Lightning of Lamp

• IEEMA set itself target of 5% share of global trade in electrical & electronics equipment sector and has set export target US$ 25 billion in the next 10 years.

• India’s exports of electrical equipment were over US$ 4 billion in 2010-11, but were less than 1%.

• The Government of India has set a target of doubling overall exports and reaching US$ 450 billion by 2014 from the level of US$ 246 billion achieved in 2010-11.

 

 

 

 

 

.

“Power industry is at the cusp of major growth with 80,000 MW of power units under construction”

Mr. Sushilkumar Shinde, Union Minister of Power assured the India power equipment industry of adequate protection. Addressing the people at the inaugural function of ELECRAMA 2012 in Mumbai organized by IEEMA (Indian Electricals and Electronics Manufacturing Association) he said that the Indian power industry is at the cusp of major growth with 80,000 MW of power units under construction. He mentioned that the Prime Minister is keen on resolving present issues in the sector – supply of coal and gas – as the growth in the industry directly impacts the economic progress of the country.

Further Mr. Shinde commented “as a nation, we have progressed immensely in terms of speed. For instance, through the Rajiv Gandhi Grameen Vidyutikaran Yojana the government is targeting rural electrification of 110000 villages during the 12th five year plan. Earlier India used to add 10000 MW of power in a given 5-year plan, and last year we added 12000 MW in a single year. This is a fantastic achievement for a nation which is growing at 8-9 % year-on-year basis. Of course we have to do more and that too in shorter spans of time as compared to the western world. The per capita consumption in India is 800 KwH as compared to 7000 – 8000 KwH in the west. We have a long road ahead.”

Mr. Shinde lauded ELECRAMA’s efforts in bringing Indian companies at par with global companies and fostering global trade in the T&D space. He said: “The government is delighted to see exports of high-end T&D equipment from Indian shores. In stark contrast, just a few years ago, we used to import T&D equipment. In other words the Indian manufacturing has come of age and now for them the world is an oyster. This is what the government’s intention was in the first place. The power ministry assures every support that is required”.

The power generation industry has grown faster than the expectation of coal and gas supply. “We have also asked the Planning Commission to address the demand and supply of coal and gas in the 12th five-year plan,” said Mr. Shinde.

The domestic equipment manufacturing industry has grown substantially to fully meet the domestic power generation demand. The T&D players have the contemporary technology and have established themselves globally. “However, the built-up equipment capacity stands underutilized across several products, as there has been a surge in imports in recent time,” said Mr. Ramesh Chandak, President, IEEMA.

Mr. Chandak also requested the Union Minister to create a level playing field for domestic electrical manufacturers as “domestic electrical equipment manufacturing industry is at a substantial disadvantage vis-à-vis imports, which is impacting the commercial viability of the industry and would have long term consequences. T&D is an important part of the power sector. Worldwide the investment in T&D is one-and-a-half time more than power generation. In India, the ratio stands at 1:1”.

Mr. Shinde mooted the appointment of an “independent investigator” to identify the reasons in AT&C losses which are estimated anywhere between Rs. 50000 – 80000 crore. He further added that AT&C losses have been reigned in from 39% to around 27% and the target is to further bring it down to 15%.”

In his concluding remarks, Mr. Shinde stressed that the government is keen to enhance super critical manufacturing capacity such as several new joint venture companies, including L&T-MHI, Alstom -Bharat Forge, Toshiba – JSW, Thermax & Babcock – Wilcox, Ansaldo – GB Engineering, to be formed to manufacture supercritical boilers and turbines for power plants.

 

Mrs. Indra Prem Menon, Chairperson, ELECRAMA, said: “During the last 20 years ELECRAMA has metamorphosed in to global event that displays domestic capabilities and global aspirations. While the world is trying to cope with negative growth, India is growing and how! ELECRAMA has received 20% more bookings, with more than 350 delegates from Africa, Latin America, CIS and South East Asian countries.”

 

 

 

 

 

.

