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Diesel generators will be the backbone of the building and construction industry in the coming years
The Economic Times  |  May 1, 2019

Team ProductLine

Diesel generator manufacturers are in a position to quickly scale up their production and launch diverse products that can cater to the expected high demand.


Drivers of growth - Buildings & Construction


The building and construction industry in India is poised to grow steadily as predicted by KPMG in a report where it highlighted that 9 crore houses needed to be built in India at an estimated investment of US$ 2 trillion to accomplish the “Housing for all by 2022” vision. This would also involve the investment of another US$ 1.5 trillion in supporting infrastructure comprising commercial real estate and urban infrastructure. By any yardstick this kind of investment is humongous and if achieved could augur well for the power generator industry, especially the diesel generator industry.


According to a report prepared by Motilal Oswal on capital goods, the three important drivers for the construction industry are the growth envisaged in the construction of roads, changes in railways and building of metro rail systems. Road construction activities are likely to exceed 41 km/day. The Indian Railways is planning to install/replace the diesel generators currently being used to power air conditioners in trains. Metro rail perhaps offers the highest potential as India is likely to sanction metro rail projects for each of its towns/cities with a population of more than 1 million.


Need for power generators in the building and construction industry


Among the many challenges faced by the building and construction industry, one of the most eminent challenges is the availability of power for undertaking construction activities. These activities include excavations for foundations, land levelling, road construction, bridge construction, concrete mixing, crane operation, bore well digging, on-site pre-stressed concrete production, welding operations, rail construction, metro construction and other related activities. All these activities require electric power in the construction site to operate various machines needed to undertake construction activities. In most cases, grid supply is not available and the companies depend on power generators to supply the required power.


Features required of power generators


Since the building and construction industry operates a variety of equipment the power requirements are as follows:


  • Wide range of power ratings to cater to the varied needs of different types of equipment
  • Continuous and uninterrupted power supply
  • High fuel efficiency
  • High reliability
  • Quick turnaround time for repairs
  • Easy availability of fuels
  • Compliance to statutory standards of performance, noise and environmental pollution


There are a host of generator manufacturers that offer various kinds of generators using diesel as the fuel of choice because of the inherent advantages diesel offers. They include easy availability, relatively lower cost and efficiency of diesel engines.


Growth plans of major manufacturers


Several major manufacturers in the country offer diesel generators with power rating starting from 2.5 KVA going all the way up to 3750 KVA. Each of them has carved out a niche for themselves operating in the specific power rating segment they are proficient in. With the implementation of GST, these manufacturers see a higher role for themselves and are taking steps to cater to the increasing demand expected from huge investments in infrastructure in the near future.


Although solar-powered generators along with hybrid generators are posing a challenge, diesel generators will be the real backbone of the building and construction industry as diesel generator manufacturers are in a position to quickly scale up their production and launch diverse products that can cater to the expected high demand. What is more, these generator manufacturers have a wide network of dealers and service points manned by highly qualified and well-trained technicians. They have utilized the marvels of digital technology to offer customer services at the doorstep of the user.


Generator manufacturers in the unorganized sector as well as localized generator manufacturers also offer custom-built generators with facilities and features that may not be easy for larger manufacturers to match. However, these small generator manufacturers are not necessarily seen as competitors by the larger ones but as contemporaries. But nonetheless they will have an important role to play in the expected boom in the building and construction industry.