Current Switch

With the real estate market in a slump, sales of switches too has been hit. But the market is optimistic.

While real estate developers are in a tizzy with falling sales, switch manufacturers are reeling. Ever since the global slowdown has had a cascading effect on the Indian market, sales of products across all categories have fallen. Switches too have not been spared.

It is well known that switch manufacturers are assured 40% sales by selling to real estate developers.

Vikas Bakshi, general manager, Havells India, says: “Sales to developers have been hit to the tune of 20%. Unless the real estate development picks up, we cannot expect to see an increase in sales.”

This is possibly the reason why most manufacturers have also abstained from launching more and newer models.
 
While switch manufacturers may not sell directly to developers, the business model here works differently. Switch manufacturers push their products to architects and designers.

Architects are made aware by developers of a certain type of house within a certain budget. So, home accessories such as switches, wiring, boards, etc are also a part of the design. It is another matter that developers may or may not choose the switches options suggested by the architect.

Architects, on their part, usually recommend switches that come in the mid- or high-end. Says Riyaz Himany, associate with ABM Architects Pvt Ltd: “Clients are very demanding and increasingly fussy.

With snazzy interiors getting a boost, most buyers are particular about the colour, range and visibility of the switch.”

Automation too has played a major part in the evolvement of the humble switch. Switches now come in gold, platinum and diamond sheen, are available in fire-retardant and heat-resistant polycarbonates, and can withstand one lakh operations and temperatures up to 960 degrees Celsius in case of fire.

Some flat modular switch range can be flush on the same plane as that of the front plate in off position.

The switch housed in slim 6.5mm front plate can make the entire unit appear flushed on the wall.

Switches are also available in sensors and timers that help to conserve energy at homes and offices in addition to adding comfort and luxury with electronic controls. The sensors ensure that the lights go out when they are not needed. The remote control option allows the lights to be controlled without reaching out for the switch.

The Indian organised market for branded switches is around Rs1200 crore. “The modular switches market has seen a fall from Rs2000 crore in first half of 2008. Sales have been hit as consumers are postponing plans of refurbishing their homes not to mention that new developments have waned,” says a spokesperson at Anchor. Most manufacturers or suppliers chorus that they expect sales to pick up in the second half of 2009.

Contrary to this, Himany of ABM Architects says while the humble switch performs a basic function, they are also a lifestyle product. “House owners periodically refurbish their homes.

With some of the homes I have redesigned, I have had customers even asking for imported switches that meet with their new interiors. Customers are fussy about the placement of the switch too. With new floor-panelled switches now available and switches that can camouflage well with the surroundings to switches that have a miniscule LED on them for easy identification – all are in demand,” he adds.

But that’s the organised sector. The vast unorganised switches market has yet to be reined in. Says the spokesperson from Anchor: “The organised sector alone is Rs800 crore. The unorganised could be as much if not bigger. The issue here is that most consumers rely on their local electrician to suggest the right switch. If the market was more educated, then maybe they would prefer safety over cost.”