Indian genset market picks up steam

As the demand for electric power continues to increase, Nigel Baseley, Marketing Director, Perkins Engines Company Ltd., reports on the growing importance of India as a market for engines and generator setsIndia is an important market for diesel engines as businesses seek to obtain a reliable source of power to protect their livelihoods, while public bodies strive for dependable power to ensure the delivery of services to people in need and individuals work hard to secure cost effective power to provide light and warmth for their families. Of course, these needs are the same throughout the world, but in India specifically, the current shortfall in the power requirements needed to sustain the demands of a rapidly growing market and economy, is driving further interest and reliance on a range of generator sets powered by reliable and dependable diesel engines.While investment is garnered and work undertaken to develop the new power plants required under the 12th Five Year Plan, the ever increasing demand for power continues to place a strain both on the grid and on the power distribution system. The latest reports show that electricity losses in India during transmission and distribution is currently around 32 per cent while overall power shortages in the country are, according to statistics, in the range of 10 to 12 per cent, with that figure as high as 15 per cent in the south of the country.The drive to change this and secure long term stability and economic growth in India is being supported by the Five Year Plan through which a phenomenal $1 trillion investment is being made in the country’s infrastructure between 2012 and 2017. To deliver much of this however, requires a reliable and cost effective source of power. One sector driving the demand for diesel powered generators is Information Technology (IT) and Information Technology Enabled Services (ITES), which includes the rapidly growing data centres. These centres, which are making an important contribution to the country’s growth rate, require a continuous source of power, throughout the day, every day.   In conjunction with its distribution partners in India, GMMCO Power and Powerparts Private Limited, Perkins is working closely with many businesses and generator set manufacturers, to provide the best and most appropriate power solutions for a rapidly changing marketplace that is contributing significantly to a positive picture for not only India, but the wider Asia Pacific region. Like other sectors, this has resulted in the market for diesel engines within electric power sector. Peak power shortages across the country and the business development are driving an unprecedented demand for generator sets. In addition to domestic growth, opportunities are also emerging for many Indian manufacturers to export their generator sets overseas. This economic change is driving demand for diesel engines, although to support this growth opportunity, equipment manufacturers are increasingly turning to engine brands like Perkins. These global engine brands also offer the generator set manufacturer immediate access to a global aftermarket support network, which is a key buying requirement for the end users.  This also gives opportunity for Indian generator set manufacturers to grow their business both domestically and overseas is also influenced by a number of socio-economic factors, such as a growing talent base in India, particularly in the engineering sphere, which will continue to support product development, while a rapidly expanding supplier base focussed on quality adherence and manufacturing investments will lead to both surplus manufacturing capacity and capacity additions. These factors, coupled with the stringent emission standards that are expected to come into place in India, will all create a robust domestic electric power market and will continue to see India evolve into becoming an important exporter in the Asia Pacific region.