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Rural Electrification and its Impact on Demand for Electric Appliances in Rural India - Outlook 2018-2030

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    Report

  • 130 Pages
  • May 2018
  • Region: India
  • Mergen Advisory
  • ID: 4591089
Rural electrification is not a new agenda and has remained one irrespective of the political party ruling at the center. However, with the evolution of rural sector’s social and economic profile, along with build-up of power availability, generation capacity and transmission & distribution, the profile of rural electricity has seen significant positive changes over the last few years. The rural electrification agenda goes back to 2005 when under the leadership of UPA government schemes such as Rajiv Gandhi Grameen Vidyutikaran Yojana were launched. Following this, the incumbent government, starting July 2015, launched Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) which talked about complete rural electrification by 2018 and providing 24x7 power supply to all households in collaboration with the various state departments by 2021-2022. DDUGJY also provides state governments with subsidies to provide free connections to below poverty line households. Key Questions Answered
  • What is the evolving market size for LED bulbs due to rural electrification in India?
  • What is the evolving market size for electric consumer durables such as refrigerator and washing machines due to rural electrification in India?
  • Which are the best performing and least performing states with regards to rural electrification and reliability of power supply?
  • What are the likely challenges and pitfalls that may undermine the objective of rural electrification?
Target Audience/Reasons to buy
  • Electrical appliances companies - Rural India is a proven business case for FMCG and consumer packaged goods (CPG) sector. The rural electrification, both off-grid and on-grid, is bound to have a ripple effect on the adoption and demand of electrical appliances in the times to come.
  • Power Generators, traders and Suppliers - Both infrastructure and availability are mutually tied to enable sustainable demand growth and future base demand potential. The report captures opportunities and challenges emerging from growing rural demand base which will is of strategic importance to both generators and suppliers.
  • Government Agencies/Policy Makers - The report will be vital for the Government and its policy making agencies who have the mandate of achieving the end objective of enabling sustainability in rural segment through electrification of households and businesses.
  • Banks/Financing Institutions/Investors - The report provides an independent analysis of the opportunities and pitfalls to take an informed investment decision and frame a robust outlook towards rural India electrification impact.

Table of Contents

  • Executive Summary
  • Evolution of the accessibility and reliability of electricity in rural India
  • - Demand and Supply of electricity for rural segment
  • - Reliability of supply of electricity, in terms of average hours of electricity supply per day in rural areas
  • - Major demand drivers for electricity in rural segment
  • Commentary on the policy and regulatory interventions around rural electrification, and their success
  • - Government interventions through major policies such as:
  • Rajiv Gandhi Grameen Vidyutikaran Yojana
  • Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY)
  • Saubhagya, Pradhan Mantri Sahaj Bijli Har Ghar Yojana
  • - Overview of allocated budget and actual spent
  • - High-level audit of the efficacy of these major interventions
  • What are the headwinds and tailwinds in rural electrification from a regulatory, economic and social view-point?
  • Categorizing of states based on success in rural electrification as well as reliability of power supply:
  • - Tier I: States with most visible improvement in rural electrification
  • - Tier II: States with varying degree by notable improvement in rural electrification
  • - Tier III: States lagging on account of various reasons
  • Understanding from a rural consumer’s perspective, the key soft and hard benefits of critical electrical appliances such as:
  • - Lightning appliances such as LED bulbs
  • - Room heating and cooling appliances
  • - Consumer durables such as fridge and washing machines
  • - Entertainment & recreational appliances
  • - Other key appliances such kitchen appliances, pumps & motor, water heater, etc.
  • High-level outlook on evolving demand potential for major electrical appliances from rural areas on a state-wise basis projected for 2020
  • High-level opportunity assessment in USD/INR terms for electrical appliances across the states
  • Conclusion

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Bajaj Electricals
  • Samsung
  • Whirlpool
  • Schneider Electric