“Indian companies will have to adopt ‘innovation-based’ competitiveness as against the prevailing ‘cost-based’ competitiveness.”

‘Dreams will remain dreams if we don’t act now’ said Mr. BP Rao, CMD of public sector behemoth BHEL said while addressing an august gathering of industry titans at the Industry Day at ELECRAMA-2012. He said that Indian companies will have to adopt ‘innovation-based’ competitiveness as against the prevailing ‘cost-based’ competitiveness.

“In the global environment, innovation is the only way out for Indian companies. India will have to increase its Research & Development (R&D) spends to at least 1% of sales from the current minuscule fraction of a percentile. In fact, at BHEL we have increased our R&D spends to 2.5% of our sales. And mind you our sales are growing at 20% CAGR,” said Mr. Rao.

“BHEL has laid heavy focus on innovation and we are filing a patent every day. The Indian Electrical and Electronics industry has a long way to go if we have to fulfill our dreams of an energy self-sufficient nation. We have the onerous task of bridging 13% peak deficit and at the same time reducing our AT&C losses which are currently in the tune of 29%. If we can address these two challenges in the near future, we would have achieved a lot,” he said.

Mr. S Sunderashan, Secretary, Department of Heavy Industry in his key note said that it is estimated that in the next 20 years India will have to increase its generation capacity by 5 times to approximately 800 GW by 2032. This would obviously require a matching up-gradation and enhancement of the electricity transmission and distribution equipment segment. Apart from the domestic play, there also exists significant export potential. Add to that the demand for skilled manpower and hence, the direct and indirect employment generation is enormous.

 

“Through these new transmission lines and sub-stations we will catalyze new business in the T&D sector to the tune of US$ 28-30 billion”

 

Mr. R N Nayak, CMD, Power Grid Corporation of India said in his inaugural address of CIGRE Tutorials at ELECRAMA-2012 that he has called a high-level meeting of CEOs of all concerned companies comprising of IT, telecom, power generation, electricity storage, advance metering, automobiles, etc that will help to build the dream project called Smart City. This city will be a coastal town where we have all types of energy sources such as solar, wind, thermal etc. It will be built with latest technology and will have smart meters, electric vehicles and other similar systems to reduce T&D losses. The city will be developed in the next three years and once developed; we will replicate this model all across the country.

Addressing a large discerning audience of engineers from utilities and industry, Mr. Nayak said that renewable energy is going to play a crucial role in the coming years for which the grid has to be Smart. Share of renewable energy is going to increase to about 15% from the present 3% in the next 10 years.

Further elaborating on Power Grid plans he said “we will be adding 80000 KMs of transmission lines – over and above the existing 90000 KMs of transmission lines – and build 80 sub-stations in the next five-six years. Through these new transmission lines and sub-stations we will catalyze new business in the T&D sector to the tune of US$ 28-30 billion.”

PGCIL is also working on developing robots that can carry out maintenance work in the future. “The idea is to unman all sub-stations”. The Wardha-Aurangabad 1200 kV line – pioneering technology in the world – will be commissioned soon, and it will be fully operational in the next two years. 800 kv DC transmission line will also be operational shortly.

Moreover, PGCIL is developing mobile sub-stations that can handle transmission up to 400 kw. This will enable the company to supply power in case of a natural disaster. “All we need is six trailers and we can build a mobile sub-station in 15 days. We are in the process of procuring material for two such stations.

 

The total investment is expected to be about Rs 180,000 crore in the transmission segment

 

Mr. P Uma Shankar, Power Secretary, announced slew of initiatives including 100% metering and providing interest subsidized finance to Discoms through National Electricity Fund (NEF).

Mr. Uma Shankar was speaking in Mumbai at the Utility Day seminar organized by ELECRAMA and stressed the need of addressing the retail side of power industry along with supply side (Coal). He said: “One of the critical issues is metering every single urban consumer. On the other hand, it is equally critical to provide interest subsidy to Discoms and towards this end the government has promulgated NEF. We are expecting that Discoms will avail Rs. 25000 crore in the first two years of launch.”

