The Generator Thread

Sale of generators up with power outages

By Aamir Shafaat Khan

KARACHI, March 11: The sale of power generators has picked up momentum as the load-shedding has become a daily routine with the start of the summer season.

The sale of generators has surged by 100 per cent in the last one and a half years. Generator shops are now full of stocks along with the presence of a good number of buyers.

The majority of consumers prefer to install a gas device of Rs1,500 in petrol generators, which according to importers costs Rs4-5 per litre per hour against Rs60 per litre per hour without the device.

Karachi consumed about 40 per cent of total generator imports last year, while the rest of the country accounted for 60 per cent machines. Now much depends on the power supply situation in the Punjab.

China has now virtually captured the Karachi market by 90 per cent, while the rest of the share is mainly enjoyed by Japanese generators. However, like other products, the Chinese generators are of four different types thus allowing the consumers to choose the item as per their monthly income. However, buyers from the rich class prefer sound-proof Japanese generators. There is also a price difference of Rs6,000-6,500 in manual and self ignition system generators.

Household consumers are usually lifting generators from one KVA to 5- KVA, while there has been an increase in demand from the industrialists for 50KVA to 500KVA units in the last two years.

There is a slight upward trend in prices of generators as compared to last year because of imposition of one per cent federal excise duty, higher import cost owing to losing strength of the rupee against the dollar and high freight charges from China to the Karachi Port, which surged to $2,200-2,500 per 20 ft container currently as compared to $950 last year.

However, Karachi Generators Importers Group president Sikandar Shahzada told Dawn on Tuesday that the prices may go up further by 10-15 per cent in coming months owing to rising demand and problem of shipments delay from China by 45-60 days. He said that some elements in the markets are still active in bringing smuggled Chinese generators through the Quetta route but its share ranges between five to 10 per cent. However, the smuggled generators’ share in Punjab is 20 per cent and these are coming through Peshawar.

A smuggled generator of 2KVA (petrol) sells between Rs12,000-13,000, while an imported piece (arriving legally) is priced between Rs15,000-25,000 (depending on the quality).

Around 70 per cent market share is enjoyed by petrol generators, (which are later turned into gas because of low price) followed by 15 per cent each by gas and diesel generators.

The import duty on generators running on petrol is 10 per cent and one per cent income tax, while duty on diesel generator is 20 per cent and one per cent income tax.

The import of power generating machines in July-January 2007-08 stood at $517.6 million as compared to $428.6 million in the same period of last fiscal. In 2006-07, imports surged by 38 per cent to $706 million from $511 million in 2005-06.

INDUSTRY: Despite a scheduled load-shedding from 0:7 to 11:00pm daily, the industrialists complain about two to three hour power outages daily.

F. B. Area Association of Trade and Industry Chairman Idris Gigi said that the cost of production through stand-by diesel generators goes up phenomenally as generators cost Rs12 per unit as compared to Rs6 per unit. But the industries have to bear the high cost of production as they have to meet their shipment schedule committed to the foreign buyers.

North Karachi Association of Trade and Industry chairman Noor Ahmed said that around 50 per cent units out of 1,500 have stand-by generators, while 10-12 units have captive power units. The area, he said, is facing load- shedding of one to two hours daily.

Korangi Association of Trade and Industry Chairman Shaikh Fazle Jalil said that only 10 per cent units out of total 4,500 units have captive power units while 20 per cent have stand-by generators.

Site Association of Industry chairman Nisar Sheikhani said only 15 per cent units out of total 3,000 units have power generators while five per cent have captive power units. However, he said Site is not facing any power failures.

SHOPS: There is a conflicting view between the Alliance of Market Association (AMA) and Tariq Road Traders Association (TRTA) about the availability of power generating units in the markets.

AMA chairman Atiq Mir said that that generators’ presence in the markets was about two per cent, which are being managed jointly by many shopkeepers but 15-20 per cent of the big markets have their own generators.

TRTA President Siddiq Memon said that 35 per cent of the shopkeepers have power generating units.

http://dawn.com/2008/03/12/ebr5.htm

In other news, gravity is holding us down.

