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Voltage sags, also known as dips, are important to electrical grids which are almost impossible to avoid. Severity of the voltage sag depends upon the magnitude and duration of voltage sag. Its duration depends upon the fault clearing time of the protective device. Many industrial customers using sensitive equipments suffer from voltage sags. Production and financial losses due to voltage sags for sensitive electronics equipments such as computers, programmable logic controllers and adjustable speed drives and Motor-contactors are increasing day by day. Different categories of industrial equipments have different sensitivities to voltage sags. In this paper highly and moderately sensitive equipment are considered. Effect of equipment sensitivity on placement of mitigation devices for voltage sag mitigation in a real Indian distribution system is discussed.