Heavy Electrical Equipment | Supply Chain Management | Customer Relationship Management

FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY

HEAVY ELECTRICAL EQUIPMENT
BACKGROUND & HISTORICAL TRENDS
Electricity in India Unlike other technological developments in the West, which were introduced in India after a time lag, electricity was introduced in India in the form of galvanic electricity (both electro chemical and electro magnetic) through telegraphy. The first experimental line was set up in Kolkata in 1839 at the Botanical Gardens along the river Hooghly. Electricity in the form of lighting arrived 35 years later with the former princely state of Bikaner introducing electricity in the subcontinent. In 1886 Jamsetji Tata installed a dynamo driven power plant in his residence, which was later extended to the adjacent Gymkhana Chambers ten years later. When the Taj Mahal Hotel was built in 1903, it was equipped with a modern power generator. The Government of India invited Crompton to help in the preparation of an Electric Lighting Act in 1896. Subsequently, the Indian Electric Company Ltd. was registered in London in January 1897, which changed its name to become the Calcutta Electric Supply Corporation (CESC). A CESC power station started its operation on April 17, 1899. The first major hydroelectric project (4.5 MW) in India was on the Cauvery river at Sivasamudram, commissioned by the Maharaja of Mysore in 1899. It commenced power supplies to the Kolar Gold Mines in 1902. The capacity was increased to 42 MW in stages by 1927. In 1903, the Madras Electric Supply Corporation of India Ltd. installed a power plant and subsequently set up power plants in different cities including Karachi, Kanpur, Allahabad, Nagpur, Rangoon and Tibet. The Tata Hydroelectric Power Supply Co. was registered on November 7, 1910 and the license obtained by the syndicate for power generation was transferred to the Company. The country’s largest hydropower station was commissioned in 1911 with a 32 MW capacity which transmitted power to Bombay on a 110 kV transmission line. To meet the increased load demand, Tata Sons Ltd. promoted a new Company - Andhra Valley Power Supply Co. in 1916 and commissioned a 72 MW power plant at Shivpuri in 1922. A third company – Tata Power Co. Ltd. was incorporated in 1919 and set up a 88 MW generating station at Bhira in 1927. During this decade major railway workshops, defence installations, ordnance factories, collieries, dockyards, oil, flour, jute and textile mills were equipped with diesel or steam driven generators and electric drives.

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FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY

Break up of Present Installed capacity Fuel a. Thermal i) Coal ii) Gas iii) Oil b) Hydro c) Nuclear d) Renewable MW 81,681 68,308 12,172 1,202 31,865 3,310 6,158 123,014 MVA 76,010 142,242 30,000 % 66.4 55.6 9.9 0.9 25.9 2.7 5 100 Ckt.Km 1,323 63,129 107,625 5,876

Present Transmission System 765/ 800 kV 400 kV 220 KV HVDC

Source : Ministry of Power

By the time India got her Independence in 1947, the total installed capacity in the country was 1392 MW (884 MW Thermal and 508 Hydro).

Highlights of the Indian Power System 1950 1. 2. 3. 4. Generation Capacity installed Transmission Lines Village Electrification Per Capita Consumption
Source : Ministry of Power

2005 123,014 250,000 475,000 (81%) 606

MW Ckt. MW Nos. Kwh/year

1,700 2,700 1,500 15.6

Since then, India has come a long way with an installed generating capacity of 115544.81 MW as on 31-01-2005. Despite this achievement, the ever-increasing demand for power has led to a widening gap between the supply and demand. The Indian power sector is a core infrastructure sector and its expansion is essential for the success of economic development of India. The Government has therefore, rightly laid emphasis on this sector and plans to add 70,000 MW of new installed generating capacity by the end of 2012. In other words, it means an addition of 10,000 MW every year on an average.

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FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY

Advent of manufacturing of electrical equipment in India In the beginning, no overseas company set up a manufacturing facility in India. They were merchandising and contracting through their local agents in India like Kilburn & Co., Martin & Co., Killick Nixon, F&C Osler & Co. Balmer Lawrie, Jessop & Co., John Flemming etc. Anticipating the growing demand for electricity, particularly in the textile mills, Greaves Cotton, the biggest group of spinning mills, set up its electrical engineering department in 1904 while F&A Parkinson and Verity & Co. holding Agency for Crompton took up contract jobs for electrification. After commissioning, the Calcutta and Madras power plants, Crompton established its offices in the two cities in 1899 and 1904 respectively. GEC (India) Ltd. came to India in 1911 as a distributing company, Siemens in 1922 and AEI (India) Ltd. in 1924. Indian Cable Co. set up a manufacturing plant in Jamshedpur in 1923, Westinghouse Brakes & Signals in Calcutta in the late 1920s, Crompton Parkinson in Bombay in 1937, Philips Electrical Co. (India) Ltd. in Calcutta in 1931, Union Carbide (India) Ltd. for batteries (National Carbon Products) in 1934 and AEI Manufacturing Co. Ltd. in Calcutta in 1939. Among the Indian companies, Bengal Lamps was established to manufacture electric lamps in 1932, India Electric Works Ltd. started an integrated design ceiling fan factory in Calcutta around the same time. Other important companies include Larsen & Toubro (a partnership of two enterprising young Danes) in 1938, Bajaj Electricals (1938), Ess Ess Kay Engg. (1935), Jyoti Ltd. (1943), Mysore Electricals (1945), Kirloskar Electric (1946) and GFM Manufacturers, Punjab (1946) etc.

International Trends
Over the past two decades, the power plant equipment industry has been witnessing a process of consolidation. In the late 1970s there were 10 to 12 players and today there are about 4 to 6. This consolidation has resulted in stronger companies with increased size, economies of scale, wider product ranges and enhanced financial strength. They now have greater access to markets and higher bargaining power as a result of combined technological strengths. The major consolidation which has taken place is detailed below: Eighties : • • • GEC UK + Alcatel France GEC Alstom ASEA Sweden + BBC Switzerland ABB ABB acquired 39 companies and the power transmission and power distribution business of Westinghouse Electric Corporation to become a technology leader in T&D business.

Nineties • Siemens acquired Westinghouse’s fossil power plant activities in 1998 and also Voith Germany’s Hydro division and Parson’s Power Engineering, UK 47

but since then. While coal continues to remain the dominant fuel for electricity generation. the Indian Government had fixed a target of 40245. hydro and nuclear.000 MW compared to the planned addition. The progress on the reform front for State Electricity Boards has also been rather slow. Current Status in India The Indian heavy electrical equipment industry has registered a 27% growth during 2004-05 as compared to the year 2003-04. due to various constraints.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY • • • 2000 • • Babcock Borsig Power took over B&W Spain GE Hydro bought over Kvaerner GEC Alstom and ABB merged to become ABB-Alstom Power (AAP) Alstom bought ABB’s stake in AAP GE (USA) bought EGT. The performance of the heavy electrical equipment industry is closely linked to the power programme. Unfortunately. comprising 29545. During the 9th Five Year Plan (1997-2002). generation from nuclear power increased rapidly from the early 1970s to the mid 1980s. Prior to the oil shocks.2 MW for capacity addition. the Government itself could add only about 19. France 2003 & 2004 • • • Siemens AG bought Alstom’s industrial turbine business Areva bought Alstom T&D business Hitachi Japan took over the assets of insolvent Babcock Borsig.5 MW thermal. In the case of the user sector there has been a shift in the fuel mix used to generate electricity since the 1970s. Theft of power. free / subsidized electricity and heavy T&D losses are the major issues responsible for the weak financial condition of the SEBs and require serious attention. In the future renewables will make its presence felt.7 MW for hydro and 880 MW for nuclear. while natural gas fired generation has grown rapidly in the 1980s and the 1990s. oil accounted for nearly 23% of the fuels used in electricity generation. 9819. its share has fallen to under 10% today. which continues to languish due to fund constraints. 48 . The use of oil has declined after the oil shocks. Hence the technology and equipment for electricity generation has also undergone a shift from mainly coal and oil based to natural gas.

0 2585.0 1210.50 3250.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY A capacity addition of 41. the Government formulated a policy in 1991 to encourage greater investment by private enterprises in the power generation sector.0 4507. Inspite of an encouraging response to this from domestic and foreign developers. of India All India Power Requirement Forecast for 9th.3 2650.3 3951.10 3116.5 4242.62 1058.500 MW.25 1440.0 3035. the contribution from the IPPs has just been about 3.0 905.0 2893. The details are provided below: Capacity Addition Programme for the 10th Five-Year Plan Hydro Central Sector State Sector Private Sector Overall 8742 4481 1170 14393 Thermal 12790 6676 5951 25417 Nuclear 1300 0 0 1300 Cumulative Capacity 22832 11157 7121 41110 Source: Annual Report 2004-05.9 Source Annual Report – Ministry of Power.92 3226.6 1615. 10th and 11th Plan Year 1997-98 Energy Requirement MKWh 436258 49 Peak Load MW 73458 . Ministry of Power In order to mobilize additional resources for the electricity sector.110 MW has been targeted for the 10th five-year plan.6 3643.0 991.30 916.5 3775. Govt.66 2210.66 3115.40 2892.4 659. *Capacity addition achieved during the last 6 years Year 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004 –2005(upto Feb 2005) Capacity Addition (MW)* Centre States Total 333.

It has opened up competition in the power sector. Rs. which will result in improving the financial health of the State Electricity Boards undertaking reforms. affordable and quality power for all users by 2012. transmission and distribution.4112 crores has been released by Government till March 2005. Further. Transmission and Distribution Evacuation of power from generating stations to the load centers is as important as power generation. Accelerated Power Development Reform Program (APDRP) In February 2001. The Act has also given consideration to promoting access to electricity in rural areas and by the economically weaker sections of society. Greater emphasis was provided to upgradation of sub-transmission and distribution through 100% metering. A qualitative improvement in power supply at the consumer end is expected so as to raise the level of satisfaction besides improving revenue realization for the utilities. 50 . power factor correction measures etc. The programme is being implemented in the areas of distribution reforms. Out of the total sanctioned amount. Apart from this. generation has been delicensed. the Government introduced a programme with a vision of supplying reliable. reducing T&D losses. stringent provisions have been provided to minimize theft and misuse. The Electricity Act 2003 has attempted to address generation.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 1998-99 1999-00 2000-01 2001-02 2006-07 2011-12 th 469057 502254 535903 569650 781863 1058440 78936 84466 90093 95757 130944 176647 Source: 15 Electric Power Survey of India Electricity Act 2003 The early initiatives in terms of reforms were not effective because of the emphasis on power generation and not on transmission and distribution. Several inter-state and inter-regional transmission lines exist to facilitate the integrated operation of the state system with the regional grids. kept the consumer as a focal point and provided avenues for investment. energy audits. the captive power policy has been liberalized and open access provided for transmitting power.

a perspective transmission plan has been drawn up indicating the major inter-regional transmission highways to be developed by 2012 and this will lead to the formation of a strong National Grid. western. Industry feels that the future is encouraging and challenging for the domestic manufacturers. Transfer of surplus power to the other power deficit regions is given the first priority.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY The regional power grids in the northern. The capacity of inter-regional lines by the end of the Eleventh Plan would be about 30. Scope of the Study For the purposes of the study.000 MW from the present Inter-regional transfer capacity of 9500 MW. The power equipment industry in India is on a growth path. Private Sector Participation in Power Sector Post the Electricity Act 2003 the private sector’s interest in investing in this sector has revived. An “Inter-Institutional Group (IIG)” and a “Green Channel” have been constituted to facilitate financial closure of Independent Power Producers (IIPs). Investment of about Rs. as there is greater demand for electronic meters than conventional electromagnetic meters. eastern and northeastern regions of the country were established for optimum utilisation of the unevenly distributed power resources in the country by facilitating intra-regional and inter-regional power exchanges to the extent feasible depending upon day to day power availability and load conditions. southern.2.000 crores has been estimated for the associated transmission systems including creation of a National Grid. Almost all sectors of the electrical industry are indicating growth. the following product / equipment categories were taken to comprise heavy electrical equipment: Power and Distribution Transformers Switchgears Electric Motors Generators Alternators Turbines Capacitors Energy Meters HT Circuit Breakers The companies chosen were those who are manufacturing complete equipment and were in the organized sector. and the Government of India is planning huge investments to achieve this objective. Keeping in view the envisaged additions to the generation programme. 51 . Products like energy meters show a technology shift.00. The momentum is expected to continue with the Ministry of Power outlining its vision for providing “power for all by 2012”.

41 15.93 1.73 52 . The market share and total market size of the product range covered by the study is given below.7 Cr.43 0.98 7. of companies : 79 Crompton Greaves Bharat Heavy Electricals Vijay Electricals Alstom Emco Bharat Bijlee ABB Indo Tech Transformers R T S Power Corpn.1859. of companies : 126 Bharat Heavy Electricals Crompton Greaves Powerica Siemens Sudhir Gensets Kirloskar Electric Co. Motors & Generators Total No. These include companies who manufacture components as well as complete equipment.06 0. Kirloskar Electric Co.06 3.40 2.24 5.36 0.13 5.44 6. Kaytee Switchgear Hindustan Powerplus 15.39 3.55 0.37 15.45 1.28 0.44 3.31 2.59 10.41 9.07 1.25 0.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY All the international players manufacturing these electrical equipment barring a few like Eaton are present in India either as JVs or subsidiaries. Alfa Transformers Star Delta Transformers P M Electronics Shilchar-Payton Technologies Toyama Electric Sulzer Electronics Market Share (%) 21.74 1.14 4. Accurate Transformers E C E Industries Marson’s Andrew Yule & Co. Major Products Transformers Companies Total No.06 Total Market size : Rs.64 0.45 4.

00 9.05 12. Integra Hindustan Control Datar Switchgear 1. B P L Engineering Igarashi Motors India T T G Industries F A L Industries I F B Industries International Combustion (India) Sai India Man B&W Diesel India Jem Industries Stone India Belliss India Deepak Industries Total Market size : Rs.07 0.20 0.33 0.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY Jeevan Diesels & Electricals Alstom ABB Bharat Bijlee GMMCO Wartsila India Jyoti TIL Cummins India Rajendra Electrical Ind.34 1.06 0.03 5.23 0.09 0.37 0.60 0.18 7.77 1.25 0.19 0.51 1.28 0.99 0.59 0.27 2.10 0.55 0.93 9.36 0.66 0.24 0. of companies : 105 ABB Larsen & Toubro Siemens Crompton Greaves Alstom Bharat Heavy Electricals Bhartia Industries Indo Asian Fusegear Havell’s India Elpro International Controls & Switchgear Contactors Modison Metals North-West Switchgear Jyoti Andrew Yule & Co.10 0.37 0.11 1.15 0. Switchgears Total No.8 Cr.74 0.35 1.27 53 .3951.90 0.98 1.23 0.52 8.66 1.

