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Page 1


1. Genesis.

1.a. National scenario of the fan industry.

1.b. Clustering of fan industry in Hyderabad.

2. Industry structure analysis.

2.a. Support institutions / association in the cluster.

2.b. Entry barrier, rivalry, Bargaining power.

3. Analysis of Business operations.

3.a. Products.

3.b. Raw material / components.

3.c. Machinery & Technology.

3.d. Manufacturing Process.

3.e. Testing facilities.

3.f. Marketing.

3.g. Infrastructure facilities.

3.h. Interaction between SSIs and component suppliers.

3.i. Sales Tax hindering growth.

4. Value Chain analysis.

5. SWOT.

6. Vision statement.

7. Action Plan.

7.a. Strategy and interventions.

7.b. Formation & Strengthening of association.

7.c. Capacity building of the units.

7.d. Developing business services.

7.e. Marketing & Export Marketing.

Page 2


Electric fans are broadly categorised as general purpose fans and industrial fans. The latter are used

for driving out hot/polluted air. The former includes ceiling fans, table fans, railway fans and

pedestal fans – all meant to provide human comfort. The present study deals with this segment and

focuses on fan industry in Hyderabad.

Though the first electric fan was manufactured in India in 1921, the industry was dominated by

imports until late forties. Import of fans was banned after independence. With this, manufacture of

fans started in medium scale sector in 1947 around Kolkata with a unit of Jay Engineering Works.

This was followed by orient in early fifties also in Kolkata. Crompton’s unit came up in late fifties

at Mumbai with a British collaboration. Other organised sector manufacturers also emerged –

Khaitan and Rallies (in sixties), Polar (in seventies) etc. With the development of skills and

migration of labour, the industry expanded into small-scale sector also. The industry further

developed around metropolitan cities like Delhi, Mumbai and Chennai and further expanded mostly

in small scale sector in Punjab, Haryana and around cities like Bangalore, Pune, Hyderabad,

Varanasi etc.


The fan industry has grown tremendously in the post-independence period (table 1.1). Between

1950 and 1970, the industry has grown nearly 10 times. The production from the organised sector

had a five-fold growth from 15.5 lakhs in 1970-71 to 81.4 lakhs in 1998-99. The production from

the unorganised sector for the period has grown from 4.5 lakhs to 24.1 lakhs. Thus, the total

production has increased from around 20 lakhs in 1970-71 to around 108.5 lakhs in 1998-99.

On the basis, the annual compounded growth comes to about 5.9% for both the organised and the

small-scale sector, the relative share being fairly stable over the period. According to Usha

International Limited (the marketing arm of the leading fan manufacturer, Jay Engineering Works),

a market size of Rs.1500 crores is being shared by the organised and the unorganised sectors. On

this basis, the total production comes to 262.5 lakh pieces, with the organised sector accounting for

75 lakhs (at a market price of Rs.1000 per fan) and the unorganised sector accounting for 187.5

lakhs (at a market price of Rs.400 per fan). According to their industry sources, the current

production is of the order of 200 lakhs, with the share of unorganised sector rising to 60%. On this

basis, the production comes to 80 lakh fans from the organised sector and to 120 lakh fans from the

unorganised sector. For the study purpose, published data as per Table 1.1 will be used.

First fan manufactured in India in 1921,
but commercially manufactured in 1947
and later spread to small scale sector
around cities like Delhi, Varanasi and

Page 12

material for
blades is to be

essential for air delivery. Sheet made from virgin material has uniform thickness and can attain

proper shape. The cost of these sheets is high. Hence, alternative material for manufacturing

blades is to be explored. Can they be manufactured out of plastic (injection

moulded components) or fibre glass?

Re-rolled Al. sheets are available in local market at affordable prices.

M.S. sheets are used for making shanks and other sheet metal components.

They are also available cheaply in local market.


Top & bottom covers are cast iron components. Cast iron used is low grade. Hence, the covers

cannot have good distribution of material. This is required for better balancing. Here also

alternative material for the components is to be investigated. Sheet metal, plastic & fibre glass can

be thought of. There are many foundries in Hyderabad manufacturing top & bottom covers at

competitive prices.


Stampings are also called as laminations. These are made of steel of various grades. The good

variety is silicon steel. The lamination plays major role in increasing efficiency of fan. The power

consumption of fan is highly dependent on lamination. CRCA (Cold rolled coiled annealed) sheet

is used at present for manufacturing of this component. This does not possess good electrical

properties. It is manufactured in Delhi and is sold here through agents.

The electrical properties of CRCA sheet can be improved by removing carbon content in it by de-

carbonising process. A common facility should be established for this purpose.


Two or one bearing is used in each fan. These are imported from China and are sold here through

agents. They are cheap, easily available and is of fairly good quality.


Few units die-cast their rotor. This is mostly bought-out or sub-contracted item. Al. used for die-

casting is of inferior quality where as electrolytic grade (i.e. 99% pure) should be used. This also

contributes to the efficiency of the fan. Many small units are supplying this component.


Shaft is made of mild steel. It appears that not much improvement can be made for this product. It

is properly machined to dimension required. Many units are manufacturing this product in

Hyderabad at competitive prices.

A common facility should be established to decrease carbon content in
CRCA sheet for improving energy efficiency of fans.

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