Tuesday, October 23, 2018

Electrical gear companies clock 7-year high growth

Thursday, June 14, 2018, 18:16
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NEW DELHI: The electrical equipment industry in India posted a seven year high growth of 12.8% in 2017-18 driven by the government’s increased spending on rural and household electrification schemes besides programmes aimed at strengthening the transmission system. Data compiled by Indian Electrical and Electronics Manufacturers’ Association (IEEMA) shows a high growth in production of equipment like rotating machines, HT Motors, cables and meters.Growth was particularly stupendous at 25% in the third quarter and 14% in the fourth quarter, according to data. “Almost all sectors are in green after two years of dull period, mainly due to domestic demand. The high growth in Q3 and Q4 is also due to stabilised GST,” IEEMA president Shreegopal Kabra said.Production of all electric equipment, except for electric conductors, insulators and MCCBs, registered growth during the year. Although higher imports still plague the industry, policy changes and various initiatives launched by the government and industry are eventually showing signs of revival for the sector, the IEEMA said in a statement. Though the capacities of domestic electrical equipment manufacturers are still underutilised at 60-70%, the growth momentum is expected to be sustained since major chunk of transmission and distribution projects are likely to be ordered this fiscal, IEEMA director general Sunil Misra said.

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