The Indian Electrical and Electronics Manufacturers Association (IEEMA), the apex Indian industry association of manufacturers of electrical, industrial electronics and allied equipment recently released the Q1 FY13 performance of USD$22 billion Indian electrical equipment industry. The result shows that for the first time in 10 years the Indian electrical equipment industry has witnessed a negative growth of 2.4% in Q1-FY 13 compared to the corresponding period of Q1 FY12 (13.82 %) and sequential quarter Q4 FY12 (14.10%), it is reported.
The transformer industry, reportedly, has seen a negative growth of 7.6 % in Q1 FY13 against the growth of 6.6 % for the corresponding period of Q1 FY 12. The capacitor and cable industry has witnessed a double digit negative growth of 24.8% and 12.9% respectively compared to the positive growth of 20.9% (capacitor) and 44.6% (cable) in Q1 FY12. The rotating machines industry has witnessed a negative growth of 2.6% in Q1 FY13 against the growth of 9.6% for corresponding quarter last year.
The transformers, rotating machines and capacitor sector has been decelerating every sequential quarter and has seen a negative growth in Q1 FY13, implying distinct slowdown in industrial capex activities and slowdown in off-take by users due to credit squeeze, high interest costs, etc, it has been reported.