60 1.70 4.00 0.05 4.16 0.11 2.53 0.34 0. Energy Meters Total No.02 0.17 0.8 Cr. Elhard Marketing Indiana Current Control Hansu Controls Macneill Engineering Bombardier Transportation India Asian Electronics Total Market size : Rs.55 1.3252.03 2.22 0.89 0. of companies : 46 Keltron Component Complex Bharat Heavy Electricals Globe Capacitors Incap ABB CTR Manufacturing Industries Universal Cables Gujarat Poly-Avx Electronics Keltron Electro Ceramic Pan Electronics (India) K.02 0.06 54 .10 0.55 19.23 0. Gujarat Mulco Electronics Saif Electronics Dalmia Cement (Bharat) 0.1 Cr.35 1.40 1. Dhandapani & Co.27 0.05 4.12 0. Capacitors Total No.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY J S L Industries Toyama Electric Lakshmi Electrical Control Systems S&S Power Switchgear Beardsell Autometers Alliance Indian Rayon & Inds.93 1. of companies : 33 Secure Meters TTL Genus Overseas Electronics Larsen & Toubro Havell’s India Accurate Meters Precision Meters Bharat Heavy Electricals Iskraemeco Seahorse Alstom E C E Industries Namtech Electronic Devices Wellwin Industry India Meters Revera Appliances Baroda Electric Meters Total market size : Rs.39 0.15 0.02 7.03 0.761.61 0.01 26.11 0.27 11.02 3.20 0.96 1.33 8.28 0.01 0.06 0.51 0.18 0.

Industry Market Size and Shares. contactors and energy meters in the low technology band. It is expected that product segments like high voltage transformers. This is also due to the fact that there are many companies in the unorganized sector who are manufacturing transformers. When the equipment manufacturers were asked about their opinion about the future structure of the sector.07 Total Market size : Rs. 34% of the companies had no opinion or vision about the future.11. This is in evidence mainly in the product categories which are of standard nature.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY Total Market size : Rs.1191.88 0. partnership firms and subsidiaries of multinationals. switchgears. Belliss India Kirloskar Brothers 68. Steam & Hydro Turbines Total No. generators and alternators will witness a consolidation phase in India. 51% of the industry comprised of public limited companies including PSUs and the balance were private companies including closely held.50 crores. of companies : 10 Bharat Heavy Electricals Triveni Engineering & Inds. turbines. HT circuit breakers.751 Cr. • • Source: CMIE. In power generation equipment where the emphasis is mainly on projects the market is dominated by a few large players.73 5.9 Cr. higher capacity electric motors. the industry will witness fragmentation with 55 . February 2005 Total Market Size of all the sectors comprises of Rs.770 Crores Structure of the Sector TYPE OF COMPANIES Partnershi p 4% Public 47% PERCENTAGE OF COMPANY TURNOVER IN THIS SEGMENT <1000 crores 8% >1000 crores 8% <20 crores 23% Private 45% PSU 4% <500 crores 15% <100 crores 16% <50 crores 30% Chart 1 Chart 2 004-2005 The segment has a fragmented structure with 53% of the manufacturers with a turnover of less than Rs. 46% felt that there will be consolidation / shake out and 20% were of the opinion that the entry of foreign players in the industry will lead to fragmentation.51 0. In the low voltage equipment categories where the technology barrier is not high.

or the volumes required are not economical. cables and joint accessories above 132 kV. The other companies are manufacturing products which are supplied directly to OEM’s. satellite imagery.Erection. G/S above 145 kV. C. SERVICES OFFERED D 40% A 46% C 12% B 2% A= Design & Manufacturing B=Design. • • • • • • • • Modern route survey technique using GPS. These companies are also EPC contractors in the power sector. engineering. manufacturing.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY more players entering India especially from China which is expected to be a strong competitor. POWERGRID has already implemented/implementing the following new technologies and the domestic companies are quickly gearing themselves to either developing or acquiring these technologies. C. ALTM etc 765 kV transmission system Flexible AC transmission system (FACTS) High surge impedance loading line Multi circuit and compact tower Gas Insulated switchgear in urban/scarce land areas Enhanced thermal limit (95 deg.Erection& Commissioning D=Design.) for transmission line High temperature endurance conductor (235 deg. disturbance recorders for 132 kV Sub-stations are still imported since they are not manufactured either due to lack of availability of technology. However. GIS. OPGW. or through distribution channels and hence activities like erection and servicing are not required. erection. Commissioning & Servicing Chart 3 Only 40% of the manufacturing companies were involved in the entire range of activities like design. or to the utility companies.Manufacturing. 56 .Manufacturing. Technology The manufacturers and users felt that the technology available in India for most of the products was available in India barring a few products required for high voltage lines.Manufacturing & Erection C=Design. the majority of the respondents felt that only players who have proven technology. produce quality products and render a package of services will be able to survive in the future. commissioning and servicing.) etc. amorphous cores for low loss transformers. high voltage insulation papers. Raw materials like CRGO steel.

raw materials for transformers like CRGO (electro grade silicon steel) and higher grades of copper are not manufactured in India. are well established. The industry is gearing up to meet the requirements of the country for the higher voltages. vacuum to sulphur hexaflouride (SF6) are manufactured to standard specifications. minimum oil. Besides meeting the domestic requirements. but anywhere where there is a need to access and control electricity. producing and supplying a wide variety of switchgear and controlgear items needed by the industrial and power sectors. Energy efficient transformers with low losses and low noise levels are being developed to meet international requirements. furnaces etc. Europe. Switchgear and controlgear are necessary at every switching point in power systems. distribution transformers and other types of special transformers for welding. In India. the technology is not. 765 KV transformers are available in India through imports. Manufacturing facilities for winding conductors. Indian companies are exporting transformers to over 50 countries including the USA. Switchgears can be categorised into three groups: Low voltage switchgear (upto 1100 V) Medium voltage switchgear (upto 36 KV) High voltage switchgear 57 . South Africa. However. performance of Indian products are acknowledged to be technically at par with the leading international companies. This creates difficulties for the manufacturers. In the global market. This makes switchgear and controlgear indispensable not only in transmission and distribution of power. The switchgear and controlgear industry in India is a fully developed industry. traction. Iraq and other Middle East and Far East countries. Driven by a strong R&D base at company as well as at a national level. bushings upto 420 KV class etc. air blast. Cyprus. BHEL is in the process of indigenously developing the technology for this class of transformers. Switchgears and Controlgears Continuous power supply is a crucial requirement for industry.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY Transformers The Transformer Industry in India has developed for over 50 years and has a well developed technology base upto 800 KV technology class. the entire range of circuit breakers from bulk oil. India has proven technology to manufacture a wide range of power transformers. Today. about 95% of the transformers installed in the Indian power network are of indigenous origin. however. Indian products are continuously upgraded to meet the emerging market requirements. This industry sector in fact manufacturers the entire voltage range from 240 KV to 800 KV. Syria.

low maintenance and easy accessibility. SF6 technology is now giving way to the self-blast mechanism and this technology is not available in India. the motor sector grew rapidly to meet the requirements of general-purpose motors in all segments of industry. major receiving centers and industrial complexes. known as control-gear. Low voltage switchgear is showing a high growth rate. In the case of low voltage switchgears. Indian manufacturers meet all these expectations of the user industry. The medium voltage switchgear include products below 33 kV such as various types of circuit breakers viz. It also has the advantage of not being influenced by the vagaries of nature. MCC distribution panels and elaborate control systems based on microprocessor and computer controls are also available for power station and dispatch centers.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY The low voltage switchgear product range is classified into domestic. Riding on the growth of industrial development. whether motors or generators. lighting arresters and composite insulators etc. textiles and agricultural pump sets. mining. EE motors incorporate the latest developments in design and material technology resulting in minimum losses both for cores and windings. ACB. MCBs are fast replacing rewireable switch fuses. With monitoring. Whereas motors are drivers of the machinery. in addition to protection and control of power. small. GIS. The high voltage switchgear group includes products above 36 KV such as SF6 breaker. OCB. high reliability. machine tools. cement mills. compact size and reliability. partly due to high demand for MCBs in the housing sector and MCCBs in rural electrification. MOCB. Its growth was boosted further by the requirement of special purpose motors for specific applications in cranes. The digital relays are fast replacing the conventional relays due to technology advancement. VCB etc. the fault conditions can be predicted whereas signaling helps to know the status of switchgears at various locations. 58 . monitoring and signaling are becoming an integral part of switchgears. are among the crucial equipment required while running a manufacturing unit. Current trends demand compact. Secondary equipment such as relays used for various types of fault protection. Gas insulated switchgear is likely to witness a higher demand in the future due to increasing urbanization and lack of space. have made significant advances due to major developments in the field of electronics. generators play an equally important role in the precarious power availability situation in India. As per current trends. low weight equipment with high quality. Electrical Rotating Machinery Rotating machines. power distribution system and industrial control system.

causing a great deal of concern to the domestic industry. technology which is available in India has shifted from conventional electromagnetic meters to electronic meters where the capital investment requirement is comparatively low. 59 . Apart from BHEL which has the largest installed capacity of 6000 MW p.5 KVA to 25.5 KVA to 25. boilers and generators upto 500 MW for utility and commercial cycle application and is capable of manufacturing steam turbines with supercritical steam cycle parameters and matching generators of upto 660 MW unit size. the need to be economically competitive is of utmost importance. are also available.000 KVA and above with specified voltage ranging.a. brush-less etc. BHEL is planning to increase its range of turbines upto 660 MW. Energy efficient (EE) motors are the solution. Facilities are also available for 1000 MW unit size. there are units in the private sector who are also manufacturing steam & hydro turbines for power generation and industrial use.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY The generator industry in India is catering to the alternative power requirements of large and small units. class H insulation. AC generators manufactured in India are at par with AC generators manufactured abroad and consistently deliver high quality power with performance. The demand for HT and LT power capacitors has improved and the industry has posted a modest growth of about 8%. Energy Meters With the demand for advanced features. Domestic manufacturers are capable of manufacturing AC generators from 0. matching the latest technology abroad. Due to the existence of a large domestic market. In today’s situation. Electricity Boards and utilities are also encouraging installation of capacitors by industrial and commercial consumers through a combination of penalties and incentives in electricity tariffs. many foreign manufacturers have started marketing their products in the country with low pricing. Domestic manufacturers in India are capable of manufacturing AC generators right from 0. Though this industry has good design capabilities.000 KVA and above with specified voltage ratings. Capacitor Industry The power capacitor industry is largely dependent on power development programmes. State-of-the-art generators with electronic AVR units. The manufacture range of BHEL includes steam turbines. commercial establishments and the domestic sector as a whole. single bearing construction. Turbines The capacity established for manufacture of various kinds of turbines such as steam & hydro turbines including industrial turbines is more than 7000 MW per annum in the country. there are gaps in terms of manufacturing technology largely due to lack of economies of scales and automated manufacturing technologies. permanent magnet excitation. Savings in electrical energy makes practical sense for all sectors of industry as well as in agriculture.

10% of the companies have 60 . Since then technology transfer has been fairly limited and R&D activity has also been negligible although a few companies are specially engineering their products for each application and developing technology to meet customer requirements. 5% of the companies also cater to design & engineering jobs for external clients. Only 33% of the companies have technology transfer agreements and another 30% were planning technology tie-ups to upgrade their products / processes. we continue to work with the off line diagnostics which is entirely dependent on human interfaces. The high-tech seals (special alloy) were introduced by GE in the newer version which increases the efficiency of the machine by 1 basis point and enhances power output by 3. The companies who have responded to the study feel that design and engineering is their key advantage compared to companies abroad because of the availability of qualified engineers. BHEL continues to manufacture G-technology machines (one standard lower than the H technology) although the demand for such machines are not high. The basic technology used by most of the companies except for the international companies operating in India are of the 1970s. This helps to keep the Nox in low two digits somewhere around 20 ppmvd. The steam cooling arrangements are provided in H-technology machines which are not produced in the country. However 8% of them do not have design and engineering facilities and they outsource the same as and when required. Another advancement had been made in terms of seal technology in gas turbines. has introduced a higher version of gas turbine with a capacity of 238 MW with advanced control mechanisms. excess air (1. All of them use CAD / CAE for their engineering jobs. 100% of the companies who have technical agreements have completed technology absorption. The advancements in gas turbine technology involve combustor technology wherein sequential firing of cannular type of combustors (as in GE machines) is undertaken depending upon the part load conditions wherein a stoichometric fuel mixture is maintained all through with a flame control facility by injecting steam. Design & Engineering This industry depends a great deal on design and engineering since most of the products need to be reengineered and designed to customer specifications. This is not available in the country even with the recently imported power packs. or are in the process of completion. Siemens Ltd.82 times).3% which is significant in any module of a CCGTY (Combined Cycle Gas Turbine) module. Complementary to the steam turbine technology is the online diagnostics coupled with advanced control and instrumentation which is becoming common in other parts of the world.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY BHEL has the capability to manufacture gas turbines upto 260 MW (ISO) rating under licence from GE. Out of the balance companies who have in-house design & engineering. In India.

