Title: Market Penetration Strategies for Arora Switchgears Pvt. Ltd.

(Excell Gold) in Tier-2

and Rural Markets

Chapter 1: Introduction
1.1 Background of the Study
The Indian electrical switchgear market forms the backbone of power distribution and safety systems
across residential, commercial, and industrial segments. Within this space, Miniature Circuit
Breakers (MCBs) and associated products such as isolators, changeover switches, fuse units, and
distribution boxes are vital components that ensure protection and control in electrical circuits. As
India's infrastructure and housing needs expand, especially under government-led rural electrification
and smart city initiatives, the demand for reliable and affordable switchgear solutions continues to
rise.

Arora Switchgears Pvt. Ltd., a small-scale manufacturer specializing in a wide range of low-voltage
electrical products, is strategically positioned to cater to the evolving demands of emerging Tier-2
and rural markets. These products are marketed under the brand name Excell Gold, which is known
for affordability and performance. These markets, often underserved by larger corporations due to
their lower volume-per-unit economics, offer significant potential for small-scale manufacturers that
can provide value-driven and locally adapted solutions. However, success in these markets hinges on
overcoming barriers such as low brand visibility, limited dealer networks, and intense price
competition from unorganized players.

Understanding the behavior of end-users, influencers like electricians, and regional distribution
dynamics is essential for effective penetration. This study explores the challenges and opportunities
that exist for Arora Switchgears Pvt. Ltd. and proposes actionable strategies to deepen its market
presence across Tier-2 cities and rural regions in India, thereby supporting broader goals of rural
development, electrical safety, and local manufacturing upliftment.

However, the market dynamics differ significantly across various regions. While urban markets are
saturated with branded products from multinational corporations, Tier-2 cities and rural markets
present untapped potential for growth. These markets are price-sensitive, trust-driven, and heavily
influenced by local electricians and retailers. For small-scale MCB manufacturers, entering and
expanding in such regions requires targeted and well-crafted strategies that align with local needs
and purchasing behaviors.

1.2 Importance of the Study

Small-scale manufacturers often lack the financial muscle and marketing expertise to compete with
big players in urban centers. However, in less competitive markets such as Tier-2 and rural areas,
they have a unique opportunity to establish a strong presence by offering quality products at
affordable prices. This study aims to explore practical market penetration strategies that can help
small MCB manufacturers expand their market share in these regions.
1.3 Problem Statement
Despite the growing demand for electrical safety devices, small-scale MCB manufacturers struggle
to penetrate Tier-2 and rural markets due to limited brand awareness, weak distribution networks,
and lack of promotional activities. There is a need to identify cost-effective strategies to overcome
these barriers and enhance their market presence.

1.4 Research Questions

 What are the key factors influencing the purchase of MCBs in Tier-2 and rural markets?
 How do electricians and retailers influence customer preferences?
 What strategies can small-scale manufacturers adopt to penetrate these markets?

1.5 Structure of the Report

This report is structured into eleven chapters, each addressing a different aspect of market
penetration strategy. It includes an overview of the industry, detailed analysis of market behavior,
findings from primary research, competitor analysis, SWOT analysis, and finally, strategic
recommendations.

Figure 1.1: Study Framework Overview

Chapter 2: Industry Overview
2.1 The Electrical Equipment Industry in India
India's electrical equipment industry is valued at over INR 1.5 lakh crores and includes a diverse
range of products such as transformers, switchgear, circuit breakers, and wiring accessories. MCBs
form a significant segment within the low-voltage switchgear category. With the government's push
for 100% electrification and the rising construction activities in rural and semi-urban areas, the
demand for MCBs is expected to grow at a CAGR of 6-8% over the next five years.

