Business returning to pre-COVID-19 level

With the rapid advancement in technology, the electrical equipment industry has witnessed transitions that have benefitted the sector. According to Dinesh Aggarwal, Joint Managing Director, Panasonic Life Solutions India, one of the biggest breakthroughs is the smart metering system that has brought the country a step closer towards a digital ecosystem. Edited excerpts:

What’s your take on the recent performance of power sector in India?
India’s power sector has undergone a massive transformation and the effective implementation of several government initiatives is likely to develop and shape the sector landscape along with ensuring energy security. In the last two decades, the power sector has made significant progress with achieving 100 percent household electrification, infrastructure development, energy diversification and robust power generation through strategic reforms and supportive policy interventions. However, the reality remains that many parts of India, including some of the metro cities, do not get a continuous power supply especially in summer months, and power quality is poor in most parts of the country. A large-scale intervention from the government is required to unify the power grids across the country and facilitate ease of power trading to ensure that the demand supply gap is balanced. Our power grids need to become smarter right up to the last level so that demand surge can be anticipated and frequent instances of power tripping can be resolved since this causes a huge economic loss in terms of equipment failure, investment in un-interrupted supply, voltage stabilisation etc.

Over the last 6-7 months, there has been great resilience in the wake of the COVID-19 pandemic with continuous power generation and electricity supply to millions of households due to these reforms. In these difficult times, the government has made active interventions, especially ensuring a 24×7 power supply and announcing a stimulus package of Rs. 90,000 crore. Additionally, the government also provided relief to the distribution companies in terms of raising the borrowing limit and reducing the interest rates for the loans. The government had taken these steps to make up for the losses due to reduced electricity demands during the lockdown from the commercial sector. An area that was clearly weak during this period was the meter reading and billing; which caused financial challenges to power distribution companies and to the customers who were forced to pay bills generated on ad-hoc basis. A smart metering infrastructure could have avoided this challenge and helped both sides.

Presently, we are almost back to the pre-COVID level of power demand as commercial activities and business operations across sectors have resumed at normal capacities again, due to lockdown relaxations thus leading to a rise in demand levels. To ensure reliable delivery of power, the sector has to be both financially and physically resilient to meet the rising demands and to enable growth in investments for increased capacity.

What is the future of Indian power sector in 2021?
The power sector is undergoing a significant change that has redefined the industry outlook. India is making remarkable strides towards affordable, safer, and cleaner energy. Through strategic reforms and ambitious policies, our country is progressively moving towards attaining the goal of ‘Power for All’ to meet the rising electricity demand. The government is continuously working towards providing citizens with improved access to reliable power in order to increase the per capita consumption. At present, the regulatory bodies, along with the government, are working on a target to increase the per capita consumption by three times to match the world average.

To meet the goals of sustainable power generation and increased accessibility, the immediate focus in the post-pandemic phase will be on addressing key issues like inaccurate billing, streamlining the consumer grievance mechanism for readdressing and ensuring better financial stability. In the long term, energy diversification will continue to be a key focus in the power sector. With the government’s push for renewable energy, India’s solar energy sector will continue to expand, with large-scale investments in setting up solar energy projects and a strong focus on domestic manufacturing in the post COVID world. As the country looks to meet increasing power demands and diversify its energy mix, solar energy will help in achieving self-reliance in energy supply through the government’s ‘Aatmanirbhar Bharat’ and ‘Make in India’ initiatives. The shift towards solar energy will also play a crucial role in enabling the country’s transition to a cleaner and sustainable energy eco-system.

This sector provides immense opportunity for companies manufacturing energy-efficient products and others to move towards sustainable power sources for economic growth and environmental responsibility. In line with the government’s vision of self-reliant India, at Panasonic Life Solutions India (PLSIND), our aim to increase our foray into solar energy space by expanding our capabilities in setting up rooftop solar panels in India, boosting domestic manufacturing, and drawing investments for growth in this sector, especially in the industrial and commercial segment.

What is that one recent breakthrough policy decision that will drive the growth of electrical equipment industry in India?
With the rapid advancement in technology, the electrical equipment industry has witnessed transitions that have benefitted the sector. One of the biggest breakthroughs is the smart metering system that has brought the country a step closer towards a digital ecosystem. It is vital to adapt to innovative technological solutions such as smart grids and smart metering that will ensure accuracy and transparency through real-time monitoring of electricity supply and drastically improve operational efficiency. With the digitisation of the sector, consumers and distributors alike will not be dependent on manual reading of meters, which will be beneficial in addressing billing issues swiftly and in situations like the lockdown in the future. The Government of India has also shown considerable focus on smart metering and Energy Efficiency Services Ltd. (EESL) is facilitating its adoption.

What will drive the growth of your business in India beyond 2020?
We will continue to grow organically and aggressively in each of our existing categories with an objective to remain a market leader in switches and accessories and be amongst the top 3 brands in each of the other product categories. Towards this end, we are open to acquisition and a joint working with other manufacturers.

Our existing and the new businesses are aligned around three directions energy (generation, management and saving); comfort and safety; at home and at workplace.

In line with above, we had started the solar EPC business in 2015 and having established ourselves as a well respected player in rooftop installations in the commercial and industrial (C&I) segment, we have commercially launched many new businesses – products and systems – in the past 12 to 18 months. These include:

Despite challenges, how is your company turning the tide in its favour?
The electrical construction material (ECM) industry faces challenges in terms of safer circuits in residential spaces. It is important for consumers to know the right product to be installed at homes that comprises of superior quality and improved safety. Training of electricians is of utmost value to ensure the correct implementation of processes is conducted. Consumers and technical experts need to adhere to the quality guidelines to ensure the safe usage of the products.

During the nation-wide lockdown, at PLSIND, we conducted several online sessions for our electricians to assist them with constant up-gradation of skills and industry knowledge. Apart from this, gearing up the frontline workers to adapt to the changes or challenges faced in the sector and training them through online or digital platforms further enhanced their knowledge. A major challenge that the company frequently encounters and has to deal with is the counterfeit products that have been available across regions, hampering the original product value and brand’s goodwill. However, PLSIND has taken all precautionary actions and steps to ensure such instances do not occur and that the consumers receive superior quality and trusted brand products; increasing their trust in the Anchor and Panasonic brands further.

On the project side, we fully utilised this period to engage with various developers, architects, electrical consultants, large electrical contractors and our own employees to make them more aware of our vast range of products and technology solutions. We also engaged the consumer and electricians by explaining them basics of switchgear and LED products and made them more aware about right product selection. Our teams engaged with various government entities on same lines and got approvals for our various products and categories.

We have substantially enhanced our distribution and retail reach to get closer to our various potential customers and service them better with higher availability, genuine products and competitive pricing. All of the above actions coupled with the fact that we have constantly kept in touch with all stakeholders during lockdown has helped us achieve growth in the first half of this financial year and expect the same to continue into the next financial year as well.

Presently, we are almost back to the pre-COVID level of power demand as commercial activities and business operations across sectors have resumed at normal capacities again, due to lockdown relaxations thus leading to a rise in demand levels.
Dinesh Aggarwal, Joint Managing Director, Panasonic Life Solutions India