Amid global slowdown, electrical equipment industry shows growth

New Delhi, June 21 (KNN) In the wake of global slowdown, the electrical and industrial electronics industry has witnessed a 4.85% growth in Q4 of FY 2015-16. The growth is mainly driven by domestic demand although there has been increase in exports for Transformers, Cables, Conductors, MCBs, Meters, Insulators etc, revealed a data compiled by IEEMA.

Policy changes and various initiatives undertaken by the industry and government are eventually showing signs of revival for the sector. The data is compiled by the Indian Electrical and Electronics Manufacturers’ Association (IEEMA), the apex Indian industry association of manufacturers of electrical, industrial electronics and allied equipment. The production and sales data is collected from its member organisations, which represent 90 percent of the entire sector.

Babu Babel President, IEEMA said, “Liquidity in the system seems to be increasing, resulting in release of orders; however there is need to further boost funding as large number of projects in transmission need to materialize. The decline in order book position of transformers indicates this. The industry still is cautiously optimistic for next at least 2 quarters based on the enquiries generated. Industry is also eager for mergers & acquisitions for technology, upgradation and to evolve a differentiating factor in the fierce competition.”

Sunil Misra, Director General, IEEMA is of the view that “ Q4 results disappoint the industry with just 4.85% growth over same period in the previous year. The Growth can be seen in sectors like Conductor, Transformer, Meters etc while there is moderate growth in Switchgear, RM, Cable etc. (KNN/ AR)