Sterling Generators has planned to invest Rs.50-60 crore by 2020 in its Silvassa plant, with a view to improving its market share in the global genset business. The company’s 8-acre facility in Silvassa, one of the largest in Asia, was established in 2006.
Sterling Generators is one of the critical business verticals of the Sterling and Wilson conglomerate, led by Khurshed Daruvala (part of the Shapoorji Pallonji Group). It currently exports about 25 per cent of its diesel gensets due to its robust, global presence. It is also India’s second-largest supplier of HHP (high horse power) diesel gensets.
During the last 10 years, Sterling Generators has invested over Rs.100 crore in the Silvassa facility. With state-of-the-art PLC based testing facility in the factory for DG sets up to 3000 kVA, Sterling Generators aims to reach an annual production capacity of 5,000 gensets. In India, Sterling Generators plans to expand its dealer network from 60 to 120 this year.
According to recent reports, almost 300 million citizens in the country do not have access to electricity, including a national GDP loss of about $68 billion due to electricity shortage. In this regard, the Indian government has been encouraging manufacturers to develop environmentally safe generators, with a strong focus on improved power delivery, reduced fuel consumption and pollution levels. Diesel generators, in particular, are rapidly becoming a trusted solution to India’s power shortage.
Speaking on the growth outlook of the business, Sanjay Jadhav, CEO – Powergen business, Sterling and Wilson says “Since our inception Sterling Generators has grown rapidly and gained considerable market share in the Indian hhp market achieving a revenue of Rs.850 crore in FY17-18. Through our manufacturing facility in Silvassa, we have managed to achieve a commendable production value of about 1000 HHP/MHP generators, higher than most diesel genset companies in India. With power shortages and energy storage solutions being critical issues in the future for India, we will continue to see strong demand from the market. As we enter 2018, we aim to reach 2000 units and continue a robust, consistent growth of 20% in a primarily mature gensets market.”
Today, the HHP diesel generator set market in India is valued at about Rs.5,000 crore and Sterling Generators makes up close to 20 per cent of this, owing majorly to its exports to the Middle East, South East Asia, Africa and Australia.