Table 2.1: Electrical Equipment Industry Size & Growth Forecast

Segment Market Size (INR CAGR (2023-28)

Cr)
Switchgear 45,000 6.5%
Wires & Cables 50,000 8.2%
Circuit Protection Devices 20,000 7.1%
Others 35,000 5.8%

2.2 MCB Segment: Market Dynamics

The MCB segment is divided into:

 Residential Applications
 Commercial and Industrial Use
 Infrastructure and Public Utilities

Chart 2.2: MCB Usage by Segment

Key market trends include:

 Shift towards ISI-marked products

 Preference for modular switchgear systems
 Increase in single-phase and multi-phase installations

2.3 Role of Small-Scale Manufacturers

Small-scale manufacturers contribute significantly to domestic production, often offering customized
solutions and faster delivery times. However, they face challenges such as quality perception, lack of
certifications, and limited marketing reach.

2.4 Regulatory Environment

MCBs are regulated by BIS standards (IS/IEC 60898-1). Compliance is mandatory for
manufacturers. Government initiatives like the MSME support schemes and 'Make in India' are
helping small players upgrade their facilities and meet regulatory standards.
2.5 Growth Opportunities
 Rural electrification schemes (e.g., Saubhagya Yojana)
 Affordable housing programs (e.g., PMAY)
 Infrastructure projects in Tier-2 cities
Chapter 3: Company Profile
3.1 About the Manufacturer
Arora Switchgears Pvt. Ltd., established in [Year], is a small-scale electrical components
manufacturer based in [Location]. The company specializes in producing low-voltage Miniature
Circuit Breakers (MCBs), Distribution Boards, and related accessories under the brand name Excell
Gold. The facility is ISO 9001 certified and employs a workforce of 45 employees.

3.2 Product Portfolio

Arora Switchgears Pvt. Ltd., under its flagship brand Excell Gold, offers a diverse range of low-
voltage electrical products that cater to residential, commercial, and light industrial needs. Their
products are engineered to ensure performance, durability, and compliance with Indian standards.
Several product categories are available in multiple ratings to suit various voltage and current
requirements. The Excell Gold portfolio includes:

 Single Pole (SP) MCBs

 Double Pole (DP) MCBs
 Triple Pole (TP) MCBs
 Four Pole (4P) MCBs
 MCB Changeover Switches
 Main Switches (Switch Fuse Units)
 Changeover Switches (Off Load)
 Knife Type Changeover Switches
 Isolators
 Modular Tiny MCBs
 Enclosure DP
 ELCB (Earth Leakage Circuit Breakers)
 MCB Boxes (Double Door)
 Fuse Switch Units (Double Break Side Handle)
 Bus Bar Chambers
 Porcelain Fuse Units (Kit Kat)
 Reversing Switches
 Distribution Boxes

Table 3.1: Product Ratings by Type

Product Ratings (Amp/Volt)

Switch Fuse Units 16/240, 32/415, 63/415
Changeover Switches 16/240, 32/240, 100/415
Bus Bar Chambers 32/240, 63/415, 100/415
Knife Type Changeovers 16/415, 63/240, 100/415
3.3 Distribution Model
Currently, the company operates through a limited network of wholesalers in its home state. Most
sales are driven by personal relationships with dealers. There is minimal brand promotion or
marketing activity.

3.4 Financial Overview

The company has an annual turnover of approximately INR 3.5 crores. Growth has been steady, but
stagnant in recent years due to increased competition and limited outreach.

Chart 3.2: Sales Growth Trend (Last 5 Years)

3.5 Vision and Mission

Vision: To become a trusted and preferred electrical brand in semi-urban and rural India by
consistently delivering innovative, affordable, and high-quality switchgear solutions under the Excell
Gold brand that ensure safety and reliability for every household and enterprise.

Mission: To empower India's Tier-2 and rural markets by providing accessible and durable electrical
products under the Excell Gold brand—including MCBs, main switches, changeovers, isolators, fuse
units, modular accessories, and distribution boxes. We strive to achieve this through continuous
technological advancement, skilled workforce development, strong distributor relationships, and a
deep commitment to customer satisfaction and electrical safety awareness.
Chapter 4: Research Methodology
4.1 Research Design
This study adopts a descriptive research design to systematically investigate the current market
conditions, consumer behavior, and strategic options for Arora Switchgears Pvt. Ltd. Descriptive
research enables an in-depth understanding of the factors influencing market penetration in Tier-2
and rural areas.

