According to the Indian Electrical and Equipment Manuafacturers Association (IEEMA), the apex association of electrical and electronics equipment industry, the drop in growth was mainly due to an apparent slowdown experienced by the industry during the second half of the financial year, particularly the last quarter of the year, where the growth was only about 12.5 per cent. Whether the downfall continues or is arrested will only be clear after the results of the first quarter are known.
IEEMA, which compiles information on a regular basis, said the growth is in actual quantitative or volume terms and is based on the compiled and monitored production and sales data.
The strongest growth in the sector for the year was shown by the cable industry, which grew by 28.3 per cent to Rs 11,000 crore a year, and the PVC power cable sector, which grew by 21.2 per cent to Rs 7,500 crore.
The transmission line industry has reported an above-average growth of 18.2 per cent (Rs 6,000 crore).
"Power Grid Corporation, which is the major driver for the transmission sector, has really got into action from the third quarter by finalising new orders and this was the reason for growth in this sector," said IEEMA sources.
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The transformer industry registered an average growth of 15 per cent to Rs 8,100 crore, with power and distribution transformers reporting 18.2 per cent and 12.8 per cent growth respectively.
Evacuation and transmission of power generated mainly at 220 kv and 132 kv levels were the key reason for this growth. However, growth has decelerated in the last quarter by about 2.3 per cent. This is a relatively new trend since the production levels are generally higher during the last quarter, said IEEMA.
The switchgear and control gear sector (Rs 6,475 crore) posted a below-average growth of 12.3 per cent. This was mainly powered by the HT Switchgear demand at 220 kv level. Imports of MV Breakers have increased substantially and with low cost and quicker deliveries, they are now competing successfully with the domestic industry, observed the organisation.
IEEMA predicted the future could be uncertain because of factors such as an unprecedented rise in prices of crude oil, price hike of all raw materials especially steel, copper and aluminium, inflation and shortage of skilled manpower.