The electrical and industrial electronics industry has witnessed a 11.47 % growth in Q3 of FY 2014-15. The overall industry has grown by 8.95% in nine months of this fiscal. Although higher imports still plague the industry but policy changes and various initiatives undertaken by the industry and government are eventually showing signs of revival for the sector. The data is compiled by the Indian Electrical and Electronics Manufacturers’ Association (IEEMA), the apex Indian industry association of manufacturers of electrical, industrial electronics and allied equipment. The production and sales data is collected from its member organisations, which represent 95 percent of the entire sector.
Although the major drivers in this growth are cable, LV and HV switchgear, Power transformers and LT Motors continue to show declining trend. Conductors and Energy meters have registered a tremendous growth in their volume with 44.9 percent and 28.2 percent respectively. The reason for this growth in conductors is the procurement of these products by major PSUs and utilities as their inventories are being utilised.
As the consumers are opting for Smart and Energy efficient products, growth is also observed in transformer operational meter and single phase multifunctional meters with smart features. Also, the growth in LV product and FHP motors indicates some industrial activity.
Mr Vishnu Agarwal, President, IEEMA says, “There is a positive momentum in sub transmission and distribution of 66kV products and below. The growth in turnover of MCB, Energy Meters and Cables is a good sign as it indicates a vivid pace of development taking place in Power, Infrastructure and Reality sectors of the Country.”
Mr Sunil Misra, Director General, IEEMA is of the view that “We still need to watch out for the high rate of imports of EHV transformers, reactors, cables and insulators, which harm domestic production. Indian manufacturers are well equipped and have the capacity to manufacture these products.”
Rotating Machines continue to show negative growth as there is low awareness in consumers for energy efficient motors even though the Indian Standard – IS 12615/2011 is in place. There is a surge in import of Rotating Machines to the tune of Rs. 2000 crore in 2014.
IEEMA being one of the proud partners of the ‘Make in India’ campaign has identified a four point agenda and has been vigorously pursuing with the policy makers, so as to positively impact made in India products with state-of-the-art technology –
- Domestic funded tenders by Utilities to be in INR and if for some reasons there needs to be international bidding, then 15% for preference to Domestic industry.
- Mandatory Vendor development programme by Utilities.
- Mandatory testing of all Imported Electrical Equipment by Test house in India.
- Standard specifications and standard bidding terms for same products across Indian Utilities.
Encl: Growth Indices for Electrical Industry
|Quarterly % growth Index|
|Product||Weightages for 14-15||December-14|
|LT Circuit Breakers||5.1||16.6|
|S/F & F/S Units||0.5||-39.1|
|Power Cables: PVC||19.4||18.6|
|Control Cables & other Special Purpose Cables||8.4||35.9|