20 March 2019

Generators & Engines

Boosting power

 

Most of the major suppliers of diesel engines and generators in India have been continuously upgrading the design of their products. With projects now gathering frenetic pace the degree of competition in 15 – 75 kVA and 75.1 – 375 kVA segments is expected to increase considerably. Rohan Ambike writes about the changing scenario of the generators and engines market.

 

 

 

The growing infrastructure sector as a result of various projects, the rise of new industries across the country and the paced up business environment has increased hopes that the genset market in the country is going to grow. The rise of telecom towers in the country is another segment that has propelled the growth of the genset market. A recent report suggests that the diesel genset market in India is set to grow at a CAGR of 5.41 per cent during 2018-23. Experts also point out that the continuous power in manufacturing sector was one area which can be the key driver for the entire genset market in the country. Major infrastructure projects viz Delhi-Mumbai Industrial Corridor and Vizag-Chennai industrial corridor in line with state run companies and private players seeking to expand manufacturing base is propelling the growth of the genset market in India.

 

 

 

In market terms, the generator sales market is estimated to reach $ 20.93 billion in 2018 and $ 27.24 billion by 2023. The prominent usage of generators will be for standby, prime, continuous, and peak shaving applications, mostly in various end-use sectors such as industrial, commercial, and residential. Additionally, the growing demand for uninterrupted and reliable power supply is one of the main drivers for the generator sales market.

 

 

 

India currently suffers from almost 15 percent peak power deficit which is hampering growth of all sectors in the economy, ranging from manufacturing to services sector, health and hospitality, and construction and infra sector. Almost each and every organization needs consistent power supply, as data loss can be more expensive than the capital expenditure required for backup power equipment. Therefore, it is expected that the demand for diesel generators will grow in the coming years.

 

 

 

Growth areas

 

The increase in the power deficits and the growing industrialization in the major southern cities of Bangalore, Hyderabad and Chennai has increased the need for gensets. Additionally, the other industries that are in search of gensets are —manufacturing and auto component industries in Tamil Nadu, information technology in Karnataka, bio-technology and pharmaceutical businesses in Andhra Pradesh and tourism and general engineering in Kerala and Puducherry.

 

 

 

Industries such as iron and steel, automobile, chemical and petrochemical, jewellery, textiles, cement and pharmaceuticals are another area that is a potential market area for the genset and the engine industry. Though there is a vast reduction in the rate of power deficit in the western region year-on-year, reports suggest that the demand for gensets has not reduced as they are the backup power source for many industries. The states like Maharashtra are home for industries that cater to the general engineering, automobile, chemical, pharmaceutical, textile and IT sectors. Similarly, the power deficit in Gujarat is also declining. However, the demand for diesel gensets is still growing due to the booming construction sector. The presence of large refineries and petrochemical complexes in this region requires reliable standby, emergency and mobile power that continues to boost the demand.

 

 

 

Continuing Demand

 

However, in a different sense, private power generators carry great weight – to be read as demand – in several places across India with no stable electricity access. The demand for electrical power is on the rise and experts anticipate a global consumption in the range of 36 to 82 PWh by the year 2050. What is encouraging about this trend of power deficiency for existing engine and generator manufacturers is that the market is expected to grow by 5.4 percent each year till 2020.

 

 

 

In their latest research study, “India Diesel Genset Market Outlook 2018”, RNCOS analysts have identified growth in the diesel generator market on the strength of the rising demand for power back-up systems in the country. In 2013, the Indian diesel generator market grew 9.5 per cent compared to the previous year. Further, as per the assessment the Indian diesel generator market (from 5 to 100 KVA) is anticipated to grow at a CAGR of around 11 per cent in value terms during 2014-2018. The Indian diesel generator market has largely been occupied by medium range (20 to 62.5 KVA), accounting for nearly half of the total diesel generator market. With rising power cuts and supply shortages the huge growth witnessed in the Indian diesel generator market has remained a constant. Gensets still remain the main source of power for housing, construction projects and as backup demand from IT companies, data centres, cinema halls, multiplexes and malls continues to grow. Naturally therefore, the demand for diesel generators is expected to grow in the coming years.

