Discussion on switchgear industry and its growth. As per IEEMA, the current size of the LV switchgear industry is ` 11,200 crore out of which the domestic switchgear market comprising of products such as Miniature Circuit Breakers (MCB), Residual Current Circuit Breakers (RCCB), and Distribution Boards (DB) account to ` 2,500 crores. MCB imports have increased by 44 per cent while the MCB exports have outpaced the imports with a staggering increase of 80 per cent over the last year, contributing to over ` 350 crores to the industry.
When asked about the performance of Indian switchgear market during the year 2015-16, experts have shared different views.
According to Rajesh Nandwani, Vice President and Business Unit Head-Switchgear, Anchor Electricals. “The domestic market has grown between 8-10 per cent. The second and third quarters of the year lacked momentum, however there is an increase in demand for the last quarter.”
Market outlook: Indian power sector is undergoing major reforms in generation, transmission and distribution. As the demand for the power distribution equipment would significantly increase post implementation of UDAY scheme for discoms, the financial year (i.e. FY17) is expected to be a very challenging year for the electrical equipment industry. More than 9 state governments have already signed MoU for this scheme which will be a major boost to the distribution segment. With the ‘Make In India’ movement the switchgear industry is expected to witness a huge growth. Nandwani expects that the industry to perform better than last year and change the trend to positive indication as the residential and commercial switchgear demand foresees a rise, while the ‘Make in India’ initiative may boost the industrial switchgear segment. He adds, “The LV switchgear market particularly the domestic market is expected to witness an increased demand as a result of the government’s ambitious plans that focus on housing and the impetus offered to overall infrastructural growth.”
Growth drivers: While the overall power sector will see transformation and capacity expansion, the demand for LV switchgear may rise with schemes such as UDAY (Ujjwal Discom Assurance Yojana), IPDS (Integrated Power Development Scheme) and DDUGJY (Deen Dayal Upadhyay Gram Jyoti Yojana) schemes. “With passing of the Real Estate Regulatory Bill and construction works being expedited to be completed within stipulated time-lines, we expect the domestic market to grow at a fast pace. It will keep the sustained growth rate of 10 per cent,” states Nandwani.