Mr. Uma Shankar shared nuggets of information pertaining to the 12th plan working group: “The 12th Plan working group has estimated huge requirements of adding new lines and substations under distribution. In the 12th plan, the projections indicate an addition of about 76,000 MW. The other important features of the capacity addition in the 12th plan is that 56% of the capacity will be in the private sector and 40% of the thermal capacity will be based on supercritical technology. The complexion of power sector in the coming future will be entirely different from what it is today.”

As for transmission, Mr. Uma Shankar said that during the last 5 years we have almost fulfilled our dream of having ‘One nation, One Grid’. Commensurate with generation capacity addition plans, transmission and distribution has also been planned to facilitate power reaching the ultimate consumer. He said that total investments expected in generation segment alone will be in excess of Rs 6 lakh crore.

The construction of transmission lines of 220 kV and above is likely to exceed our target of 69000 ckm. Sub-station capacity addition would be slightly less than what has been targeted. For the 12th FYP, we are planning an inter-regional transmission capacity addition of about 38,000 MW which will be more than what is actually on the grid by March, 2012. In addition, about 1,09,000 ckm of transmission lines and about 2.7 lakh MVA of DC transmission capacity and 13,000 MW of HVDC systems are estimated to be added. The total investment is expected to be about Rs 180,000 crore in the transmission segment.

 

Over 300 buyers from 30 countries transact Rs 200 crore worth business at ELECRAMA, another Rs 500 crore in the pipeline

The Reverse Buyer-Seller Meet (RBSM) at ELECRAMA-2012 which concluded today had an unprecedented and overwhelming response from both international buyers and Indian manufacturers of electrical equipment. The estimated business generated value was over Rs. 200 crore and another Rs 500 crore worth of business is in the pipeline.

The event had over 2000 scheduled meetings, countless on the sidelines, arranged between buyers and sellers and saw never before queues of enthusiastic sellers keen to make business contacts with international buyer delegations. Over 300 buyers from over 30 countries from Africa, Latin America, ASEAN and CIS attended this mega RBSM spread over 3 days. Over 200 Indian sellers represented the India supply side at ChangeXChange.

African delegation was the largest and included buyers from Angola, Benin, Botswana, Cameroon, DR Congo, Ethiopia, Gabon, Ghana, Kenya, Malawi, Mali, Morocco, Mozambique, Nigeria, South Africa, Senegal, Sudan, Tanzania, Tunisia, Togo, Uganda and Zimbabwe.

ASEAN buyers were representing Malaysia and Thailand. CIS buyers from Belarus Georgia, Uzbekistan along with Latin American buyers from Argentina, Brazil, Chile and Uruguay thronged the event.

 

Scot Innovation Wires & Cables exploring technical JV to enter EHV segment

In a small talk with Mr. Sandeep Gupta, MD, Scot Innovation Wires and Cables Pvt. Ltd. during Elecrama, he gave us the synopsis of his company and shared his ambitious future plans.

Our group is operating for more than 25 years with the name Vir Electricals established in 1986. It started as a small-scale unit, engaged in manufacturing of copper and aluminium wires and cables. Gradually, we extended the business line in power & telecom cables with special heat resistant type insulation and sheath. Today, it has state of art facilities and resources to meet the ever growing demands in domestic, official & commercial complexes and in industrial lighting. Scot Innovation Wires & Cables Pvt. Ltd. has emerged as one of the leading manufacturer and supplier of different type of electric wires & cables under the brand name of “Ekta Cables”. The product range includes, manufacturing and supply of Power & Control Cables, LT XLPE/PVC Cables, Lighting Cables (House Wiring), Insulated Electrical Cables, PVC Electrical Cables, Telephone Cables and Signaling Cables. We endeavor to maintain our position in the forefront of our field in quality, technology and performance as well as in exploration of new business opportunities. Our aim is to offer our customer’s outstanding value, technical excellence and cost effective solutions.

