Once a flourishing in the state,power equipment makerslost business over the last few years due to a sharp fall in orders from theGujarat Urja Vikas Nigam Ltd(GUVNL). And the protection policies in other states implemented by power distribution companies (DISCOMs) to protect their local manufacturers added to the woes of the industry in Gujarat.
Power equipment manufacturers from Gujarat have now begun looking abroad for greener pastures. Several small and medium enterprises (SMEs) have either tied up withpower equipmentmakers in other countries or are scouting forgood firmsto forge joint ventures.
Vadodara is considered a hub for electrical equipment manufacturing, and just four years ago it commanded 30% of the market in power equipment in the country.
But the industry is now struggling to survive and has demanded that Gujarat DISCOMs should increase reservation of business from the current 50% to 75% for local power equipment manufacturers.
Setting up joint ventures with local firms in African countries like Congo, Kenya,Tanzania, Uganda, and others is a lucrative business proposition for Indian SMEs. But they have to be cautious as the Chinese power equipment makers have already forayed into Africa and are dominating the markets there.