The electrical machinery sector in India is expected to see significant growth over the coming years. By 2022, India's generation equipment industry is projected to increase to USD27.5 billion from USD5.9 billion in 2015. Similarly, the transmission and distribution equipment market is estimated to expand to USD75 billion by 2022 from USD15.1 billion in 2015. Key factors driving this growth include rising power demand in India, ongoing capacity additions, and government initiatives to boost rural electrification. Major players in the sector such as Larsen & Toubro, Bharat Heavy Electricals Ltd, Siemens and ABB are well positioned to benefit from opportunities in the growing Indian market.
The presentations aims to explain the outlook for Solar PV for 2017.
The key trend is the falling demand from China which would lead to an overcapacity in the module manufacturing space eventually leading to a lower pricing power.
The presentation highlights the following :
a) Current status of Renewable Energy in India
b) The issue of duck curve due to high volume of solar energy
c) Demand increase due to Electric Vehicle (EV) will lead to more demand for Renewable Energy
d) Global & Indian Market Scenario for Electric Vehicle (EV)
e) Recommendation of Niti Aayog for development of Electric Vehicle (EV) market in India
The presentations aims to explain the outlook for Solar PV for 2017.
The key trend is the falling demand from China which would lead to an overcapacity in the module manufacturing space eventually leading to a lower pricing power.
The presentation highlights the following :
a) Current status of Renewable Energy in India
b) The issue of duck curve due to high volume of solar energy
c) Demand increase due to Electric Vehicle (EV) will lead to more demand for Renewable Energy
d) Global & Indian Market Scenario for Electric Vehicle (EV)
e) Recommendation of Niti Aayog for development of Electric Vehicle (EV) market in India
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
3. 33JANUARY 2017 For updated information, please visit www.ibef.org
EXECUTIVE SUMMARY … (1/2)
Source: Central Electrical Authority, Electrical Monitor, Government of India, Ministry of Heavy Industries, TechSci Research
Notes: T&D - Transmission & Distribution, MW: Megawatt
By 2022, installed power
capacity in India is expected to
reach 350 GW from 305.6 GW
as on 31st August 2016, on
account of increasing
industrialisation and economic
development
Installed capacity set to
increase
By 2022, India’s generation
equipment industry is expected
to increase to USD27.5 billion
from USD5.9 billion in 2015
Demand for generation
equipment on the rise
By 2022, the T&D equipment
market in India is expected to
expand to USD75 billion from
USD15.1 billion in 2015
Increasing power demand to
drive T&D equipment market
ELECTRICAL MACHINERY
CAGR: 24.6%
CAGR: 25.74%
CAGR: 2.26%
15.1
75
FY15 FY22
5.9
27.5
FY15 FY22
In USD billion
In USD billion
In GW
306
350
FY16 FY22F
4. 44JANUARY 2017 For updated information, please visit www.ibef.org
EXECUTIVE SUMMARY … (2/2)
Source: Government of India, Ministry of Heavy Industries, CEA, TechSci Research
Note: MT- Million Tonnes
Demand for generators is
expected to increase to
USD6.7 billion by 2022 from
USD1.2 billion in FY15
Power backup equipment to
witness a 5-fold rise by 2022
Demand for coal is expected to
increase to 1,180 million
tonnes by 2022 from 787.03
million tonnes in FY15
The overall production of coal
for FY16 was estimated at
700 MT
Coal demand to remain high
ELECTRICAL MACHINERY
CAGR: 27.2%
CAGR: 6.0%
1.2
6.7
FY15 FY22
In USD Billion
787.03
1180.00
FY15 FY22
In MT
6. 66JANUARY 2017
Growing demand
For updated information, please visit www.ibef.org
ADVANTAGE INDIA
Source: Government of India, Ministry of Heavy Industries, Ujwal Bharat, DIPP, TechSci Research
Notes: FDI - Foreign Direct Investment, FY - Indian Financial Year (April - March), USD - US dollar, EPCG - Export Promotion Capital Goods Scheme,
EHTP - Electronic Hardware Technology Park, SEZ - Special Economic Zone, CAGR - Compound Annual Growth Rate, E - Estimated
2015
Market
Size:
USD21
billion
2022E
Market
Size:
USD100
billion
Advantage
India
ELECTRICAL MACHINERY
Growing demand
• Power demand is estimated to reach
350,000 MW by 2022
• Government programmes, aimed at
providing electricity to over 100,000
rural areas and 22.6 million households
below poverty line, would also boost
demand for power
• Per capita consumption crossed 1000
units in 2014-15 as compared to 957 in
2013-14
Attractive opportunities
• Planned power capacity addition of around
188,500 MW by 2022 would provide
significant opportunities. Replacement or
brownfield expansion could provide
significant opportunities as well
• In FY17, peak demand for electricity was
recorded at about 153 GW
• Additional deduction of 15% of the cost of
new plant and machinery, exceeding USD
3.85 million that is acquired and installed
during any previous year ending on
31.3.2017.