Our products are approved by organizations like NTPC, Powergrid, BHEL and Research & Design Standard Organization (RDSO) related to Indian railways. At present we are doing a turnover Rs. 100-120 crore. In the coming years we are planning to put up an EHV facility with the investment of Rs. 150 crore, for that we are exploring the possibility of entering into a technical JV with a company having expertise in this area.

 

Vidya Wires: Excellence Through Experience

In a candid chat with Mr. Shailesh Rathi, Vidya Wire Pvt. Ltd at his stand he briefed us about his company & new developments. Excerpts

Vidya Wires Pvt. Ltd., promoted by Rathi family 30 year back produces Copper Strips, Paper Covered Round Wires, & Super Enamelled Copper Winding Wires-confirming to various IS & IEC standards. With the capacity of 1000 MT per month our factory is situated at GIDC, Vithal Udyognagar, Anand (Gujarat). Built on corporate philosophy of “Excellence Through Experience”, we cater to the requirements of OEM customers manufacturing electric transformers (power & distribution), electric motors, telecommunication equipments, electronics & electrical appliances, and wind will alternators etc. situated all over the country through a wide network of sales.

New Development at Vidya Wires

We are displaying almost our entire range of Enamelled Wires, Enamelled Strips, Fiber Glass Cover Strip, Mica Strips, Bare Copper Strips and Bunch Conductors for cables. Recently we have imported European technology to produce Enamelled Strips. The idea is to serve generators manufacturers and transformer manufacturers and high tension motors as these are the main buyers of this product.

 

“Cable manufacturers have the capabilities to produce good quality cables but they do not have the right source for the raw materials i.e. wires”

FSP-one, the leaders in high technology solid & stranded wires like Copper, Copper Alloys, CCA, CCS, Silver Wires, Strands, Bobbins, Flat Wires plated with metal such as silver, nickel and gold. Recently they appointed AMPI Agencies Pvt. Ltd. as their Indian representative. During the Elecrama 2012, team Wire & Cable India had a joint interaction with Mr. Patrice Peillon, S&M Director, FSP-one S.A.S. and Mr. Rajesh Shah, MD, AMPI Agencies Pvt. Ltd. on topics discussed below. Excerpts

 

Commenting on their plans for Indian Market Mr. Peillon said “We’ll promote our data cables having applications in aircraft and telecommunication along with some of the specialty cables for the electronics and electricity. India is a big country and development of these applications is on rise which opens up the door for big opportunities. We have our production facilities in France and Vietnam, sales office in Shanghai and warehouse in United States. The idea behind the contract is that the AMPI has been in the markets of metals for many years and is very well versed with the customer requirements. Having its 2 offices in Mumbai & Delhi will provide us requisite support as it will be too far to take care of India from France or Vietnam. We have been visiting India from last 15 years and have participated in exhibitions, conferences and other events which provided us fairly good understanding of the Indian market.”

“We are in talks with about 50 customers and already have shortlisted 8 to 10 customers from whom we have the possibility of business. It’s too early to say about the business generation, so at least for next 1-1 ½ years we cannot put figures on sales and turnover. We are focusing on the product intricacies from the customer point of view which is the important facet”, said Mr. Peillon on the potential he foresees in the Indian market.

Highlighting the value addition that FSP-one would bring in for the Indian wire and cable industry Mr. Peillon stated “Recently talking to our customers we felt that many of the cable manufacturers have the capabilities to produce good quality cables but they do not have the right source for the raw materials i.e. wires. This is where FSP-one will play its role specifically in high temperature insulated cables used for various applications. The kind of specialty market that we are catering is totally a customer oriented technical requirement, where no two customers will have similar requirement and no two customers will be prompted by us to have same requirement like his competitor. Being a high value product we need not to have any warehouse and the volumes will be lower. Our agreement with Ampi Agencies Pvt Ltd shows that we intend to be here for long term and close to the customers. We are present in China & America and it is the right time to enter India and our next step is Brazil.”

