The electrical and industrial electronics industry has witnessed a 4% growth in the year 2016-17 over the previous year. In the last Quarter, 5.5% growth was registered after a deceleration in Q3 (1.4%) and just 1.6% in Q2 over same period of last year. Growth in Q1 was 8.1%.
The above data is based on production and sales data collected from member organizations, which represent 95 percent of the entire electrical equipment installed in India coupled with detail analysis of other non-member sectors. Salient observations are as under.
1. Low Voltage switchgear has registered a good growth of 22% due to revival in growth of Realty,
Infrastructure & other manufacturing industries.
2. Distribution Transformer (Especially Up to 25 KVA – REC range) & Energy Meters demand is declined by 12% &
14% respectively due to poor off-take from utilities due to delay in finalization of orders under Govt.
schemes like DDUGVYJ and IPDS
3. Growth in Power Transformer & High voltage Switchgear is due to domestic orders arising from new substation
additions especially for above 220 KV
4. Marginal growth in LT motors, declining trend for other motors due to Imports & core sector industry capex
not taking off
5. Cable, TLT register moderate growth;
6. 5% decline in Conductors demand is due to delay in order finalizations
7. Exports supporting growth of overall industry especially Power Transformers, Cables & HV Switchgear
Sluggish demand and higher imports still hampering the industry growth. High imports visible in HV Switchgear- GIS(China & Korea), Insulators (China), AC Motors & Generators (Korea & China), Power Capacitors (USA) HVDC Transformers are imported from UK for new HVDC substations.
400 KV Transmission & Sub-Station completion is over achieved in 4 years of 12th Plan only.
765 KV and 220 KV addition of lines and s/s is also rising. In the 13th Plan, 800 KV HVDC and 765 KV will be key focus areas of transmission and substation additions.
In Power generation, Renewable energy addition is picking up fast. During 12th plan, Solar power addition achieved 104% in overall renewable addition of 32GW as against 89 GW from conventional sources.
Over the last 2-3 quarters there has been a distinct trend of the CAGR of important raw material like Copper, Aluminium, Steel etc. with Fuel & Power cost as well as the USD exchange rates growing which will clearly impact the cost of manufacturing.