Since electrical specifications and norms vary in different countries. The cost of research being prohibitively high. Research and Development Research and development is a priority focus area in the power sector. whereas BHEL the highest spender in India spent approximately Rs. The companies gave the following suggestions: o The products developed by the indigenous companies should be bought by the user sector to encourage companies. which improves productivity. Today transfer of technology is not very easily available because of the falling customs duties where companies prefer to market their products directly. For example in 2004 Siemens spent approximately 5063 mn. • The percentage of sales spent on R&D ranged from 0. However the industry average of the amount spent on R&D as a percentage of sales was negligible at 0.5% whereas the international leaders spent as much as 5-6% of their sales.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY reported having problems in retaining employees who are trained abroad and retaining qualified and trained personnel may become a major constraint in a company’s growth strategy if not adequately addressed. o Funds should be used to encourage technology. 45% of the companies have said that Government should allocate separate funds for R&D to encourage companies. 61 . processes. it is necessary that the state-of-the-art technology which has been developed in other parts of the world is transferred to India in order to assimilate and build on these. it is very important for the companies operating in India to adapt the technologies to suit Indian conditions. Euro and ABB US$ 690 mn. or some form of incentive for procurement of innovative new products certified by the industry associations. procedures.2% to as high as 10% of gross sales.1252 mn. Broadly R&D has two dimensions (a) R&D for Industry manufacturing electrical equipment for generation / transmission and distribution of power and (b) the applied research involving improvement of efficiency and effectiveness of various techniques. A majority of the companies have started investing into R&D since the 1990s except for the market leaders who have been investing in R&D for many years. 82% of the companies have reported spending on R&D for new product development or product innovation. o Funds to be earmarked for development of specific technology to suit Indian conditions. For this purpose the Government may give adequate relaxations for purchase norms for the state owned utilities. instead of manufacturing them in India. reduces power consumption and also environmental risks. maintenance and upkeep of equipment.

FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY

o Funds should be allocated for projects of a collaborative nature with Institutes of higher learning, or Government sponsored research institutions.

Management Efficiencies
Even though the market size of this industry is in excess of Rs.21,000 crores, the industry needs to adopt more innovative and aggressive marketing strategies. It was noted that approximately 34% of the companies did not have a strategic planning process or were at least aware of the importance of strategic planning. 27% of the companies have said that they have established procedures of strategic planning and 29% did in-depth strategic planning.
MARKET/PRODUCT DEVELOPMENT STRATEGY No response 32% D

A C No response A= No formal strategic planning B= Some awareness of strategic planning C=Established procedure of strategic planning D=Strategic Planning clearly defined B

Chart 4

When asked what should be a company’s strategy to enhance market share, among those companies who followed a strategy to enhance their market share, the majority felt the top priority would be to enhance quality and service. The second priority they felt should be aggressive marketing. Third was to reduce costs and lastly by increasing the product range of equipment. However, an aggressive marketing strategy though considered the second highest priority, was followed only by 34% of the companies. These are the large companies and have 85% of the market share out of the companies surveyed. 38% do not even collect competitors’ information. From the above statistics and feedback received, it can be seen that the majority of the Indian companies have inadequate marketing strategies. It is a handful of 15-20 companies who do so and hence there is a big difference in the turnover of these companies and the rest of the manufacturers. The market leaders are also looking at both organic and inorganic methods of growth. The quality consciousness of the industry was comparatively high with 95% 62

FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY

of the companies either ISO certified, or seeking certification. However, there are a few smaller players who do not, or cannot, adhere to a strict quality regime due to cost factors and they are for example reported to use second grade copper and CRGO.
ISO CERTIFICATION
Seeking certification 5%

Not interested 5%

ISO Certified 90%

Chart 5

The users had fewer complaints about the quality problems, which verifies the quality consciousness of the industry. However, some users felt that the quality defects may not be visible immediately since for such equipment, failures are noticed after a time gap. The testing facilities for higher voltage testing of circuit breakers and transformers are a major constraint in India. The testing facilities for the other product categories also need to be further upgraded. CPRI is the only testing facility in India and is not fully equipped to cater to the growing industry. Some of the very high voltage equipment manufacturers need to transport their equipment to KEEMA, Netherlands for testing thereby increasing the cost and the delivery factors. The leading companies are constantly upgrading their business and manufacturing processes to be cost competitive due to increasing costs both in the case of raw materials and manpower. However, the majority of the companies are not fully aware of the advantages of implementing soft technologies, which are widely adopted by companies abroad. Only 35% of the industry are implementing, or have implemented soft technologies like Six Sigma, Lean manufacturing, or 5S to make themselves competitive in the face of increasing international competition both in the domestic market as well as in exports. The penetration of computerization, or usage of computerization is not very high in this sector. The level of computerization is indicated in graphical form below. The low level of IT usage is also evident from the fact that the percentage of IT expenditure to sales in the last one-year has been a meagre 0.6% of sales i.e. the industry has reported spending only Rs.125 crores in 2003-04. The training of employees for use of computers, however, has undergone a significant increase over the past few years showing the growing awareness of employers on the importance of usage of computers. 63

FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY

The low level of computer usage for business transactions may be due to the fact that the end users and the supplier base are not highly computerized. ERP or enterprise resource planning is an industry term for the broad set of activities supported by multi product application software that helps a manufacturer or other business to manage the important parts of its business including product planning, parts purchasing, maintaining inventories, interaction with suppliers, providing customer service and tracking orders.
LEVEL OF COMPUTERIZATION
Low 56% High 15%

70% 60% 50% 40% 30% 20% 10%
Medium 29%

69% 50%

27%

29%

8%

0%
transfer of business info send/receive purchase orders invoices electronic fund transfer Integration with MRP or product scheduling

Chart 6

Chart 7

Supply Chain Management (SCM) is the management of the entire value added chain, from the supplier to manufacturer right through to the retailer and the final customer. SCM’s primary goal is to reduce inventory, increase the transaction speed by exchanging data in real time and increase sales by implementing customer requirements more efficiently. CRM (Customer Relationship Management) entails all aspects of interaction a company has with its customer, whether it be sales or service related. CRM is an information industry term for methodologies, software and usually internet capabilities that help an enterprise manage customer relationships in an organized way. A handful of companies comprising of 20-25% of the industry have implemented, or are in the process of implementing ERP/SCM or CRM. This low level of investment in IT is reflected in the delivery commitments by the companies, inventory management and relatively low operational efficiencies. This sector is very sensitive in terms of the need to provide continuous reliable and quality power. Hence the availability of spare parts and service engineers is crucial to the success of a company’s growth. Training of service engineers and employees make an impact on the profitability of the company since good service and customer relationships will help companies to 64

energy meters. the level of expenditure on training was comparatively low and it has had an impact on the poor delivery commitments by the companies. However. However. Proper training would ensure better customer satisfaction. on an average it varied between 24 hours to 4 days. efficient handling of the equipment and a value added service and for this companies would need to allocate higher amounts for training and computerization. Hence more and more companies are focusing on improving servicing and product quality. The main reason cited for the delays in delivery by the manufacturers were attributed to : Delays in customer clearance for items like LT transformers. the edge would be provided by servicing customers.1 00 . Therefore companies need to increase their expenditure on training and HRD. 65 Rs . VCBs.5 Rs Chart 8 The manufacturers feel that to counter the decreasing customs duties and the increasing competition from Chinese companies especially in the standard product segment.1 la k hs to 50 0 . EXPENDITURE ON TRAINING 60% 50% 40% 30% 20% 10% 0% re be lo w hs nd itu la kh la k la k la kh s e R s.1 0 Rs Rs . Ab ov 50 0 s hs 50% 24% 16% 4% 4% 2% 10 0 ex pe an d 50 to to kh s No hs hs La la k la k 0 0 . From the user feedback it emerged that the delivery commitments of the industry were not upto the mark. However. Training customers on the appropriate usage of products and their maintenance will be the CSFs for the companies. This will hurt the industry in the future when the demand increases and qualified trained manpower will become a constraint. the industry had reported that approximately 90% of the equipment by the major players are delivered on or before delivery dates. 40% of the companies responding to the study had services beyond warranty and the majority were in this business since inception. Response time varied depending on the type of equipment and location of clients. switchgears.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY enhance their market share.

The companies against which Indian companies have been benchmarked are Schneider. The growth rate has been excellent in 2004-05 as compared to 2003-04 at 27% and that too over 21% over the previous year. due to the inverted duty structure. Further. Benchmarking with International Companies Some broad indicators in terms of benchmarking of the industry on the basis of financial parameters has been done against a few global players. GE and ABB. Delays due to non-availability of materials.8% growth in 2003-04.00% 15. or manufacturing mainly in items which are custom built or high-end technology equipment. This is provided in Annexure I. This is evident from the graph below. They are leaders in their respective fields.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY Delays in design clearance for items like HT circuit breakers. 66 . have fallen in 2004-05 after a 7.00% 5.00% 13% 25000 20000 15000 10000 5000 0 2000-012001-022002-032003-042004-05 sales export 11750 3400 2850 13000 13600 3075 16500 2700 4000 21000 3000 2000 1000 0 Chart 9 Chart 10 The previous year has witnessed an unprecedented rise in basic metal prices like copper. standard products. MCB’s. aluminium.00% 10. Operational Efficiencies Financial Parameters Sales have been on the rise even during the recessionary period because of the demand from the power sector. Siemens.98% 19. or SKD units thereby adding to the cost of raw materials and bought outs.00% 0. companies have increased procurement of complete equipment. and CRGO steel. SALES AND EXPORT OF DOMESTIC COMPANIES EXPORT AS A PERCENTAGE OF SALES 20.00% CMIE 2003-04 From the industry 2004-05 10. Exports as compared to domestic sales.

aluminium and CRGO steel and the inability of the industry to increase prices to that effect has made a dent on the profit margins and value addition.8% in the years 2002-03 and 2003-04 respectively.80% Chart 11 Companies are striving to bring down costs due to the spiraling raw materials prices and many have been successful in reducing power consumed over the years. POWER CONSUMED AS A PERCENTAGE OF GROSS SALES 3% 2% 2% 1% 1% 0% 2002-03 2003-04 2004-05 Power consumed as a percentage of gross sales 1. In other words we can attribute this difference to the value added to the product by the company.56% Chart 12 Value added for an industry is the difference between the value of the output and the value of the inputs namely raw materials & bought outs. Secondly with the reduction in customs duties and the inverted duty structures. RAW MATERIAL AS A PERCENTAGE OF NET SALES 65% 60% 55% 50% 45% 2002-03 2003-04 2004-05 Raw material as a percentage of net sales 53% 56% 60.40% 2% 1.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY The CMIE industry financial aggregates and ratios also supports the fact that the percentage of raw material cost to net sales had increased.6% to 63. companies find it economical to import complete equipment. This is mainly due to two reasons: The unprecedented increase in the cost of raw materials like copper. test 67 . In this sector it has been noted that the value added as a percentage of net sales has shown a sharp decline from 45% in 2002 to 43% in 2003 and 30% in 2004. marginally from 61.

FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY it and sell thereby value addition is only in terms of profit margin and testing charges. Average turnover of inventory for 2004-05 was found to be 4. Inventory on an average was found to be 22% of net sales.8. or payments. VALUE ADDED AS A % OF NET SALES 46% 45% 44% 42% 40% 38% 36% 34% 2002-03 2003-04 2004-05 37. which is affecting the operational efficiencies of the sector. Another fact which emerged from the survey was that companies had to keep inventories of finished goods because clients were either not ready with their projects. the procurement lead time for imports for most companies ranged between 60 days to 120 days because of poor port connectivity and infrastructure and the time taken for clearance of imported goods.6 or in other words companies held inventory for 80 days on an average. The inventory turnover for global companies was between 6. Hence the inventory turnover of the industry was low compared to the international trends in this sector. NUMBER OF DAYS OF SALES OUTSTANDING 160 155 150 145 158 153 150 2002-03 2003-04 No. In the case of raw materials.70% 42. Another weakness of the industry is the high receivables which have an adverse impact on the bottom-line of the companies. since CRGO steel had to be imported by companies.5 .60% Value added as a % of net sales Chart 13 The inventory management of the industry is not at par with global standards.of days sales 2004-05 Chart 14 68 .

The average sales per employee was found to be Rs.40% 34. The variations are bound to be large because some companies manufacture only standard products and some companies do not offer the entire range of services. This is the main reason why international companies are looking at India to outsource components and products for their sales worldwide. The average value added per employee was found to be Rs. the global leaders carried between 55-75 days of sales as receivables. This varied from a low of 3% to a high of 27% in the case of public sector undertakings. mainly because of the high inventory and receivables carried by the sector. Compared to this. For example.35%. Average cost of wages to gross sales for the industry was found to be 11% in 200405.90% 2003-04 2004-05 working capital as a percentage of gross sales Chart 15 On an average.9 lakhs with a low of Rs.4% in 2004-05. The global leaders have a much higher cost of wages to sales at 30 . This adversely impacts the profitability of the sector. WORKING CAPITAL AS A PERCENTAGE OF GROSS SALES 38% 37% 37% 36% 36% 35% 35% 34% 34% 2002-03 37% 35. 69 .76 lakhs per employee. or companies who manufacture high value equipment will have higher sales per employee. the number of days of sales outstanding in this sector is very high.5 lakhs to a high of Rs. the utility companies like the SEBs were their clients.1 lakh and a high of Rs.26 lakhs. The delay in payments is reflected in the higher number of days of sales carried by the companies on an average thereby affecting their profitability. The range varied from a low of Rs.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY As is evident from chart 14.23 lakhs. The working capital requirements of the electrical sector are the highest among the four sectors surveyed. working capital as a percentage of gross sales was found to be 35. The main reason being that for most of them. those companies who do not have their own marketing set up will tend to have higher sales per employee.

90 lakhs in 2004.7% on an average.60 .25% in 2004-05 over 2003-04. This is further highlighted if we look at the capex plans of the industry.1900 crores for the next two years when the industry is handicapped with a gross capacity constraint. PAT as a percentage of sales also ranged from losses for some companies to a high of 12%.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY The global standard of sales per employee was in the range of Rs. Profitability The capital employed by the companies responding to the survey has seen an increase of only 3.2%. the ROCE was 8. PBIT as a percentage of sales ranged from a low of 1% to a high of 20% for some companies. COMPARISON WITH DOMESTIC AND ELECTRICAL MACHINERY INDUSTRY FOR 2003-04 ROCE FOR THE INDUSTRY 9% 20% 15% 15% 10% 5% 0% 4. PAT to net sales increased by 18% to 8. On an average. there are companies who have been reported to be investing in China and other countries for their future growth.3% in 2004-05 for the companies who have reported their figures. Return on capital employed is low compared to international standards because of low productivity and poor working capital management.10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 6% PBIT/Net sales for the industry 1 PBIT/Net sales for electrical machinery ROCE for the industry ROCE for electrical machinery 2003-04 2004-05 Chart 16 Chart 17 PBIT to net sales for 2004-05 increased by 22% to 13. However. 70 . Most of the companies have had debt restructuring and reduced their high interest bearing loans due to better profitability in 2003-04.00% 11% 6. Only 14 companies have reported a capex programme of Rs. This low increase shows the lack of confidence of the equipment manufacturers in the long-term growth prospects of the industry.

FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 13. This was due to two reasons: Turbine blading and transformer/motor/generator winding is a highly labour intensive job. Capital Investment Only 25% of the companies surveyed have capex plans of an amount of Rs.00% 10. incurred losses.00% Average PAT as Average PBIT as a % of sales a % of sales 8.00% 6.2. Many companies have undergone downsizing and the balance have not added manpower compared to the growth in sales.20% Chart 18 It was noticed that in general. 71 .00% 8. However a few still need to restructure their debt. Many companies have done debt restructuring in the past two years.00% 12. 60% of the companies in this sector had a debt to equity ratio of less than one.00% 2. Productivity Parameters Machine and Labour Utilization MACHINE UTILIZATION 75-90% 44% <75% 30% 75-90% 40% LABOUR UTILIZATION >90% 60% >90% 26% Chart 19 Chart 20 Labour utilization is comparatively higher in this industry as compared to the other sectors of the capital goods industry.000 crores over the next 2-3 years.00% 0.00% 4.70% 14. It was also noticed that companies which had a high debt to equity ratio.

However responses from the user sector have shown that most of the procurement is being done for replacement of the existing equipment. The reasons attributed to this are mainly the unprecedented rise in raw material prices and capacity constraints. copper and steel.15% to a high of 10% in some cases and hence machine utilization was mainly in the range of 75 to 90%. spares and service availability were at par with imported equipment. switchgears and energy sectors in a big way since the inception of the Electricity Act 2003. User Sector Feedback From the responses received from some of the major users of electrical equipment. OUTSOURCING No 44% Yes 56% OUTSOURCING BY CATEGORY IT 6% Other support services 9% Marketing 16% Manufacturin g 69% Chart 21 Chart 22 In this sector a very significant amount of subcontracting in the non-core manufacturing activities takes place. The user sector felt that quality of domestic equipment.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY Machine downtime ranged from 0. low value added labour intensive activities. imports are not very high. The user industry was of a divergent nature with regard to the equipment required and the technology levels in use. or domestic companies were not able to meet the delivery requirements. Users imported equipment only in cases where technology was not available. In the case of energy meters the imports were high because of cost considerations. The prices have risen in the recent past due to escalation of prices of basic raw materials like CRGO. it was noticed that the utility sector had started investing in transformers. assembly work and coil processing jobs are subcontracted. Deliveries of the domestic manufacturers were found to be very poor and at times the delays ranged from 6 to 12 months. Since the technology level of the equipment is at par with international levels. This subcontracting is basically done due to capacity constraints and cost considerations. The users felt that with the demand in generation. transmission and distribution expected to increase in the future. technology. domestic manufacturers should augment their 72 . generators. Generally. capacitors.

15 4.05 27.8 0. 73 . However these companies had approximately 13% of their sales as exports.00% 10.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY manufacturing capacity along with testing facilities.10% -0.2 2001-2002-2003-200402 03 04 05 sales export 7.05 10.1 0.4 0. This is due to the increasing imports of low cost items from China and Taiwan in the context of reduction in customs duties.00% 15.00% 25.00% 0.1 12. This growth rate has been negative in the year 2004-05 over 2003-04 at 12.63% -0.80% Chart 23 Chart 24 The sales turnover of the companies in this particular sector who have responded to the survey is given below for the years 2003-04 and 2004-05:The year 2004-05 has seen average sales growth of 27% with some of the companies showing sales growth rates of more than 100%. The domestic demand was very buoyant and companies could not cater to the export market because of capacity constraints. Out of the companies covered by the survey. only 78% exported their products to either other customers.00% 20.60% 16. Market Situation and Demand SALES GROWTH SALES AND EXPORT GROWTH 25000 20000 15000 10000 5000 0 2003-04 16500 21000 1. On an average the smaller and medium companies fared better in exports over the previous year. Some companies in the SSI segment have shown a fall in sales by 25%.00% 2004-05 0.2 0 30. or to their own parent company. The manufacturing techniques require improvement through strict quality control checks and more automation to enhance productivity.6 0.2% because the major exporters had a lower export figure.10% -0.00% 5. Not many projects abroad were finalized in 2004-05 and they are likely to be done in 2005-06.20% 21.30% 0 -0. The reasons for the fall in exports were: The two major exporters in value terms had higher export sales in 2003-04 as compared to 2004-05 because of their order book position.2 1 0.89% in 2003-04 over 2002-03. The export growth rate shown by these companies was 7.

61% 15% 10% 5% 0% 2005-06 2006-07 2007-08 39500 EXPORT (Rs crores) 3400 3500 3000 2500 2000 1500 1000 500 0 2001-02 2002-03 2003-04 2004-05 2850 3075 2700 Future growth (Rs. a jump of 33% on an average. HT Motors.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY The order backlog as on 31st March 2005 was Rs.500 crores. AC and DC motors. steam turbines up 50 MW. The higher order backlog is due to certain orders booked by companies which are to be completed over a span of two years.27.36. FUTURE GROWTH 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 40% 35% 35% 32750 30% 27000 25% 20% 21.29% 20. companies need to get themselves certified with OHSAS – 18000 on occupational health and safety and ISO 14000 on energy management systems. energy meters and HT circuit breakers. AC generators.000 crores. distribution transformers. The growth projections for 2005-06 is Rs. These products are exported to different markets as indicated in Annexure II. INDIA'S IMPORT OF ELECTRICAL MACHINERY IN 2004-05 T aiw an M al aysia Ho ng ko ng UAE C hina T hai l and Sr il anka I t al y UK Si ng ap o r e F r ance Jap an So ut h Ko r ea U SA G er many Chart 27 Source : Compiled by CII from CMIE data To make a further impact in overseas markets and to consolidate their position.crores) %growth Chart 25 Chart 26 The domestic companies have a competitive advantage in standard electrical products like switchgear. 74 .

000 MW 30. The new renewable energy policy aims to provide electricity to remote villages through renewable standalone systems and local electricity grids. gas will emerge as the major source of power generation if the prices are reasonable.700 MW Surplus regions 30.000 MW Peak Demand : 87.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY Indian Power Scenario – at a glance Installed Capacity : 1. infrastructure is clearly one area where the Government policy thrust is expected to continue.000 MW Peak Availability : 77. In view of the recent gas finds in the private and public sectors. particularly after the discovery of large gas reserves in the country.000 MW of generating capacity would be required. However.300 MW 16. The central sector is practically shouldering the entire responsibility of capacity addition with the SEBs continuing to be burdened by huge losses. The renewed interest among Indian and foreign promoters in new generation projects and the recovery in the utility sector.16. Private Sector 18% Source : PGCIL 27% 55% Chart 28 Chart 28 State Sector Central Sector 75 .860 MW 2. will lead to new projects. a total of 212. Generation Capacity by 2012 To meet the requirements. the power generation sector got a dual boost on account of the effects of the passage of the Electricity Act 2003 as well as the Government’s ambitious “power for all by 2012” program which has led to the finalisation of several power generation schemes particularly in the thermal and hydro sector.000 MW 32. In the infrastructure business.500 MW Deficit regions Source : PGCIL In India. major Indian private sector players have evinced keen interest in developing large capacities.

For the immediate 10th Plan period. medium voltage and energy management segments. In the past. 765 kV transmission lines inter-connecting ER.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY The Government continues to play a major role (72%) in the capacity addition in the generation side. The provisions of the Act offer opportunities for risk mitigation and payment security as the monopolistic model of supplying power only to SEBs would be replaced by opportunities of supplying power directly to the consumers. the track record has been an addition of only 3000 MW/year.501 MW in the private sector. As the number of planned generation projects increases.405 MW in the Central sector. The 16th Electric Power Survey estimates for future energy requirement and peak load requirements are detailed in the table given below: 76 . Upgradation of city distribution and strengthening of the rural grid will provide opportunities for secondary distribution systems and reliable overhead equipment. they will in turn make extra additions / enhancement in the transmission sector and corresponding expansion / improvement in the distribution sector. Secondary distribution growth is likely to grow by 20% in the next two years. The announcements made by the Power Grid Corporation (PGCIL) on new investments will boost demand for high voltage. made up of 24. The estimated fund requirements for these investments are about Rs. has estimated a feasible capacity addition of 46. will lead to greater investments from the public and private sectors in the T&D sector.033 MW in the State sector and 10. transmission and distribution. The Electricity Act 2003 is opening up opportunities for private sector utilities in the generation. Several State Electricity Boards have tied up funding from multilateral international agencies like IBRD/ADB/OECF and this will generate good demand for standard products. This is also expected to lead to higher investments in captive power generation capacity. protection and substation automation equipment.000 crores. but private participation and higher budget allocations will lead to an addition of 5000 MW/year.000 MW by 2016. WR and NR would be completed. 12.939 MW. The grid network has to be strengthened. The Government is aiming to increase inter regional capacity to 30000 MW through a national grid by the year 2012 comprising of high capacity HVDC and HVAC lines (both 765 KV and 400 KV) and 50. This offers greater opportunities for the high voltage.566. The present inter regional grid capacity is 9500 MW. the Working Group on Power constituted by the Planning Commission. This expansion coupled with the permitted entry of the private sector in transmission.

017 11.757 7. of Substations Capacity (MVA) Additional Transmission system by 2011-12: 765 KV .577 MW respectively.825 42. Line (ckt.940 1.577 Source : Reliance Review of Energy Markets. 157. km HVDC .148 81.32. .000 Cr. km 400 KV . The energy requirements are expected to increase to 720 billion KWh.5400 ckt.2016Met 07 12 17 142 157 128 50 6 483 221 225 194 70 10 720 309 299 263 90 14 975 430 396 355 117 21 1. between 2001-02 to 2016-17.875 115.500.966 56.883 20. The Indian power sector needs investment close to US$ 700 billion (Rs. .53000 ckt.2011.645 MW.201 7. km Note: There will be an additional transmission scheme for power transfer from NER to NR/WR etc.800.024 19.134 North West South East North-East Total 157.789 69.170.540 35.223 31.Rs.648 1. 77 .416 4.346 22. (US$ 174 billion) (US$ 108 billion) (US$ 28 billion) (US$ 38 billion) Inter-State Transmission System Plan: Transmission development in Central Sector By the end of 10th Plan (additional) 31480 46 30800 By the end of 11th Plan (additional) 29200 14 12605 Total 60680 60 43405 Tr.674 46.Rs.664 2.200 26.000 Cr.Rs.990 1.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY Energy and Peak Load Estimates Energy Requirement (Billion KWh) Region 2001-02 Energy Demand 150 175 141 51 6 523 2001-02 16th EPS Forecast Energy 2006.043 71.000 Cr. 11th Plan (201112) and 12th Plan (2016-17) respectively.178 61.319 billion KWh by the end of the 10th Plan (2006-07).262 35. Investments required in the power sector by 2012 Total investment envisaged Generation sector Transmission sector Distribution sector .319 Peak Load (MW) 2001-02 2001-02 16th EPS Forecast Peak Peak 2006-07 2011-12 2016-17 demand met 23.a. The implicit CAGRs in the 16th EPS forecasts in the growth of energy requirement and peak load during the fifteen year forecast period are about 6.510 22.555 21.107 MW and 212.000 Cr.130. 975 billion KWh and 1.Rs.000 billion) in the next 30-40 years to meet the above energy demand scenario. .5% p. The peak load requirements in the same timeframe are expected to increase to 112. km) No.061 15.645 49.013 212.1600 ckt.

000 Nos. growth in the construction industry. Reviewing the present state of the transformer industry. REC are also providing funds for such projects. The Nuclear Power Corporation has also decided to go in for major expansion.000 kms Hardware Fittings 350. a few Indian companies are also examining the possibility of setting up manufacturing facilities in other developing economies like China. Bundle spacer 1. PFC.700.000 Cu.000 Nos. Distribution reform programmes. The present size of the switchgear market not including domestic switches is around Rs.000 Tons Reinforcement Steel 220.000. Spacer Damper (Quad) 250. This industry will continue to grow in excess of 20%.2800 crores. export opportunities etc. Hardware & Accessories: Conductor (Moose/Bersimis) 236. Estimated Conductor.m. The health of the transformer industry is closely related to power development as its major customers are State Electricity Boards (SEBs).000 Nos. Damper for conductor 1.270. ADB are prepared to invest in such projects. who under the APDRP initiative of the Government have taken up improvement of distribution systems in a big way. JBIC. it can be seen that implementation of the Accelerated Power Development Reform Program (APDRP) and introduction of the Accelerated Rural Electrification Programme (AREP) are responsible for growth in production of distribution transformers. have contributed to its remarkable growth. 78 . While the local market potential has attracted MNCs to set up shop in India. International funding agencies like the World Bank. Low-tension switchgear is indicating continuous growth due to the growth in the industrial and housing sectors. All these initiatives will lead to increased business prospects for the sector.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY Requirement of Substation Equipment: Estimated by 10th Plan (2006-12) Equipment Bays Transformers Reactors Circuit Breakers Isolators CVT CT LA 765 kV 62 36 (1 Ph) 76 (1 Ph) 125 375 185 560 186 400 kV 774 422 (1 Ph) 234 1393 4025 1278 6966 2322 220 kV 3200 740 (3 Ph) -3000 12240 2960 9180 9600 Requirement of Materials: Estimated by 10th Plan (2006-2010) Estimated Tower and Foundation: Fabricated Structure Steel 725.000 sets Vib.000 Tons Concreting 2. commercial buildings.

