Indian Manufacturing Sector could increase efficiency by 17.9% : Siemens Financial Services

Siemens Financial Services has announced that it has conducted a research among the global top 20 industrial equipment manufacturers. The research findings say that India has approximately 17.9% of untapped Electricity-Efficiency potential and optimizing Industrial Motor-driven systems could deliver overall savings up to 60% on industrial electricity consumption can provide a huge opportunity for cost-savings. The research further provides an estimate on the unused potential for electricity-efficiency (usage and cost-savings, expressed as a proportion of total electricity consumption) in the manufacturing sector, putting India in the second position following Russia and ahead of China in electricity-efficiency potential.

The report also states that in order to remain competitive in the future, the manufacturing sector must continually innovate and reinvent itself. In particular, electricity consumption and prices have risen substantially over the last decade. Electricity usage in the manufacturing sector has undergone huge growth over the last 40 years, rising three times faster than overall energy use, and now represents over a quarter of industrial energy consumption.

Sunil Kapoor, Chief Executive Officer, Siemens Financial Services Pvt. Ltd., said, “Investing in electricity-efficiency technologies not only helps cut energy bills, manufacturing costs and carbon emissions, new equipment often brings productivity and capacity improvements as an added bonus, improving business performance and competitiveness. The global manufacturing sector is inevitably electrifying. Resulting in electricity becoming a pathway to a sustainable energy system and allowing greater levels of automation and digitalization in the manufacturing process.”

Access to finance to fund investments in energy-efficient equipment remains relatively restricted in many countries, especially in India where there are large base of smaller and medium-sized manufacturing operations. Such tailored financing arrangements will prove fundamental to the Indian manufacturing sector in terms of energy-efficiency and thus, will boost the government’s ‘Make in India’ initiative placing India as a manufacturing hub.” added Kapoor.

For more information on the research findings, please click on the below attached PDF.