By – Ridhi Doongursee
What is the electricals industry, is it VC friendly $ Billion opportunity, or we do need to justify shipping apples with cables for scale?
In 1879 Thomas Alva Edison invented the electrical bulb and herein started the journey of the electrical industry.
There was a funny joke on the internet which I’ll share below:
Google : “I know everything”
Facebook : “I know everyone”
Internet : “Without me, your all nothing”
Electricity : “Keep talking guys…”
Every single moment, every single industry, every single prediction for what our future holds, industry, technology, home life, quality of life and more has electricity as a necessity.
Think about it.. like water is to life, electricity is to all things that signify economic progress
in our daily lives today.
Coal, oil, fossil fuels based power is polluting and diminishing our natural resources, nuclear power can solve that but can have catastrophic consequences and risks. Clean energy is the talk of the town, with new forms of power from solar & wind power to electric powered appliances and vehicles being in the news.
There lies the hidden gem of opportunity in the market that ALL the above need to survive.
Electricity and the transmission of it.
Wake up in the morning? Electricity ensures you have a fan and hot water.
Go to office? Electricity runs your train lines.
Start your computer – No electricity means no computer, no internet, no purified water!
Go to factory? Machines need electricity as does your elevator.
Go to the hospital or drive on the roads – From the lights, to the signals, to all lifesaving machines need electricity. As global urbanisation increases, as developing countries increase availability of energy, transmission and maintenance of the same, increases at stupendous pace.
Sonepar one of the world’s largest electrical B2B distributor had $22.4 billion in sales in the year 2018.
What does this opportunity mean for India?
Electricals are the largest of the eight core infrastructure industries and a substantial part of real estate development. The engineering industry again has electricals as a core pillar, as again all things engineering need electricity – hence electrical cables, wires, motors, switches, lighting and light electricals are a critically high growth vertical in the economy today. (Reference Link 1,2,3) Our development and expected growth is directly proportionate to the growth of the electrical vertical.
This is the 4th doppelgänger of the electronics, FMCG and larger than the Pharma industry
with huge growth potential in an under-developed highly populated, developing country like India.
Reasons for Indian growth of the electricals industry:
2. Government push for electrification of all rural areas
3. Growth of per capita income and more..
Coming up soon are blogs on:
Expected growth of the electricals industry vertical
Areas of opportunity in this industry
The Retail Opportunity
And what we are doing at Industricals.com