Policy support
• Electrical machinery sector is de-licensed;
100 per cent FDI is permitted
• Significant number of SEZs have been
approved for the sector
• Implementation of National Electricity
Policy (NEP)
Higher investments
• The sector has witnessed increasing
entry of global players through the JV
route
• Existing players are planning huge
capacity expansion over the next few
years
• Cumulative FDI of USD5.76 billion
(around 1.86 per cent of total FDI
inflows) was made into the sector
between April 2000 to September 2016
8. 88JANUARY 2017 For updated information, please visit www.ibef.org
ELECTRICAL MACHINERY HAS THREE MAJOR SEGMENTS
ELECTRICAL MACHINERY
Electrical machinery
Generation
machinery
Transmission
machinery
Distribution
machinery
Boilers
Turbines
Generators
Transformers
Switch gears
Control gears
9. 99JANUARY 2017 For updated information, please visit www.ibef.org
INDIAN ELECTRICAL MACHINERY
India’s T&D equipment industry (USD billion)
Source: Government of India, TechSci Research
Note: CAGR - Compound Annual Growth Rate
ckm - circuit kilometres, MVA – Mega Volt Amp (1) – Data as of April-June 2016
The T&D equipment industry was worth USD15.1 billion in FY15
The market expanded at a CAGR of 7.3 per cent over FY07–15
Cables (35.8%), Switchgear (15.9%), Boilers (14.6%) and Transformer (11.3%) account for a large chunk of the revenue
In FY17(1) 5,743 ckm of transmission lines have been commissioned, accounting for 24.6% of the annual target of
commissioning 23,384 ckm of transmission lines.
Increase in the transformation capacity is estimated at 16,635 MVA in FY17(1), constituting 36.8 % of the target of 45,188 set for
2016-17
Share of major electrical equipment (FY15)
ELECTRICAL MACHINERY
35.8%
15.9%
14.6%
11.3%
10.9%
7.0%
4.4%
Cables
Switchgear
Boilers
Transformer
Transmission Lines
Rotating Machine
Others
8.60
11.40
10.20
11.00
13.20 13.40
12.70
15.10
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY15
10. 1010JANUARY 2017 For updated information, please visit www.ibef.org
Market size of generation machinery (USD billion)
Source: Government of India, Ministry of Heavy Industries, Draft
Indian Electrical Equipment Industry Mission Plan (2012-2022),
TechSci Research
Note: CAGR - Compound Annual Growth Rate
E: Estimated
The Generation Equipment market is expected to expand at
a CAGR of 24.6 per cent over FY15–22
BTG MARKET IS EXPERIENCING STRONG GROWTH IN THE COUNTRY … (1/2)
ELECTRICAL MACHINERY
CAGR: 24.6%
5.9
12.4
27.5
FY15 FY17E FY22E
11. 1111JANUARY 2017 For updated information, please visit www.ibef.org
Generation machinery market break-up (FY15)
Source: Draft Indian Electrical Equipment Industry Mission Plan (2012-2022),
TechSci Research
Note: As per the latest data available
EPC – Engineering, Procurement and Construction
BTG – Boilers, Turbines, Generators
Boilers is the major segment, accounting for 66.71 per cent
of the total industry in FY15
Turbines accounted for 17.32 per cent, whereas generators
made up the remaining 15.97 per cent
As of November 12, 2016, Bharat Heavy Electricals Ltd
(BHEL) awarded a contract worth USD41.24 million to
General Electric Company (GE), for supplying two units of
800MW supercritical boilers for Telangana Super Thermal
Power Project, Phase-I
In addition, Reliance Infrastructure Ltd won an EPC order
worth USD561.41 million from NLC India Ltd for setting up
two units of 250MW lignite-based thermal power projects in
Rajasthan. The project includes contract for supplying
boiler, turbines, generators and balance of plant. The
project is slated for completion by 2020
These projects are anticipated to increase the demand of
BTG segment over next few years
BTG MARKET IS EXPERIENCING STRONG GROWTH IN THE COUNTRY … (2/2)
ELECTRICAL MACHINERY
66.71%
17.32%
15.97%
Boilers
Turbines
Generators
12. 1212JANUARY 2017 For updated information, please visit www.ibef.org
OTHER MAJOR SEGMENTS – TRANSMISSION AND DISTRIBUTION MACHINERY … (1/2)
Production of transformers (million KVA)
Source: Department of Heavy Industry Annual report, Draft Indian Electrical Equipment Industry Mission
Plan (2012-2022), SIA, TechSci Research
Notes: HVDC is High Voltage Direct Current, KVA - Kilo Volt Ampere, E: Estimated
As per the latest data available during FY15–22, the size of transformers industry is expected to expand at a CAGR of 30.7
per cent to USD11.1 billion
Domestic transformer industry has the capability to manufacture the whole range of power and distribution transformers,
including transformers used for HVDC transmission up to 500 KV
Transformers market size (USD billion)
ELECTRICAL MACHINERY
CAGR: 30.7%
221
202
209
186
FY12 FY13 FY14 FY15
1.7 1.9
5.9
11.1
FY15 FY16 FY17E FY22F
13. 1313JANUARY 2017 For updated information, please visit www.ibef.org
OTHER MAJOR SEGMENTS – TRANSMISSION AND DISTRIBUTION MACHINERY … (2/2)