Sorry, could not resist. What did you honestly expect? Hold supply constant and increase demand and you will always get increased prices. There is no incentive for anyone to sell for less, unless somehow some one has secretly brought in thousands of generators and want to make a quick buck by undercutting everyone else.

Besides, the cabal of generator importers regulate the prices pretty strongly. If you are worried about generator prices, wait a year and see how expensive Diesel, Petrol and Natural Gas become in Pakistan.

Mark my words, before the end of next year, Pakistan will see petrol / diesel at upwards of Rs. 100 a liter. You think it's bad now, you have NO idea.

you've painted a dooms day scenario if that happens then there will be complete chaos.. unnecessary attack on iran might make things worse but the current trend will reverse if American warmongers(neocons) don't do something really stupid

I want to screw up Wapda.

[quote=", post:, topic:"]

I want to screw up Wapda.
[/quote]

thanx for your offer but its already screwed up…

@Salman

The Pakistani Govt. has NO foreign exchange for the purchase of oil anymore, how do you think they are going to import any? Fuel rationing is coming, I guarantee it.

[quote=", post:, topic:"]

@Salman

The Pakistani Govt. has NO foreign exchange for the purchase of oil anymore, how do you think they are going to import any? Fuel rationing is coming, I guarantee it.

[/quote]

i think you’re forgetting one thing… when was the last time we didn’t had ‘enough foreign exchange for the purchase of oil’ , it was immediately after nuke testing but at that time Prince Jeddah Shareef then PM rang up the saudis and despite our financial crunch he managed to secure totally FREE oil for pakistan, even americans were shocked n opposed the idea and wanted pakistan to ‘rot’ and be punished for testing the nukes,but we did got through thanx to then PM and his relationship with Saudis, now the blue eyed prince is back in town, Ishaq Dar the then commerce minister was recently asked about rising oil prices in one of the political talk show other day n he replied smilingly that we’ll deal with that without any problem… lets wait n see how they deal with it and hope for the best…

p.s. Mush during his 9 years twice requested saudis for free oil, both time it was rejected…

[quote=", post:, topic:"]

@Salman

The Pakistani Govt. has NO foreign exchange for the purchase of oil anymore, how do you think they are going to import any? Fuel rationing is coming, I guarantee it.

[/quote]

Any fact backing your claim??? :)

btw Fuel rationing is long over due,oil marketing companies were charging hefty surcharges to build oil storage depots but they didn't delivered any thing yet,so maybe govt SHOULD penalize them

@unikorn

Nothing that I can disclose publicly or definitively. Not sure if the SBoP releases their foreign deposit figures on a monthly basis, but you would be able to see the trend there. The usually tight rules surrounding foreign remittances of large USD transactions have become even tighter the past few weeks as well...

tight rules could be coz of massive amount of Fx outflow , people are buying realestate in Dubai etc like crazy.. plus previous govt's corrupt politicians could attempt to transfer plundered wealth

I have been surveying generators market here in Lahore as i need to buy a 5kva for my home (to run one 1.5ton split and some lights/appliances) and Kipor (www.kipor.com) seems to be the ruling chinese Diesel brand in Pakistan. Pel's 5KVA Diesel Generator is also a rebranded Kipor and sells for Rs.75k.

However you can find original Kipor Diesel 5KVA in market for Rs.65k. Kipor's 16KVA (or was it 18KVA) Diesel costs around 3.5lac.

Chinese GreenPower Natural Gas 5KVA gensets are priced around 47k-65k (difference due to Auto start feature in some models - just a gimmick in my opinion)

For 3.5 lacs there are American Natural Gas 12KVA generators in market too - brand names Kohler & Generac. Will run whole house with ACs and cost just Rs.20/hr to run compared to Rs.100-200/hr for similar capacity Diesel Generators.

If you can, buy your generators now. There will be a massive generator / diesel shortage coming in the next few months so buck up and brace for the ride....