Mr. Rajesh Shah, MD, AMPI Agencies Pvt. Ltd. explained about the synergies it will bring to the FSP-one “From almost 6 decades we are in the business of marketing of metals like copper Nickel and in last 2 decades have moved to the higher valued added semis of same. We are very close to the consuming centers with offices in Delhi & Mumbai and Marketing Affiliates for being quickly reactive with customers. With such long wholesome experience we understand the intricacies of the metals and price formulas. We have done a lot of development, marketing, sales to the cable companies especially for specialty cables for telecommunication, aeronautic etc. However the important aspect of the business is to figure out the right profile of the customer.”

“Going forward, synergies are bright for both of us, as we are aware of the market facets like quality, metal price intricacy. FSP-one production capability and the technical expertise will open the sales of us in India.”

 

Apple Insulated Wires expanding capacity & product portfolio

At Elecrama 2012 team WCI interacted with Mr. Hitesh Sheth to know more about Apple Insulated Wires Pvt. Ltd., future expansion plans and the markets they serve. Excerpts

 

Apple Insulated Wires Pvt. Ltd. established in 1999 with the objective of manufacturing wide range of excellent Super Enamelled Copper Wires, Enamelled Copper Strips, Winding Wires for Submersible Pumps, Paper covered Copper Strips / Wires (round & rectangular) & Copper Flats / Profiles with the main emphasis on quality. Our products are well accepted for their high quality and consistency by electrical and electronic industries and are acclaimed one of the best in the market.

We have technologically advanced plant equipped with the state of art and latest equipment that churns out quality products at Dadra. The products are truly wide and comprehensive and offer materials of quality as per IS, IEC, NEMA, DIN, JIS etc. with a view to keep pace with the varied requirements of our customers. Geographically we serve southern and western markets. Our major supply goes to government concerns like railways and defense. On industrial side, motor manufacturers and domestic appliances forms the major part of the supply.

Year back we started one more unit and there we are making Strips, Paper Covered Strips, Paper Covered Wires, Fiber Glass Cover, Wire Strips, Bus Bars, Profile Section for Submersible Pumps and in future more products will be added. We have installed extrusion machines, braiding, and fiberglass machines and other ancillaries with the investment of Rs. 6 – 7 crores in the recent times. We have another expansion that is lined up in Silvassa only and the idea is to expand our production quantum. The market is huge so rather adding the new product range we will expand in existing product range to serve the market. For this expansion the investment of around Rs. 10-12 crores is planned and will take place in a year or two. The investment will be made mostly in enameling machines.

 

“For us it is a right time to get into a JV with an overseas company for EHV cables”

Mr. Abhishek Gupta, Director, Gupta Power Infrastructure Ltd

“Gupta Power is focused on giving good quality from good technology to its customers and we assure that we will be more prominent in the years to come.” Continuing on these thoughts, on the sideline of Elecrama 2012, team WCI asked some questions to Mr. Abhishek Gupta, Director, Gupta Power Infrastructure Ltd. (GPIL). Excerpts

Wire & Cable India: What’s new at Gupta Power?

Abhishek Gupta: Gupta Power is growing exceptionally in terms of its product offerings with product portfolio ranging from lower range to the higher range of cables. We are improving our technology with focus on quality aspect. I believe these two are the most important aspect required to go forward and promote the company at an international level. Time and again we are adding new products to our basket like we are getting more active in the copper segment for the need of railways and instrumentation sector. Further, we are inclined more towards specialized cables i.e. extra high voltage cables (EHV). The opportunity in the form of joint venture (JV) is being explored with regard to the technical tie-up or equal investment basis. We have already put up a 66kV line with state of art technology imported from Germany and other parts of the globe. It would be up and running by the end of this financial year. Recently, we have developed new packaging for the house wire cables and have launched here in Elecrama. This new packaging was done with the idea to present the broad focus of our company’s product folio.

WCI: What’s your action plan for (extra high voltage) EHV sector?