Source: Department of Heavy Industry Annual Report, TechSci Research
Note: E-Estimates
During FY15–22, the size of switch & control gears industry is expected to expand at a CAGR of 19.2 per cent to USD8.2
billion
The switch gear industry in India manufactures the entire voltage range from 240 KV to 800 KV
In May 2016, transmission of 1200 KV was started through National Test station at Bina (Madhya Pradesh)
Significant advances have been made in control gears due to major developments in the field of technology
Market size of switch & control gears (USD billion)
ELECTRICAL MACHINERY
CAGR: 19.2%
2.4
4.4
8.2
FY15 FY17E FY22E
14. 1414JANUARY 2017 For updated information, please visit www.ibef.org
Exports of electrical machinery (USD billion)
Source: Engineering Exports Promotion Council ( EEPC) India
Note: Export data Includes - Boiler & Parts, Electric Power Equipments
& Parts, Electric Wires & Cables and Transmission Line Towers & Parts
FY16 (1):April to September 2015
Exports of electrical machinery rose to USD5.3 billion in
FY15 from USD4.8 billion in FY14 with a CAGR of 2.02
between 2009-15. As on September ’15, total exports in
electrical machinery stood at USD3.8 billion.
Electrical equipment industry’s production for FY15 is
estimated at USD19.55 billion
Boilers & parts and electrical wires and cables were the
primary drivers of the increase in exports
Indian manufacturers with capacity and advanced
technology in industry export a wide array of equipment,
including transformers and cables
ELECTRICAL MACHINERY EXPORTS ON A RISE … (1/2)
ELECTRICAL MACHINERY
4.7
3.9
4.1
4.7
4.9 4.8
5.3
3.8
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16⁽¹⁾
15. 1515JANUARY 2017 For updated information, please visit www.ibef.org
Break-up of exports of electrical machinery and
related items by segment (FY14)
Source: Engineering Exports Promotion Council (EEPC) India,
TechSci Research
Exports of electrical power equipment & parts worth USD2.5
billion in FY14 accounted for the largest share of electrical
machinery exports
Exports of electric wires & cables worth USD659.4 million
accounted for 17.0 per cent of electrical machinery exports
Exports of boilers & parts and transmission line towers &
parts were worth USD579.3 million and USD234.9 million,
respectively
ELECTRICAL MACHINERY EXPORTS ON A RISE … (2/2)
ELECTRICAL MACHINERY
63%
17%
14%
6%
Electric power
equipment & parts
Electric Wires &
cables
Boilers & Parts
Transmission line
towers & parts
16. 1616JANUARY 2017 For updated information, please visit www.ibef.org
Upgrading technology
• Industry players are upgrading their transmission capacities to the next higher voltage
system of 765 kilovolts (KV) and are gearing up to supply transformers and related
equipment of this class
Increasing R&D
expenditure
• Indian manufacturers are becoming more competitive with respect to their product
designs, manufacturing and testing facilities
• Investments in Research & Development (R&D) in the electrical machinery industry are
among the largest in India’s corporate sector
Diversifying product
portfolio
• Increasing competition in the industry and changing consumer demands have led to new
versions of products being launched in the market
• Players are entering into strategic alliances and tie-ups with technology suppliers to
upgrade capabilities
Source: Department of Heavy Industries Annual Report, TechSci Research
NOTABLE TRENDS IN THE ELECTRICAL MACHINERY SECTOR
ELECTRICAL MACHINERY
Adoption of super-
critical technology
• The Government of India is encouraging the adoption of supercritical technology for
thermal power plants due to its efficiency and reduced emissions
• During the 12th Five Year Plan, 60 per cent of the total additional power is expected to be
generated using supercritical technology
17. 1717JANUARY 2017 For updated information, please visit www.ibef.org
Source: Company Annual Reports, TechSci Research
Note: (1) Revenue for Half Year Ended (6 months)
KEY PLAYERS
ELECTRICAL MACHINERY
Company Revenues (FY16) Products
Larsen & Toubro USD15.48 billion Engineering & Construction, Cement, Electrical &
Electronics
Bharat Heavy Electricals Ltd USD3.95 billion Power Generation, Transmission, Transportation
Siemens India Ltd(1) USD1.7 billion
Power Generation and Distribution equipment,
Transportation Systems, Communication and
Healthcare Products
ABB India Ltd(1) USD0.6 billion Transformers, Switch Gears, Control Gears
Crompton Greaves Ltd USD0.81 billion Power Generation and Transmission Equipment
18. 1818JANUARY 2017 For updated information, please visit www.ibef.org
Source: TechSci Research
KEY ELECTRICAL MANUFACTURING PLANTS ACROSS INDIA
ELECTRICAL MACHINERY
WEST: Maharashtra and
Gujarat host manufacturing
units for major players
Central: Madhya Pradesh
hosts manufacturing units
for Crompton Greaves and
BHEL
SOUTH: Tamil Nadu and
Karnataka are hubs for