Remember that most generators are not designed to be run for more than 7-8 hours at a time or perhaps even in a day, so make sure you are buying something with reliable after-sales support.

[quote=", post:, topic:"]

I have been surveying generators market here in Lahore as i need to buy a 5kva for my home (to run one 1.5ton split and some lights/appliances) and Kipor (www.kipor.com) seems to be the ruling chinese Diesel brand in Pakistan. Pel’s 5KVA Diesel Generator is also a rebranded Kipor and sells for Rs.75k.

However you can find original Kipor Diesel 5KVA in market for Rs.65k. Kipor’s 16KVA (or was it 18KVA) Diesel costs around 3.5lac.

Chinese GreenPower Natural Gas 5KVA gensets are priced around 47k-65k (difference due to Auto start feature in some models - just a gimmick in my opinion)

For 3.5 lacs there are American Natural Gas 12KVA generators in market too - brand names Kohler & Generac. Will run whole house with ACs and cost just Rs.20/hr to run compared to Rs.100-200/hr for similar capacity Diesel Generators.

[/quote]

I bought have two kipor’s. A 5 kva and a 19 kva. I can’t tell enough people what utter crap it is. Bought the 19kva last year, had it rewired twice, avr’s replaced three times, and digital panel not working properly. It’s done a total of 250 hours.

The 5kva one I bought as a gift for a family member. Was the most embarrassing gift I ever gave. The model with the panel cost me 45,000 late last year. From day one it had issues. In the first hour it’s AVR got fried, after 25 hours the brand new battery that came with it died, after 35 hours the starter got screwed. Lol, what a piece of junk.

I mailed Kipor and they were like send us pictures :D

If you can go for the Kohler, excellent brand. I’m thinking about getting a smaller 5/7 kva genset to back up my 19 kva kipor because it’s out of action so much.

Btw could anyone post any info regarding 5/7 kva gas gensets. Which brands are avaiable in the market and for how much ?? Any good 5 kva diesels too ??

Btw I for the life for me can't understand why we don't generate power from coal when we have the largest coal reserves in the world!!

@Abbas

The worse the power crisis gets, the more the land is worth to all parties involved. As far as the land owners are concerned, the longer they wait, the better.

Also, even though we have the largest coal reserves in the world, the coal is *apparently* high in sulphur content (poor quality) and in a remote area. The last I heard, the consortium who was going to develop the area, just asked the government for $500 million dollars to bring water and power infrastructure to the proposed sites. The government, in all their wisdom, has of course, balked.

On a brighter note, there was an article in Dawn yesterday outlining wind power generation plans here in Sindh which, look pretty promising. Of course, none of the turbines will actually be functional till 2010 so for now, its just wishful thinking...

The Generator dealers here in Gulberg tell me there are copies (No.2 and even No.3 ) of Kipor in market and to only buy Kipor from a dealer who is ready to give 1yr warranty as that will be original No.1 Kipor. They also say that No.1 Kipor is not less than 75k but enpower rebranded Kipor was available for Rs.63k (with 1 yr warranty) till yesterday in Metro but now all Kipor (enpower and PEL branded) are sold out at Metro today.

I was lucky enough to buy the last 5KVA Enpower Green Power CC5000-NG generator on sale at 12:30pm for Rs.46k. When i got past the checkout line there were atleast 10 ppl who had bought the same Generator and were trying to load the damn heavy thing in their cars/pickups.

Metro ppl say next lot may arrive next week but will be for more than Rs.46k.

Congratulations, let us know how your Green Power performs !

i know of honda, but any other reputable brand of natural gas generators below 5kva?

[quote=", post:, topic:"]

For 3.5 lacs there are American Natural Gas 12KVA generators in market too - brand names Kohler & Generac. Will run whole house with ACs and cost just Rs.20/hr to run compared to Rs.100-200/hr for similar capacity Diesel Generators.
[/quote]

Kohler / Generac / Briggs & Stratton where can i find these brands, they’re not available in karachi’s generator market(Shahrah-e-Liaquat) and any feedback about their performance from any user here using one of these…