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Diesel Gensets: MHP and HHP segments driving growth
+ Share
17-Oct-2017
Post a bottom in FY17, the diesel genset industry is likely to grow at 5-7% in the medium-to-long term. The sector is in mature stage and is starting to see consolidation with 4-5 players likely to remain over the next few years. The 5-7%volume growth in 1HFY18 will be sustained as economic growth starts improving.
Historically, it was power cuts that drove diesel genset volumes; now, it is new infrastructure creation/capex that is driving growth for diesel gensets.
Growth in the LHP segment is subdued. Earlier, volumes in this segment used to grow by 15-20% on high power cuts. With power cuts lower now, volume growth has tapered down. The LHP segment (ex Telecom) should see 4-5%volume growth over the next 3-5 years. Solar power and increasing reliance on batteries for backup power are also impacting demand for LHP diesel gensets.
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