electrical manufacturing in
South India
NORTH: Delhi, Uttarakhand and
Haryana are the main hubs for
electrical manufacturing in North
India
Major electrical manufacturing plant
20. 2020JANUARY 2017 For updated information, please visit www.ibef.org
PORTER FIVE FORCES ANALYSIS
ELECTRICAL MACHINERY
Competitive Rivalry
• With a small number of firms in the high-end equipment market,
competition is moderate in the sector
• Large players provide complete solutions
• Government plans to increase investment in power, rivalry is expected
to increase
Threat of New Entrants Substitute Products
Bargaining Power of Suppliers Bargaining Power of Customers
• Threat is low, because of the
capital intensive nature of the
industry
• Presence of big players, blocks
entry of new players
• Bargaining power of suppliers is
low
• Suppliers (steel, aluminium)
tend to have longer term
contracts with the companies
• Bargaining power is medium,
following high price sensitivity
• Buyers are limited and majorly
government agencies, which
lend higher negotiating power
• Threat from substitutes is low
• Other substitutes such as solar
and wind plants are less
developed compared to
electrical transformers
Competitive
Rivalry
(Medium)
Threat of New
Entrants
(Low)
Substitute
Products
(Low)
Bargaining
Power of
Customers
(Medium)
Bargaining
Power of
Suppliers
(Low)
22. 2222JANUARY 2017
STRATEGIES ADOPTED
ELECTRICAL MACHINERY
Source: Draft Indian Electrical Equipment Industry Mission Plan (2012-2022), TechSci Research
• High voltage technology is being developed in the electrical equipment industry, for
economical power transmission
• Firms are diversifying into nuclear reactor business, as government wants to increase its
nuclear power base
• India plans to increase investment in infrastructure (including electricity), as it lags behind
other countries
• With more capacity addition in power sector, demand for electrical machinery would rise,
prompting the companies to increase their production capacity
• Government is helping companies enhance the level of research to match the best in the
world
• Government has relieved custom duties on some equipment
• Companies, too, are enhancing their R&D departments to take advantage of the situation
• Skill upgradation is necessary as firms need to have the desired talent pool
• The government plans to set up the Electrical Equipment Skill Development Council
(EESDC) which would focus on identifying critical manufacturing skills required for the
electrical machinery industry
• It is enhancing export incentives by removing export barriers
New technologies
Capacity addition
Promotion of R&D
Skill upgradation &
incentives
For updated information, please visit www.ibef.org
24. 2424JANUARY 2017
GROWTH DRIVERS OF ELECTRICAL MACHINERY SECTOR
For updated information, please visit www.ibef.org
Growth
drivers
Demand-side
drivers
Investment
Policy
• De-licensing of power
• Reduction in Tariff and
Customs
• Hike in duty on foreign
products
• Easy fuel linkages and
faster regulatory
clearance for power
projects
• Entry of global majors
through joint ventures
• Increasing FDI inflow
• Easy credit and subsidised
loans to power companies
• Rapid increasing
infrastructure investment
and industrial production
• Capacity addition for power
generation
• Rise in demand for backup
equipment
• Industrialisation leading to demand
for boilers and turbines
• Rising business opportunities with
expanding nuclear capacity
Source: TechSci Research
ELECTRICAL MACHINERY
25. 2525JANUARY 2017 For updated information, please visit www.ibef.org
Energy requirement (billion units)
Source: CEA, TechSci Research
Note: CEA - Central Electrical Authority
During FY07-FY16, India’s energy requirement grew at a
CAGR of 5.5 per cent , reaching to 1,114 billion units in
FY16
The rising demand for energy has led to increasing capacity
addition for power generation
During FY16, energy requirement in India stood at 1,114
billion units
INCREASING POWER DEMAND LEADING TO CAPACITY AUGMENTATION
ELECTRICAL MACHINERY
CAGR: 5.5%
691
739
777
831 862
937
998 1002
1069
1114
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
26. 2626JANUARY 2017 For updated information, please visit www.ibef.org
Capacity addition for power generation in the
recent Five-Year Plans (‘000 MW)
Source: Ministry of Power , TechSci Research, Central
Electricity Authority
Note: RE – Revised Estimates
Increasing investments in capacity has resulted in rising
demand for power generation and transmission equipment
The increase in capacity during the 12th Five-Year Plan
(FY08–13) upto January, 2016 stood at 74535.72 MW by
the end of 12th Five-Year Plan against target of 88,537 MW
In FY16, a target of producing 1,098 billion units of power
was set by the government
Installed capacity for power generation in India, as on
August 31, 2016, was estimated to be 305,554.25 MW.