Import of meters especially from China is a big threat to the domestic industry. The expected delivery period is also very short. steel and aluminium have increased their capacity utilization and are now looking at future demand which will further boost the demand for products required by the industrial customers like rotating machinery. Energy efficient motors are going to gain importance with the focus on energy savings. In this context. Substantial growth of more than 70% in high-tension motors implies that investment activities in power stations and core sector industries are increasing. This is partly attributable to the sluggish state of the global economy and because of unsatisfactory financial performance of many acquisitions in the electrical power sector. The business scenario is very dynamic for energy meters with an increasing number of manufacturers getting into the fray and competing in the growing Indian market. Though the initial cost of these motors may be slightly higher than that of standard motors.5% electricity 79 . The total worldwide order booking for power plant equipment has been much below the manufacturing capacity leading to more aggressive marketing by global power plant equipment manufacturers who have also been undergoing consolidation. coal 36%. The move towards electricity market restructuring and reforms is gaining momentum. Various SEBs have floated a large number of tenders but decisions have been considerably delayed in most of the cases.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY Investment in manufacturing is looking at scaling up the production capacities in many sectors and signals of a capacity overhang that had dragged down investment since the mid 1990s are not there. The global power industry has been facing uncertainties in the post-Enron collapse. Hence companies are positioning themselves in this product category by either developing. Industry sectors like oil. fuels accounted for 64. Manufacturers also complain of the frequent changes in the specifications and the variety of specifications followed across States which forces the manufacturers to manufacture a variety of models and hence their profitability suffers.5% and oil 9%. In 2000. Growth of the rotating machinery industry is an indicator of industrial growth as these products are primarily used in the power equipment industry. many developing nations are planning to expand their electricity infrastructure over the coming years. Of the balance 35. utility companies have been going slow on their investments. cement. putting tremendous pressure on the manufacturers. While there has been a decline in overall orders in the previous years. The small motors have also shown good growth of about 15% due to a large export market and the momentum gathered by the white goods industry as a result of the overall economic growth in the country. As per the estimate (International Energy Outlook 2005) the electricity sector investments of the developing countries in Asia are expected to be the fastest growing in the world in the next two decades.5% of the annual electricity production comprising. natural gas 19. the initial extra cost is compensated by the savings in electricity cost due to their superior efficiency. or procuring technology.

investments in the power sector account for on an average 60-65% of gross energy investments.5 trillion is to be spent on T&D 30% on transmission and the rest on distribution As per the estimates (International Energy Outlook 2005) the electricity sectors of the developing countries in Asia are expected to be the fastest growing in the world in the next two decades. Russia (203 GW) and Canada (111 GW).560 billion kilowatthours in 2002 to 3. The per capita electricity consumption in North America was much higher at 11. The Asian average stood at 975 KWh/person. US$ 5. In 2000. 2020-30 is expected to be about US$ 10 trillion which is 60% of total energy investment. Out of the above.618 KWh/person followed by Japan at about 8. The top five countries in terms of installed hydro generation capacity include the US (99 GW). Worldwide consumption of electricity generated from nuclear power is expected to increase from 2. China (70 GW).270 billion kilowatthours in 2025. France (63 GW). including renewables. translating into an average per capita electricity consumption of about 2. Globally. China (294 GW).5% came from other sources. Japan (229 GW). from 14.018 billion kilowatt hours. Robust economic growth in many of the emerging economies is expected to boost demand for electricity to run newly purchased home appliances for air-conditioning.032 billion kilowatthours in 2015 and 3. The top five countries in terms of overall installed capacity include the US (795 GW).430 tera watt-hour (TWh) of electricity was produced globally.502 KWh/person and Western Europe at 6. and the world nuclear generation forecast includes construction of new nuclear plants in several countries. Electricity generation is expected to nearly double between 2002 and 2025.275 billion kilowatt hours to 26. This is three times higher than investment in the electricity sector during the past 30 years. space and water heating and refrigeration.e. nuclear 1% and the rest 0.295 KWh/person. Brazil (59 GW) and Russia (43 GW). Higher fossil fuel prices and the Kyoto Protocol are expected to improve prospects for new nuclear power capacity over the forecast period. the hydro generation sector contributed 19%.548 KWh/person. The top five countries in terms of nuclear capacity include the US (98 GW). together accounting for 70% of the world nuclear capacity. Germany (22 GW) and Russia (21 GW). Canada (67 GW). cooking. India ranks 8th. The strongest growth in net electricity consumption is projected for the emerging economies of the world.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY generation. The global electricity sector investments over the next 3 decades i. 80 . together accounting for 49% of the world hydro capacity. Japan (45 GW). about 15.

5 percent annually through 2008. with Western Europe also important. In the process it has played a very important role in the Indian power development programme. As per a study conducted by the Fredonia Group. Widespread electricity sector deregulation will boost gains in the industrial and commercial market. Moreover there are global opportunities in servicing of generating machinery. world electric power equipment demand will grow by 4.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY A rapid growth in demand for electricity is also envisaged in the countries in the Middle East. Much of the growth in renewable energy sources is expected to result from large-scale hydroelectric power projects in the developing world. diagnostics services.7 billion in 2006. This availability of skilled manpower can be used to advantage by companies in exploring new business opportunities like system studies. Companies will need to upgrade their present range of products since a new range of products with the latest technologies catering to gas based and nuclear power projects will be in greater demand. Once again it is the larger companies who are planning to go in for capital expenditure. The industry has now reached a point where it needs to consider certain specific initiatives for the overall development of the sector. Its fortunes have been closely linked to development of the power sector in the country. ROADMAP The heavy electrical industry has had a remarkable growth path in India. Enhancement of capacities is also a must to meet the huge demand and supply gap likely to be created. Arising out of this. power trading. The Asia/Pacific and North American regions will remain the largest markets. The survey results indicate fairly limited capital investment plans in the industry. Switchgear relays and power transformers will grow the fastest based on growth in systems automation. Bangladesh will generate a huge demand for transformers since a major part of Bangladesh is yet to be electrified. particularly China. voltage conversions and equipment upgrades. the US market for electric power equipment will reach US$ 17. India and Laos. which can be used by countries like India who have the human resources for studies like residual life assessment studies for boilers and for servicing. it has undertaken significant expansion and development in view of the growth in the domestic requirements for electricity in the country. system augmentation and asset management for utility companies across the world. The optimistic demand projections indicate that this level of capital expenditure will be inadequate. The industry obviously feels that it is not prepared to increase this without seeing tangible evidence of actual increase in investment in power development programmes especially in view of the fund constraints for such programmes and the 81 . As per the same report. driven by industrial spending and electric generating capacity by non-utility generators (NUGs). The other promising markets are the South East Asian countries especially China.

Today. but also an expensive one. To encourage companies to invest more into R&D. companies having the capability to develop the technology indigenously should be encouraged by assuring orders for say 800 MW thermal sets and 765 kV sub-stations to enable the companies to invest in the development of this technology. This leads to the industry being dependent on the collaborator for technology. • Another major constraint faced by the domestic manufacturers of high voltage equipment is the availability of testing facilities.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY absence of private sector investment in power. At present the manufacturers of very high voltage equipment send their products to KEEMA. The levels of technology currently in use barring some critical areas of high technology are at par with international norms. most in-house R&D is involved largely in quality control and product improvement / development. 82 . which can significantly help them to enhance their levels of technology. the following measures can be taken: • Since 765 kV sub-stations will be in greater demand. Netherlands. Overseas companies prefer to either directly manufacture equipment or bring in imported equipment. which is not only a cumbersome process. At present only CPRI has the facilities for testing such equipment. at the same time Indian companies are not able to tie up technological agreements. The level of R&D and technology innovation within the country is very low by international standards. India has the advantage of availability of highly skilled manpower at relatively low cost and this can certainly help to shape technology growth and development of this sector especially in the context of expansion in global markets. The level of activity and expenditure in R&D is low when compared to international companies because the huge investments required are not sustainable by Indian companies since their size is smaller compared to the global players. When GOI provides a line of credit to another country for a new power sector project. procurement of a certain percentage of products should be from Indian companies. This sector is experiencing difficulties in technology transfer since foreign companies can now directly participate in infrastructure projects. Moreover major global equipment manufacturers are reluctant to transfer technologies to Indian companies since they would like to sell the equipment directly. Should investments take place. This does not augur well for the future of the industry and it needs to enhance technology levels. however they are not completely equipped. The increase in FDI is not always translated into technology transfer. the industry will be faced with substantial imports of equipment as it will take a fairly long time for it to gear up to meet these requirements.

Logistical challenges associated with procurement of raw materials need to be specifically addressed by industry. Another issue which is emerging is that initiatives need to be taken within the industry in order to enhance operational efficiencies through computerization. These advantages can result in companies exploring new business opportunities like system studies. which may not be possible with the present production capacities available and the constraints in the supply chain. CRGO was in short supply as International manufacturers were unable to meet the demands of the transformer industry worldwide. With more and more private sector participation taking place in transmission and distribution. as well as enhance their position in the domestic market. CRGO prices increased by 40% compounded by non-availability. Companies need to continue focusing on operational excellence. there is an issue of delays in delivery and extended lead times required for supply of equipment. knowledgeable and trained sales and service force to offer immediate help to the customers at the time of a breakdown. Demand forecasting is a critical capability when working 83 . diagnostics services. the industry needs to invest more on human resources development and training to achieve a highly motivated. which can be accessed by countries like India who have the human resources for servicing and undertaking studies like residual life assessment studies for boilers/turbines. More testing facilities needs to be set up on the lines of CPRI to cater to the increasing future demand. cost optimization and exports to be profitable in the face of ever increasing competition. For this. Copper and CRGO prices touched a new high. spare parts and service engineers at the shortest possible time is of crucial importance to the industry. companies should give more emphasis to strategic planning and marketing if they want to enhance their share of domestic. system augmentation and asset management for utility companies across the world. as well as exports markets. Aggressive marketing through International trade fairs. building of the India image and understanding the psychology of international clients is a prerequisite for enhancing market share in export markets. While Indian manufacturers are conscious of technology levels in view of the critical nature of equipment supplied. Moreover there are global opportunities in servicing of generating machinery.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY • Government needs to immediately look into this on an urgent basis and equip CPRI adequately. The customers’ requirement is for shorter delivery time. Improving processes by benchmarking with the best for faster delivery of superior quality products/services will be the only factor that can help companies gain a foothold in export markets. Along with the increase in metal prices. international bidding. training etc. Since this sector is very sensitive in terms of the need to provide customers reliable and quality power. availability of products. During the year 2004-05.

which can test equipment of very large capacities and higher voltages. many countries use non-tariff barriers to protect / promote manufacturing industry from their countries. The following items should be allowed to be imported at 5% customs duty : • • CRGO steel used by the transformer industry For 765 kV Transformer o Electro grade copper for transformer winding o Special insulation components. China etc. press bore items and sudden pressure relays for high voltage rating For 765 kV circuit breaker: o Voltage grading capacitor and SKF tube 280 • The Government has announced a very ambitious plan of addition to power generating capacity of about 60000 MW during the 11th Plan Period. transformers etc. 700 crores to make CPRI a test laboratory with modern testing equipments to make the industry more cost competitive and also to reduce the delivery period and to remove the non-trade barriers at times faced by the industry . Hence there is an urgent need to make an investment of about Rs. CPRI therefore needs to aggressively market itself and convince international buyers of electrical equipment to ensure that such terms do not affect its operations as well as export of electrical equipment from India. USA. the ‘hot bands’ required for the manufacture of 84 . CRGO is manufactured by 11 Manufacturers in the world. Testing of most of the electrical equipments is mostly carried out at CPRI. The process being intrinsic. Insistence on testing at specific laboratories is one such NTB. CRGO (Cold Rolled Grain Oriented) Electrical Steel is a special steel required in the manufacture of electrical Equipment like very large generators. It has been observed that many testing facilities at CPRI are old and there is a need for augmentation of these facilities since the present capacity of CPRI is inadequate both in terms of capacity and voltage class. Further there are certain raw materials and components required for 765 KV T&D equipment which are not manufactured in India. which makes products commercially non-competitive. In the highly competitive environment. the domestic companies are at a disadvantage due to the inverted duty structure and the absence of a level playing field. major countries of manufacture being Japan. However.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY with global suppliers and the industry in India needs to gear up to these challenges in terms of balancing inventory and shortages. Germany. France. Korea. With the decreasing customs duties.

The high level of outstanding is adversely affecting the profitability of the sector. There is every reason to believe that the better managed Indian companies who are already involved in exports in a fairly big way will be able to enhance their export business prospects. The industry in India is focused largely on domestic demand.21. It is necessary for the middle order of this industry sector to look at exports seriously.3. Globally there is very limited know-how available in the area of manufacturing quality CRGO steel. • • Since most of the user sector are Government controlled.000 crores out of total sales of Rs. There are tremendous opportunities for the heavy electrical industry in India to enter global markets if the companies are able to match quality and technology levels at competitive prices. but also in the global markets. Currently the export volumes are less than Rs. The larger companies are significantly involved in exports. with the increase in demand the volumes are likely to be substantial.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY CRGO are made by only 6 manufacturers who control the supply and price of the material The country is facing an acute shortage of supply along with high price fluctuations and erratic delivery schedules and production of this steel is nonexistent in India. 85 . With a large number of steel alliances involving Indian companies it is envisaged that a Steel plant manufacturing steel for the capital goods may be thought of for which.000 crores. Rs. Unavailability of CRGO steel is hampering manufacturing of electrical equipments severely. GOI should stipulate that dues should not be accumulated for more than 70 days. This will help them to emerge as bigger and better players not only in the domestic scenario. Companies need to be more conscious of their outstanding levels and strive to bring it down. Slow down of the restructuring process of Electricity Boards and their financial turnaround may become a constraint for the electrical equipment manufacturers since a large sum of outstanding appear in their books and this would hamper the financial development. 5000 crores is needed. Finally the financial health of an organization is most important to be competitive among the world’s best. Further India can also be one of the sources of supply of this steel. It is estimated that an investment of approx. The 11th Plan may provide for a substantial amount on this account if a facility could be put up on a P-P-P model. Since the quantity required by the domestic manufacturers may not be economically viable at present. if no positive steps are taken immediately.

crores) 2004 SNEIDER (Million Euro) 2004 SIEMENS(Million Euro) 2004 EATON( $ million) 2004 GE( $ million) 2004 Sales 21000 Group Revenue Sales (segment) Cost of goods sold EBIT Group 9817 Revenue Sales 3072 (segment) Cost of goods sold 859 EBIT 152866 Sales Cost of 55005 goods sold Receivables 1612 Total 75167 10365 revenue Sales 74573 5965 (segment) Cost of 42695 R&D 535. of days sales outstanding 153 (days) 8. of days sales outstanding (days) ROCE (%) Sales/empl oyee Cost of wages/sale s (%) % growth in 27 sales Cost of goods sold to sales 61 (%) 0.70 EBIT/total 9 revenue 60 % increase 13 in EBIT 55 26 11 1 Euro=Rs.6 Inventory 7. of days sales outstandin g 4.5 (%) R&D/Sales (%) 21.2 0.2 EBIT/Sales Inventory turnover No. of days sales outstandin 75 g 6. 52.3 ROCE (%) % growth in 22 sales Cost of goods sold to sales (%) 18 Cost of goods sold to sales 57.5 EBIT/total 4.1 (%) 12.5 6.18 or Sales/empl (Rs 63 Sales per (Rs 95 oyee lacs) employee lacs) Cost of wages/sale 32.7 R&D 5063 32516 Inventories 1369.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY Annexure-I nnexureBENCHMARKING FOR HEAVY ELECTRICAL SECTOR INDIAN COMPANIES (Rs.6 71.5 (%) R&D/Sales 5.5 86 .3 Employees 419200 cost Employee cost % growth 10.56 turnover No.12 or 0.7 No.1 in sales Cost of goods sold to sales 77.2 goods sold 53320 EBIT 1310.6 revenue (%) 13.7 EBIT Receivable 2136 Inventories 11295 s Receivable Employees 84866 s 11275 Employee 3380.6 s (%) % growth in sales Raw Material consumed to sales (%) R&D/Sales (%) EBIT/sales (%) Inventory turnover No.

