 |
| LT Motors |
5.6 |
3,266 |
-6.5 |
22.7 |
13.0 |
| HT Motors |
2.0 |
1,166 |
13.1 |
10.3 |
-4.0 |
| Alternators |
1.9 |
1,108 |
2.9 |
1.1 |
21.0 |
| FHP Motors |
1.3 |
758 |
-12.3 |
3.5 |
16.0 |
| Switchgears |
15.2 |
8,864 |
0.0 |
14.5 |
21.0 |
| Power Contactors |
1.9 |
1,108 |
-17.8 |
41.0 |
29.0 |
| LT Circuit Breakers |
3.7 |
2,158 |
-1.0 |
29.4 |
19.0 |
| MCBs |
3.0 |
1,749 |
9.7 |
23.0 |
8.0 |
| S/F and F/S Units |
0.6 |
350 |
-11.1 |
5.3 |
4.0 |
| HT Circuit Breakers |
6.0 |
3,499 |
2.4 |
-5.8 |
28.0 |
| Cables |
24.4 |
14,229 |
4.4 |
12.1 |
16.0 |
| PVC Power Cables |
16.8 |
9,797 |
14.3 |
14.5 |
9.0 |
| Control & Special Purpose Cables |
7.6 |
4,432 |
-26.6 |
2.4 |
32.0 |
| Transformers |
25.3 |
14,754 |
-1.2 |
9.1 |
15.0 |
| Power Transformers |
10.6 |
6,181 |
25.8 |
17.2 |
13.0 |
| Distribution Transformers |
14.7 |
8,572 |
-16.9 |
3.0 |
16.0 |
| Capacitors |
0.8 |
467 |
2.6 |
10.7 |
35.0 |
| HT Capacitors |
0.3 |
175 |
6.7 |
32.2 |
18.0 |
| LT Capacitors |
0.5 |
292 |
1.0 |
-2.2 |
45.0 |
| Energy Meters |
3.1 |
1,808 |
-8.2 |
11.3 |
15.0 |
| Transmission Equipment |
20.4 |
11,896 |
13.5 |
9.2 |
4.0 |
| Transmission Line Towers |
12.8 |
7,464 |
6.5 |
19.0 |
6.0 |
| Conductors |
7.6 |
4,432 |
21.3 |
0.2 |
-1.0 |
| Total |
100.0 |
58,315 |
2.7 |
11.3 |
14.0 |
| Source: IEEMA; *Estimated industry size in 2010-11 |