Association (IFMA) has pledged its support to the nation’s energy efficiency programme, and with a view to creating consumer awareness, has launched “Mr Energy Saver” – a mascot to promote energy saving.
In an interaction with T&D India at the sidelines of IFMA’s Annual General Meeting held in Mumbai on August 25, 2022, Anuj Poddar, CEO & MD, Bajaj Electricals who took over as IFMA’s newly elected Chairman for the period 2022-2024, said that there was tremendous scope to realize energy savings in the humble consumer appliance – fans.
Poddar explained that the time was just right to launch the energy saving mission given that the government mandatory star-labeling programme for fans has recently taken effect – from July 1, 2022.
Under this programme, all fans will have to declare their energy saving potential by way of “stars”; more stars progressively indicate higher energy efficiency. The star labeling programme, it may be mentioned, spearheaded by Bureau of Energy Efficiency (BEE), is currently applicable to nearly 30 electrical products including consumer appliances like air-conditioners and refrigerators.
Energy saving potential
Regarding the new mascot unveiled at the IFMA AGM, Anuj Poddar said that it represented IFMA’s attempt to create consumer awareness on the subject of energy efficiency. In a typical household, ceiling fans could account for 25 per cent of the total electricity consumption in an urban household, and much more in the case of the rural counterpart. The IFMA Chairman explained that the fan is the quintessential consumer appliance and comes second to lamps. Even in a rural household acquiring a new electrical connection, the fist appliance considered after the electrical lamp, is the fan.
“The return on investment on energy efficient fans is very fast from the consumer’s perspective,” Poddar explained. According to estimates made by IFMA, India can potentially reduce its current annual electricity consumption of 284 TwH to 140 TwH with the help of energy efficient fans. Around 20 per cent of India’s current electricity consumption is on account of the country’s installed base of 60-70 crore fans, IFMA estimates.
Incidentally, under the latest campaign around the mascot Mr Energy Saver, IFMA is promoting the idea of having at least one energy-saving fan in every Indian home.
The GST issue
An important issue on IFMA’s agenda has been the Goods & Services Tax (GST) on fans. Currently, fans attract GST of 18 per cent, which IFMA feels should be reduced – all in national interest. Poddar explained that IFMA has been having extensive deliberations with the government to bring down GST on fans to 5 per cent. “If there is one common man’s product that deserves a GST rate of 5 per cent, it has to be fans,” Poddar asserted.
Energy efficiency will obviously come at a price, Poddar explained, and the present rise in commodity prices like copper will also have an impact. Given this, reduction in GST would go a long way in making energy-efficient fans more affordable to the average consumer.
Level-playing field
Anuj Poddar, Chairman, IFMA, also made an interesting observation of how the star labeling programme could create a level-playing field for fan manufacturers. The star-labeling programme will set a “minimum quality standard” for the manufacturer fraternity. This would definitely help, as Poddar pointed out, in weeding out players from the unorganized sector that are often responsible for substandard or energy-inefficient equipment entering the market.
Not limited to BLDC
Over the past few years, a new generation of ceiling fans has made its presence. These fans, equipped with BLDC (brushless direct current) motors, have extremely high energy efficiency and command the highest “five-star” rating under the star labeling programme.
When asked whether energy efficiency was all about BLDC motors, Anuj Poddar explained that while BLDC fans are highly energy efficient, the energy efficiency culture in fans was not limited to BLDC. Currently, BLDC fans account for less than 1 per cent of the current market size. Moreover, BLDC fans cost much more than conventional (induction motor-driven) fans, thereby making them out of reach of the common consumer. “At IFMA, we are addressing energy efficiency for the mass market,” Poddar noted elaborating that there is tremendous scope for introducing energy efficiency even in the conventional fan market.
Under the new star labeling programme, there will be a suite of fans with varying levels of energy efficiency (measured in terms of the number of “stars”). Consumers have the choice to decide on their purchase keeping in mind their fan-related energy consumption and the projected saving on electricity bills.
Knowledge sharing
The Indian Fan Manufacturers’ Association has been serving the industry, in one form or the other, for over five decades, Poddar explained, though the association was formalized in its present avatar in the 1990s. Currently IFMA has around 120 members and much of this has been due to the association’s conscious attempt to induct smaller players. Discussing the benefits that accrue to smaller member companies, Anuj Poddar said that apart from giving them an industry voice, IFMA also helps smaller companies through knowledge sharing.
Larger and established companies in the IFMA fold contribute by way of research on new technologies and practices. “As an organization, IFMA is very transparent in sharing this with member companies,” Poddar said, adding that knowledge dissemination tremendously helps smaller companies that might not be equipped with their own R&D outfits.
