 Standard Capacitors caters to a wide clientele in the power and industrial sectors. The New Delhi-based company offers different products like PFC capacitors, automatic power factor correction panels, APFC relay, energy storage capacitors, HT power capacitors up to 11 kV with all associated equipments, etc. These energy conservers are quite popular in national and international markets. Subhash C. Gupta, Managing Director, Standard Capacitors outlines the company's activities and its future plans. He also shares his views on the Indian capacitor industry, and explains how the power sector will be a big business driver. An interview by Renu Rajaram.
Tell us about Standard Capacitor's business and range of product manufactured.
We manufacture capacitors for power factor improvement applications in voltage rating from 440V to 11kV along with allied accessories like power factor controllers, thyristor switching modules, harmonic block reactors. Our range includes automatic power factor control (APFC) panels, energy storage capacitors, surge capacitors, etc.
What are the current manufacturing capabilities and its medium-term expansion plans of the company?
We ca n supply one lakh KVAr capacitors and 5,000 units of APFC panels per year and plan to double the capacity in next five years. We have all fabrication machinery like power presses, cutting machines, shearing machine ,punching machines, bus bar forming machines, winding machines, welding equipment, powder coating plant and seven tank process, high voltage testing equipment, insulator testers, Meggers, oil testing set, oscilloscopes, etc.
In coming years which sectors do you see as the major business drivers in the domestic market?
 The power sector is a major business driver as this is the core industry. Energy conservation is top most priority of government as well as private industry. As the cost of energy is reflected in the cost of goods produced, it is in the interest of all, particularly those engaged in any capacity in production, to save as much as possible, not only of energy itself but also its cost. There are many ways in which this can be brought about, and perhaps one of the most effective of these, from industrial point of view, is the installation of power capacitors.
How do you plan to improve your company's market penetration?
 Extensive contact program with prospective buyers is the primary way of promoting our products. Conducting energy audit of the industry and pointing out the scope of installation of energy saving equipment like capacitors to cut production cost is the best way to project the product usefulness of the product. Use of road shows, conducting seminars, making group presentation is also effective medium which would help us penetrate the market.
What is the export potential for Indian Capacitor manufacturers?
The export potential is extremely high. I would estimate it to be at least 50 per cent of India's current installed capacity.
How are you exploring the international market?
We do it through the Internet and export promotion forums.
Are the Indian companies facing threat from Chinese counterpart?
Indian companies are well placed and on strong footing. They do not face any threat from Chinese counterpart.
Has the economic slowdown affected the capacitor business?
 Not much. Capacitor is basically an energy saving equipment. Any consumer of bulk power would certainly like to save on cost of this basic input. As power is in use in every sphere of life, economic slowdown or not, this product is indispensable and hence is not affected by slowdown. On the contrary, demand for capacitors would rather increase in conditions of slowdown as this would cuts down the consumption of power.
How can government support industry's growth?
 It can do so by reducing taxes and duties on capacitor industry keeping the cost of producing this item low. As capacitor is a power saving device, government could give subsidy to those who install capacitors. This could be done by way of offering incentive in power tariff or/and by giving rebate to consumers who maintain good power factor and thereby achieve high efficiency of power consumption.
Given that capacitors are now being used in energy meters as a means to save electricity, do you see this as an emerging business area?
Yes. As capacitor would be installed near the main circuit it would receive attention at all times. This would keep the consumer alert about this item give rise of demand for this item. This is certainly an emerging business area. |