As a result of the government's initiatives to increase power
generation and transmission, the electrical machinery sector
is expected to witness new demand for electrical machinery
of value around USD 15.28 billion by 2020.
CAPACITY AUGMENTATION RESULTING IN INCREASING DEMAND FOR ELECTRICAL MACHINERY
ELECTRICAL MACHINERY
8.1 12.1
17.1
22.3
45.3
115
101
FY90 FY97 FY02 FY07 FY12 FY17RE FY22RE
During FY17, transmission projects worth USD 7.47
billion have been proposed for bidding
27. 2727JANUARY 2017 For updated information, please visit www.ibef.org
De-licensing
• The electrical machinery industry has been de-licensed; 100% FDI is allowed in the sector
• This has facilitated the entry of global majors into the electrical machinery industry in India
Tariffs & custom duties
• Government has removed tariff protection on capital goods
• Government has lowered custom duties on a range of equipments
• Relatively lower custom duties; 5.0% for power generation equipment and 7.5% for T&D
Initiatives to increase
power generation
• Planned capacity addition of 115 GW in the 12th Five-Year Plan. The government is
targeting to provide 24/7 power by 2022.
• Through the Accelerated Power Development Reform Programme, the government plans
to provide reliable, affordable and high-quality power to all
Source: Ministry of Power, TechSci Research
FAVOURABLE POLICIES HAVE AIDED THE SECTOR
ELECTRICAL MACHINERY
FDI Policy • 100% FDI has been allowed under the automatic route in the electrical machinery sector
SEZ
• The government has approved fifteen SEZs for the engineering sector across the country;
electrical machinery is a part of the sector. As of May 10, 2016, thirteen exporting SEZs
are operational
• Delhi Mumbai Industrial Corridor being developed across seven states could boost the
engineering sector
28. 2828JANUARY 2017 For updated information, please visit www.ibef.org
Vision statement
• To make India the country of choice for the production of electrical equipment and reach
an output of USD100 billion by balancing exports and imports
Focus on industry
competitiveness
• To focus on technology and R&D and bring it on par with global benchmark, the
government has lowered customs duties on a range of equipment
Identify skills to support
industry’s requirement
• The government plans to set up the Electrical Equipment Skill Development Council
(EESDC) which would focus on identifying critical manufacturing skills required for the
electrical machinery industry
Source: Ministry of Power, TechSci Research
VISION 2022 FOR INDIAN ELECTRICAL EQUIPMENT INDUSTRY
ELECTRICAL MACHINERY
Develop and strengthen
support infrastructure
• The government plans to establish electrical equipment industry clusters
• It plans to take steps to enhance product-testing infrastructure in the country
Increase share in export
market
• The government plans to provide credit support to economically less-developed export
markets
• It aims to create a dedicated fund for EXIM bank to support exporters in the electrical
machinery industry
National Electricity
Policy (NEP)
• The government aims to achieve per capita electricity consumption of 1,000 kWh through
effective implementation of stringent norms, under NEP.
