Electrical sector growth up 15%

The Indian electrical industry grew by 15 per cent during the third quarter that ended on December 2003 even as manufacturers expressed concerns over the increase in prices of ferrous and non-ferrous metals, saying it could seriously affect the sector.

All sectors except energy meters have improved their performance during the third quarter of the current fiscal with LT motors clocking a growth of 16.96 per cent, power/control cables (34.76 per cent), distribution transformers (34.08 per cent) and LT capacitors (27.28 per cent), Indian Electrical and Electronics Manufacturers’ Association (IEEMA) said in a release.

‘‘The power ministry’s initiatives through APDRP along with concerted efforts of the industry to penetrate export markets have contributed to this remarkable growth,’’ IEEMA president Krishnakumar said.

It said with the present trend of production, order book position and flow of enquiries, the estimated overall annual growth would be about 12 per cent in quantitative terms for the fiscal 2003-04, but the effective profit margins for the industry would not grow beyond five per cent.