Incepted in 2005, Sterling Generators, an arm of Sterling and Wilson Ltd, has grown rapidly and gained considerable market share in the Indian HHP market achieving a revenue of Rs 850 crore in FY17-18. Now the DG sets maker is eyeing Rs 1,300 crore in sales volume over the next three-year period. Excerpts from an interview with Sanjay Jadhav, CEO – Powergen business, Sterling and Wilson:
What are your views on the Indian gensets market?
Indicative of current estimates, growth levels are expected to be at 5 per cent. As the government focuses on job creation, infrastructural development and ‘Make in India’ as priorities, there are bound to be higher growth levels expected in the years to come which will definitely benefit the capital goods segment. Gensets being part of the capital goods industry will also benefit from the growth envisioned.
How do you pursue global market?
The genset industry is expected to grow at 10 per cent over the next few years. Sterling Generators realised the opportunity early and today it is India’s second-largest supplier of HHP diesel gensets. Owing majorly to its exports, Sterling Generators is currently operational in parts of Middle East, Africa and Southeast Asia. There is a detailed plan to cover all major markets in these regions and the company is also looking at partnering with a suitable partner to enter the European markets.
What are your growth prospects for next five years?
Since our inception in 2005, till the present day, Sterling Generators has grown rapidly and gained considerable market share in the Indian HHP market achieving a revenue of Rs 850 crore in FY17-18. Through its manufacturing facility in Silvassa, Sterling Generators has managed to achieve a commendable production value of about 1,000 HHP or medium horse power (MHP) generators, higher than most diesel genset companies in India. With power shortages and energy storage solutions being critical issues in the future for India, the company will continue to see strong demand from the market. In 2018, Sterling Generators aim to reach 2,000 units and continue a robust, consistent growth of 20 per cent in a primarily mature gensets market.
Could you brief us on your manufacturing facility at Silvassa?
Our 8-acre facility in Silvassa, one of the largest in Asia, was established in 2006. During the last 10 years, Sterling Generators has invested over Rs 100 crore in the facility and is looking to further invest Rs 50-60 crore by the year 2020.
The plant employs more than 1,000 people in the facility and more will get added as the business grows. Currently it is one of the largest high horse power (HHP) genset plants in Asia and further expansion is expected as the business grows. With state-of-the-art PLC based testing facility in the factory for DG sets up to 3,000 kVA, it has a capacity to manufacture 2,500 gensets of various capacities and can be scaled up to 5,000 units with an additional year’s investments in automation. The plant also has a unit to manufacture HT and LT electrical panels of various sizes and capacity making it a unique combination of mechanical and electrical expertise under one roof.
What are your future plans?
As critical demand for power back-up from industrial, commercial and infrastructure sectors continues to rise, Sterling Generators is eyeing Rs 1,300 crore in sales volume over the next three-year period.
In 2018, Sterling Generators aim to reach 2,000 units and continue a robust, consistent growth of 20 per cent in a primarily mature gensets market.
CEO – Powergen business, Sterling and Wilson