29. 2929JANUARY 2017 For updated information, please visit www.ibef.org
Source: SEZ India, TechSci Research
SPECIAL ECONOMIC ZONES (SEZs) WILL PROMOTE EXPORTS … (1/2)
ELECTRICAL MACHINERY
Developer Location Products
M/s Essar Hazira SEZ Hazira, Gujarat Engineering
Gujarat Industrial Development Corporation Ltd (GIDC) Gandhinagar, Gujarat Electronic products
N.G. Realty Pvt Ltd Ahmedabad, Gujarat Engineering
E. Complex Pvt Ltd Amreli, Gujarat Engineering
Dishman Infrastructure Ltd Ahmedabad, Gujarat Engineering
Ansal Properties and Infrastructure Ltd Sonepat, Haryana Engineering
Raheja Haryana SEZ Developers Pvt Ltd Gurgaon, Haryana Engineering
Ansal Kamdhenu Engineering SEZ Ltd Sonepat, Haryana Engineering
Karnataka Industrial Areas Development Board Shimoga, Karnataka Engineering
Suzlon Infrastructure Ltd Mangalore, Karnataka Port-based for high-tech engineering products
Maharashtra Industrial Development Corporation (MIDC) Satara, Maharashtra Engineering
Township Developers India Pvt Ltd Pune, Maharashtra Engineering
Vividha Infrastructure Pvt Ltd Patiala, Punjab Engineering
30. 3030JANUARY 2017 For updated information, please visit www.ibef.org
Source: SEZ India, TechSci Research
NOTE: (1) – Operational SEZ as on 18th February 2016
SPECIAL ECONOMIC ZONES (SEZs) WILL PROMOTE EXPORTS … (2/2)
ELECTRICAL MACHINERY
Developer Location Products
New Chennai Township Pvt Ltd Kanchipuram, Tamil Nadu Engineering
Perundurai Engineering SEZ by SIPCOT Erode, Tamil Nadu Engineering
Uttar Pradesh State Industrial Development Corporation
(UPSIDC)
Kanpur, Uttar Pradesh Engineering
Chandigarh Administration(1) Chandigarh, Punjab Electronics Hardware
Aspen Infrastructures Limited(1) Karnataka, Gujarat
High-tech Engineering products and related
Services
Quest SEZ Development Private Limited(1) Karnataka Precision Engineering Product
Maharashtra Industrial Development Corporation(1) Aurangabad, Maharashtra Engineering & Electronics
Mahindra Worldcity (Jaipur) Limited(1) Jaipur, Rajasthan Engineering and related industries
State Industries Promotion Corporation of Tamil Nadu(1) Vellore, Tamil Nadu Engineering
31. 3131JANUARY 2017 For updated information, please visit www.ibef.org
Cumulative FDI inflows since April 2000
(USD billion)
Source: Department of Industrial Policy & Promotion, TechSci Research
Note: FY08 - Cumulative from April 2000 to March 2008 and so on
(1)FY16- Till March’16
Cumulative FDI inflow in India, during April 2000 to March
2016, stood at USD4.3 billion
Electrical machinery accounted for around 1.50 per cent of
the total FDI inflow in India as on March’16
FOREIGN INVESTMENTS FLOWING IN; RISE IN FDI INFLOWS
ELECTRICAL MACHINERY
CAGR: 18.58%
1.1
1.5
2.2
2.4
3
3.2 3.3
3.9
4.3
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16⁽¹⁾
32. 3232JANUARY 2017 For updated information, please visit www.ibef.org
Major M&A deals
Source: Thomson Banker, Edelweiss Research, Assorted News articles, TechSci Research
Companies seek inorganic growth by targeting foreign and
domestic players
As on July 31, 2015, Mitsubishi Heavy Industries, Ltd. (MHI)
and Mitsubishi Nichiyu Forklift Co., Ltd. Jointly acquired
UniCarriers Corporation
Crompton Greaves acquired the smart grid automation
company ZIV Group for EUR150 million
RISE IN M&A ACTIVITY
ELECTRICAL MACHINERY
Target Acquirer Type Year
UniCarriers
Corporation
Mitsubishi Heavy
Industries, Ltd. (MHI)
and Mitsubishi
Nichiyu Forklift Co.,
Ltd.
Acquisition
2015
Toshiba India
Toshiba JSW
Turbine & Generator
Acquisition 2014
AEG Power
Solutions India
Toshiba Mitsubishi-
Electric
Acquisition 2014
RS Infosystems
Pvt Ltd
Advance Metering
Technology
Acquisition 2013
Maruti Weld Pvt Ltd
Voestalpine Bohler
Welding
Acquisition 2013
Henikwon
Corporation
Larsen & Toubro Acquisition 2012
ZIV Group Crompton Greaves Acquisition 2012
Schneider Electric
Infra Ltd
Energy Grid
Automation
Ltd
Acquisition 2012
Alstom T&D
India Ltd
Grid Equipments
Ltd
Acquisition 2012
35. 3535JANUARY 2017 For updated information, please visit www.ibef.org
Nuclear power
generation
• India currently operates 21 atomic reactors which produce 5,780 MW of electricity and has
set an ambitious target of generating 63,000 MW nuclear power by 2032
• Nuclear power generation in FY16 stood at 37.456 BU and is estimated to reach 9.101 BU
in FY17(1)
• Capacity factor of these reactors increased to 73% in FY17(1) from 63% in FY07
• With many bilateral nuclear agreements in place, India is expected to become a major hub
for manufacturing nuclear reactors and associated components
