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Infra Development and Investment Boom in Heavy Industries Expand Prospects for the Indian Integral Horse Power Motors Market Finds Frost & Sullivan - The integral horse power (IHP) motors market in India is poised for sustainable growth as government focus on infrastructure and urban development projects intensifies
Infra Development and Investment Boom in Heavy Industries Expand Prospects for the Indian Integral Horse Power Motors Market Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Mumbai, India, 2010/03/08 - The integral horse power (IHP) motors market in India is poised for sustainable growth as government focus on infrastructure and urban development projects intensifies.

   
 
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The Planning Commission has earmarked INR 20,271,000.0 million under the XI Five Year Plan, for infrastructure related projects. This, coupled with the booming real estate segment, will ramp up investments in the heavy industries of metals and mining, cement, and power, coercing growth in this sector.

New analysis from Frost & Sullivan (motors.frost.com), Indian Integral Horse Power Motors Market, finds that the market earned revenues of over INR 36,000.0 million in 2008, and estimates this to reach INR 107,540.3 million in 2015. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: alternating current (AC) motors and direct current (DC) motors.

If you are interested in more information about this study, please send an email to Ravinder Kaur / Nimisha Iyer, Corporate Communications, at ravinder.kaur[.]frost.com / niyer[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

"Deregulation in the exploration and production industry and the various greenfield/ brownfield oil refining projects is expected to propel the demand for motors," says Frost & Sullivan Industry Analyst Virein Kumar Yadlapalli. "Irrigation projects worth more than INR 60,000.0 million are expected to come onstream by 2013."

These developments bode well for the IHP motors market in India. However, the ongoing financial crisis has forced end-user industries to delay or cancel their planned investments, negatively impacting orders for motors. Apart from dealing with the global economic crisis, motor manufacturers have to confront the challenge of fluctuating prices of raw materials such as steel, copper, and aluminum, which have shrunk profit margins. The hike in the prices of these metals is likely to lead to higher manufacturing costs.

The highly competitive nature of the IHP motors market in India, particularly in the low voltage (LV) segment, which accounts for majority of the revenues, prevents manufacturers from passing the entire increase to their customers. Trends indicate that end-user emphasis on faster return on investments (ROI) has resulted in preference for integrated motors and drive solutions. Only a few manufacturers are able to offer customers with these cost-effective solutions. This is a demanding task for most of the manufacturers in the unorganized segment as they lack the required expertise.

"Most of the motor manufacturers belonging to the unorganized part of the market are either niche focused or manufacture products that cater only to specific demand of the end users, thereby missing out on opportunities in other high growth end-user verticals," says fellow Research Analyst Madhu Krishna Reddy M. "Niche focused companies lack funds for research and development, and they are unable to enhance their product lines or come up with technological innovations."

Currently, the uptake of premium efficiency motors is very low, mainly due to the high initial cost, coupled with lack of awareness about long-term cost savings associated with them. Given the minimal technology difference of LV motors, purchase decisions are primarily price influenced. However, in the case of purchase of medium-voltage (MV) motors, the nature of application and capabilities of the motor manufacturer catering to specific end-user requirements are the contributing factors.

"To retain customer loyalty, motor manufacturers must establish a robust customer-centric distribution network," opines Reddy. "Greater marketing and promotional efforts by the manufacturers is necessary to convince the end users about the long-term savings associated with the energy-efficient motors despite the initial high investment involved."

Going forward, the penetration of premium efficiency motors in the LV segment is expected to follow an upward trajectory. Improving end-user awareness levels about energy savings is driving this change in preference.

Indian Integral Horse Power Motors Market is part of the Power Transmission Growth Partnership Services program, which also includes research in the following markets: Chinese Integral Horse Power Motors, North American Enclosed Gear Drives and Gear Motors, North American AC Integral Horse Power Motors, and European Gear Boxes and Geared Motors Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

Indian Integral Horse Power Motors Market / P302

Contact:
Tanu Chopra
Corporate Communications – Middle East
P: +91 22 4001 3437
F: +91 22 2832 4713
E: tanuc[.]frost.com.

 
 
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Infra Development and Investment Boom in Heavy Industries Expand Prospects for the Indian Integral Horse Power Motors Market Finds Frost & Sullivan

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