Foreign electronic equipment makers are venturing into Indian territories in order to tap the existing business opportunity, thanks to growth in sectors such as automobiles, infrastructure etc .jpg) After the Indian auto segment witnessed influx of global giants, now it is the turn of the domestic electric equipment industry. Of late, global electronic equipment makers have been focussing on the Indian market, with several leading firms foraying into the Indian market. While Schneider Electric acquired Zicom Electronic Security Systems in March, on Friday (July 23, 2010), French electric equipment maker Legrand acquired the switch gear division of Indo-Asian Fusegear. Analysts opine that growth in sectors such as telecom, infrastructure etc have propelled the demand for quality electric equipment, which has lured these foreign giants to venture into Indian territories. According to Parag Limaye, managing director of Clean Power Equipment, a small-sized electronic equipment dealer in Pune, “Coming of global equipment makers will bring technological expertise in the sector, which will help domestic manufacturers to bring innovation in their product portfolio.”
It must be noted that according to the Indian Electrical and Electronics Manufacturers Association (IEEMA), the domestic electronic equipment industry clocked a growth of about 20% in the second quarter of 2009-10.
A foothold in South Asian markets
In this context, Vikram Chabra, proprietor of Premier Power Equipment, a mid-sized manufacturer of power equipment in New Delhi, says, “The Indian electronic equipment industry is poised for a giant leap, thanks to several power projects undertaken by the Government of India (GoI). The global giants are very much aware that these projects will play a vital role in the Indian economy and also provide them an opportunity to boost their business.” Mr Chabra also added that India provides the much-needed platform to these global firms to increase their foothold in the South Asian region.
However, experts have also cautioned that the government should take adequate steps to ensure that these foreign firms do not eat too much into the market share of domestic manufacturers.
Arup Choudhury |
