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    Electrical Equipment Industry 2020

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    Ipsita Bhattacharjee
    The electrical equipment industry manufactures a variety of goods used globally including electric motors, lighting, and appliances for heating, ventilation and air conditioning. Growth in the Indian electrical equipment sector was 12.8% in 2017-18 led by large and small appliances. However, the COVID-19 pandemic has negatively impacted the industry as manufacturing units are closed and distribution is stalled due to lockdowns. The industry will not recover until the pandemic is over.

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    Electrical Equipment Industry 2020

    Uploaded by

    Ipsita Bhattacharjee
    253 views2 pages
    The electrical equipment industry manufactures a variety of goods used globally including electric motors, lighting, and appliances for heating, ventilation and air conditioning. Growth in the Indian electrical equipment sector was 12.8% in 2017-18 led by large and small appliances. However, the COVID-19 pandemic has negatively impacted the industry as manufacturing units are closed and distribution is stalled due to lockdowns. The industry will not recover until the pandemic is over.

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    An analysis on the Electrical Equipment Industry in 2020

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    The electrical equipment industry manufactures a variety of goods used globally including electric motors, lighting, and appliances for heating, ventilation and air conditioning. Growth in the Indian electrical equipment sector was 12.8% in 2017-18 led by large and small appliances. However, the COVID-19 pandemic has negatively impacted the industry as manufacturing units are closed and distribution is stalled due to lockdowns. The industry will not recover until the pandemic is over.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    253 views2 pages

    Electrical Equipment Industry 2020

    Uploaded by

    Ipsita Bhattacharjee
    The electrical equipment industry manufactures a variety of goods used globally including electric motors, lighting, and appliances for heating, ventilation and air conditioning. Growth in the Indian electrical equipment sector was 12.8% in 2017-18 led by large and small appliances. However, the COVID-19 pandemic has negatively impacted the industry as manufacturing units are closed and distribution is stalled due to lockdowns. The industry will not recover until the pandemic is over.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Electric Equipments Industry

    Electricity is part and parcel of daily existence. In recent years, the rise in
    power production, delivery, and usage has resulted in increased demand for
    electrical machinery and equipment. The Electrical Equipment Sector is
    made up of companies that manufacture a variety of goods for a wide
    customer base. Items include electric motors, commercial and industrial
    lighting devices, systems and parts for heating, ventilation and air
    conditioning, and, among others, electrical power appliances. The industry
    covers every corner of the globe, and is sensitive to the macroeconomic
    cycle's effect.
    The sector of electrical appliances is one of the fastest rising divisions on the
    Indian economy. In India, this industry expanded at a steady rate, led by
    both large and small appliances; in 2018, the growth of large appliances was
    marginally higher than of small appliances. In 2017-18, the electrical
    equipment sector reported a double-digit high growth of 12.8 percent.
    The new economy and growing habits of Indian customers are contributing
    to a rise in the number of employed people, nuclear families and single-
    person households coupled with the relocation of the workforce population.
    Such evolving households are also constantly in search of accessibility and
    are searching for goods that provide comfort and substantially reduce the
    time and energy expended on everyday chores.
    But, looking at the present situation of COVID-19 pandemic, this industry is
    suffering a lot. As the manufacturing units of many companies are closed
    down and the distribution is also at a stagnant position because of lockdown,
    this industry won’t grow as it was forecasted earlier. Moreover, the
    consumers are not looking to purchase electrical appliances as of now. The
    industry will not start growing before the pandemic is over.

    Porter’s Five Forces: Porter's Five Forces is a framework that defines and
    analyzes five competitive forces that shape the market, helping to identify
    the weaknesses and strengths of an industry. Porter's model can be extended
    to any sector of the economy to understand the level of market rivalry and
    boost the long-term productivity of a business.

    i) Competitive Rivalry: Many players are expanding into new


    geographies and categories. Moreover, the existing players are very
    fierce and have earnt a huge customer base. So, the competitive rivalry
    is high.

    ii) Bargaining Power of Suppliers: Supplier control is low, and the


    conditions are determined by appliance firms. They are demanding
    better goods from the manufacturers and adopting JIT principles.
    Manufacturers have the sole manufacturer arrangements and
    partnership.

    iii) Bargaining Power of Buyers: The power of the buyers is extremely


    high, not only can the final customers push efficiency and creativity,
    but even the intermediaries and builders may and can put pressure on
    the supplying firms to deliver low-cost energy-efficient,
    environmentally friendly and good-quality goods. Buyers only want
    well-known and good quality products.

    iv) Threat of New Entrants: New entrants' threat is very low as there is a
    need for massive investments and advanced R&D in the appliance
    sector and business is matured with severe rivalry, profitability is not
    lucrative for the new entrants. Brand loyalty still plays a significant
    role and involves broad distribution network. Because of the strong
    rivalry the latest entry is being retaliated by established teams.

    v) Threat of Substitutes: Threat of substitute products is very low, as


    there are almost no substitutes available in the market. So, people
    cannot switch to substitutes.

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