After a lull of almost two years, the Indian electrical equipment industry has gained momentum by clocking 11.25 per cent growth in 2009-10. Compared to this, the industry grew only 2.73 per cent last year — recording the least growth in the last five years.
The fourth quarter of 2009-10 saw a growth of 30 per cent and above in sectors including rotating machines, switchgear and cables following an economic recovery in real estate and infrastructure. The growth figures were in terms of volume and the financial results may differ and vary from sector to sector depending on the order book, expected business, raw material prices and margins, said the Indian Electrical Equipment Manufacturers Association (IEEMA), the apex body representing the Indian electrical equipment industry.
The highest growth of 14.54 per cent was reported by the switchgear sector, though high tension switchgear recorded a low growth of 5.78 per cent. In case of high voltage group, high growth of 56 per cent was experienced in the extra high voltage (above 245 kV) segment, whereas for other segments, the growth was comparatively lower. Demand for medium (up to 36KV) and high voltage breakers (36-245KV) reduced by by 4 per cent and 23 per cent respectively. Power contractors, miniature circuit breakers and other low voltage circuit breakers registered more than 20 per cent growth due to increased off-take from building and railway sector, IEEMA said in a press release.
The industry is witnessing a turnaround due to an increase in demand from sectors like power, textile, water, steel and cement, said IEEMA officials.
Cable industry showed an overall growth of 12 per cent mainly due to 14.54 per cent growth in power cable segment, mainly due to higher demand from industrial projects. Industry sources expect utility demand to rise — especially for high voltage (HV) and extra high voltage (EHV) cables — since more cables will have to be procured due to difficulties faced on account of ‘right of way’ in smaller cities and towns.
The building wire segment has also seen an overall improvement in demand from the construction sector.
The transformer sector grew nine per cent led by power transformers (17.16 per cent).