Switched towards revival

“We hope to continue to grow and provide our customers with great and innovative products,” remarks AV Jagdish, Vice President, Havells India Ltd.
 The switchgear industry in India is on its way to the bright tomorrow and estimated to reach ` 215 crore by 2017. The industry can also witness a double-digit growth in the near future. In a conversation with EPR, AV Jagdish talks how Havells is continuingly innovate and upgrade its products to meet the evolving needs of its customers.
Key market trendsThe switchgear industry in India is currently valued at ` 135 crore (FY 13). In the past 3 years, the switchgear market has witnessed a sluggish growth due to overall adverse macro-economic environment. However, industry expects a strong growth due to the growing consumption of electricity, rising urbanisation and infrastructural developments. With the stable central government, which looks determined to reinvigorate growth, attract large dosage of investments across industries and revive sentiment, the switchgear market is geared up for revival.
Driving factors for marketIncreased urbanisation, enhancement in building new residential households and growing concerns for quality and safety among the consumers over non-branded products are driving the switchgear market in India.
Market opportunitiesIncreased investment of government in the power sector and the modernisation of crucial economic and social infrastructure will drive the switchgear market in India. It is estimated that the switchgear industry in India will reach ` 215 crore by 2017 and witness a double-digit growth in near future.
Challenges to market growthThe increasing competition from the unorganised sector along with the lack of standardisation and design parameters is adversely impacting the quality of products and growth of the industry.
The increasing trend of customisation is also hampering the growth of switchgear market in India. The switchgear industry has to continuously innovate and upgrade its products to meet the evolving needs of its customers.
Year 2014 and HavellsThe LV switchgear market in India witnessed a single digit growth this year. However, the future of the switchgear market looks bright and is likely to witness a strong growth momentum on account of government planning to increase the installed power generation capacity and the growth of the industrial sector.
Outlook for 2016Havells hopes to continue to grow and provide its customers with great and innovative products. The company also provides its stakeholders with good return on equity.