--By Madan Lamichhane

 

The increase in load shedding hours and dip in temperature have created double whammy for generators market. In the past years, non-branded generators with low capacity were high on demand. But, now, people are inclined towards branded generators. Thus, the demand for branded generators is increasing day by day. 

 

The generator market is on rise mainly because of the rise in the loadshedding hours. Prior to loadshedding, generators were used for backup only. But, due to current energy crisis, generators are being used as an alternative source of energy. The present Nepali market consists of four kinds of generators that run on deisel, petrol, gas and kerosene.

 

Branded Vs Non-Branded generators

Previously, customers prefered non-branded generators due to its low cost. However, in the recent days, people are aware about the quality of the generators which is one of the main reason for the increasing demand for generators. According to Vishal Gadia, Executive Director of Morang Auto Works Engineering Pvt Ltd., increasing awareness among people about the  lifespan of the generators, fuel consumption, servicing and facilities of branded generators has caused a decline in the sales of non-branded generators. However, the share of low capacity generators in the Nepali market in the non-branded segment is also significant.  Gadia estimates the market share of the non-branded generators with a capacity between one to  20 KVA to be around fifty per cent. However, in comparison to the fast few years, the use of such generators has been decreasing, he adds. 

 

“Even though branded generators require huge amount of investment, because of its quality it is highly demanded,” says Nirmal Bogati, Director of Subha Kamal Global Business Hub Pvt Ltd. 

 

In the recent years, generators have become compulsion in housing, departmental stores, offices and factories. Due to its increasing demand, there are varieties of generators available in the market from various brands of different capacities. However, in the past three years, the market of generator has remained stable because of its long lifespan. “Generators are equipments that need not be bought time and again and thus the market is stable,” says Bogati.

 

The market consists of different sized generators, ranging from portable generators to big heavy generators. “Generators of different sizes are brought in the market depending on the customer’s demand,” says Bandhan Karki, Manager of Syakar Company Ltd.  Syakar Company recently launched portable Honda generators. “Such portable generators are useful for trekkers,” adds Karki. 

 

The increasing load shedding hours and the restriction on imports of inverters by the government has compelled the consumers to be dependent on generators. The Ministry of Energy had restricted imports of inverters in 2066 with the aim of decreasing loadshedding in Nepal. 

 

Loadshedding directly affects the sales of low capacity generators. According to Gadia, the sale of generators with a capacity of 20 KVA is increasing because of long hours of loadshedding. If the loadshedding hours were less,  consumers would have used lower capacity generators. This could decrease the sales of generators below 20 KVA capacity. 

 

Market Competition

“The generators with 1 to 20 KVA capacity make up 75 per cent of the market share”, says Gadia. In comparsion to big generators, small ones are demanded more because of their relatively low price. The market competition is based on the features of the generators. As such, the competition between companies is based on fuel consumption, operation cost, customer service, availability of spare parts and price of the generators. Consumers’ awareness about low quality generators has created competition based on service, incentives and quality. This has led to the downfall of the non-branded generators as consumers are being aware about their pitfalls.

 

Brands sold in Nepal

There are one hundred generator distributors in Kathmandu alone. Some of the recognized generators in Nepal are- Honda, Yamaha, Kirloskar, Kohler, SDS and Greaves. 80 per cent of the branded generators are used in Kathmandu, Pokhara and Narayanghat while the remaining 20 per cent is used in other cities.  As there is no basis to expect reduction in loadhshedding hours for the next 5 years, energy experts have said that generators are the best alternative to meet the energy crisis.

 

Types of generator engines

There are basically two types of generators available in the market-water cooled engines and air cooled engines. Many entrepreneurs believe that water cooled generators are more effective in comparison to air cooled ones. Water cooled are relatively cheaper and have a longer life span.

 

In the recent times, the generators that are assembled in Nepal are gaining popularity. But, entrepreneurs suggest consumers to opt for branded generators because these come with warranty and other facilities. Similarly, the engines of branded generators are covered. These generators are safe to use and are sound proof. In India, generators lacking ‘sound proof’ facility are banned.

 

 

Generators everywhere

Though branded generators require huge amount of investment, customers’ preference for them  have made them dominent in the market. Likewise, entrepreneurs believe that some of the latest Chinese generators available in the market are also good in terms of quality. Due to lack of domestic production of generators, many entrepreneurs have established themselves as authorized distributors of foreign branded generators.

 

Problems

For the imports of small generators of 10 KVA capacity, 25 per cent custom duty has to be paid. But, for importing generators with more capacity, only 1 per cent custom duty has to be paid. This is creating a big problem for the entrepreneurs. Because of the increasing loadshedding hours generators are demanded in every sector now . So, the government has to reduce custom in small generators because they are high in demand. If done so many people can afford generators. 

 

Things to be considered

After every hundred hours of use, generators must be given for servicing. Generators, being a matter of one time investment, have to be used carefully. Generators have to be kept safely and out of reach of children. Similarly, their engine oil has to be checked time and again.