 

 

 

Sector segments

 

The Indian diesel genset market is broadly classified into four segments on the basis of kVA rating: low (5-75 kVA), medium (75.1-350 kVA), high (350.1-750 kVA) and very high (750.1- 3000 kVA). Low-rating diesel gensets constitute a major share of the market, and are used in the telecom sector for backup power in grid-connected areas and also as a main power source in off-grid areas. India is the second largest mobile phone market in the world with 500 million users and 700,000 telecom towers, which require continuous power supply - on average, the country’s telecom tower network consumes over 11 TWh annually, and this is likely to increase to 17 TWh by the end of this year.

 

 

 

The global market for diesel gensets is largely dominated by Asia-Pacific due to rapid urbanization and industrialization in this region, with China and India emerging as the largest revenue contributing countries in the region’s diesel genset market. During the forecast period, diesel genset market in Middle East & Africa and South America is expected to grow at the fastest rate, driven by strong market growth in countries such as Brazil, Argentina, Saudi Arabia and the UAE. Globally, power demand is increasing rapidly, while supply is not growing at the same pace, thus creating huge power deficit in many parts of the world. Consequently, the demand for power generation equipment such as diesel generators continues to increase worldwide. Poor power infrastructure and unreliable grid power supply have been largely responsible for increasing frequency of power outages, which is likely to boost the demand for diesel gensets across the globe. Rising demand for mobile diesel gensets and biofuel based diesel gensets is also expected to benefit the diesel genset market.

 

 

 

According to recent media reports, the Telecom Regulatory Authority of India (TRAI) wants Telcos to switch to renewable sources of power as this would save millions of litres of diesel and in turn millions of rupees per year. Of the total number of towers, 10 per cent have a regular power supply, and for the rest their power is supplied by diesel gensets. The medium rating of diesel gensets is the second largest category used in India. However, demand for these machines is anticipated to decline due to its shrinking application in the telecoms sector.

 

 

 

In India, gas gensets market is still at the nascent stage, and the market is being propelled by the low cost and eco-friendliness of natural gas. By 2025, according to Ministry of Petroleum & Natural Gas (Government of India), natural gas will contribute 20percentage in the country’s energy mix. Moreover, Central Pollution Control Board (under the Ministry of Environment & Forests, Government of India) has laid out various norms for regulating the level of harmful emissions from diesel gensets, which is also expected to positively influence the gas-gensets market in India.

 

 

 

On the basis of rating, the country’s gas gensets market has been segmented into four broad categories, namely, low (1kVA-75kVA), medium (76kVA-350kVA), high (351kVA-750kVA) and very high (more than 750kVA) gas gensets. Among these gas gensets categories, medium (76kVA-350kVA) gas gensets segment is anticipated to dominate the country’s gas gensets market over the next five years on account of their wide acceptance across industrial and residential sector. Region-wise, West India dominated the gas gensets market in 2014, and the region is forecast to maintain its dominance during 2015 – 2020.

 

 

 

Green Pastures

 

The residential and manufacturing sectors dominate the market, and account for more than 52 per cent of the market share during 2014. Owing to the boost in real estate construction projects and anticipated rise in foreign investments in newly launched smart city projects in India, the demand for diesel gensets is expected to grow through to 2020. The growing demand for uninterrupted power supply from various manufacturing facilities such as automobile and auto components is also expected to propel market growth over the course of the next five years. The ‘Make in India’ campaign would propel the demand for diesel gensets over the next six years immensely. Higher voltage DG sets required by high rises, hotels, educational institutes, and hospitals, among others seem to be rising in demand.

 

 

 

A number of companies have introduced higher capacity engines in the market that will cater to industries like the marine, construction equipment, cranes, forklifts, tractors, among others. Emission norms such as the Euro 6 will enable the demand for engines to raise significantly. With the introduction of new-range of products that will cater to both domestic and international markets, genset companies can expect to achieve nearly 40 per cent of revenues from its exports. Other major end users of diesel gensets include off-grid areas and agriculture, mining and BFSI sectors.

