The Indian electrical equipment
industry comprises of
multinationals, and large,
medium & small players. It can be
broadly categorized into generation
equipment such as boilers, turbines,
generator sets; transmission equipment
like transformers, distribution
equipment such as switchgear &
control panels, and others like
electrical motors and wires & cables.
According to the Indian Electrical &
Electronics Manufacturers'
Association (IEEMA), the Indian
switchgear market was worth around
Rs.9,000 crore as of 2010-11. The
switchgear segment accounts for about
15 per cent of the total electrical
equipment industry and estimates
indicate that the industry grew by 21
per cent in terms of volume in 2010-11.
On the other hand, a new report by
the IEEMA has revealed that the
growth of the Indian electrical
equipment industry has sharply
decelerated to 0.6 per cent in the
third quarter of FY12, after growing
at 13.8 per cent and 3.6 per cent in
Q1 and Q2 respectively. Growth in the
transformers, switchgear and
rotating machines sectors in Q3 has
turned negative, which implies
distinct slowdown in industrial capex
activities and slowdown in offtake by
users due to credit squeeze, high
interest costs, and the like. Imports
continue to rise for 765kV
transformers and reactors (mostly
through project imports), insulators,
LV switchgear and HV cables.
INDUSTRY OVERVIEW
Switchgear and control panels are
integral at every switching point in
power systems. The switchgear
industry in India manufactures the
entire range of circuit breakers from
bulk oil, minimum oil, air blast,
vacuum to sulphur hexafluoride
(SF6) as per standard specifications.
This sector manufactures the entire
voltage range from 240kV to 800kV.
Secondary equipment such as relays
or control gears used for various types of
fault protection, have made significant
advances due to the developments in the
field of electronics. Digital relays are
fast replacing conventional relays due
to technology advancement, compact
size & reliability. As per recent trends,
in addition to protection and control of power, monitoring and signaling have
become an integral part of switchgears.
With monitoring, the fault conditions can
be predicted whereas signaling helps one
to know the status of switch gears at
various locations.
Production figures for the latest
available three years are tabulated.
These figures, sourced from Secretariat
for Industrial Assistance (SIA), relate
to non-SSI units.
KEY INDUSTRY TRENDS
Current trends indicate a demand for
compact, small, low-weight equipment
with high quality, high reliability, low
maintenance and easy accessibility.
There has been a noticeable shift towards
upgraded technology amongst major
industry players of today. Indian
manufacturers are becomingly
increasingly competitive with respect to
their product designs, manufacturing and
testing facilities. Investments in R&D in
the electrical machinery industry are
amongst the largest in India's corporate
sector. Manufacturers today, such as us at
Rajiv Group, understand the importance
of a diversified product portfolio. The
increasing competitiveness in the
industry and constantly changing
consumer demands have lead to new and
upgraded versions of products being
launched into the market. Many players
are entering into strategic alliances and
tie-ups with technology suppliers to
upgrade capabilities.
TECHNOLOGY:
TRADITIONALLY LOW-KEY
The switchgear industry has
traditionally been low on technology,
but with changing times automation has
ushered in newer concepts such as soft
starters, intelligent relays, compact
intelligent switchgear and energyefficient
switchgear. The primary
technology factors are safety, efficiency
optimization and reliability.
Along with the changing times and
technology, Rajiv Group too has
evolved. It manufactures LT
switchboards with capacities of 415V,
3-phase, 50Hz, 4-wire & 6300A.
Additionally, Rajiv Group also
manufactures control & relay panels,
bus ducts, DG panels and much more.
Every modern industry needs
reliable electrical systems to reduce
production downtime as well as
improve efficiency. Control panels
manufactured by Rajiv Group
company, Riddhi Enterprise, are
made-to-order and designed in keeping
with exacting needs of industries for
maximum operational reliability and
safety. These control panels are
specially designed to incorporate the
complete range of switchgear provided
by Siemens, L&T, Schneider, GE, ABB,
C&S and other reputed global brands.
Furthermore, the control panels are
designed in such a manner so as to meet
diverse requirements under extreme
site conditions.
GROWTH OPPORTUNITIES
The two major markets for switchgears
are the government and the private sector.
The growth drivers for LV switchgears are
building segments, new industries and
infrastructure development. For the MV
segment, in addition to core sectors, the
distribution sector including programmes
like the Rajiv Gandhi Grameen
Vidyutikaran Yojana (RGGVY) and
Restructured Accelerated Power
Development & Reform Programme (RAPDRP)
will drive growth. While for HV
and extra-high voltage (EHV) segments,
growth stems from power generation and
transmission sectors.
India is emerging as an important
global supplier of goods and services.
Prerequisites for this growth are
continuous power supply and the
availability of quality electric equipment.
The increase in automation is the driving
force of the switchgear market. The trend
of end-user segments such as oil & gas,
petrochemicals, etc. consuming more
switchgear is a very positive factor.
To sum it up, the future holds great
promise for this industry. The current
scenario where capacity building in
industries is on an increase bodes well for
the electrical industry. The construction
of residential complexes, malls, IT parks,
hospitals, stadiums, etc. has created an
increase in demand for switchgear and
control panels too. The XII Plan period
(April 2012 to March 2017) is almost
here and throws huge opportunities for
growth with a foreseeable investment of
approximately $300 billion, together
with exports growth.
(The author is Chairman &
Managing Director, Rajiv Group)