Generators take local root

Sales of generators rise as outages hit the country. Local businesses are being involved in assembling and making parts of the power devices.Photo: STAR

Sales of generators are rising on frequent outages and an electricity shortage in the country with local businesses increasingly getting involved in assembling and making parts of the power devices amid approaching summer.
In the last three months, around 11,000 units of generator were sold mainly in Dhaka and Chittagong, marking a rise of 25 percent compared to the previous year, said industry people.
This year traders predict that a strong sales trend will continue for several more months as industries, corporate houses and shopping malls are not seeing any immediate respite from the power crisis. So they are getting ready to invest sizable amounts in the business.
Although earlier the market for generator was totally import-based, now local companies are making some parts of generator and assembling the device.
The most commonly available generators in the local market are diesel-run with capacities ranging from 500 watt to 500 kVA (kilo volt ampere).
A 500-watt generator can run around 5/6 lights and two fans for two hours, while a 500-kVA (1kVA=0.8kw) generator has the capacity to run an RMG factory for three days.
A 500-watt generator usually costs Tk 20,000 in the local market and a 500-kVA gas generator Tk 1.75 crore.
Industry people said the demand for generators ranges from 500 watts to 300 kVA and these are mainly used for the commercial establishments, especially in the urban shopping malls and factories.
Currently, the total market size for generator is Tk 400 crore per year, they said.
Rahimafrooz is the market leader that imports finished generators as well as components and also makes parts to assemble complete devices.
“Usually the demand remains high in the summer, but this year the demand has started rocketing before the season, meaning we will have to struggle to meet the demand this time,” said KM Ali, chief operating officer of Rahimafrooz Energy Services Limited.
“We import finished generators and also open ones, which need canopies to turn those into soundproof units and carriers to hold the devices that we make locally,” he said.
He said Rahimafrooz imports generators intact with three main parts -- engine, alternator and controller -- and then attaches locally produced things to make those complete units and then markets the generators for both residential and corporate use.
He said his company also makes automatic transfer switch for generators that helps run a unit automatically when power goes off.
Ali said the customers of his company include industrial plants, real estate firms, hospitals, educational institutions, telecom companies, supermarkets, corporate houses and government establishments.
The company is the official distributor of Italian brand Pramac and imports both diesel and gas generators from Italy, Spain and Japan, he added.
Currently, Rahimafrooz holds around 40 percent of the local market share.
Around 10 other local and imported brands are also available on the market and around 50 small companies import and assemble diesel generators.
Ziauddin Abu Nasser, a senior executive at HS Enterprise, official distributor of Honda generators, said the main customers of generators are the shopping malls and offices.
Honda generators, which had nearly 20 percent market share last year, are mainly imported from Japan and the prices range from Tk 22,000 to Tk 85,000.
Generators are also assembled in the local light engineering sector.
Sakiba Engineering Works, a local light engineering products manufacturer at Dholaikhal in Dhaka, assembles diesel generators using old parts and attaching canopies and carriers.
Saker Ali, assistant director of Sakiba Engineering, said the cost of making these parts and then assembling locally help lower the prices of generators that mainly cater to the needs of small traders around the country.
However the industry people demanded that the government cut the diesel price so more people, including farmers, can afford generators.
“An affordable generator will not only help a farmer, but will accelerate the entire economic activities of the country,” the Sakiba official said.
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