MIXED SIGNALS [Nov 2011]
November 25, 2011 6:31 am
Electrical equipment manufacturing industry in India has registered 16.6 per cent growth during the first quarter. Cables sector clocked unprecedented growth of 60 per cent due to a 200 per cent growth in control cable segment whereas the power cables have grown just 4 per centAccording to the Indian Electrical and Electronics Manufacturers’ Association (IEEMA), the electrical equipment manufacturing industry in India has registered a growth of 16.6 per cent during Q1 of FY 2011-2012, maintaining almost the same growth as Q1 of 2010-2011 which stood at 16.73 per cent. “IEEMA, the apex Indian body association of manufacturers of electrical, industrial electronics and allied equipment, has based these growth figures, after analysing the production and sales data collected from its member organisations, which represent 95 per cent of the entire sector”, a statement release by the association states.
Vimal Mahendru, President, IEEMA comments, “The industry was passing through a challenging phase. On one hand there was the huge opportunity presented by the mandated ‘Electricity for All by 2012’, and yet, the challenge of meeting this inspiring goal within the balance time of this financial year was becoming a daunting task. While the electrical equipment industry was geared with production capacity, it seemed that procedural delays in releasing timely tenders and contracts, and runaway cost escalation due to price of commodity inputs were holding back electrification of the country. With China and Korea gaining a strong presence, the industry was looking to a huge challenge, in spite of the promising opportunities in front of it”. Mr. Mahendru also added that, “I am optimistic that the government is cognizant of these challenges and is keen to pave the way for exponential growth in the sector, in spite of the recent adversities. The fact that the electrical equipment industry mission plan 2012-2022 is being inked, and the fact that the Planning Commission is seeking active participation of the private sector in formulation of the 12th Plan, including IEEMA, augurs well and indicates the seriousness with which the government is looking at ensuring success”.
Ramesh Chandak Vice-President, IEEMA said, “There has been a decrease in growth during the first quarter of this year, barring rotating machines, cables and capacitors. This is a matter of concern for IEEMA. This may be due to the rising interest cost and liquidity position”. IEEMA expects the situation to improve during the rest of the year.
Product sector overviewGrowth in exports has assisted and buoyed the growth of some sectors like transformers, switchgear, cables, capacitors, energy meters, transmission line towers and conductors. However, imports are simultaneously increasing and establishing themselves firmly in domestic market thus affecting domestic players. The recent surge in imports of HV/EHV transformers, HV/EHV circuit breakers and AC motors; mainly from China, Korea and Germany is a cause of concern to the domestic industry.
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