Balaji Switchgears aims to grow at a CAGR of over 20%

The power and energy sector would be growing at a much faster pace in the coming years, believes Piyush Garg, Managing Director, Balaji Switchgears Pvt Ltd. He said, “We plan to work in the untapped areas and grow at a CAGR of over 20 percent.”

Performance of power sector in India
The hit on the economy was very strong due to the pandemic in the first half of this year. Earlier that time, the demand of the power sector had reduced drastically as majority industries were operational up to 20 percent. One prominent reason was the phases of unlock but apart from that, the psychological impact that COVID-19 had on the people of the nation. With the improvement in the recovery cases and better understanding of necessary precautions, people have started stepping out and WFH has certainly reduced. As people are going back to work, it has started generating the demand. Though the demand is not as it was in the beginning of the year, it has still started to gain its pace in the third quarter and is better than what we were expecting.

Indian power sector in 2021
COVID-19, being a pandemic, has led to emergence of innovative opportunities of running businesses. To survive and reposition themselves again, companies are expanding their horizons which is increasing the market demand. The processing, IT, education, hospitality, pharmaceutical, infrastructure, health care and many other industries are evolving and power sector is the key to their functioning. The operational techniques are changing but they are growing. The new demand that we are observing right now is the initial stage of the expansion cycle and peak performance is yet to come which is far away. If it reaches to its 50-60 percent potential by the end of 2020, we can expect the incoming of bigger and better projects for accommodating to these horizons. At the same time, population gathering constraint in an area will increase the labour and automation hiring opportunities depending on the location of employment.

How Balaji Switchgears is turning the tide in its favour
In these times, it is important for every organisation to take utmost care of the finances and invest thoughtfully in the market. With the support of our suppliers and customers, we have been able to improvise and come up with better credit policies. Our customers have been kind enough to understand the situation and have been helping us in these tough times. This is helping both of us as parties to work efficiently and expand together. We have also worked on our inventory management. This has not impacted our services as we have become more prompt to our customers requirement and have strengthened our supply chain system.

Breakthrough policy decision that will drive electrical equipment industry growth in India
The government’s decision for investment in infrastructure, railways and other transportation facilities will be a breakthrough for growth of electrical equipment industry in India. There is abundance of potential for growth here as the demand for Internet of Things (IoT)-enabled devices have increased. Introducing IoT and Industry 4.0 will make remote monitoring in these sectors possible, empowering the operators to deliver improved services. These advancements in these projects will be cost consuming but will also lead to long-term cost controlling, minimum down time and better outcomes.

Growth driver for Balaji Switchgears beyond 2020
The power and energy sector would be growing at a much faster pace in the coming years. It may not be consistent but definitely the projects will be stretched throughout the year due to limited manpower. The business potential might become seasonal but is still going to be there. We wish to utilise the same to the best of our ability and multiply our business with this reviving economy. We wish to work with our customers and reach together to our full potentials that we had in the beginning of the year. Slowly and steadily then, we plan to work in the untapped areas and grow at a CAGR of over 20 percent and contributing to the society.

COVID-19, being a pandemic, has led to emergence of innovative opportunities of running businesses.
Piyush Garg, Managing Director, Balaji Switchgears Pvt Ltd