23 0. JAPAN 15.00 8.13 0.07 -84.06 -97.01 0.05 87 18.02 0. 6. NIGERIA 24.69 0.15 0.80 20032004 2004%Growth 05 0. GHANA 12.00 15.50 0.09 0.55 8.14 0.65 0.33 -98. OMAN 25. 8. 5. NEPAL 21.90 1.08 0.64 0.MOTORS Commodity: 850120 UNIVERSAL AC/DC MOTORS OF AN OUTPUT >37.25 1.24 4.78 9. 9.41 0.12 0. Lacs Quantity in thousands 20032004 1.02 13.40 1.98 -99.56 -99.44 0.50 0. Country Value in Rs.00 0.10 0.59 27.12 300.01 69.60 0. 4.13 3. 2. RWANDA .00 1.97 9. KUWAIT 17.5 W Unit: Nos.05 0.78 1. S.11 0.05 0.49 2004%Growth 05 0.15 39.No.68 0.94 3.05 0.47 -86. NEW ZEALAND 23. GERMANY 11.02 12.10 -85. 7. ITALY 14.00 24.94 9.91 2.20 0.00 3.07 -99.02 1. MEXICO 20.02 -89.52 92.54 1.48 115.20 0.67 2.74 73.95 1.14 58.14 395.60 47. ISRAEL 13. AFGHANISTAN TIS ARGENTINA BANGLADESH PR CANADA CHANNEL IS TAIWAN CHINA P RP EGYPT A RP ETHIOPIA 5. 3.96 0.18 9.58 -93.01 0.13 -20. MALAWI 18. KENYA 16. NETHERLAND 22. MALAYSIA 19.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY Annexure–II EXPORTS FOR ELECTRICAL MACHINERY SECTOR.27 0.52 1.48 7.35 4.03 10.34 467.

92 0.920.11 0.78 1. SRI LANKA DSR 33.22 0.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 26.00 25.50 0.56 -28. SPAIN 32.86 -99.68 88 -86. 3. 4.30 0.01 69.54 6.20 0.52 0.10 -75. 5.33 -87.98 20032004 2004%Growth 05 0. ZAMBIA Total 49.07 2004%Growth 05 0. 8.5 W Unit: Nos. SOUTH AFRICA 31.No.74 -70.25 1.67 0. U K 43.02 -70.06 43.05 0.72 3.12 1.50 -93.54 1.82 1.97 3.97 1.48 7.29 8.18 178.03 4. TAJIKISTAN 38.02 0.03 .60 -89.00 15.07 0.13 3.20 9.56 787. SAUDI ARAB 27.04 -80. 7. U ARAB EMTS 42.01 0.42 11.02 0.14 0. SUDAN 34.77 -46.15 0.20 0.73 0. SWEDEN 36.010.87 -94.10 0.08 9.23 1.38 25.43 -29.38 -99.13 -95.48 9.81 7.21 11. AFGHANISTAN TIS ARGENTINA BANGLADESH PR CANADA CHANNEL IS TAIWAN CHINA P RP EGYPT A RP 5.78 47.03 60.31 1. Lacs Quantity in thousands 20032004 1.03 3. 2.07 17. U S A 44.01 9. SWITZERLAND 37.42 1.62 55.95 -86.13 0. 6.11 1. SOLOMON IS 30.56 5. THAILAND 40.00 0.20 0. S.12 0.58 1.00 Commodity: 85012000 UNIVERSAL AC/DC MOTORS OF AN OUTPUT > 37. UGANDA 41. SINGAPORE 29.64 12.02 0.59 3.08 3.63 25.62 0.91 105.72 0.113.09 0. SWAZILAND 35. SEYCHELLES 28.84 0. TANZANIA REP 39.08 0. Country Value in Rs.10 2.68 -4.

02 13.14 58.18 9. NEPAL 21.65 2.21 1. SPAIN 32.94 47.02 1.78 4.72 0.00 0.42 -86.54 73.00 25.67 -20.12 1.44 2. SUDAN 34.56 5.74 11.77 -46. SWITZERLAND 37.56 -28. ETHIOPIA 115. JAPAN 15.07 49. U ARAB EMTS 60. NEW ZEALAND 23.78 1.24 4. SRI LANKA DSR 33. NIGERIA 24.50 -93.64 -99.91 4. MALAWI 18. OMAN 25.15 0.20 89 -94.05 0.90 1.33 -98.38 25.00 395. SINGAPORE 29.01 0.18 0.03 17.00 .07 -93.10 0.69 0.02 9.67 0.20 0.86 18.02 0. GHANA 12.22 0.20 0. MALAYSIA 19.13 0.78 47.42 7.13 6.60 0.73 0.20 0.68 11.03 3. NETHERLAND 22.81 0. MEXICO 20. SAUDI ARAB 27.08 0.10 2.63 -4.11 0.11 0.59 27.00 1.40 8. SWAZILAND 35.38 24.95 0.52 1.02 12.96 9. TANZANIA REP 39. SEYCHELLES 28.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 9. SOUTH AFRICA 31.04 -80.72 3.78 0.62 55.34 467.82 1.14 -85. TAJIKISTAN 38.74 -99.03 3. SOLOMON IS 30.94 3.27 0. SWEDEN 36.52 -95.30 0.920.00 3. KUWAIT 17.50 0.47 39.11 1.23 1. THAILAND 40.92 1.08 8. UGANDA 41.80 10.62 0.00 92.35 0.05 0.10 300.02 -70.64 12.02 0.23 0.02 -99.05 0.20 0. ITALY 14.58 1.08 -70.07 0.12 -99.49 9.41 0.58 1. RWANDA 26.56 -99.08 0.010.91 105.95 0.02 -84.55 8. KENYA 16.52 -97.00 0.10 0. GERMANY 11.06 0. ISRAEL 13.01 9.13 0.

3.95 -37.03 0.84 0.95 438.92 -28.10 -75.97 3.10 47.00 0.22 0. BENIN 11.No.00 0.13 6. EGYPT A RP 0.96 9.MOTORS Unit: NOS S.63 570. 5.56 557.56 2.34 0.28 20.08 0.16 0.01 0.31 0.33 -87.57 16.03 0. CYPRUS 23.73 62.20 0.43 66.59 3.31 10.17 0.05 -83.77 0.05 0.00 0.31 9. 8.10 -43. CONGO P REP 22. DENMARK 24.00 -34. 7.63 90 169.12 0.00 240. CANADA 16.35 739.06 0.38 2.826.02 455. U K 43.20 0.00 11.00 0.05 0.06 43.16 1. TAIWAN 19.16 0.87 -85.48 5. AFGHANISTAN TIS ALGERIA ARGENTINA AUSTRALIA AZERBAIJAN BAHARAIN IS BANGLADESH PR BARBADOS BELGIUM 20.18 0.81 0.14 -40.90 10.29 25. Lacs Quantity in thousands 2004%Growth 05 2003-04 2004-05 %Growth 2003-04 1.113.35 21.05 0.71 748.59 0.39 8.20 1.47 .59 0.97 1.74 0.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 42. 9.00 2.43 Commodity: 85013210 D.13 1.19 980.31 31.02 0.18 28.C.73 -38.00 3.01 0.84 0.87 -29. BURKINA FASO 15. Country Value in Rs. CHILE 18.85 1.58 319.62 3.41 6.00 0.00 0. CHINA P RP 20. CHAD 17.43 57.14 -71.03 0. U S A 44.28 2.03 44.87 65.10 0.00 0.89 0.56 787. 4. 6. BHUTAN 12. BULGARIA 14.27 33.96 55. 2.45 87.38 17.60 12. ZAMBIA Total 178. COLOMBIA 21.22 35. BOTSWANA 13.58 0.988.12 1.26 96.86 34.87 0.45 0.

80 718.68 27.35 1.13 1.82 0.99 0.01 0.21 1.52 0. ISRAEL 37.30 633. MOROCCO 1.36 14.09 0.42 40.00 0. GREECE 30.00 86.07 6.18 6.022.92 2.75 41. GERMANY 28. MALI 52.40 1.31 1.73 11.14 0.34 0.41 0.00 0.48 360.88 2.15 0.02 -74.02 0.80 3.13 0.03 0.00 0.00 0.05 0.49 11.16 712.01 0.29 396. LEBANON 47.01 0.33 .44 0.00 714.09 0.29 1.76 14. MALAWI 49.50 779.02 0.80 1.31 0.58 0. KOREA DP RP 44.00 72.74 785.16 0.13 908.46 8.77 37.97 197.38 -86. ERITREA 26.68 0.07 0.00 37.01 0.27 71. JAMAICA 39.97 150.78 0.04 630.14 0. KAZAKHSTAN 42. MAURITANIA 54.98 38. MALTA 53.85 0.52 3.16 10. HONG KONG 32.01 4. GHANA 29. KOREA RP 45.00 -26.67 29.01 16. FRANCE 27.03 0.89 -46.34 0.73 2.00 -70. KUWAIT 46.80 24.96 34.57 0. MEXICO 57.11 1.33 0.01 524.55 -72.22 42.05 0.26 160.05 11.00 10.528.69 -80.02 0.11 0.54 91 -19.01 0.62 0.01 0.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 25. JORDAN 41.67 18. MALDIVES 51.00 1.03 0.07 -55.25 0. IRAQ 35. MALAYSIA 50.68 28.00 0.99 75.24 -57.01 133. MAURITIUS 55.08 390.70 68.27 -36. ITALY 38. IRELAND 36.18 0.384.03 0.45 0.04 0.40 4.53 0.06 23.02 634.47 12.18 0. KENYA 43.03 0.19 0.04 1. GUINEA 31.20 7.24 0.13 0. MYANMAR 56.14 -25.16 -94.12 128.19 1.00 0.34 -47. IRAN 34.01 0.93 0.81 1.72 7. INDONESIA 33. MADAGASCAR 48.79 6. JAPAN 40.

38 0. TURKEY 89.43 82. SWITZERLAND 83.15 2. TRINIDAD 88.74 13.02 0.41 0.17 -81.21 0.38 -61.93 0.95 25.64 0.00 0.00 6.61 0.27 2.86 0.07 0.07 0.04 3.00 0.02 1.55 0.43 19.10 0.66 85.24 17.45 .50 102.04 14.53 -69.38 -89.26 17.77 -37.72 -15.57 0. SENEGAL 73.15 -57. TURKMENISTAN 90. UGANDA 54.49 1.47 83. NEPAL 59.19 188.02 2.32 -32.35 94.00 0.25 2.98 6.54 -72.49 0. NETHERLAND 60.64 0.72 170.04 0.13 7.01 32. SYRIA 84.65 31.17 20.05 0.59 15.01 0. OMAN 63.00 0.369.02 0.01 0.12 133.01 138. SWEDEN 82.08 56. PAKISTAN IR 64.41 1.01 -27.31 38.59 0.55 5.01 0. RUSSIA 70.39 170. RWANDA 71.59 3.52 -99.95 44.22 0.30 0.54 0.28 -45.01 0.48 -7. PANAMA REPUBLIC 65.49 0. PHILIPPINES 67.10 -72.41 47. NIGERIA 62.33 10. ROMANIA 69.67 178.36 296. QATAR 68.66 0. SWAZILAND 81. THAILAND 86.96 10.07 -78.01 0. TOGO 87. SOUTH AFRICA 76.17 -99. SAUDI ARAB 72.11 0.48 0.16 0.09 48.95 3.43 92 -63.18 0.89 4.00 405. NEW ZEALAND 61. SOMALIA 75.35 1. SINGAPORE 74.07 0.27 -26.09 1.68 5.02 0.16 133. SUDAN 79.93 81.53 72.42 0.55 -5.05 0.33 33. TANZANIA REP 85.29 3.62 91.75 0.46 462.96 -76.36 0.82 0.00 0.800.08 0.19 0.14 101.21 0.06 0.00 0.89 0.09 20. SURINAME 80.89 41.14 -97.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 58.03 7.03 7.09 0.13 -85.78 11.13 0.78 -52.54 21.00 0. SRI LANKA DSR 78.05 0.01 0.37 44. PERU 66.73 33.05 0. SPAIN 77.28 0.

04 259.70 -94.69 1.00 0.01 1.12 10.70 68.94 -88. UNSPECIFIED Total 244.01 0.65 5. 6.24 -18. ETHIOPIA 17. FRANCE 18.08 11.869. 7.16 -24.50 8. EGYPT A RP 16.157.00 3.00 0.86 131. U ARAB EMTS 92.49 3.01 0.02 37.03 0.10 0. 2. Country Value in Rs.27 1.83 1. ZAMBIA 97.95 Commodity: 85013310 D.00 0.00 0.MOTORS Unit: Nos.55 0.45 140.48 16.18 -88. 5.02 0. GHANA 0.12 -40.61 2. COLOMBIA 14. 9.30 -38.99 0.C.65 3.85 0.No.68 0. S.94 2.00 505. 3.20 6.00 0.37 0.06 93 -87.00 650.33 44.35 1.82 0.55 2.36 0.03 0.945.59 421.01 0.562.02 0.35 3.51 89.00 300.43 0.48 10.15 48.05 0.10 0.871.35 -98. CHAD 11. U S A 94.21 0.07 -43.02 0.11 -73.04 10.16 10.56 1. 8. TAIWAN 12.07 0.99 0.91 3.89 180.22 12.34 139.00 0. GERMANY 19. ZIMBABWE 98.00 .26 -26.46 4.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 91.01 -48.01 2003-04 2004-05 %Growth 2003-04 1.32 23.23 100.10 491.06 0. DJIBOUTI 15.39 21.00 -41. Lacs Quantity in thousands 2004%Growth 05 0.882. U K 93.27 3. YEMEN REPUBLC 96.19 34.15 16.08 -80.98 107.69 2.00 0.59 8.01 0.24 0.01 50.04 21.000.10 1.64 94.00 0.27 -44.00 0. ANGOLA ARGENTINA AUSTRALIA BAHARAIN IS BANGLADESH PR BELGIUM BHUTAN BRAZIL CANADA 39.76 62.00 -98. VIETNAM SOC REP 95.00 -95.07 0.62 0.34 21. 4.89 37.03 0.764.28 3.49 0.00 0. CHINA P RP 13.01 1.00 0.01 0.12 2.