Power capacity addition
• As of FY16, nuclear power capacity of India reached over 5.78 GW. The country aims to
produce 10.08 GW by 2017
• Market-oriented reforms, such as the target of ‘Power For All’ by 2012 and plans to add
115 GW of capacity by 2017 and 101 GW by 2022, provide high incentives for capacity
addition in power generation, which would increase the demand for electrical machinery
• Foreign participation in the development and financing of generation and transmission
assets, engineering services, equipment supply and technology collaboration in nuclear
and clean coal technologies is expected to increase
Source: TechSci Research
Notes: KV - Kilo Volts, MU – Million
Units, BU – Billion Units, (1) – Data Upto June 2016
GROWTH OPPORTUNITIES IN ELECTRICAL MACHINERY INDUSTRY
ELECTRICAL MACHINERY
High-voltage technology
• Power transmission in India, which is currently carried out largely in the 220 KV and 400
KV range, is expected to move up to a higher range of 765 KV and high-voltage direct
current
• This presents a significant opportunity to manufacturers with capabilities in high-voltage
(HV) to develop technology that can handle the need of such high voltages in the country
37. 3737JANUARY 2017 For updated information, please visit www.ibef.org
BHEL – MAINSTAY OF THE ELECTRICAL MACHINERY INDUSTRY … (1/2)
Salient features
• One of the largest engineering and manufacturing
companies with ‘Maharatna’ status
• One of the major Integrated Power Plant Equipment
(IPPE) manufacturers in the world with operations in
over 75 countries
• Profit-making since 1971–72
• Installed base of more than 124,064 MW
• 17 manufacturing units, two subsidiaries, five joint
ventures, and over 150 project sites
• Accounted for over 57 per cent of India's total installed
generating capacity in FY14
• Net sales of the company increased over FY07–15 at
a CAGR of 2.89 per cent
• Net sales of USD3.95 billion in FY16
• BHEL commissioned 3 supercritical units of 660 MW
each in Uttar Pradesh at the 1980 MW coal-based
Lalitpur Super Thermal Power Project (STPP) and has
set a new benchmark in project commissioning
• The company won “DSIJ Award 2015” for the Most
Efficient Maharatna PSU
• Won “India Pride Award 2015-16” for Excellence in
Heavy Industries
Net sales (USD billion)
Source: Company Reports, TechSci Research
Note: Maharatna is the title given to nine Public Sector Enterprises
by the Government of India having comparative advantages
ELECTRICAL MACHINERY
CAGR: 2.89%
3.9
4.9
5.8
7.0
9.3
10.2
8.9
6.5
4.9
3.95
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16⁽¹⁾FY16
38. 3838JANUARY 2017 For updated information, please visit www.ibef.org
BHEL – MAINSTAY OF THE ELECTRICAL MACHINERY INDUSTRY … (2/2)
Recent Awards and Recognitions
• The company reported net profit of USD 16.82 million
during the second quarter of FY17
• Awarded “Maharatna” status by the Indian government
(2013)
• Received “Excellence Award” by Power Grid in May 16
Notes: PLF - Plant Load Factor,
‘Navratna’ is one of the designations given to public sector enterprises
based on their profitability and there by granted certain autonomy
APPDCL: Andhra Pradesh Central Power Distribution Company Limited
ELECTRICAL MACHINERY
Boiler efficiency
Lower auxiliary
power
consumption
Lower life cycle
cost
Lower design heat
rate
Better PLF
Key success
factors
39. 3939JANUARY 2017 For updated information, please visit www.ibef.org
L&T – ONE OF INDIA’S LEADING PLAYERS IN THE SECTOR … (1/2)
Salient features
• India’s largest E&C company with interests in projects,
infrastructure development, manufacturing, IT &
financial services
• Enjoys AAA rating with stable outlook from CRISIL and
LAAA from ICRA
• During FY09-FY16, turnover of the company grew at a
CAGR of 8.56%, reaching to USD15.48 billion
• In FY16, net sales increased to USD15.48 billion from
USD15.26 billion in FY15
• As of November 2016, the company’s construction arm
bagged projects worth USD294.22 million across
various different verticals, of which the company
bagged contracts worth USD87.23 million in the power
transmission and distribution segment
Net sales (USD billion)
Source: Company reports, TechSci Research
ELECTRICAL MACHINERY
Note: E&C – Engineering & Construction
CAGR: 8.56%
8.71 9.18
11.41
13.72 13.72 14.12
15.26 15.48
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
40. 4040JANUARY 2017 For updated information, please visit www.ibef.org
L&T – ONE OF INDIA’S LEADING PLAYERS IN THE SECTOR … (2/2)
Recent Awards and Recognitions
