The diesel generator set market in India can be broadly classified as small diesel generators (15-75 kva), medium diesel generators (75.1 – 375 kva) and large diesel generators (375.1 – 3300 kva)
Despite lower demand in the market for last few years, diesel generator manufacturer Sterling Generators, a Shapporji Pallonji company is expanding its footprint in domestic market. The company is now eying small size (below 500 kva) generator market f or expansion. With this, it is targeting business of Rs 150 crore for the next one year.
“As a part of our expansion strategy we will be focusing on DG sets in the range of 10kva- 500 kva for small and medium enterprises which includes commercial establishments, offices , small and medium engineering facilities.” said Sanjay Jadhav, president, Sterling and Wilson Powergen.
The diesel generator set market in India can be broadly classified as small diesel generators (15-75 kva), medium diesel generators (75.1 – 375 kva) and large diesel generators (375.1 – 3300 kva).
"For the last two-three years, genset market of India remained flat. But now the conditions are improving from the last one year. There is a sign of recovery. The demand will grow on account of power shortages and growth across other sectors such as industries, infrastructure, telecommunication and information technology (IT) and IT enabled services. Now, our focus is to target small and medium domestic genset market. " said Jadhav.
According to Jadhav, total market of India is of one lakh generators, valued at Rs 7000 crore. With this, the company is expecting topline of Rs 900 crore for FY'16. The company manufactures the gensets at their Silvassa plant with annual capacity of 10, 000 gensets. The company has recorded revenue of Rs 700 crore in the last financial year.
Sterling is exporting its products to the markets like Middle East, South East Asia, Australia and Africa. The exports contributes 20 per cent of its total business. Its market share in India market is of 15 per cent. Sterling competes with other genset players like Kirloskar Olil Engines, Cummins India, APR Energy Plc, Broadcrown and Mitsubishi Heavy Industries. The price of these ranges gensets from Rs 2 lakh to 2 crore for 10 kva to around 3000 kva gensets.
In Maharashtra, Sterling is expanding its dealer network to 15 by end of 2016. The all India dealer network will go up from 60 to 120 this year.
