Interview

JDS aims at 50% growth annually

Jyotindra Patel, Chairman, JDS Group of Companies

We see ourselves down the line as leading manufacturer of single and three phase distribution transformers maintaining an average growth rate of 50 per cent annually.
Jyotindra Patel, Chairman, JDS Group of Companies
 JDS Group started its base of operation in Nagpur in the year 1989, since then it has grown in leaps and bounds, it has expanded its operation to Boregaon, Madhya Pradesh and it now cater to clients in 32 different countries, major thermal power stations and power transmission and distribution authorities in India as well as abroad. JDS Group, caters for a diverse product range ranging from voltage distribution and transmission lines suitable up to 765kV to distribution transformers of up to 2.5 MVA. The company is strategically placed in Nagpur, which gives itself advantage when it comes to procurement of raw material for its finished products and also transportation facility. Over the years, it has successfully transformed itself from being conductor manufacturer to a one stop shop in the electricity transmission and distribution sectors.
As per Jyotindra Patel, Chairman, JDS Group of companies the centre should not look too much into the projections made by CEA (Central Electric Authority) as the surplus situation is on account of lower demand, primarily from debt-ridden state electricity boards and the industry is in the midst of a slowdown.
“The surplus capacity is fairly modest, and will get quickly absorbed when economic growth and industrial activity pick up pace. Further, I do not think we have sufficient reserves to meet exigencies such as adverse weather conditions or plant failure. I think it is important to test the surplus under more stringent conditions of growth and reliability,” he remarks.Power deficit in the country has been going down in the past couple of years due to steep rise in fresh generation capacity addition. In the last three years, India has added in excess of 20,000MW of new generation capacity, a feat that has taken the country’s overall installed capacity to over 30,0000MW by the end of May.
Patel informed that the energy deficit fell to 2.1 per cent in FY16 and recorded a low of 1 per cent in May. But with infrastructure and manufacturing push and improvement in overall growth numbers, power demand is expected to surge again, putting pressure on the current comfortable position on supplies. 
“I think we should not underestimate the demand growth from the government’s drive on rural electrification and 24/7 power supplies and with the broader trend towards urbanisation. Both factors weigh significantly in demand forecasts and would absorb the power supply surplus,” he points out.
Conventional power capacitySpeaking on the game changer for this transformation Patel said, “Record capacity addition of around one-fifth of current conventional power capacity would be the game changer for the plan.” Government initiated project Deendayal Upadhyaya Gram Jyoti Yojana and IPDS schemes for rural electrification have been sanctioned to electrify more than 1,20,000 un-electrified villages along with strengthening and augmentation of distribution infrastructure for the same, this project would add to our country’s existing capacity of 30,0000MW. “The project is estimated to have an outlay of Rs 43,000 crore. The electrification drive is expected to provide impetus to demand for distribution transformers,” he informs.
Power Grid Corporation of India Ltd (PGCIL) also plans to invest Rs 22,500 crore in the current fiscal year for expansion, which includes systematic expansion in substations, transmission networks. Several of the state electricity boards have initiated projects for electrification and up gradation of transmission lines and sub-stations. The highest ever increase in transmission lines and sub-stations improved so far has improved the transmission scenario resulting in energy deficit falling to the lowest ever of 2.1 per cent in 2015-16. During the first quarter of current fiscal, solar power sector has also added 1,031MW of new capacity which has also contributed to the increase in power generation capacity. “We forecast that there would be a surge in the demand for transmission lines and transformers both from the government bodies and private players. Keeping all the above factors in mind, I believe that transformers, transmission lines and power storage units have a bigger role to play in the near future,” anticipates Patel.
Nurturing R&D and manufacturingJDS Group is contributing to the transformation by bringing about an amalgamation of young and experienced professional who constantly bring innovation in the area of manufacturing, R&D process, quality control system. With a dedicated team of highly qualified and experience the company design and develops electrical equipment which lasts forever with minimum losses during operations.
“Rs 55 billion Indian transformer industry is going to immensely benefit from the strong demand expected from reforms in the power sector. I expect the industry to witness an annual growth rate of over 30 per cent in terms of value over the next 5 years,” he says. Improved realisations and higher volumes will largely drive this transformation. The government also intends to add massive capacity to the generation side and create a national grid for distribution of the power sector, both of which should boost demand for transformers and HV/LV transmission lines. JDS transformer industries produce distribution transformers whose size is up to 2.5 MVA. The production capacity of the plant is 2,400 units per annum.
Demand for transformers and transmission cablesCommenting on the business prospects Patel says, “Demand for transformer is bound to increase in the near future, looking at the development project that several of the electricity board are embarking on we forecast a huge demand for transmission cables in the near future along with Indian government’s plan for rural electrification. We process around 24,000 Mt/PA of aluminium to produce HV/LV lines, AB cables, DPC wires our key competency has enabled us to produce premium quality transformers also. Keeping in mind the recent development we aim to utilise our production capacity of 2,400 transformer per year and 80,000 km of conductors cables per year to the maximum. We aim to add more capacity in our existing plants to reap the benefits, our quality control lab at Boregaon, Madhya Pradesh would soon be NABL certified, which would further insure our products.”   JDS’s distribution transformers are quality verified by Bureau of Indian standards (BIS).
“We see ourselves down the line as leading manufacturer of single- and three-phase distribution transformers maintaining an average growth rate of 50 per cent annually,” Patel concludes. 

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