C & S: Changing the dynamics of power business

Over the years we have developed our own unique positioning – an elusive alchemy of product quality, customer service and intelligent marketing. Based on this we have developed leading market positions in most of the product lines we are operating in. We have been growing faster than the market growth rate both in India and overseas and hence increasing our marketshare.

Q. Electrical energy is the need of hour for all the industries, what are the latest initiatives undertaken by C&S in electrical segment?
C&S Electric has pioneered the Haryana’s 1st MWp Grid-Connected Solar PV Power Plant in Haryana under MNRE RPSSGP programme.This plant has been completed much ahead of the committed timeline and is the 2nd plant to be commissioned in India under RPSSGP. The plant developed, engineered , constructed and operated by C&S Electric incorporates innovative engineering customized to Indian conditions achieving high energy efficiency and reliability. Our Solar PV Power Division is fully geared up to undertake multi-MWp Utility Scale PV Power Plant EPC - Engineering Procurement Construction to world class standards based on crystalline and thin film technologies.The sourcing tie-up for PV modules and high efficiency inverters are already in place.Our electrical engineering,/ controls/, electronics competency fits into this domain naturally and enables us to be a leader in this complex and specialized field.

Q.How do you assess the performance of Indian electrical industry and how does electrical product business will shape up?
The industry has done very well in the period from 2001 to 2009 but has slowed down a bit since then. Still compared to global industry it has done very well. Indian companies have gone global in a big way. The long term future is very bright despite some slowdowns from time to time, give the fact that we are such a huge population. In fact this is true for the economy as a whole and hence electricity and electrical products being a core infrastructure business, grown is assured.

Q. What are the key factors that are driving the growth of electrical energy products in India?
The biggest factor of course is the growth of electricity consumption. The electrical power plants and transmission and distribution networks themselves are large consumers of electrical equipment. Add to that the end user segments like real estate, airports, railways, hotels, hospitals, shopping malls, software parks, automotive industry, petroleum and petrochemicals, cement, steel, agriculture, and also individual homes. The potential is endless.

Q. What are the opportunities & challenges for Indian products in the global market? How are the C&S products performing in the international market? What is the competition you are facing in the sector?
Our exports of the flagship company C&S electric are close to 150 crores now and this does not include the exports of our JV companies. This has been an important strategy for growth as not only has it given revenue but the learning and experience has given confidence and ideas for growth of business at home. The opportunities are huge. The challenges are surmountable. However this is different for each company depending on the product, geographical market and product positioning. C&S has taken a big bet on China by establishing a sales and manufacturing company in China. Our exports are widespread and we supply to the most discerning customers around the world for critical applications. C&S is among the country’s biggest exporters of switchgears. Apart from the existing markets for the company, we were planning to expand your footprints in other geographies as well.

Which are the new markets you have explored or are in the process of exploring?
We have made some inroads into practically every market in the world now, so its not so much about new geographies now. Its about deeper penetration into the geographies where we have been already present now. The approach is simple – we have increased quantity and quality of our manpower in this field and are setting higher targets. The market is huge and our share is tiny so there is enough room for us to quadruple our exports in 3-4 years. We do pick some markets from time to time where we focus – and in recent times these markets have been Russia, Africa and North America. We have an office in Moscow and in Dubai. We also now have a focus on the Chinese market. It will be a slow start, which we have already had. But the market is 5 – 6 times the size of India’s market. And we already have a reputation in China for our superior quality as compared to the Chinese companies thanks to the supplies we make to our Global accounts who have their plants in China. So we have great expectations from this in the long term. The competition in exports comes from the same people we compete with in India. Nobody new. On the one hand we have the European and Japanese giants, and on the other hand the Chinese. Of course the Chinese companies also come in all types and one cannot generalize. Over the years we have developed our own unique positioning – an elusive alchemy of product quality, customer service and intelligent marketing. Based on this we have developed leading market positions in most of the product lines we are operating in. We have been growing faster than the market growth rate both in India and overseas and hence increasing our marketshare.

Q.What are C&S future plans & are there any new products that will be introduced in near future to compete with other product manufacturers?
Even before the switchgear components, the mother business of C&S was LV Switchgear Panels. In the mid 80s C&S added in a short time a vast range of LV components like Switches, Fuses, Air Circuit Breakers, Contactors, Motor Starters etc, and built its network of distribution around the country. Success came quick since the foundation was sound. From thereon always C&S has looked at expanding the frontiers of its business in terms of geographies, new verticals or Joint Ventures. We are constantly getting into new verticals – to give a few examples we entered Medium Voltage Switchgear line a few years ago through a JV with a Portugese company – C&S Efacec MV Ltd is making waves in the Indian MV industry. We have started our own company and plant in China and expect to tap the vast Chinese market for all our products. We have also become a pioneer in the Solar Engergy field and have been one of the first to commission a 1 MW Grid Connected solar power plant in Biwani Rajasthan

Q. However the Indian market is competitive, what are the strategies that have been implemented by C&S in terms of marketing & product development to counter the competition?
What are the key technological trends that are driving electrical switchgear industry?
The switchgear Industry is a mature industry the world over and India is no exception. So the new products that come into the market are usually only incrementally better in terms of fundamental technology, but have always some new features which may be sometimes described as “new bells and whistles”. This is the case in many industries including for example automotive industry. The main shift in technology has been more use of electronics in switchgear. This has been the case for the industry as a whole and also for C&S as C&S has added some electronic functionality or the other in all its products. Protective Relaying has advanced in a big way and the use of multifunctional relays and advanced communication protocols like IEC 61850 have made big inroads into the industry. However the full benefits of these technologies have not yet been fully harnessed by the users who still prefer in many cases “redundancy” ie to retain also the older systems in parallel – to put it perhaps a bit over simplistically. Innovation is not limited to the products alone. The manufacturing technologies and logistics systems are often an area where innovative edge makes as much difference as in the product itself. Also innovation can sometimes be at an emotional level – ie ease of use – or simply the power of product aesthetics. C&S is active on all these fronts.