Mahindra Powerol, a business unit of the $19 billion Mahindra Group, on Monday forayed into the lucrative higher capacity diesel generators (DG) segment with the launch of new range of 250 and 320 kva DGs to target 10 per cent growth in one year.
The Mumbai-based company had clocked a sales turnover of Rs 1,250 crore in FY17, a growth of 10 per cent over FY16. But the genset industry in the country was flat due to slow down in telecom industry.
The new range of 250 and 20 kva DGs are powered by Mahindra mPower series of engines, designed at Mahindra Research Valley, its R&D hub in Chennai. The mPower series engine range with capacity of 9.3 litre is equipped with advanced common rail diesel engine (CRDe) technology and is manufactured at the groups Chakan factory near Pune.
While the 250-kva-diesel generator is priced at Rs 12.5 lakh plus GST, the 320-kva generator is tagged at Rs 16.0 lakh plus GST.
Mahindra, which produces diesel-generating sets from 5 kva onward, competes with market leader Cummins, Kirloskar and Eicher, among others in the country. The genset market is sells around 1.17 lakh units annually valued around Rs 6,000 crore.
“Today’s launch marks our foray into the higher kva diesel generator segment, with our own engines, which in turn will define a new segment and consumer group for us,” Hemant Sikka, president and chief purchase officer at Powerol and Spares Business at Mahindra and Mahindra told Financial Chronicle.
He said the genset industry degrew between FY13 and FY17, with most players reporting 3-5 per cent decline. “The genset industry saw a boom time from 2002 to 2013 due to booming business of telecom commerce in the country which drove sales of genset with capacity up to 40 kva,” Sikha said.
But now the demand has picked up for higher capacity gensets, which is linked to higher GDP and economic activity, he said. “The genset market is likely to grow about 8 per cent this year,” Sikha said, adding Mahindra would grow double-digit in the 250 and 320 kva DG segment in one year.
He said demonetisation and GST, which had hit the market is “behind us” and the genset industry was on a growth trajectory.
Besides Telecom, DG sets power diverse industries and segments like banks, building & construction, public sector units, hospitals, hotels, multi-story homes, metro and railway stations and manufacturing units.