State of Industry — Source IEEMA (Indian Electrical and Electronics Manufacturers Association) Division Switch gear — Low Voltage Low voltage switchgear is one of the well-established industries in India. The present size of the LV Switchgear industry including domestic modular ‘switches is estimated at around INR. 11,050 Crore. “This industry covers Low Voltage switchgear products such as Alr Circuit Breakers, Moulded Case Circuit Breakers, Miniature Circuit Breakers, Residual current devices, Fuse gear products, H.R.C fuses, Thermal overload and protection relays, Contactors, Starters, Distribution boards and Factory- built assemblies. The industry caters to end-user segments such as manufacturing industries, buildings — residential and commercial, agriculture, infrastructure entities, utilities and OEMs. Weight of LV switchgear industry in entire electrical industry is about 10.1%. Increasing imports is a matter of concern. A redeeming aspect of the Indian LV switchgear industry has been its growing competitive strength in a few products like miniature circuit breakers, earth leakage circuit breakers, HRC fuses and air circult breakers where its exports are significantly higher than the imports. Division Switch gear - MV/HV Voltage The Indian MV&HV Switchgear industry is a matured, well established industry using contemporary technology to manufacture a large variety of switchgear and control gear ranging from 6.6 KV to 1200 KV equipment. The MV&HV switchgear segment is primarily in the organized sector. However, equipment from 6.6KV to 11KV is increasingly being manufactured by small scale units as there is not much technology / capex required at this level and most of such manufacturers are mere assemblers sourcing components at cheaper rates from China. This segment is therefore witnessing cut throat competition eroding. both top-line and bottom-line. This also impacts quality and reliability of such equipment. IEMA Is striving to tighten to QR norms for sourcing such equipment based on parameters like quality, reliability, efficiency etc. ‘This industry segment is likely to face consolidation if anticipated demand does not materialize quickly. The industry increased its capacity over the last several years in view of announced power addition programme which did not materialize fully leading to overcapacity and intense competition, The L1 procurement system followed by Government PSUs also does not help. ‘The precarious financial conditions of the DISCOMs are another unwanted complication impacting the entire electrical industry including switchgear. The Government is actively looking at these issues and has come out with various programmes including financial assistance on a matching basis from the State and the rating system for enabling further loans to such entities. However, it may take a very long time to put all this in practice as electricity is a concurrent subject and every State has its own priorities. The DISCOMs are expected to focus on the quality of power supply to the consumers which includes the safe & continuous power supply - this will Increase the demand of strengthening the distribution network whereby the requirement of s\ will go up. DISCOMSs also need to focus on the safety aspects which may also need to increase the requirement of switchgear & associated items. Hovells, LET, CG POW » Schnevelel, Legrand, FE TE D/mchia chs Electric ABB, Stemens, Hel €lechs ,on Index for Electrical Equipment industry of FY17-18 over FY16-17 3.0 Overall ao Growth Index 12.2 11.3 142.0 12.8 6.7 =) 6.4 a = =a nm -3.2 -2.7 2 &S S&S 3s = 5 S 5 = = 2 3 = a ee oes 2 ye eae & ee. 3 Ss FYB. z > Almost all sectors are in green after 2 years = | ude 6 | of dull period; mainly due to domestic | 8 2 | a demand High growth in Q3 & Q4 after stabilized GST 1 Decline in Conductors and Insulator dueto 2718 (MM 4.28 delay in order finalizations by major buyers 4 2 > Increase in imports of Motors and Cables aris i 9.71 iSSiTiG taking pie of domestic demand from your link to electricity VV™ Rotating Machines Sector wise break up of weightages mLV Switchgear mMV_HV Switchgear m Cables m Power Trf. ™ Dist. Trf. Capacitors = Energy Meters mT.LT. m Conductors = Insulator @ Inst. Trt. = Surge Arrester 24.2 17.5 12.2 Contactors 10.0 ‘i | ld Rotating Machines a & os * Sector wise break-up of Growth Index iGeMG your link to electricity MV_HV Switchear 12.0 67 33 = MV Switchgear HV Switchgear MV_HV switchgear LV Switchear 60 49 52 58 uTcieuit RCD MCB S/F RE/S ww “0.8 Breakers Units Switches 27.7 Cables Power Power Control Cables ‘Cables: LV Cables: HV Cables