• Won award for “Power Project Execution” on 1st
January, 2015
• Won BCCI award for “Good Corporate Citizen Award”
on 1st October, 2015
• Won award for “Best Attractive Employer” in the
infrastructure sector
Increase in Operational performance Parameters
of FY16 as compared to FY15
Notes: CRISIL - Credit Rating and Information Services of India Ltd,
ICRA - Investment information and credit rating agency of India
CSR - Corporate Social Responsibility, Company website
ELECTRICAL MACHINERY
-12%
7%
12%
10%
7%
Order Inflow Order Book Sales EBITDA Recurring
PAT
41. 4141JANUARY 2017
Focused on motors and
consumer products
Entered into electrical
engineering with
manufacturing of
transformers and power
system products
Focused on gaining
technological edge, global
market reach, and wide
product portfolio
For updated information, please visit www.ibef.org
CROMPTON GREAVES: GAINING GLOBALLY … (1/2)
Source: Crompton Greaves website; TechSci Research
ELECTRICAL MACHINERY
Strong presence in the
Indian electrical
equipment market
Crompton and SOGO
partner to widen
consumer appliances
portfolio in FY15
Consolidated revenue
expanded at a CAGR of
3.48% during FY09–15
Revenue base of over
USD0.81 billion in FY16
Focus on R&D
Strong brand presence
in the consumer electric
products market
Among the world’s
top 10 transformer
companies
Emerged as one of the
leading companies in the
Indian electrical
engineering market
1937–60
Global leader in offshore
wind transformer
applications, with 42%
market share
Made nine
acquisitions after
2005, including
Pauwels Group
1960–2005 2005–16
Opened a
manufacturing unit
in Bengaluru
42. 4242JANUARY 2017 For updated information, please visit www.ibef.org
Net sales (USD billion)
Source: Company reports, Company website, TechSci Research
NOTE: (1) –Data is for year ended at 31st March 2016
Crompton Greaves established its international
manufacturing footprint in 2005 by acquiring Belgium-
based Pauwels Group
The company’s successful acquisitions include Ganz,
Hungary, in 2006; Microsol, Ireland, in 2007; Sonomatra,
France; MSE, USA, in 2008; and PTS, UK, in 2011.
Overseas market accounts for about 50 per cent of
revenues
ELECTRICAL MACHINERY
Segmental revenue (FY16)
CROMPTON GREAVES: GAINING GLOBALLY … (2/2)
1.9 1.9
2.2
2.4
2.2
2.3 2.3
0.8
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16⁽¹⁾
47.1%
36.4%
16.3%
0.2%
Power Segment
Consumer Product
Industrial Systems
Others
44. 4444JANUARY 2017
INDUSTRY ASSOCIATIONS
Indian Electrical & Electronics Manufacturer’s Association (IEEMA)
501, Kakad Chambers, 132,
Dr Annie Besant. Road,
Worli, Mumbai 400018.
Tel: +91-22-2493 0532, +91-22-2493 0532 / 6528 / 6529
Fax: +91-22-2493 2705
mumbai@ieema.org
Engineering Export Promotion Council (EEPC)
‘Vanijya Bhawan’, 1st Floor
International Trade Facilitation Centre,
1/1, Wood Street,
Kolkata, West Bengal–700016.
Phone: 91-33-22890651, 22890652
Fax: 91-33-22890654
E-mail: eepc@eepcindia.org
For updated information, please visit www.ibef.org
ELECTRICAL MACHINERY
45. 4545JANUARY 2017
GLOSSARY … (1/2)
For updated information, please visit www.ibef.org
BTG: Boilers, Turbines, Generators
BHEL: Bharat Heavy Electricals Limited
CAGR: Compounded Annual Growth Rate
CEA: Central Electrical Authority
DHI: Department of Heavy Industries
E&C: Engineering & Construction
EEPC: Engineering Export Promotion Council
FDI: Foreign Direct Investment
FY: Indian Financial Year (April to March)
GW: Giga Watt
HVDC: High Voltage Direct Current
KV: Kilo Volts
ELECTRICAL MACHINERY
46. 4646JANUARY 2017
GLOSSARY … (2/2)
For updated information, please visit www.ibef.org
KVA: Kilo Volt Ampere
L&T: Larsen and Toubro
MHI: Mitsubishi Heavy Industries
PLF: Plant Load Factor
SEZ: Special Economic Zone
USD: US Dollar
Wherever applicable, numbers have been rounded off to one decimal
ELECTRICAL MACHINERY
47. 4747JANUARY 2017
Exchange rates (Fiscal Year)
For updated information, please visit www.ibef.org
EXCHANGE RATES
Exchange rates (Calendar Year)
ELECTRICAL MACHINERY
Year INR equivalent of one USD
2004–05 44.81
2005–06 44.14
2006–07 45.14
2007–08 40.27
2008–09 46.14
2009–10 47.42
2010–11 45.62
2011–12 46.88
2012–13 54.31
2013–14 60.28
2014-15 61.06
2015-16 65.46
2016-2017E 66.95
Source: Reserve bank of India,
Average for the year
Year INR equivalent of one USD
2005 43.98
2006 45.18
2007 41.34
2008 43.62
2009 48.42
2010 45.72
2011 46.85
2012 53.46
2013 58.44
2014 61.03
2015 64.15
2016 (Expected) 67.22
48. 4848JANUARY 2017
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ELECTRICAL MACHINERY