Techno Power Systems, a leading producer of APFC panels based in Chennai, has planned to expand its operations to Kerala and Karnataka. In an exclusive interaction with Electrical Monitor, L. Babu, Managing Director, Techno Power Systems, said, "We have fabrication and R&D facilities in Chennai, and now we intend setting up new facilities at Bangalore in Karnataka and also in Kerala."

Automatic Power Factor Correction (APFC) panels are extensively used by industrial consumers of electricity, in order to maintain a high power factor ratio. Explaining the concept of power factor, Babu observed, "Power factor is the ratio between actual load power (KW) and apparent load power (KVA). It is a measure of how effectively the current is being converted into useful work output. It is an indicator of the efficiency of the supply system."

Several state power utilities are taking steps to ensure efficient power consumption, mainly by industrial consumers. State government-owned distribution companies, Maharashtra and Tamil Nadu, for instance, are imposing stiff penalties on consumers that do not maintain a healthy power factor ratio. Babu believes that this move will spur the demand for power factor correction solutions. "Yes, there will always be demand for a power factor corrector as more and more electricity boards are imposing penalties," he elaborated. Some industry players also believe that while imposing penalties is a good step towards energy efficiency, power utilities should also think on the lines of rewarding industrial electricity consumers that succeed in consistently maintaining a high power factor ratio.

Dwelling on the state of the APFC panel industry, Babu had pertinent observations to make. He said that most of the APFC panel makers are still in the small-scale sector because the demand is not spontaneous. "A customer comes to us only when he is faced with a penalty from the state government utility," Babu observed. An industry analyst supported this view and noted that if industrial consumers were to support power factor correction, as a matter of choice rather than a reaction to penalty, the demand for APFC panels and capacitor could go significantly.

Regarding demand drivers, Babu said that his company Techno Power Systems sells majority of its products to industrial consumers using CNC and lathe machines. On another note, Babu dismissed the existence of Chinese competition in the Indian APFC panel industry. An industry observer explained that Chinese suppliers would not find the market appealing as it is customized and fragmented, and as such, does not offers economies of scale.

On his growth plans for Techno Power Systems, Babu noted, "We have to promote all types of panels for us to improve and grow further."