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Sunday, July 5, 1998

Agra generator business thrives as power remains in short supply 

Amiti Sen  
Agra: Frequent power cuts is a problem plaguing almost all the industries in the country. But there is one industry which is not complaining. For the diesel and generating set manufacturers it is the unavailability of adequate power that is translating into direct business. In Agra, the business has grown tremendously, and there are manufacturing and assembling units in every part of the city.

It is not only the pathetic power supply in the city which has lend a helping hand. The main reason for growth in business is the enterprising spirit of the businessmen here who learn fast and unfailingly turn every opportunity into business.

In the last 25 years, Agra has emerged as a leading manufacturer of generating sets. There are around 20 units in the organised sector and more than 150 units in the unorganised sector. The figures itself reveal that it is not capital but entrepreneurial talent that is propelling the industry forward. According to Pramod Garg of Prakash Diesels Pvt. Ltd., the industry has grownwith absolutely no help from the government. "The state has never shown any interest in us or given us any kind of encouragement. Whatever, we are today, is solely because of our own efforts."

The generating set business started on a very small scale in Agra. Initially, the businessmen would tentatively supply very few products in other parts of the country. But, as the products gained acceptance in the markets and orders started pouring in, the business also grew.

Kiran Dhawan, a businessman and regional minister of UP Udyog Vyaapaar Pratinidhi Mandal says, "Our products are cheap and running cost is low. Moreover, maintenance cost of the machines is also not high. So, it is not surprising that buyers show a preference for them."

Keeping abreast with latest technology in the business has also been possible by the entrepreneurs initiative. Says Dhawan, "The state government does not help us in developing research and development labs. There are no tool rooms or machine rooms to help us improvetechnology."

Garg says that the entrepreneurs have grown by learning from each other. "When a unit succeeds in incorporating some new technology, the others observe and follow suit. We are managing to stay with the times by copying from each other." Garg's unit has recently developed the technology for three cylinder engines. "We have been manufacturing generating sets with only two cylinders. Three cylinders will make the machine more efficient."

Though demand for diesel and generating sets comes from both households and industries, it is the agricultural sector which the Agra businessmen are banking on at present. "With farms switching over to modern equipment, the demand for power in rural areas is growing.

As the government is unable to supply adequate power in most of the rural areas, there is a big demand for generating sets there." The demand is maximum from the rural parts of Rajasthan. Demand from industrial sectors is also rising but as far as household is concerned, the scope for expansion isnot much. It is mainly because of the noise that the sets create.

Businessmen say that households are showing preference for quieter alternatives like inverters.

According to Garg, last year there had not been any increase in demand because of the improvement in the electricity supply in the wake of elections. "Power cuts were brought down to the minimum to appease the electorate." Garg feels that if the condition of electricity supply keeps improving then it will be a big setback for business.

However, Dhawan is sure that such a situation is not going to emerge soon. "In 364 villages in UP and Bihar, electricity poles have not yet been erected. In a greater number of villages, only one pole has been set up as proof of electrification. Under these conditions it will be a long time before there will be enough electricity to do away with the need for generating sets."

The manufacturers in the organised sector view the ones in the unorganised sector as a threat to their business. With their numbersgrowing continuously, the organised sector fears that it might eat into their shares. Says Dhawan, "There are generating set assembling units on every street. Any person with a little experience is setting up a unit in places as small as the back portion of a shop."

According to Garg it is very easy to set up a unit. Capital requirement is almost nil as everything is available on credit. "Motivated by this many workers in bigger generating set units quit after they gained some experience and set up their own business." Accusing some of the units in the unorganised sector that lure away customers by giving poorer quality products at lower prices, Garg says, "There are a category of buyers who don't care about the quality as long as they get the product cheap. The unorganised sector mainly caters to them."

Sohan Lal Jain, president, National Chamber of Industrial Commerce, UP, feels that the entrepreneurs in the organised sector should not complain as everybody has a right to do business. Today is the ageof competition and things should be taken in that spirit. The unorganised sector is coming up on it's own merit. The organised sector should increase its efficiency to retain its customers."

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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