 

 

 

India being the second largest mobile phone market in the world with 500 million users and 700,000 telecom towers requires continuous power supply and the country’s telecom tower network is likely to consume over 11 TWh annually, and this is likely to increase to 17 TWh by early 2017. 10 per cent of the towers have a regular power supply, the rest is catered to by diesel gensets. However, Department of Telecommunications (DoT) has mandated the usage of renewable energy source to power telecom towers, which can affect the market for low rating diesel gensets.

 

 

 

The use of diesel gensets in telecom sector is currently declining due to players shifting towards using renewables sources of electricity and hybrid gensets, as per TRAI regulations. Rising concerns over carbon emissions are augmenting adoption of bio-diesel gensets in the country from various end user segments.  Growth in demand for diesel gensets from the manufacturing sector is fuelled by the booming auto component industry. India islikely to become the second largest steel producer in the world by the end of this year. This industry requires continuous power supply for running processing units, machining, resin moulding, pressing, welding and assembling.

 

 

Prospects

 

Adhering to emission regulations is a critical element for Genset manufacturers today and advanced technological solutions are being adapted for combustion optimization. Higher fuel system pressure result in improved in-cylinder combustion process and air handling, after treatment, filtration and control systems has undergone a modification. This change in technology and material will impactgenset prices which are likely to go up 15-20 per cent. So manufacturing of energy efficient generators need to counter the hike in fuel prices.

 

 

 

The major suppliers of diesel generators sets in India have been continuously upgrading the design of their products to conform to global emission standards. This has necessitated investments and exchange of technology knowhow with global engine suppliers.

 

 

 

With projects now gathering frantic pace the degree of competition in 15 – 75 kVA and 75.1 – 375 kVA segments is expected to increase considerably with several new players – domestic and international – venturing into the market. This is an important time for the participants in this engines and generators space and to secure their positions in the market revised service strategies offering additional value will have to be introduced.  

 

 

 

KEY PLAYERS

 

 

Cummins

 

Cummins is a world leader in the design and manufacture of engines and power generation equipment, including PowerCommand standby and prime power systems. Cummins has unique expertise in that all aspects of generator set design, manufacture and service have been brought together in one company. Cummins GenSets are the epitome of rugged dependability and reliable mechanical and electrical performance. Cummins has fully redesigned its high-range GenSets to deliver the reliability, efficiency, and versatility that your customers want.

 

 

 

Caterpillar

 

Caterpillar commercial and industrial diesel generator sets deliver reliable, clean, economical power – even in the most demanding conditions. Each Cat diesel generator set is designed, engineered and manufactured for optimal performance. The range offered by Caterpillar is from 6 to 14,040 ekW (7.5 to 17,550 kVA) of power potential.

 

 

 

Cooper Corporation

 

Cooper Corporation has a technical tie-up with RICARDO, UK, for the design and manufacture of state-of-the-art technology for engines meeting current & forthcoming emission norms. Engines are available in diesel and gas versions in sizes from 1.2 Liter to 7.8 Liter. Cooper engines are known in the market for their compact size, best in class fuel efficiency and lowest maintenance costs. The company caters to Domestic and International markets in various applications like Agriculture, Construction equipment, Marine, Automobiles, Pump, Tractor, and more.

 

 

 

FG Wilson

 

For over 40 years, FG Wilson has been a world leader in the provision of diesel and gas generator sets, as     well as complex power generation solutions. With global production facilities in Brazil, China, India, the US and at company headquarters in Northern Ireland, UK, FG Wilson generator sets range from 6.8kVA to 2,200kVA and include open and enclosed generator sets providing prime and standby power. FG Wilson diesel and gas generator sets can be used in a variety of applications, including domestic use right through to power modules with the ability to operate as complete power stations supplying electricity to national grids.

