April to December 2021-22

The Indian electrical industry has rebounded by registering a 23% growth in the first 9 months of current year of 2021-22 over low base of the same period of previous year 2020-21; a period affected due to lockdown. For the 1st time, in this year industry is showing just about 1% growth in terms of overall production/sales as compared to the normal /pre-covid period for same period of FY2019-2020.

There has been consecutive growth on Q-o-Q basis in this year and 3rd Quarter recorded 4% frowth over 2nd Quarter of this financial year 2021-22.

The above data is based on production/ sales data collected from member organizations, which represent over 90 percent of the entire electrical equipment installed in India coupled with detail analysis non-member segment.

Salient observations are as under:

Transmission equipment covering Transmission line towers and Conductors are still on a moderate growth level of just 3.5% over last year whereas overall Insulators and Surge Arrester showing a growth of about 17% due to pick up in off-take from major utilities and CPSUs like PGCIL.

Sub-station equipment:

1. Growth in High voltage switchgears of 71% is mainly from HV & EHV GIS and MV AIS segment; mostly from domestic demand coming from state utilities and CPSUs for increasing the sub-station network.
2. However, Power Trf and HT Capacitors production has declined substantially especially in 3rd quarter (16% & 8% decline) despite sizable growth in Exports due to subdued domestic demand.
3. Power and Control Cables are witnessing a growth of about 22% due to renewed domestic demand with support of increased export orders especially high growth in LV and HV Power Cables.

Distribution equipment:

1. Energy Meters demand especially for Smart prepaid meters is coming back in this year due to increased export orders and some order finalizations showing a growth of 10% over a very low base of previous year; however, this demand is still down by over 46% as compared to pre-covid period.
2. Low Voltage switchgear has continued its growth trend from last year registering 36% growth due to sustained demand from Realty, Infrastructure & other manufacturing industries.
3. Similarly, rotating machines segment also riding high on growth of 46%; mainly due to effect of policy change of replacing old inefficient motors with minimum IE2 standard high efficient motors. Core sectors like Cement, Steel, Water etc. are major drivers for the same.

Though overall Exports have increased by 25%, Imports have also surged by 33% especially for
Transformers & parts, LV and HV Cables, LV & HV Custom built products like Control panels, MCC, PCC, rotating machines & parts, Insulating fittings etc.

China still accounts for more than 30% share in Imports which is grown by over 40% followed by Germany and Japan. Renewable Energy which has surpassed 150 GW mark registering 40% share in overall installed capacity. Associated Transmission & Sub-Station completion program is also expected to increase further especially for HVDC and 765 KV level. Government has also embarked upon Restructured Distribution strengthening scheme of Rs. 3.03 Lakh crs.to be spent over 5 years.