4.2 Data Collection Methods

Primary Data:

 Structured questionnaires administered to electricians, end-users, and dealers

 In-depth interviews with retailers and stockists
 Field visits to semi-urban and rural markets in North India

Secondary Data:

 Industry reports and publications

 Government schemes and policy documents
 Existing company records and financial reports
 Reports from:
o Ministry of Power (India)
o Bureau of Indian Standards (BIS)yes
o MSME Ministry (micro)
o Small scale MCB manufacturer assesstion
o India Brand Equity Foundation (IBEF)
o Trade publications such as Electrical & Power Review, Electrical India Magazine,
and Electronics Bazaar
o Competitor product catalogs and pricing from websites such as IndiaMART,
TradeIndia,
o Academic papers and journals on rural electrification and MSME performance
o NGO whitepapers from organizations like TERI, SELCO Foundation, and Prayas
Energy Group

4.3 Sampling Design

Target Population:

 Electricians, hardware shop owners, end-users, and electrical contractors in Tier-2 and rural
towns

Sampling Method:

 Non-probability purposive sampling for identifying experienced and regionally relevant

respondents
  Sample size: 50 respondents across 10 towns in 2 states

4.4 Research Tools

 Questionnaires (structured with open- and close-ended questions)
 Interview schedules
 Observation checklists during field visits

4.5 Data Analysis Techniques

 Descriptive statistics to summarize the data
 Comparative analysis across different towns
 Thematic coding for qualitative inputs from interviews

4.6 Limitations of the Study

 Limited sample size may restrict generalizability
 Respondents’ biases could influence the authenticity of responses
 Regional scope is confined to Northern India

Figure 4.1: Comparative Market Penetration in Tier-2 and Rural Markets

Chapter 5: Data Analysis and Findings
5.1 Overview
This chapter presents the analysis of primary data gathered through structured questionnaires,
interviews, and field visits in selected Tier-2 and rural markets across North India. The findings offer
insights into consumer behavior, product preferences, brand perceptions, and market dynamics from
the perspectives of electricians, retailers, and end-users.

5.2 Demographics of Respondents

 Electricians: 20
 Retailers/Dealers: 15
 End-Users: 15
 Geographic Spread: 10 towns across 2 North Indian states
 Experience Level:
o 70% of electricians had more than 5 years of experience
o 80% of retailers had been operating in the market for over 7 years

5.3 Purchase Decision Influencers

Influencing Factor % Respondents Identifying as Key Factor
Electrician's 68%
Recommendation
Product Price 85%
Brand Trust 58%
Availability in Local Market 77%
Warranty and Safety Features 53%

Key Insight: Product price and local availability are the most critical drivers in rural purchase
decisions, followed closely by electrician recommendations.

5.4 Brand Awareness and Perception

Brand Name Awareness (%) Perceived as Quality Brand (%)
Excell Gold 62% 48%
Bizlite 40% 38%
Wipro 55% 60%
Indo Asian 35% 50%
Local Brands (Unbranded) 70% 25%

Observation: While Excell Gold has moderate brand awareness, it still trails behind Wipro in terms
of perceived quality. However, it leads among small-scale brands.

5.5 Retailer Feedback

  Margin Expectations: Retailers prefer brands that offer 15–20% profit margins.
 Challenges with Excell Gold:
o Irregular stock availability (reported by 40% of dealers)
o Lack of promotional support
o Minimal product training and demos
 Opportunities Identified:
o Demand for compact modular MCBs in newer housing projects
o Scope to expand product portfolio visibility through regional exhibitions and trade
fairs

5.6 Electrician Insights

 70% of electricians said they influence the final brand choice.
 60% reported using Excell Gold occasionally, citing cost-effectiveness.
 30% preferred branded MCBs like Wipro or Schneider for high-risk applications (e.g.,
industrial loads).
 80% wanted free demo kits and catalogs to understand new models better.

