The electrical equipment manufacturing industry in India has reached a turning point. The industry covers power generation, transmission, distribution and utilization equipment. These include: Turbo generators, transformers, switchgears and allied items. On one hand, there is a huge unfulfilled demand for these products and, on the other, there is a large inventory with the manufacturers. The stock of finished goods alone is estimated at 45 to 60 days turnover. This article looks at the industry's characteristics from a business perspective and makes recommendations for remedial action.

According to IEEMA's (Indian Electrical and Electronics Manufacturers Association) periodical journal and members' directory, the products of the electrical engineering equipment industry include: Transformers, motors, generators, transmission lines, current transformers and potential transformers, lightning arrestors, switchgear, cables (excluding telecommunication cables), capacitors, meters, insulators, etc.

Improvement in infrastructure is vital for the growth of the manufacturing sector. Interestingly, one of the most important components of infrastructure in any economy is the power generation sector, which directly translates into the electrical equipment manufacturing industry. This linkage is well understood, but not adequately recognized. The growth of power generation and transmission in India depends almost totally on the five year plans and the funds allocated to this sector therein. Incidentally, India's installed power generation capacity has increased more than hundred times since independence from 1,300 MW (mega watts) to 150,000 MW. This addition has been contributed primarily by the indigenous electrical equipment manufacturing industry.

The electrical equipment manufacturing industry leads the power sector's growth in time frame by a period of one or two years. That is to say that electrical equipment manufactured today would translate to growth in power generation and distribution capacity one or two years hence. As such, it would be interesting to see what a major company thinks about the business environment for the electrical equipment manufacturing sector.

Marketing Mastermind Magazine, Indian Electrical Equipment Manufacturing Industry, IEEMA, Indian Electrical and Electronics Manufacturers Association, Turbo Generators, Transformers, Switchgears, Power Generation, Bharat Heavy Electricals Ltd., BHEL, Central Power Research Institute, CPRI, MCB, Miniature Circuit Breaker, FHP, Fractional Horse Power.