“We see a greater tilt towards to the stand-by range of DG sets”

Farrokh Cooper,
CMD,
Cooper Corporation.

In a chat with CT, Farrokh Cooper, CMD, Cooper Corporation, share his insights on the current industry scenario for diesel generators.

Give us an overview of your presence in the different categories of the diesel generator industry, up to 3000 kVA.

Cooper is present in the DG set range 5 kVA to 250 kVA, at present. Our 500 kVA product is set for launch by March 2019 and 750 / 1010 kVA nodes, six months thereafter. We are also present in the eco-friendly, efficient natural gas genset space (up to 125 kVA).

Give us an idea of the market competition and your own focus area in the market.

The market is highly fragmented and we are positioned as a value- for- money product. We are present across all industries and geographical segments.

What is the revenue you are targeting in the next two-three years and where do you see the demand from? What were the revenues in FY18?

Corporate revenue is about of Rs 7,000 million.  Going forward, we see a CAGR of 25% in the medium term of three years.

What is the outlook on exports and how much are you exporting now? Give us an idea of the opportunities in different geographies and what new markets you are planning to enter.

We export to the Middle East, Africa, CIS states, LATAM. SAARC and ASEAN nations, at present. We are seeing robust demand for exports for diesel and gas sets. We are in the process of clearing the latest US EPA norms for gas gensets. This will be a breakthrough, easing our way in North America and EU markets.

Give us an idea of your manufacturing locations and capacity currently and plans to add or establish new capacities in the coming times.

Our manufacturing location is Satara, India. Capacity addition is being planned for new aluminum air-cooled engines, 600 to 1200 hp engines and also in foundry capacity.

The domestic market has been subdued recently. Are there any signs of a pick-up, or is it even slower now, ahead of the general elections?

We are hopeful about a demand revival soon and the usual pump priming before elections will augment the demand growth.

What are the arguments still in favour of gensets in a scenario where the cost of power continues to come down? Would a lower power deficit in the economy be a dampener for the gensets industry?

The demand, per se, will continue to grow commensurate with the overall economic growth.  However, the usage pattern may be impacted because of the narrowing power deficit in the public grid. We see a greater tilt towards to the Stand-BY range of DG sets.

Given that DG sets are primarily used for backup and typically last for 10 years or longer, what are the decisive factors beyond pricing that are important?

After-market support.

How are the new-gen generators becoming more innovative in terms of artificial intelligence and data analytics?

Remote- monitoring /Control, SCADA methods are being increasingly deployed.

How have the gensets improved on the sustainability quotient? How are they becoming less noisy and more fuel efficient?

India noise-level norms are among the most stringent in the world and so are the current CPCB II norms for mass emissions.

Please comment on how the gensets are becoming more user friendly in terms of economy and portability? Any other user-friendly factors you would like to highlight?

We design our products keeping in view the customer preference for compact products. We also take care to ensure that our gensets need the least maintenance attention besides offering the lowest OPEX in its class.

How equipped you are in terms of after sales support?

We have a pan- India coverage.

Would you like to address any of your concerns with the policy makers?

The state level electrical inspectorate approval for the user process has to be eliminated pan- India, like in many states which have already done it.

Do you see an increasing Chinese competition? How is it affecting the trade? What are the necessary measures the government should adopt?

Not being felt in the markets we operate in India.

Hits: 34