Electrical Equipment Sector maintains growth at 16.6% during Q1 2011-2012 : IEEMA

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150

INVC,,

Mumbai,,

The Indian electrical equipment manufacturing industry registered a growth of 16.6% during Q1 of FY 2011-2012, maintaining almost the same quarter of 2010-2011. which stood at 16.73%.  Indian Electrical and Electronics Manufacturers’ Association (IEEMA), the apex Indian industry association of manufacturers of electrical, industrial electronics and allied equipment, has based these growth figures, after rigorous analysis, on the production and sales data collected from its member organisations, which represent 95% of the entire sector.

 

Mr. Vimal Mahendru , President , IEEMA said that the the industry was passing through a challenging phase.  On one hand there was the huge opportunity presented by the mandated ‘Electricity for All by 2012’, and yet, the challenge of meeting this inspiring goal within the balance time of this financial year was becoming a daunting task.  While the electrical equipment industry was geared with production capacity, it seemed that procedural delays in releasing timely tenders and contracts, and runaway cost escalation due to price of commodity inputs were holding back electrification of the country.   With China and Korea gaining a strong presence, the industry was looking to a huge challenge, in spite of the promising opportunities in front of it.  Mr Mahendru also added that, “I am optimistic that the government is cognizant 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”

 

Mr. Ramesh Chandak Vice-President, IEEMA said , there has been a decrease in growth during the first quarter of this year, barring Rotating machines, Cables & Capacitors. This is a matter of concern for IEEMA. This may be due to the rising interest cost and liquidity position. We expect the situation to improve in the coming quarters.

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