20 0.00 -90.48 527.00 100.02 0.60 2.02 38.78 9.00 56.03 94 209.25 21.71 36.91 5. HONG KONG 22.22 17. NORWAY 39. RUSSIA 43.09 1. MYANMAR 34.01 0.71 .08 0.00 0.00 0. SOUTH AFRICA 47. SAUDI ARAB 44.55 2.00 0. ISRAEL 26. NETHERLAND 36. MALAYSIA 33. IRAQ 25.62 20.950.20 9.00 58. SWAZILAND 51.11 2.04 0.75 1.01 187.07 0. JAPAN 28.01 0.67 54.63 0.50 -75.77 9. NIGERIA 38.55 -95.04 1.22 0.77 11.22 18.01 0.40 207.00 0.55 66.27 3.850.70 7. KENYA 29.00 0.04 0.57 10. OMAN 40.00 -92.02 133. SWITZERLAND 43. SPAIN 48.00 0.62 85.01 0.98 1.23 4.50 1. INDONESIA 23. QATAR 42.01 0.97 2.00 0.82 0.11 0. SRI LANKA DSR 49.00 -97.01 0.06 20.49 11.33 0.66 25.29 1.79 3.09 13. KUWAIT 31.00 0. SINGAPORE 45.01 0.00 -89.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 20. LEBANON 32.11 58. KOREA RP 30.20 1.61 266.02 0.00 0.69 68.01 0.02 0. SWEDEN 52.48 18.00 0.00 103.00 0.56 0.16 2.01 0.68 2.47 15.63 0. NEPAL 35. GREECE 21. SUDAN 50.91 5.72 0.00 0.87 15. SOMALIA 46.707. IRAN 24.08 0.67 -84.15 0.12 14. NEW ZEALAND 37. ITALY 27.00 0.67 0.37 0.23 14.94 1.210.00 0. PORTUGAL 41.00 0.00 0.47 15.00 0.

NEPAL 16.04 0.11 4.89 6.550.93 6.02 Commodity: 850162 AC GENERATORS (ALTERNATORS) OF AN OUTPUT EXCEEDING 75 KVA BUT NOT EXCEEDING 375 KVA Unit: Nos. 9.00 -75. Country Value in Rs.00 0.04 0.25 1. Lacs Quantity in thousands 2003-04 1.372.00 0.00 2. LIBERIA 12.00 0.50 0.11 2004%Growth 2003-04 05 0.41 760.36 9. 2.02 1.00 0. LEBANON 11.04 9. THAILAND 55. TURKEY 57.48 2.34 4.59 400. MEXICO 15.949.00 0.585.12 11.45 10. UGANDA 58. BAHARAIN IS BANGLADESH PR BHUTAN BOTSWANA CHINA P RP FRANCE GREECE INDONESIA JAPAN 3.14 0. U K 60.46 2.71 -48.56 171. S.02 2.40 20.73 0.90 -87.42 1.43 55. MALDIVES 14.12 0.00 0.500.37 96. TOGO 56.57 0.No.18 15. 5.33 20.22 0.90 77.11 14. 6.01 0.00 0.054.11 2004%Growth 05 10. 7.19 0.95 0.28 0.00 0.65 13. NIGERIA .05 2. UNSPECIFIED Total GENERATORS 0.16 428.00 -67.08 20.73 38.12 3.00 10. 4.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 53.00 0. VIETNAM SOC REP 62.52 0.80 97. U S A 61.36 560.00 0.01 0.00 0.13 0. TANZANIA REP 54. MALAYSIA 13.22 1. 8.01 0.00 85.94 1. U ARAB EMTS 59.02 0.01 0.04 3.43 39. 3.14 95 3.01 0.15 12.00 0.

00 0.98 4.56 171.04 9.43 39.01 -81.05 0.00 -81.41 585.00 0.00 0.No.01 0.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 17.08 20.28 96 3.01 650. U K 25.12 11. SINGAPORE . Lacs Quantity in thousands 2003-04 1.11 14.00 0. Country Value in Rs.68 888.95 0.00 0.15 12.90 0.01 0. U ARAB EMTS 24.11 4. SWEDEN 21.11 2004%Growth 05 10.00 0. SINGAPORE 18.12 3.00 0.78 3.00 0.00 0. TANZANIA REP 22.04 0. 9.52 10. NIGERIA 17.90 0.13 0.29 Commodity: 85016200 AC GENERATORS (ALTERNATORS) OF AN OUTPUT EXCEEDING 75 KVA BUT NOT EXCEEDING 375 KVA Unit: NOS S.00 2.04 0. BAHARAIN IS BANGLADESH PR BHUTAN BOTSWANA CHINA P RP FRANCE GREECE INDONESIA JAPAN 3.14 17.01 0.18 369. MALAYSIA 13.58 68.01 0. 6.22 0.25 4.08 0. 8.19 -83.02 0. LIBERIA 12.01 0.02 2.46 2.29 17.00 -64.00 0.39 0. SOUTH AFRICA 19.04 3. SRI LANKA DSR 20.04 0.82 0. 4.28 0.01 0.500.83 176.39 -83.28 20.00 0.48 2. LEBANON 11. UGANDA 23. 5. U S A 26.71 13.55 1. MEXICO 15.00 0.96 648. 2.949. MALDIVES 14.65 13. 7.06 17.82 21.41 -81. VIETNAM SOC REP Total 107.37 107.11 2004%Growth 2003-04 05 0. 3.29 96. NEPAL 16.

SINGAPORE 17.04 13.98 4.01 2.13 0.00 -85.00 10.00 200. 5.00 0.00 0. 8.00 0.219.00 0. NEPAL 12.00 -64.12 97 238. S. ANGOLA AUSTRIA BELGIUM BHUTAN CHINA P RP DJIBOUTI INDONESIA JAPAN KOREA RP 2.00 0. SWEDEN 21.65 10.65 10. UGANDA 23. VIETNAM SOC REP Total 369. 9. U ARAB EMTS 24.18 121.01 0.02 0.00 0. 3.87 30.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 18.00 6.00 244. NIGERIA 13.41 0.00 0.68 888. SOUTH AFRICA 19.06 17.00 0.51 0.55 1.No.00 0.00 0.39 0. 7. U S A 26. SAUDI ARAB 16.71 20.90 0.00 13.29 Commodity: 85016410 AC GENERATORS (ALTERNATORS) OF AN OUTPUT >750 KVA BUT<=2000 KVA Unit: Nos.00 0.96 1.11 83.00 0.17 15.20 -63.08 0. ROMANIA 15.39 0.00 100. TANZANIA REP 22.57 10.05 0.78 3.55 16.00 0.18 68.87 2. 6.50 0.00 0.13 32.56 0.96 648.83 176.24 1.03 0.55 -55.30 6. Lacs Quantity in thousands 2003-04 2004-05 %Growth 2003-04 1. 4.96 -4.02 0.58 21.72 23.01 -81. Country Value in Rs.01 650.01 13.01 0.64 11. U K 25. SRI LANKA DSR 20.09 0.03 5.00 0. 2.25 4.00 0.00 0.52 10.41 585. MALDIVES 11. OMAN 14.00 0. SRI LANKA DSR .06 283.00 2004%Growth 05 0.

THAILAND 20.63 0.76 4.09 1.00 0.17 15.87 271.96 20.43 59.15 2004%Growth 2003-04 05 117.92 21.00 0.33 117.00 0.00 0.37 525.00 0. JAPAN 2.00 0.71 36. Lacs Quantity in thousands 2003-04 1. U ARAB EMTS 3. U ARAB EMTS 21.67 54.44 77. JAPAN 2. VIETNAM SOC REP Total 17.81 210.61 9.00 98 .28 394.00 0. Country Value in Rs.55 0. MALDIVES 3. NEPAL Total 54.632.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 18. U S A Total 37.01 0.87 2004%Growth 2003-04 05 97.02 0. U K 22. Country Value in Rs.77 34.00 2004%Growth 05 0. MYANMAR 4.00 0.38 10.00 -75.46 128.No.92 0. U S A 23.00 0.00 Commodity: 85016420 AC GENERATORS(ALTERNATORS) OF AN OUTPUT >2000 KVA BUT <=5000 KVA Unit: NOS S.90 97.00 2004%Growth 05 0. SYRIA 19. Lacs Quantity in thousands 2003-04 1.06 105.74 130.No.00 Commodity: 85016430 AC GENERATORS (ALTERNATORS) OF AN OUTPUT >5000 KVA BUT <=15000 KVA Unit: NOS S.

No. AUSTRALIA 2. Lacs Quantity in thousands 2003-04 1.68 -94.12 28. S.00 0. Lacs Quantity in thousands 2003-04 1.64 22.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY Commodity: 85016440 AC GENERATORS(ALTERNATORS) OF AN OUTPUT > 15000 KVA BUT <=37500 KVA Unit: NOS S.00 Commodity: 85016470 AC GENERATORS (ALTERNATORS) OF AN OUTPUT >137500 KVA BUT <=312500 KVA Unit: Nos.33 123.No. Country Value in Rs. Country Value in Rs.00 2004%Growth 05 Commodity: 85016450 AC GENERATORS (ALTERNATORS) OF AN OUTPUT > 37.000 KVA Unit: Nos.33 2004%Growth 2003-04 05 0. U S A Total 123.No. THAILAND Total 2004%Growth 2003-04 05 28.68 22. S.00 2004%Growth 05 99 . Country Value in Rs. FRANCE Total 386.12 2004%Growth 05 0.No.78 2004%Growth 05 0.64 386.500 KVA <= 75. Lacs Quantity in thousands 2003-04 1.13 2004%Growth 2003-04 05 0. S.00 Commodity: 85016460 AC GENERATORS (ALTERNATORS) OF AN OUTPUT > 75000 KVA BUT<=137500 KVA Unit: Nos. U ARAB EMTS Total 2004%Growth 2003-04 05 1. Lacs Quantity in thousands 2003-04 1. Country Value in Rs.78 1.

03 0.No.62 74.21 124.67 0. 4. SRI LANKA DSR 4.00 0.20 2.00 10.41 10.32 2.16 11.No.00 0. KUWAIT . 2.36 1. Lacs Quntity in thousands 2003-04 1. Lacs Quantity in thousands 2003-04 2004-05 %Growth 2003-04 1.15 6. 3.00 0.06 0.11 18. SUDAN 5.00 0. Country Value in Rs.33 15. S. KENYA 14.01 0.52 35.00 0.90 0. 6.01 0.97 1. U S A Total ALTERNATORS Commodity: 85016100 AC GENERATORS (ALTERNATORS) OF AN OUTPUT NOT EXCEEDING 75 KVA Unit: Nos.33 86.55 572.00 0.01 2004%Growth 2003-04 05 8.26 2004%Growth 05 0.03 433. 8.00 0.00 0. 5.02 0. 7.10 58.32 4.00 0. 9. NETHERLAND 3.27 0.01 0. Country Value in Rs.48 0.61 231. AFGHANISTAN TIS ARGENTINA AUSTRALIA BAHARAIN IS BANGLADESH PR BHUTAN CANADA CHINA P RP FRANCE 0. CHINA P RP 2.00 68. INDONESIA 12.00 2004%Growth 05 0.15 0.00 0.07 0.71 7.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY Commodity: 85016480 AC GENERATORS (ALTRNATORS) OF AN OUTPUT> 312500 KVA Unit: Nos.25 100 0.01 0. U ARAB EMTS 6. S.00 0. GERMANY 11. JAPAN 13.27 13.11 0.09 5.13 8.

03 0.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 15.91 -99. TANZANIA REP 33.01 0.54 6.16 0.00 -69.20 0.23 0. SAUDI ARAB 25. VIETNAM SOC REP Total 4.80 -99. SOUTH AFRICA 28.22 39.49 0.58 13.490.02 0.33 1.20 0.69 0.01 -53. SINGAPORE 27.00 0.08 1. SPAIN 29. SWITZERLAND 31.63 0.43 21.10 395.00 0.24 0.70 25.09 5.02 0. MALAYSIA 18. SENEGAL 26.05 0.18 9.12 0.59 1. TOGO 34.41 28. NEPAL 22.03 -62.00 101 .30 473.55 107.75 319. MEXICO 20.33 65.288.01 0.08 1.03 150.00 9.00 0.67 0.46 19.95 1.48 1.73 2. LEBANON 16.09 0. NETHERLAND 23.01 1.00 0.02 -61.38 0.02 0.00 0.00 0.12 485. SRI LANKA DSR 30.38 1.00 0.500.64 16.06 0.500. U K 36.61 1.04 57.00 0.00 0.600.77 1.57 1. NIGERIA 24.36 67.49 158.153. MYANMAR 19.985. LIBYA 17.26 0.00 0. U S A 37.30 -56.36 1. MOZAMBIQUE 21.06 0. TAJIKISTAN 32.76 13. U ARAB EMTS 35.47 10.01 0.

49 0. SPAIN 4.531. BANGLADESH PR 2.00 -50.66 0. SINGLE LAYER Unit: KGS S.15 1.566.00 0. Lacs Quantity in thousands 2003-04 1.274.05 59.03 0.85 11.79 2004%Growth 2003-04 05 0.03 .26 0.06 0. LIBYA 3. Country Value in Rs.21 70.41 289. Lacs Quantity in thousands 2003-04 2004-05 %Growth 2003-04 1. U K Total TURBINES Commodity: 84068100 OTHER TURBINES OF AN OUTPUT> 40 MW Unit: NOS S.25 7.01 Commodity: 84068200 OTHER TURBINES OF AN OUTPUT <= 40 MW Unit: NOS S. CERAMIC DIELECTRIC.00 0.00 -79. Lacs Quantity in thousands 2003-04 1.00 0.12 57.No.99 8.02 0.28 165.57 102 2004%Growth 2003-04 05 252. IRELAND 7.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY CAPACITORS Commodity: 85322300 OTHR FXD CAPACITORS. FRANCE 3.60 3.No.06 0.04 400.56 3.01 0.62 0.25 2.60 2.26 -82. SWITZERLAND 5.00 2004%Growth 05 0.67 2.01 0.00 2004%Growth 05 0.00 2004%Growth 05 0.60 0. AUSTRALIA 2. U S A 5. VIETNAM SOC REP Total 0. BANGLADESH PR 2.No.00 0.01 0. SRI LANKA DSR 4. Country Value in Rs.03 0.01 5. SINGAPORE 3. Country Value in Rs.71 2.

