India Industrial & Infrastructure "UBS Expert call: Industrial motors - ..."

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India Industrial & Infrastructure "UBS Expert call: Industrial motors - ..."

the current environment is accelerating industry

consolidation in favour of large incumbents such as ABB/CG Power. ABB, in particular, is

gaining market share, benefiting from stronger brand acceptance and the temporary

disruption arising from the Siemens-to-Innomotics transition, which has created

customer hesitation. ABB is also strengthening its presence in the hazardous industry

segment via the introduction of flameproof motors for applications in the oil and gas

and coal mining sectors. While CG Power remains highly price competitive, it has begun

reducing discounts, narrowing the gap with MNC peers. In contrast, smaller players are

losing share due to weaker pricing power, delivery challenges, and margin pressures.

Structurally, a significant technology shift is underway, with IE3 motors becoming the

standard (dealer sales share for IE3 motors is now at par with IE2 motors which a year

back used to be 35-40%) and IE4 adoption rising rapidly, especially in data centres and

energy-conscious applications; early interest in IE5 motors is also emerging. Combined

with rising export opportunities and premiumisation trends, these factors create a

favourable medium-term outlook for organised, technology-led players, even as near-

term growth remains skewed toward pricing over volumes.

Higher lead times driving channel stocking; projects and export demand rising

The dealer noted that, on the supply side, disruptions were led by castings due to

foundry shutdowns, stretching delivery timelines from 6 weeks to 8–10 weeks, though

conditions are now improving. Dealers have responded by increasing inventory levels to

manage supply uncertainty and capitalize on price arbitrage. Demand recovery is being