Electrical equipment industry to grow 20%: IEEMA

The power electrical equipment industry is all set to clock a record growth rate of 20 per cent for the fiscal 2004-2005 with revenues touching Rs 15,000 crore.

According to an IEEMA release, this is more so owing to the government's commitment to accelerate reforms.

The release adds that in the last two fiscals, the industry grew by 5 per cent and 14 per cent respectively. IEEMA is an association that represents the domestic electrical industry.

"Some crucial segments such as transmission line towers (TLT) are expected to register 100 per cent growth in domestic market this fiscal," IEEMA President S Ramaswamy said in the release.

"In the quarter ending December 2004, the segment grew by 81 per cent. This is primarily because of the ministry of power's initiatives under the distribution reform, upgrades and management projects (DRUM) and the newly announced REST (The Rural Electrification Supply Technology).

All segments such as HT switchgears, MV breakers, miniature circuit breakers, switch fuse, have been improving their performance. Segments such as HV and EHV breakers and HT capacitors too are expected to show a good performance this fiscal.

"Power cables also continue to show fair growth," says Ramaswamy, "We feel that the buoyancy in this segment will continue as numerous new projects are coming up."

He added that China which is known for its ability to flood the market with cheaper products, is perceived to be a threat, but the Indian industry is rising to the challenge.

"We hope to do much better in all the segments in the coming year, thanks to the Government's resolve to electrify an additional 1.25 lakh villages in the next five years. Moreover, the release adds that the Government has allocated Rs 1,100 crore for the first year" added Ramaswamy.