The Indian electrical equipment manufacturing industry registered a growth of 16.6% during Q1 of FY 2011-2012, almost the same figure as Q1 of 2010-2011, which stood at 16.73%. Indian Electrical and Electronics Manufacturers’ Association (IEEMA) bases these growth figures on production and sales data collected from its member organisations, which represent 95% of the entire sector.
This is good news for the sub-contintent's electrical supply industry, which will be putting its products and services on display in Mumbai, 18-22 January, at its premier trade exhibition Elecrama, claimed to be the world's largest one-stop-shop for power transmission and distribution, as well as electrical and industrial electronics.
At a recent meeting the association's president, Vimal Mahendru, said that the industry was passing through a challenging phase. On the one hand there was the huge opportunity presented by the mandated ‘Electricity for All by 2012’ initiative, with its potential for US$600 billion (Rs 27,00,000 crore) worth of business opportunities up for grabs in transforming the power infrastructure, but at the same time the challenge of meeting this goal within this financial year was becoming a daunting task. While the industry had the necessary production capacity, it seemed that procedural delays in releasing timely tenders and contracts, and runaway cost escalation due to prices of commodities were holding back electrification of the country. With Chinese and Korean companies gaining a strong presence in India, its industry was facing a huge challenge, in spite of the promising opportunities.
Mr Mahendru added “I am optimistic that the government is cognisant of these challenges and is keen to pave the way for exponential growth in the sector, in spite of the recent adversities. The fact that the Electrical Equipment Industry Mission Plan 2012-2022 is being inked, and the fact that the Planning Commission is seeking active participation of the private sector in formulation of the 12th Plan, including IEEMA, augurs well and indicates the seriousness with which the government is looking at ensuring success”.
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