Growth of Diesel Generator Business in India
Growth of DG Business
According to some market research, there is a demand-supply gap of about 17% in power generation. This has thrown open huge market opportunities for the power backup providing companies. The power backup market in India is growing at an annual rate of 15-20%, varying within the three different segments – generators, UPS and inverters. Major players like Kirloskar Oil Engines Ltd (KOEL), Mahindra-Powerol, Cummins India, Greaves Cotton, Ashok Leyland, Eicher, Caterpillar, MTU and few other imported brands are seeing huge market potential to grow in India.
“India’s power market is growing faster than most other countries. With an installed generation capacity of 147 GW, generation of more than 600 billion kWh, and a transmission and distribution network of more than 6.3 million circuit kms, India is now the fifth largest power market in the world. The per capita electricity consumption in the country has reached 1,000 units that was around 665 units in 2007-8.
The demand for power is typically driven by sectors such as Telecom, Commercial construction, IT, ITES, Retail, etc.
Domestic Genset market (inclusive of Telecom sector) is about two lakh per annum in the range from 10kVA to 2000kVA. Besides Telecom, DG sets are also powering customers from a diverse cross-section of industries such as banks, building & construction, public sector units, hospitals, hotels, homes and manufacturing units,” the company said.
Forecasting of Future DG Market
The overall Indian generator set market for medium horsepower (MHP) and high horsepower (HHP) class generator sets, rated from 375 kVA to 750 kVA and from 750 kVA to 2,000 kVA, respectively, is expected to grow at a CAGR of 6.2% and 9.8% in unit and revenue terms, respectively, from FY10 to FY15. High growth in the industrial sector and peak power deficit at about 15% is expected to boost diesel generator set sales in India.
Further, it is expected that growing industrialization and increasing
According to some market research, there is a demand-supply gap of about 17% in power generation. This has thrown open huge market opportunities for the power backup providing companies. The power backup market in India is growing at an annual rate of 15-20%, varying within the three different segments – generators, UPS and inverters. Major players like Kirloskar Oil Engines Ltd (KOEL), Mahindra-Powerol, Cummins India, Greaves Cotton, Ashok Leyland, Eicher, Caterpillar, MTU and few other imported brands are seeing huge market potential to grow in India.
“India’s power market is growing faster than most other countries. With an installed generation capacity of 147 GW, generation of more than 600 billion kWh, and a transmission and distribution network of more than 6.3 million circuit kms, India is now the fifth largest power market in the world. The per capita electricity consumption in the country has reached 1,000 units that was around 665 units in 2007-8.
The demand for power is typically driven by sectors such as Telecom, Commercial construction, IT, ITES, Retail, etc.
Domestic Genset market (inclusive of Telecom sector) is about two lakh per annum in the range from 10kVA to 2000kVA. Besides Telecom, DG sets are also powering customers from a diverse cross-section of industries such as banks, building & construction, public sector units, hospitals, hotels, homes and manufacturing units,” the company said.
Forecasting of Future DG Market
The overall Indian generator set market for medium horsepower (MHP) and high horsepower (HHP) class generator sets, rated from 375 kVA to 750 kVA and from 750 kVA to 2,000 kVA, respectively, is expected to grow at a CAGR of 6.2% and 9.8% in unit and revenue terms, respectively, from FY10 to FY15. High growth in the industrial sector and peak power deficit at about 15% is expected to boost diesel generator set sales in India.
Further, it is expected that growing industrialization and increasing