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Feature | February 2017

We expect 8-10percent market growth next year

Sameer Gupta, Chairman & Managing Director, Jakson Group

What are your offerings in the India market?
Jakson has a complete range of generating sets from 7.5 kVA to 3,750 kVA - to meet the energy requirements of customers across residential, commercial or industrial segments. The products are designed to meet specific requirement of specific segments and the product features offered by us positions our gensets uniquely in Indian market.

What technologies have you applied specific to India?
We are at the forefront of adopting innovative technologies. Powered with Cummins engines, our gensets lead on emission technology. Likewise, we have the know-how to bring down noise pollution by about 10 per cent. The electronic controls provided on the gensets have unmatched features like remote control and telematics. The generating sets are best in class in terms of life-cycle costs.

What are your strategies for the India market?
We have significant market share in India and for some products it is as high as 75 per cent plus. The key strategy is to defend or increase market share by ensuring that we have low cost and fit for market products. Jakson-Cummins gensets offers ´value for money´ and ´peace of mind´ to customers, which positions us differently in Indian market. We have enough installed capacity to take care of market growth over next five years. We are geared to launch next generation gensets with full authority electronics which will lower both emissions and fuel consumption.

How do you see the industry in the next 2-5 years?
We continue to be positive about the Indian market and expect it to grow at around 8-10 per cent in next year and in the subsequent year the growth to be around 12 per cent or higher.

We expect the manufacturing sector to pick up in the coming years, which can be attributed to the improved growth rate.

What is the power situation in India? What role do diesel gensets play here?
The power situation in India has improved significantly in the past couple of years. The peak hour deficit in many of the states is either positive or not there. There are some states which continue to witness peak hour deficit. Overall, the country does not have a power deficit situation.

Generating sets are required for emergency power and in some applications for uninterrupted power supply. As investment in infrastructure, services and manufacturing grows, the requirement for emergency backup generating sets will be there. There will always be role of reliable power back-up source and diesel generating sets are proven to be most reliable and cost effective solution for dependable power.

Where does India in the global space?
Globally, the diesel generators market is expected to grow at a CAGR of over 5 per cent till 2020. In India, the growth is expected to be in double digits - around 10 per cent - considering focus on infrastructure and services. Due to the various initiatives launched by GoI, we expect manufacturing to pick up, which can further boost demand. There is increased global demand from residential segment and countries like India, China, Middle East, Africa and South America are witnessing demand from the commercial and industrial segments as well.

How can diesel generators be eco-friendly compared to renewables?
Diesel generators essentially burn fuel and there are CO2 emissions which certainly pollute the atmosphere. Companies like Cummins, whose engines are used in Jakson gensets are continuously investing in R&D to reduce the emission levels and the gensets manufactured using these are one of the most eco-friendly gensets. Further, GoI has prescribed CPCB II norms which are applicable for all generating sets manufactured in India. Most of the Cummins gensets across the range have emissions much lower than the prescribed limits which speaks for the eco-friendliness. There is no comparison of diesel generators to renewable sources of energy because the primary role of diesel gensets is to provide back-up power supply and not continuous power to grid. The usage and applications of gensets is very different. In fact, diesel gensets are used even in renewable power plants to provide emergency power back-up during outages.

Which segment will support growth of DG sets in India?
Among the three broad segments - commercial, industrial and residential sectors will drive the growth of DG sets in India. GoI is investing in infrastructure which has been the main driver of growth. The focus on IT and Digital India is driving investments in data centres which is also resulting into huge investments for DG sets.

What are the major challenges you face in India?
India is a growing market and as such there is no market based challenge. The biggest challenge however is adoption to new technologies by the government and the industry. Emissions will continue to have a big role to play and there is continuous need to drive reduction of both CO2 and noise. There are products and technology available in India where we can have gensets which are far more eco-friendly. The government perhaps can review emission norms both for CO2 and noise, across the product range from 5 kVA to 2,500 kVA and raise the bar on emission standards.

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