5.7 End-User Behavior

 66% were unaware of the MCB brand installed in their home.
 74% relied entirely on the electrician or shopkeeper for product decisions.
 80% associated a higher price with better quality and safety.

5.8 Comparative Satisfaction Ratings

Brand Avg. Retailer Rating (out of 5) Avg. Electrician Rating (out of 5)
Excell Gold 3.8 3.6
Wipro 4.3 4.5
Bizlite 3.2 3.0
Local 2.8 2.5
Brands

Inference: Excell Gold performs better than other small brands but lags behind premium brands in
both segments. A targeted product improvement and service strategy could bridge this gap.

5.9 Summary of Key Findings

 Awareness of Excell Gold is fairly strong in its operating areas but requires significant
reinforcement in adjacent rural zones.
 Electricians are pivotal in influencing brand choice and prefer brands that offer technical
support and demo tools.
 Retailers value timely supply and marketing support over brand reputation alone.
 End-users remain largely unaware of specific product brands and rely heavily on influencers.
 Growth Opportunities exist in bundling services, improving dealer engagement, and
expanding into regions where competition from organized players is low.
Chapter 6: SWOT Analysis
A SWOT analysis helps to evaluate the internal strengths and weaknesses of Arora Switchgears Pvt.
Ltd. while also identifying external opportunities and threats that could affect its growth in Tier-2
and rural markets.

6.1 Strengths
 Diverse Product Portfolio: Offers a wide range of switchgear products under the brand
name Excell Gold, including MCBs, changeover switches, isolators, fuse units, and more in
multiple ratings and configurations.
 Affordable Pricing: Competitive pricing compared to branded national players, appealing to
price-sensitive rural and Tier-2 customers.
 Adaptability and Flexibility: As a small-scale manufacturer, the company can quickly adapt
to customer needs, offering customized products.
 Local Market Knowledge: Strong understanding of regional market dynamics and consumer
behavior in North India.
 Trusted Dealer Relationships: Long-term relationships with wholesalers and retailers help
maintain consistent sales without relying heavily on marketing.

6.2 Weaknesses
 Limited Brand Recognition: Excell Gold has relatively low national visibility due to
minimal advertising and promotional efforts.
 Restricted Distribution Network: Dependency on regional wholesalers limits geographical
reach and scale.
 Technology Constraints: Manufacturing processes are still semi-automated, affecting
scalability and consistency.
 No Digital Presence: Absence of online channels for product discovery or customer
engagement in an increasingly digital-first environment.
 Low R&D Investment: Limited resources allocated to product innovation and compliance
certifications.

6.3 Opportunities
 Government Schemes: Rural electrification programs, infrastructure development, and
housing projects can drive demand.
 Untapped Markets: Large sections of Tier-2 and rural India remain underserved by branded
electrical solutions.
 Electrification of Agriculture and MSMEs: Rising demand from small factories and rural
enterprises.
 Collaborations: Partnering with NGOs, housing developers, or renewable energy providers
can boost outreach.
 Training and Certification Programs: Empowering electricians and retailers through
workshops can increase brand loyalty and technical trust.
6.4 Threats
 Intense Price Competition: Presence of unorganized sector players who offer extremely low
prices can hurt margins.
 Entry of Big Brands in Rural Markets: Companies like Wipro and Schneider may expand
aggressively in smaller cities.
 Raw Material Volatility: Fluctuation in copper and plastic prices affects profitability.
 Counterfeiting: Risk of imitation products bearing similar names or packaging in rural
markets.
 Changing Compliance Norms: Frequent updates in BIS regulations may require costly
adaptations.