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Electrical Switches Market in India

Market Size and Structure The electrical switches sector is highly fragmented with over 500 brands being manufactured by more than 100 players. The market is currently valued at USD 506.4 millions. Modular switches contribute more than 50% by value to this market. These are switches that retail for USD 0.6 upwards while the nonmodular switches retail for less than USD 0.4. Our forecast, based on increase in housing stock, per capita GDP growth and growth in industrial production, indicates that the overall sales of switches would grow to USD 765.5 in 2014. The highest market share has been garnered by Anchor (now a Panasonic brand), followed by Havells, MK and Legrand. Philips has recently entered the market with switches manufactured in India.

Electrical switches comprise three types: Modular Semi Modular Non Modular

Non modular category have traditionally been the mainstay of the market. In volume terms, 32% of all switches sold were modular switches while only 9% were semi modular, in the last quarter.

Sales by Product Type: Switches are stocked or sold by 94% of the electrical goods retailers. Of this, modular switches are stocked by approximately 61% of the electrical retailers. Non modular switches registered the highest presence in the switches category, while Anchor modular and non modular switches have the highest presence in town tiers 1, 2, 3 and 4.

Sales by Channel Type: Project sales are those affected by outlets to institutions such as schools, colleges and housing projects whereas retail sales comprise sales to smaller individual customers. Project sales constituted only 20% of the total sales of switches and were highest in South with Hyderabad being the highest contributor in the sales of both, modular and semi modular switches. Schneider switches had the highest sales contribution in project sales while Anchor non- modular switches had the highest sales contribution in retail sales.

Popular Brands

Anchor, Havells, Legrand, MK, Wipro and Orpat are some popular modular switches. Philips has, as of yet, failed to make a mark in this sector Anchor, GM, Kolors, Pretty are popular brands in semi modular switches Anchor is the biggest brand in non modular switches along with local and regional brands.

Market Shares:

While Anchor remains the market leader, Havells saw a significant increase in its market share in the modular category because of better distribution service and increased promotional activities. Regional and unbranded players which were witnessing a rise in market shares saw a decline because of increased promotional activities by brands like Havells and Legrand. Anchor non-modular switches lost market share to local brands in the East Zone primarily because of the various trade related incentives offered.