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Electrical equipment industry records negative growth: IEEMA

For the first time in 10 years, the Indian electrical equipment industry has seen a negative growth of 2.4 per cent in the first quarter of the current fiscal (2012-13) compared to the corresponding period of Q1 FY12 (13.82  per cent) and sequential quarter Q4 FY12 (14.10 per cent), industry body IEEMA informed.
Releasing the Q1 FY13 performance of the US$25 billion Indian electrical equipment industry, IEEMA said, “The transformer industry has seen a negative growth of 7.6  per cent in Q1 FY13 against the growth of 6.6 per cent for the corresponding period of Q1 FY12. The capacitor and cable industry has witnessed a double digit negative growth of 24.8 per cent and 12.9 per cent respectively compared to the positive growth of 20.9 per cent (capacitor) and 44.6 per cent (cable) in Q1 FY12. The rotating machines industry has witnessed a negative growth of 2.6 per cent in Q1 FY13 against the growth of 9.6 per cent for corresponding quarter of last year.”
“The transformers, rotating machines and capacitor industries has been decelerating every sequential quarter and has seen a negative growth in Q1 FY13, implying distinct slowdown in industrial capex activities and slowdown in off-take by users due to credit squeeze, high interest costs, etc.”, the report said. “The growth in switchgear industry has been consistent, registering an increase by 2.4  per cent compared to 2.5 per cent in corresponding quarter of last year.”
“The power sector is of at least as much strategic importance as the telecom sector, if not more. Disproportionate reliance on imported power equipment, with uncertain quality and lifecycle, and with no domestic manufacturing facility to provide immediate spares, replacements, etc. especially for heavy equipment, is fraught with long term risks”, Ramesh Chandak, President, IEEMA observes.

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