Electrical Equipment Sector in India

Posted By Team MCG On

The electrical energy sector in India has witnessed rapid progress over the years with increase in power generation capacity as well as expansion of transmission and distribution lines. The installed power generation capacity increased from 16,600 MW in 1974 to 223,000 MW in 2013. Thermal sources such as coal, lignite, gas and diesel accounted for about 68% of the total power generation in India in 2013. The per capita consumption of power in India has increased from 126 KWh in 1974 to 917 KWh in 2013 witnessing an annual growth of 5.2% during the period. Despite these developments, the country has been facing power shortages in some parts of the country.

The electrical equipment industry in India plays a key role in the Indian economy, providing direct employment to more than half a million persons and indirect employment to over a million. In the recent years, the electrical equipment sector has witnessed sluggish growth owing to the decline in domestic demand and increase in imported products.

Electrical equipment is broadly classified as generation equipment, transmission & distribution (T&D) equipment and other allied equipment. Electrical equipment market in India was valued at INR 1,300 billion in 2012-13. Transmission & distribution equipment accounted for about 53%.

Electrical equipment: Break-up by Segment, 2012-13 (%)
Market size: INR 1,300 billion

Electrical Equipment sectorin India

Source: IEEMA / MCG research

The Indian electrical equipment industry is highly diverse and manufactures a wide range of high and low technology products. The industry comprises large, small and medium enterprises as well as foreign players who have a direct presence or through collaboration with domestic players.

The annual installed capacity for Boilers, turbines and generators (BTG) equipment segment was estimated at 25 GW in 2011-12. Some generation equipment requiring advanced or critical technology is also imported. Boilers and turbines are manufactured locally and are also imported. Apart from the state owned, Bharat Heavy Electricals, there are number of Indian and international firms present in India in the BTG segment. Diesel generating sets are in significant demand owing to the prevailing power shortages in the country. India is one among the major markets for portable gensets in the 0.5 kVA to 5.5 kVA range.

The size of electrical T&D equipment segment was valued at around INR 690 billion in 2012-13. Cables & conductors, transformers, switchgears & control gears are some of the product groups in the T&D segment. The T&D sector has a large a number of players in the MSME sector. There are around 400 transformers and 160 switchgear manufacturers in the country.