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Mahindra arm sees revival
Mahindra Powerol, an arm of $19-billion Mahindra Group, is anticipating a turnaround in diesel generators business which has been hit by a drastic drop in orders from telecom players in the past four years.
Mumbai: Mahindra Powerol, an arm of $19-billion Mahindra Group, is anticipating a turnaround in diesel generators business which has been hit by a drastic drop in orders from telecom players in the past four years.
Diesel generators (gensets) business clocked a robust combined annual growth rate(CAGR) of 10 per cent between 2005 and 2013 thanks to the order flow from the telecom players which use gensets for power backup for their towers. But sales were down thereafter and as consequence, the $1-billion sector was going through a de-growth of five per cent annually from 2014 till now.
“But, we expect the sector to be back on the growth track now thanks to the growing number of infrastructure projects such as metro rail projects, road construction works. Growing activity in manufacturing and commercial establishments like hotels, hospitals, IT offices, etc, is adding to the demand,” Hemant Sikka, Powerol and Spares Business, Mahindra & Mahindra, told the media here.
He expects more demand for medium and high capacity generators whose sales, he says, will grow by 10 per cent annually for next several years. However, Mahindra Powerol, which is a leading player in lower capacity gensets that account for 75 per cent of 1 lakh gensets sold last year, is not present in the higher capacity categories.
To bridge the gap and cash on the growing demand, the company launched two new diesel generators on Monday, marking its foray into the higher kVA (kilo Volt Ampere) category. The new diesel generators - 250 and 320 kVA - are powered by the Mahindra mPower series of engines.
Designed at Mahindra Research Valley, its R&D hub in Chennai and manufactured at its Chakan plant near Pune, this new 9.3 litre engine range is the latest addition to Mahindra Powerol’s mPOWER series and comes equipped with the technologically advanced CRD engine. The 250kVA diesel generator is priced at Rs 12.5 lakh while its bigger sibling (320 kVA) is available at Rs 16 lakh.
“The higher kVA generators account for 5,000 units in sales annually. We are aiming at double digit market share in this category in the first year itself. Going forward, we will increase our market share,” Sikka said.
Mahindra Powerol, which is into power generation products, engines and bio CNG, did a total business of Rs 1,250 crore in FY17. “Andhra Pradesh and Telangana account for a significant part of our business and we are growing in the two Telugu states,” P Palaniappan, Business Head, Mahindra Powerol, told The Hans India at the launch event.
By P Madhusudhan Reddy