AG: We have already done some initial groundwork for the project and obtained the land sanction from the government of Orissa for putting up EHV facility. A parallel search for an overseas company to collaborate into our EHV project has already begun and it could be in terms of technology or equal investment where the partner can have the say in the company. For us it is a right time to get into a JV with an overseas company for EHV cables, as we are already doing 66kV and looking forward we’ll definitely venture into 132kV, 220kV, 400kV etc. We are looking at the growth horizon and to capture the Indian market, we have to portray it to the other companies who might not be aware of the potential. We are still looking forward to get in touch with the right companies because of late we have been hearing the news of some companies entering into joint venture but it didn’t worked out. We are here to stay for a long term and be a part of Indian growth factor. India has a sound potential and the things like recession will have less effect on us as compared to the other countries. I believe it is the matter of time the growth graph will falls in line, as the policies are met. Being a 50-year old company we are financially very sound and will have no problem in raising the fresh capital for the huge investment that is lined up.

WCI: What kind of potential you foresee in the EHV sector and where do you see Gupta Power in next 5 years?

AG: As per the market data and analysis EHV sector has not picked up as expected due to unforeseen reason. But, we believe that in the next 5 years the potential is really high, as the number suggests. For us the most important aspect would be to give a quality product and to market ourselves as a brand delivering good quality at a competitive price with good technology and good base in India. As told earlier, we are a 50 year old company so we know the market dynamics very well and would like to serve our customers and in a much better way.

WCI: Lastly, your views on Elecrama show and plans for this show?

AG: Elecrama represents a major hub where people coming from different countries get to know each other. And, I personally believe this is one of the biggest shows in the world where all types of electrical products coming together at one particular place with different kind of options on display. People visiting here can actually know and upgrade their knowledge and also can network simultaneously.

 

“We are not here to sell the products but to innovate and anticipate the market conditions”

Extreme right: Ms. Cinzia Farise – CEO, Ravin Cables / IInd from the right: Mr. Pramod Karia – Chairman, Ravin Cables / Extreme left : Mr. Vijay Karia – MD, Ravin Cables / IInd from the left: Giacomo Sanfelice Di Monteforte – Ambassador of Italy

The Prysmian Group, a world leader in the energy and telecommunications cables industry, came to India in January 2010 through a door called Ravin Cables which has important foothold in the Indian and Middle East markets and in the segment of low and high voltage. Alongside ELECRAMA 2012, team WCI interacted with Ms. Cinzia Farise, CEO, Ravin Cables (A Prysmian Group Company) about the strategic plan of Prysmian for INDIA. Excerpts:

Last year we did an acquisition of Draka Cables which is an important player in the telecommunication segment and will continue to be an important brand associated with Prysmian around the world. The idea behind the acquisition of Draka Cables was to have presence in the places where Prysmian was not present. So, it proved to be an excellent move from us and now after 1 year of integration we can say that we have 98 plants with 20,000 people working in the group worldwide and a very important part of these facilities and people are based in India.

Likewise we did this joint venture in India with the aim to have a good presence here which is a very important market for us from a strategic point of view. May be we don’t have very big presence but we are really interested in this market. The big opportunity is to be present here with a partner who is well-reputed, well managed and competitive who has knowledge about what cable industry is, has good relations and most importantly potential to grow. Ravin Cables possessing a large portfolio and the capability that it offer to the market in supplying all range of products starting from transmission, distribution and to the new opportunities like renewable energy will help us in establishing strong footholds in the Indian market.

Highlighting the Strategic Plans for India she stated “We are developing step by step and would not like to lose the opportunity that India offers in the power transmission and distribution sector. But we are insisting a lot on 2 important segments first is the high voltage in which we really want to invest a lot and have big plans for this segment and the other is renewable, as in the coming years these two segments are very important where our presence will be very valuable. In high voltage & extra high voltage segment we have a strategy to offer turnkey projects worldwide, which would also cover installation & maintenance services etc along with our products.

Our aim is to continue to invest in this market not only in assets but in innovation which is an integral part of our company. Consider us as an Indian company dedicated towards innovation and research & development having global presence with 22 R&D centers. With our joint venture we are not here to sell the products but to innovate and anticipate the market conditions in order to provide new products and solutions.