· Even as Small and Medium Enterprises (SMEs) operating in electrical and electronic equipment industry in the country face high mortality rates, what with the industry witnessing negative growth, firms in Gujarat are, however, growing by 86 per cent.
· Only 15 per cent of the SMEs in this sector in the state have shut down in the past six years, while the same is 25 per cent nationally.
· The growth of the SME sector in Gujarat is 86 per cent, closely followed by Maharashtra at 24 per cent. The mortality rate of Gujarat SMEs in this sector was high before 2007 and was pegged between 20 and 25 per cent. After the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, was enacted and the service sector was included in the definition of MSMEs, shoutdown of SME units in the state has gone down. In the past two years, NSIC, through the Raw Material Assistance Scheme has pumped in Rs. 75 crore as assistance to companies in Gujarat," said P K Jha, Zonal General Manager of National Small Industries Corporation (NSIC), GoI (Government of India). He was speaking to mediapersons at the '5th Gujarat Manufacuring Show 2014'.
NSIC will soon start 'Consortia-Based Marketing Programme', where firms who manufacture one product can come together and manufacture products that can compete globally. These SMEs will manufacture products as per the quality tandards given by government agencies and we (NSIC) will procure the order of raw materials from global markets for the SME sector. We have already identified 26 of these industry clusters in Gujarat and will begin work on these soon," Jha added.
· At a time when under-utilisation of capacity has become a big issue for Indian electric equipment manfacturers, particularly with the trade deficit of this sector pegged at Rs. 29,127 crore; the Centre is all set to revise the free trade agreements (FTAs), with certain countries in order to promote the use of domestic equipment. India's imports in the sector stand at Rs. 58,354 crore and exports at Rs. 29,227 crore.
· K K Tiwari, Industrial Advisor, Minitry of Heavy Industries & Public Enterprises, GoI, said, "For the first time in the past 10 years, the industry has witnessed a negative growth of 7.8 per cent in 2012-13 and the rate of capacity utilisation is 70 per cent. The Mission 2022, launched by the government for this segment, envisages to reach an output of $100 billion (Rs. 6 lakh crore) in 2022 from $35 billion in 2011-12 by balancing exports and imports."
· Listing conversion of the latent demand into active demand, enhancing competitiveness, skill development and focus on exports as some of the key focus areas of the Mission 2022 announced by the Centre, Tiwari added, "While domestic as well as external demand and growth of infrastructure sector offer enormous potential to the industry, poor financial health of discoms, high AT & C losses, imports, delay in power projects due to problem in fuel linkages, land acquisition and environment clearances and trade-off between countries are some of the threats faced by the industry."
· The programme saw participation from industry stalwarts and senior officers from PSUs, including Sunil Parwani, GM, Marketing, Bharat Heavy Electricals Ltd, Pankaj Kumar M Shah, Chief Project Engineer, Mithi Virdi Project, Nuclear Power Corporation of India; Sapna Poti, Principal MIS & Monitoring, National Skill Development Corporation among others.
The steady growth of the national economy leads to an increasing demands for electric power in India and for an efficient power sector in a country of India’s size, a strong domestic electrical and industrial electronics equipment manufacturing base is essential.
Considering that the government plans to increase power generation capacity from 200 GW in 2012 to about 400 GW by 2022 with commensurate T&D capacity enhancement, Indian electrical equipment manufacturers have to be geared up to meet the current and future demand of the power and other sectors of the economy.
The Indian electrical equipment manufacturing industry comprises of two segments generation equipment (boilers, turbines, generators) and transmission & distribution (T&D) and allied equipment like transformers, cables, transmission lines, switchgears, capacitors, energy meters, instrument transformers, surge arrestors, stamping and lamination, insulators, insulating material, industrial electronics, indicating instruments, winding wires, etc. The industry is very heterogeneous, with a good mix of public sector enterprises, multinational companies, large companies and SME sector, including major foreign players either directly or through technical collaborations with domestic manufacturers.
Similarly, the electronics industry, which is currently growing at a brisk pace and is just contributing less than 1% of the global electronics industry, is pretty miniscule compared to International standards. Demand growth for information & communication technology & electronics (ICTE) hardware products has far outstripped the growth in domestic production resulting in unparalleled growth in imports. Presently about 60% of the demand is being met through imports. As per government and industry reports, imports of electronics is expected to surpass oil imports before 2020.
Gujarat Manufacturing Show 2014
In line with Mission Plan Document of Department of Heavy Industry on Indian Electrical Equipment Sector, Gujarat Manufacturing Show 2014, was organized as a two days of conference and exhibition on 19-20 September 2014 at Ahmedabad, focusing on implementing the national document at western region (Gujarat, Maharashtra, Madhya Pradesh, Rajasthan, etc) perspective.
This document focuses on impetus for Indian Electrical Equipment sector to commensurate the power generation capacity of current level of around 240 GW to 400 GW by the end of five year plan i.e.. by 2022.
However the key challenges to achieve the said vision are up gradation of technology to meet future requirements, enhance R&D expenditure by domestic companies, upgrade testing facilities, level playing field, review impediments to optimal working capital management, infrastructure constraints, technical barriers to exports, etc.
Hence, the objective of our effort would be:
· To disseminate the findings of the National agencies.
· To assist the industry to be aware of kind of capabilities to be developed, plan their product/process, technology up gradation to meet future requirements.
· To sensitize Industry as well as Government to prioritize the areas and invest in R&D, testing & certification, etc.
· To sensitize the stakeholders on the impediments in building globally competitive industry.
· To Showcase the great strides and progress made by the State of Gujarat in the Power generation & electrical equipment sector.
This concerted effort will give fillip to indigenous manufacturing of Electrical equipment’s by creating favorable ecosystem across the entire value chain.
Scope of Exhibits
· Power transmission & distribution equipment & technology.
· Power dispatching system (SCADA/EMS systems)
· Control & testing equipment & instrumentation
· Industrial automation
· Electrical Energy conversion, distribution & storage
o UPS technologies
o Rectifier/ Converter systems & equipment
o Power switches, load switches and busbars
o PCB Manufacturers
· Testing, measurement & control equipment
o Measurement & automation systems for power engineering
o Remote control systems
· Power Transmission & conduction
o Non insulated conductors
o Power cables & fittings
o Cable lying, storage & processing equipment
· Power electronics
o Batteries & switching regulator ICs
o Electromechanical & mechanical components
· Building electrical & Building system technology
o Fuses, safety switches, earthing materials
o Meter boards, series installation equipment, distribution systems
o Cables and lines
· Government delegates from Department of Heavy Industry, Ministry of power, etc.
· Power distribution companies
· Power generating companies
· Construction engineering companies
· Power plant contractors
· Industrial users from Aviation, Railways, etc.
· Related equipment manufacturers
· Research Institutes
· Allied associations & Academicians
· Infrastructure developers
· Testing agencies
You will get access to following Knowledge Resources by subscribing to the Digital
Library of this event.