According to Larsen and Toubro (L&T) director RN Mukhija, who is also the president of Indian Electrical & Electronics Manufacturers Association (IEEMA): Potential exists in products which require greater manufacturing skills, innovation and which are not mass produced.
Mr Mukhija had recently led a delegation of IEEMA to China, where it signed a memorandum of understanding (MoU) with its Chinese counterpart, China Electric Equipment Industrial Association.
IEEMA members include all major companies in the electrical sector including ABB, BHEL, Crompton Greaves, GE Power, L&T, among others. The MoU envisages continuous interaction between the two associations, sharing of information, identifying joint venture partners, promotion of trade fairs, conferences and buyer seller meets.
Mr Mukhija added that products like switchgears which have intelligent parts and embedded software can be manufactured and marketed in the Chinese market. Miniature circuit breaker is mass produced, but air-circuit breaker will definitely find a good market in China.
Wherever engineering content is significant, we have an edge over the Chinese, said Mr Mukhija. In his opinion, the presence of multinationals in China will not be a deterrent to Indian electrical manufacturer. Mr Mukhija said that there are various price points and niche markets wherein Indian electrical manufacturers can flourish.
He, however, did not disclose any of L&Ts immediate plans in China. China, being a growing economy, has lot of opportunities for new entrants, if the entrant can find the right place, said Mr Mukhija.
The IEEMA delegation, he said, also visited Shanghai, Wenzhou and Guangzhou, where electrical industries in China are established.