00 2004%Growth 05 0. Lacs Quantity in thousands 2003-04 1.64 2004%Growth 05 0.No.33 0. U S A Total 28.00 0.71 2.94 791.300.85 43.77 20.492.34 15.751.26 28.01 0.00 Commodity: 84118220 GAS TURBINES OF POWER>15000 UP TO 30000 KW Unit: NOS S.01 103 .00 0.411.200. SRI LANKA DSR Total 2004%Growth 2003-04 05 20.77 2.05 Commodity: 84118230 GAS TURBINES OF POWER>30000 UP TO 60000 KW Unit: NOS S.77 0. U K 9.707. LIBYA 5.33 34.No. LIBYA Total 2004%Growth 2003-04 05 678.20 -65. TANZANIA REP 8. Country Value in Rs.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 4.00 0. GERMANY 2.47 2004-05 %Growth 2003-04 34. Country Value in Rs.00 0. Lacs Quantity in thousands 2003-04 1.77 2004%Growth 05 0. Lacs Quantity in thousands 2003-04 1. Country Value in Rs.00 2. NETHERLAND 6.00 0.05 5.310. PHILIPPINES 7.64 678.08 Commodity: 84101390 TURBINES ETC OF POWER>80000 KW Unit: NOS S.71 12.27 9.00 0.39 0. U S A Total 0. OMAN 4.00 68.41 402.00 18.36 -99.No. LIBYA 3.

83 0.40 0. Country Value in Rs.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY Commodity: 84118250 GAS TURBINES OF POWER>90000 UPTO 115000 KW Unit: NOS S. Country Value in Rs. BELGIUM 3.47 2004%Growth 2003-04 05 0. U K Total BOILERS Commodity: 84021920 FIRETUBE BOILERS.00 Commodity: 84022000 SUPER-HEATED WATER BOILERS Unit: KGS S.17 7. Lacs Quantity in thousands 2003-04 1.00 0.29 942.16 1. Lacs Quantity in thousands 2003-04 1.01 0.No.30 46. Lacs Quantity in thousands 2003-04 1.27 2004%Growth 05 0. U S A Total 25. Country Value in Rs.No.432. U ARAB EMTS 5.40 2004%Growth 2003-04 05 19.01 0.00 0.85 25.749. U K Total 146. LIBYA 2.17 796.25 2. NORWAY 3.No.85 3.93 636.01 2004%Growth 05 Commodity: 84118260 GAS TURBINES OF POWER>115000 KW Unit: NOS S.03 2. CANADA 4. Country Value in Rs. JORDAN 2.12 2004%Growth 05 2004-05 %Growth 2003-04 14. Lacs Quantity in thousands 2003-04 2004%Growth 2003-04 05 104 2004%Growth 05 .No.03 15. U K 6.65 -70. AFGHANISTAN TIS 2.00 0.VERTICAL Unit: KGS S.00 0.23 0.

44 0.086.17 13.00 500.047.70 1.10 2. 6.00 0.59 46.20 0.50 481.25 0.20 0.09 2. SEYCHELLES 22.18 8. 2.52 0.00 351. MALAWI 16.67 0.14 8.08 4.00 30.95 1. SOUTH AFRICA 24.12 2.20 0. MALAYSIA 17.01 61.84 10.07 7.00 2.90 3.845.57 -30.14 2.47 12.00 0.17 1.09 0.37 1. SRI LANKA DSR 25. 5. 7.81 54.37 6.38 1. LEBANON 14.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 1.15 0.69 20.40 1.18 2.59 1.06 0.51 0. 8.86 4.05 0.01 0. U ARAB EMTS 28. TANZANIA REP 26.06 421.14 0.77 -11.02 1.47 0.70 1.51 166.20 0. TURKEY 27.37 -28.56 5.29 0.67 10.75 0.57 2.62 8.12 663.49 78.71 36.35 0.00 1.15 1.06 648.25 205. AUSTRALIA BAHARAIN IS BANGLADESH PR EGYPT A RP ETHIOPIA GERMANY GHANA INDONESIA IRAN 0.90 0.61 7. KENYA 12. U S A 30.24 0. 4.74 0.04 124.26 0.15 0.04 70.83 1.00 0.92 0.05 0. MADAGASCAR 15.00 -30. 3.02 0.87 0. U K 29. 9.22 0.44 1.08 0.20 0.58 0.63 1. KUWAIT 13.13 5.016.00 1.21 0.781. ZAMBIA Total 105 .15 0.46 5. JORDAN 11.65 0.15 0. SAUDI ARAB 21.84 1.08 0. NIGERIA 19.99 0. QATAR 20.016. SINGAPORE 23.40 23.53 2. NEPAL 18.

Transmission scheme is also to be finalized. Project Name 1 Mangalore Thermal Power Project (TPP) (coal) Pathadi TPP (coal). December. Gujarat Gujarat 1050 1500 8 Vizag Thermal Power Project Andhra Pradesh 500 106 . Fuel main outstanding issues. One major issue 2007 that is critical for February. 2009 2 Chhattisgarh 300 3 Wangtoo hydro electric project (HEP) H. Chhattisgarh (Ph-II) Location Karnataka Capacity (MW) 1015 Target date of Status commissioning September Equity tie up is 2008 then main outstanding issue One major issue that is critical for expediting the progress of the project and to achieve financial closure is allocation of coal linkage/coal block. December. October. Equity tie up is the 2011 main outstanding issue. Module II evacuation of :31st December. Maharashtra 1000 6 7 Gas based GPEC-II Power Plant in Gujarat Hazira CCPP (Gas). 2008-09 One major issue that is critical to the progress of the project and to achieve financial closure is tie up for supply of gas 2009-10 EPC Bid on ICB Route is the major issue crucial to the project to achieve financial closure. power are the 2008 PPA. 1000 4 Reliance Energy Dadri CCPP (Gas) Uttar Pradesh 3500 5 Coal based TPP at Vile. Agreement and 2007.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY ANNEXURE-III ELECTRICAL SECTOR – INDIAN PROJECTS Sl. 2007 EPC. Module-I: 31st PPA. PPA is also to be finalized. PPA and FSA are the major pending issues. Fuel Supply December.P.

06.200 6 30.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY near Visakhapatnam 9 Kattupalli CCPP.P 567 December. 2008 June 2006 expediting the progress of the project and to achieve financial closure is finalisation of PPA with PTC Two major issues that are critical for expediting the progress of the project and to achieve financial closure are:-a) Finalization of PPA and b) Equity tie up Sourcing of coal is a major issue which is to be sorted out. 1000 September. 11 Assam 100 12 Company Name Gujarat State Energy Generation Ltd Rajasthan Rajya Vidyut Utpadan Nigam Ltd Andra Pradesh Power Generation Corporation Ltd Andra Pradesh Power Generation Corporation Ltd 13 14 15 Project Name Combined Cycle Power (Hazira) Project Dholpur Power Project Phase-I Bhoopalapally Power Project Vijaywada Power Project Stage-IV Location Hazira in Surat district of Gujrat Dholpur. 2008 10 Rosa Power Project near Singrauli.06.N. Andhra Pradesh Krishna District. Karrbi Langpi Hydro Electricity Project U.200 8 30. Tamil Nadu T. crores ) 700 31. Rajasthan Warrangal.200 8 1155 2100 2706 107 . Andhra Pradesh Capaci ty (MW) 200250 440 500 500 Target date of completi on 2008 Cost (Rs.03.P. U.

Jindal Tractebel ) 260 Shivpur HEP (M/s Bhoruka Power Company) 18 Belgaum DGPP(M/s Tata Power Co.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 CENTRAL ELECTRICITY AUTHORITY PROJECTS Projects having TEC of CEA Name of the Project Capacity (MW) Baspa Stage . GVK Industries) 216 Godavari CCGT (M/s.5 Samalpatti DGPP(M/s Samalpatti Power Co. 3. ) 240 108 .) Neyveli TPS . GIPCL) 167 Surat Lignite TPP (M/s GIPCL) 250 Dabhol CCGT (M/s.) 515 Baroda CCGT (M/s.) 86 Tawa HEP( M/s Hindustan Electro Graphite) 13.Ltd) 81. Specturam Tech. ) 655 Hazira CCGT (M/s.Zero Unit (Ms.3 Tanir Bavi Barge Mounted Power Plant(Tanir Bavi 220 Power Co.) Bellary Power Project (M/s Rayalseema Alkalies & 20 Allied Chemicals Ltd.) 173 Budge-Budge TPP(M/s CSES) 500 Jojobera TPP (M/s Jamshedpur Power Co.) 500 Jegurupadu CCGT (M/s. Dabhol Power Co.) Kondapally CCGT(Lanco Industries Ltd.) 208 Guntur Branch Canal-HEP. ST-CMS) 250 Pillaiperumalnallur CCGT(M/s PPN Power) 330.8 Toranagallu TPS (M/s.II HEP (M/s JPIL) 300 Malana HEP(Malana Power Company Ltd.5 Paguthan CCGT ( M/s Gujarat PowerGen Ltd.) 106 Maniyar HEP(Carborandum Universal) 12 BSES( Kerala Eloor Project(M/s BSES(Kerala Ltd. Essar Power Ltd.75 Peddapuram Samalkot CCGT(BSES Andhra Power 520 Ltd.) 350 LVS Power Ltd 36.) 2015 Trombay TPP(M/s BSES 180 Dahanu TPP(M/s BSES) 500 Bhira PSS(M/s Tata Electric Com.

Jharkhand Bangladesh Angul. Orissa Keonjhar. Orissa Jharkhand 2050 5000 1200 1000 12000 109 .FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY UPCOMING POWER PLANTS S. Crores) 625 17000 250 48 49 WBPDCL Eastern Energy Tenughat Vidyut Nigam limited Tata Nalco Jindal Steel Power Ltd Tata Power 110 MW Coal handling plant for Sagsardhi Power Project (600 MW) Sagardighi Capacity expansion of Santaldihi TPS Unit V (250 MW) Santaldihi 1000 MW power plant (4 coal based power plants of 250 MW each) Jharkhand 5500 5000 50 51 52 53 54 3 x 210 MW units 1000 MW power generation project in Bangladesh 240 MW captive power project 200 MW captive power plant at proposed steel plant 3000 MW Tenughat.No 45 46 47 Company MPSEB Ispat Industries WBPDCL Capacity 210 MW Location Amarkantak TPS Value (Rs.

FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY Tentative Thermal Power Projects identified for 11th Plan 110 .

FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 111 .

47 30. 2009 World Bank 4 Afghanistan 106.38 None ADB 5 Cambodia 200.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY OVERSEAS PROJECTS Sl.27] 1448. 2008 3 Cambodia 307. Electrification Cambodia and Transmission Project Ministry of Afghanistan Power Water and Transmission Power and distribution Project Electricity Cambodia Greater Authority of Mekong Cambodia Subregion Transmission Home Country Vietnam Host Country Vietnam Projected Amount (Rs.54 None ADB 112 .06. Description Authorizer of Project Ministry of VN-2nd Industry Transmission Vietnam and Distribution Albanian Albania Power Sector Power Generation Corporation and Restructuring Project Ministry of Cambodia Rural Industry.01.45.64 Date of Expiry None Funding Authority World Bank World Bank 2 Albania 510 31.Crores) 1 [1 USD= Rs.

2009 None Vietnam None Kazakhstan 728.Vie tnam Kazakhstan Kazakhstan Electricity Grid Operation Company.83 31.2 Started in Oct 2005 Will start in Dec 2005 Will start in Dec 2005 None Vietnam None Vietnam None Vietnam (Rs1312. 2010 World Bank 14 Kazakhstan 452.12.12.12 World Bank Vietnam 1466.8 Will 3 Crore) start in Dec 2005 Will start in Dec 2005 31.7 World Bank 15 Poland 113 6337. Elektrownia Belchatow Poland Project Lao Nam Theun 2 Power Project An Khe Kanak Hydro Electric Power Project Srepok 3 Hydro Electric Power Project Tranh River 2 Hydro Electric Power Project Huoi Quang Hydro Electric Power Project Chat Hamlet Hydro Electric Power Project North-South Electricity Transmission Project Second Transmission and Distribution Project North-South Electricity Transmission Power Project Belchatow II Power and Laos 6564.8 EBRD .FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY 6 Electricity Authority of Laos Electricity of Vietnam Laos 7 Vietnam 8 Electricity of Vietnam Vietnam 9 Electricity of Vietnam Vietnam 10 Electricity of Vietnam Vietnam 11 Electricity of Vietnam Vietnam 12 13 Kazakhstan Kazakhstan Electricity Grid Operating Company Ministry of Vietnam Industry.15 None None Vietnam 1557.

A.35 362.16 IADC IADC Venezuela Russia 339.54 AFDB 114 . 16 Argentina 17 18 Brazil Brazil 19 20 Mexico Paraguay 21 24 Venezuela Russia 25 26 Egyptian Electricity Holding Company PT PLN Persero Egyptian Electricity Holding Company Venezuela Egypt Energy Project Norte Grande Electricity Transmission Programme North west electrification program ATE II Transmission Project Energy Efficiency Project II Power Transmission and Distribution Project Electricity of Caracas RussiaFederal Grid Company Modernizatio n of Transmission Infrastructure Tocoma Hydroelectric Power plant Eg-El Tebbin Power Project Renewable Energy Development Project EI Kureimat Thermal Power Project Argentina 1584.75 2012 IADC World Bank ADB 27 Indonesia Indonesia 728.25 1131.67 IADC IADC Mexico Paraguay 226.27 280.45 IADC Brazil Brazil 45.52 785 IADC EBRD Venezuela Egypt 3395.84 28 Egypt Egypt 1082.FINAL REPORT ON THE INDIAN CAPITAL GOODS INDUSTRY S.

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