Web Exclusive | June 2017
Electrical equipment industry grows 4.25 per cent in FY2016-17| IEEMA
The electrical and industrial electronics industry has witnessed a 4.25 per cent growth in FY2016-17, over the previous year. The industry exported Rs 38,580 crore ($6 billion) worth of electrical equipment in 2015-16 (Rs 35,276 crore April to February in 2016-17 - $5.25 bn).
The growth in exports is helping the industry to grow especially in power transformer and high voltage switchgear products, energy meters and cables. Policy changes and various initiatives undertaken by the industry and government are eventually showing signs of revival for the sector, according to the Indian Electrical and Electronics Manufacturers’ Association (IEEMA).
The major drivers in this growth are low voltage switchgear which has registered a healthy growth of 22 per cent due to revival in growth of realty, infrastructure and other manufacturing industries. distribution transformer (especially up to 25 kVA – REC range) and energy meters demand has declined by 12 per cent and 10 per cent respectively due to poor off-take from utilities due to delay in finalization of orders under govt. schemes like DDUGVYJ and IPDS.
The growth in power transformer and high voltage switchgear can be seen due to domestic orders arising from new sub-station additions especially for above 220 KV. There is a marginal growth in LT motors, however declining trend for HT motors due to imports and core sector industry capex not taking off. The Conductors demand is declined by 5 per cent due to delay in order finalisations.
Sanjeev Sardana, President, IEEMA is of the view, “The sluggish demand and higher imports is still hampering the industry growth. There is a high imports visible in HV switchgear (GIS), insulators, AC motors and generators. The target of 400 kV transmission and sub-station completion is over achieved in four years of 12th plan only.”
“In power generation, renewable energy addition is picking up fast and solar power generation addition has achieved 104 per cent with wind power achieving over 80 per cent of planned addition. in the 13th plan the focus will be on renewable energy, power electronics and e-mobility. These new technologies will not only pose disruptive challenges but also open vast opportunities for the industry,” he added.
Sunil Misra, Director General, IEEMA says, “Indian electrical equipment industry is fully equipped, not only to meet the present domestic demand, but also geared up to meet likely demand arising out from capacity addition in the future. The industry is 9.54 per cent of the manufacturing sector is terms of value and 1.23 per cent of India’s GDP, providing a direct employment to 1.5 million and indirect employment to over 5 million people across the entire value chain. There is significant global reputation of Indian electrical equipment for sourcing of base products and components and also of Indian transmission and other EPC contractors.”
He further adds, “Indian electrical equipment manufacturing industry has made huge investments in doubling and, in some cases, even tripling its production capacities. However, this built-up capacities are under-utilised across several products and the manufacturers are broadly working at 60 per cent to 70 per cent of their production capacities.”