New Delhi: With the onset of summer, a hike of 20-25% in the demand of inverters, their batteries and generators is expected, particularly in NCR, according to a report by Assocham.
Heat impact would be most felt in industrial and residential areas, hospitals, schools and shopping centres in which the power cuts could range between 10-12 hours a day in view of power demand supply mismatch.
As a result, demand for inverters, their batteries and generators will rise to the extent of 20-25% as NCR is unlikely to be supplied power supplies either from the neighbouring region or else from far off power producing sources.
Figures compiled by the chambers on the inverters’ market reveal that in the unorganized and organized sector, the inverter market is within the ratio of 60-40.
Large players in the segment like Su-Kam, Microtech and Luminous will face tough competition from the unorganized inverter industry, in view of price differential of about Rs.2000-2500 per inverter in NCR.
The inverter market is estimated at Rs.2000 crore for which the main demand came from resident sector in the last year which will grow to approx. Rs.2500 crore this summer.
Last summer, peak power demand in NCR was about 4600 MW as against its demand of over 5500 MW. Since, hardly any capacity addition has come in the region during the period, peak demand might grow to over 5800 in the summer of 2007.
Power shortage will therefore be met through installation of inverters and generators and demand for the same is likely to rise by 20-25%. This demand also has a correlation with the increase in purchasing power of the middle class.
The NCR had generator market size to the extent of less than Rs. 5000 crore during last summer, most of which was in the industrial, shopping centres and agriculture segment and partly in residential complexes. The market size for generator is expected to grow at least by over Rs.1000 crore in the region in view of their rising demand as generator prices have not gone that too high, said Mr. Rawat.
The prices of inverter batteries, particularly for brands like Exide, Amaron have gone up by nearly Rs 1000-1200 in the past few months. The demand of dry and eco-friendly batteries have also gone up compared to normal batteries.
According to Assocham, the UP Power Corporation was generating approx. 2,700 MW of power every month, but the demand in the state was for 7,000 MW, thus leaving a gap of 4,300 MW. The UPPC is losing Rs 800 crore annually on power thefts.