 

 

 

JCB Power Products India

 

JCB Power Products offer generators from 8kVA to 3300 kVA worldwide, and a range of diesel generators in India. JCB generators are designed to suit any application from back-up support to industries from small, medium & large; infrastructures, BFSI (Banks, Financial Services, Insurance), Real Estate, Residential & Commercial properties, Hospitals, Hotels, Restaurants, Institutions, Petrol Pumps, Airports, Construction sites or off-grid locations. JCB generators come with JCB ecoMAX engine and the highest quality components, alternator, controller and breakers with the largest, world-class dealer network.

 

 

 

Kirloskar Oil Engines

 

Incorporated in 1946, KOEL is the flagship company of the Kirloskar group. KOEL specialises in the manufacture of both air-cooled and liquid-cooled diesel engines and generating sets across a wide range of power output from 5kVA to 3000kVA. The company serves Service industries such as telecom, IT/ITES, BPO, shopping malls, hotels, hospitals, and banks; educational and financial institutions.Infrastructure projects such as airports, roads, bridges, residential and commercial complexes, townships, high-rise buildings and many more.Other significant industries include engineering, manufacturing, FMCG, automobile and auto ancillaries, textile, pharmaceuticals, dairy, and food processing.Defence agencies, such as the air force, army and navy, as well as the coast guard.

 

 

 

Mahindra Powerol

 

Mahindra Powerol, a business unit of the $19 billion Mahindra Group, recently announced the extension of its higher kVA Diesel Generators (DG) range with the launch of 400/500/625 kVA DG powered by Perkins 2000 series engines. Designed at its R&D hub at Mahindra Research Valley in Chennai and manufactured at its Chakan plant near Pune, this new range of Generator sets with 12.5 Litre to 18 litre Perkins engine is the latest addition to the Mahindra Powerol’s higher kVA series.

 

 

 

The new range of DG Sets is equipped with Mahindra’s unique DiGi-SENSE technology which makes it a Smart DG. The performance of Smart DG sets can be monitored real-time remotely from anywhere, thereby improving the uptime of the DG Sets.

 

 

The company entered the field of power generation in 2001-02. Since inception, Mahindra Powerol has made rapid strides in the Indian Genset industry within a very short span of time. Mahindra Powerol DG sets are the first choice of Telecom majors across India and overseas market. The brand dominates the Indian Telecom Industry for the last 11 consecutive years. Mahindra Powerol power diesel generating sets from 5kVA to 625 kVA.

 

 

 

 

 

 

 

 

 

 

 

 

 

Mitsubishi Heavy Industries - VST Diesel Engines

 

Mitsubishi MGS series is the diesel generator sets series designed by Mitsubishi Heavy Industries, Ltd.Japan and has an experience of more than 15 years. Mitsubishi MU-G series is the diesel generator sets series with medium speed SU engine series, with the capacity of 1MW up to 3MW, for any application from stand-by, prime and continuous. MGS-B/C series are equipped with low voltage alternator. (380-415V for 50Hz and 380-480V for 60Hz). MGS-HV series are equipped with medium to high voltage alternator. (3.3–11kV for 50Hz and 3.3–13.8kV for 60Hz). MOG series are specially designed to fit the requirement of oil rig top drive generator sets, in the oil field industry. Mitsubishi gas generating set, with high performance and cleaner environment, high speed gas engines, are widely accepted in Japanese market for more than 10 years and now started marketing worldwide.

 

 

 

Sterling  Genrators

 

Sterling & Wilson, the parent company, is a leading MEP engineering group with over 90 years of experience in project engineering and execution. Sterling Generators manufactures D.G.Sets starting from 10 kva upto 3000 kva. The Range includes 415 Volts LT Sets as well as 3.3 / 6.6 /11 KV HT Sets. SGPL sets have established benchmarks in fuel efficiency, reliability and adherence to global emission norms. For Domestic requirements, sets upto 750 kva are supplied with Acoustic Enclosure (Ready to Use Sets) as per statutory norms. Higher capacity sets are supplied with Acoustic Enclosures with 25 dB insertion loss.

 

 

 

Conclusion

 

Today there is an unprecedented movement throughout the industrial sector- manufacturing, construction and infra and a lot more. The growing housing projects have increased the demand of the standby power from the residential segment. There is a robust demand for gensets in India, across all types and capacities.

 




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