Major growth in Indian electrical equipment sector

An example of switchgear.

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The Indian electrical equipment industry grew 11.25% in 2009-10, after only achieving 2.73% growth last year, the lowest in five years, according to the Indian Electrical Equipment Manufacturers’ Association (IEEMA). The industry is witnessing a turnaround due to an increase in demand from sectors like power, textile, water, steel and cement.

The fourth quarter of 2009-10 saw a growth of 30% and above in sectors including rotating machines, switchgear and cables, following an economic recovery in real estate and infrastructure. The growth figures were in terms of volume, and the financial results may differ from sector to sector depending on the order book, expected business, raw material prices and margins, said IEEMA.

The highest growth of 14.54% was reported by the switchgear sector, though high-tension switchgear recorded a low growth of 5.78%. A growth rate of 56% was experienced in the extra high voltage (above 245 kV) segment. Demand for medium (up to 36KV) and high-voltage breakers (36-245KV) declined by 4% and 23% respectively.

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Power contractors, miniature circuit breakers and other low-voltage circuit breakers registered more than 20% growth due to increased off-take from building and railway sector. The cable industry showed an overall growth of 12%, mainly due to a 14.54% growth in the power cable segment, due to higher demand from industrial projects.

Industry sources expect utility demand to rise, especially for high voltage (HV) and extra high voltage (EHV) cables. The building wire segment has also seen an overall improvement in demand from the construction sector. The transformer sector grew 9%, led by power transformers at 17.16%.

IEEMA director general Sunil More stated at a press conference in Mumbai: “This demand growth could likely see a twofold increase in the next two to three years,” adding that the increase was fuelled by increased demand in the country’s housing and construction sectors.