Jaipur, Aug 22: With the rising demand of solidcore and hollow insulators in the global market, the future scenario of the domestic industry seems to be bright. At present, the price realisations of this sector on the sales front are very much on the higher side.The insulators' industry got a severe beating some years ago when the demand in the world market fell to new lows and the companies made huge losses. The survival became very difficult then, but now the position is certainly much improved and the corporates feel that the time is ripe for better technology and addition in the capacity.
The demand of insulators, both solidcore and hollow, has been rising at a rate of about 15 per cent a year for the last two to three years and there are firm indicators to believe that it will go up further. In India, with the thrust on power generation the demand will go up with the companies improving their bottomlines significantly.
The switchgear manufacturers in India and outside such as ABB, Alsthom, BHELand CGL among others now demand more insulators (SF6 breakers). At present, the industry needs better quality which is possible only with the use of improved technology. In the world market the technology is also on the change constantly and those who can afford to absorb the same will be gainers in the long run, feel industry circles.
In Rajasthan Modern Insulators Ltd at Abu Road, bordering Gujarat, has now turned the corner with the growing profitability. At one stage the company had become a drag on the Modern Group of the Rankas but now things are certainly different. The future looks still brighter with the improvement in the market conditions.
The company manufactures alumina porcelain insulators and electrical equipment including high voltage disconnects and SF6 breakers. It had the technical collaboration with Siemens AG of Germany in the beginning.
The technology has since been modified and the products now being rolled out are of fine quality. Even in the world market its insulators are nowpreferred.
For the Modern Group the unit was the first major diversification from its core textile business. And the initial years were indeed troublesome for the group due to the losses and the failure of technology. But the Group did not give up the activity in the hope that things will improve. And at present the situation has completely changed and the company has become a leading producer.
Last year MIL paid back Rs 4.81 crore to the banks and FIs and this year, says Sachin Ranka, the repayments will be to the tune of Rs 10.72 crore.MIL's insulators are now being exported to the countries like Italy, Germany, France, Sweden, China, Mexico, and Russia among others.
The company receives orders from the well-known Schneider group for its control equipment and switchgears. During the current year about 25 per cent of the sales is expected to come from exports. The turnover envisaged for the current year is put at around Rs 50 crore. The leading manufacturers of porcelain insulators in Europe and Japannow have a tough competition from MIL. This is due to the fact that its manufacturing cost is much less.
According to V Pichumani, who has considerable knowledge about the insulator industry, MIL has been able to improve its product range. The company's work in the development and testing of high creepage of longrod insulators for Middle East and Far East countries has become a matter of envy even to the collaborators.
Abu Road in the Sirohi district has attracted huge investments in the industrial sector. This is due to its nearness to Gujarat and the excellent industrial area promoted and developed by RIICO. The industrial area is now being made to cover more areas due to the high demand of the developed land.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.