Transformer market with a transforming future

With new policies as well as ‘Make In India’ initiative, the transformer industry is surely going to shine brighter
 The global electrical equipment market is expected to increase from a cumulative size of more than $3 trillion (2008-15) to $ 6.8 trillion (2016-30), and transformers market is expected to have more than 30 per cent share. There has been an overall growth in most segments of the electrical equipment industry — transformers — due to the high demand from central and state power utilities.
Growing transformer marketThe transformer market in India has been in a sound state for a few years now. “The market is further anticipated to witness sound healthy growth rates and empowering demand for the impending years,” believes Anil Kadam, Senior Manager – Solution Architect (Utility Segment), Schneider Electric India. “The government initiatives alongside the need of substitution of transformers introduced in the previous years are relied upon to drive development in the Indian transformers market. Schneider Electric India is a well-established manufacturer having capabilities to develop all type of transformers up to the 800 kV and 1,200 kV levels.”
Anil Kumar Aggarwal, Chairman and Managing Director, PME Power Solutions (India) Ltd., also feels the same. He explains, “Transformer industry is completely geared up with latest innovations and technologies for manufacture of transformer of highest ratings, i.e. 1,500 MVA at 765 KV voltage class. The industry is capable of catering the demand or requirement of domestic market besides 50 per cent of the export requirements.”
Industrial and commercial segment growth and transformers marketThe transformer industry is totally dependent on the load growth in the industrial and commercial sectors. “One cannot lose sight of growth in agriculture and domestic sectors, as transformer industry caters to the later sector 30 per cent of the power utilised in the country,” says Mr Aggarwal. “At present, the installed capacity of the power generation is about 2,60,000 MW with maximum demand of 1,80,000 MW. The main hurdle in the growth of the sector is the availability of power in the country.”For the past couple of decades, power planning had a great setback, as the planed schemes could not be completed in time and has only been accomplished not more than 50 per cent of the target. There is, now, ray of hope with the installation of the new government, since tangible progress in getting clearances of various power projects have been observed. Mr Aggarwal adds, “Recently, each of four UMPPs of 4,000 MW has been cleared for execution, still India has a long way to go in harnessing the resources in respect of fuel for supply both locally and import coupled with giving impetus to the renewal energy particularly solar energy for which the government has elaborate programme to add to 20,000 MW grid connected solar power by 2022. Unless sufficient power is injected in the system which itself needs equal augmentation to supply power to industry and to all other sectors. It is pointed out that the growth of railways is also tremendous in the coming years together with industrialisation and development of smart cities along the freight corridors earmarked by the government.”
He also adds there is a tremendous scope of growth of transformer industry which has a crucial raw material problem. “As a president of ITMA, we have been striving hard with the Indian Government to arrange establishment of plants for manufacturing CRGO so that the dependence of industry on the import of CRGO is done away with,” remarks Mr Aggarwal. “Transformer industry in India is already spending foreign exchange of $ 5,000 crore and equal amount for rotating machines industry, i.e. motors and generation, which uses CRNGO. About 50 per cent of its requirement is hardly produced or manufactured in India.”
Addressing growing concern about importsImports have captured about 43 per cent of the market for electrical equipment in India, and the transformer market is definitely facing some stiff competition from outside as cheaper imports from China and Korea have majorly impacted the industry. “This is a serious matter of concern as direct impact on small- and medium-sized transformer manufacturers,” opines Mr Kadam. “However, the government’s continued efforts to revive the power and the infrastructure sector augur very well for the transformers industry as both these sectors would need strong electrification which shall help the local players maintain a healthy growth rate.”
Mr Aggarwal also echoes the same opinion. According to him, “It is a serious concern for the growth of electrical industry in India. At present, electrical industry contributes only 1 per cent of the global requirement which is going to be seriously affected if import is not stopped and virtually threatens the industrial growth. The Government of India has to device ways and means to stop the import by imposing the anti-dumping duties as well as provide incentives to the Indian industry so that the industry is at level-playing field with the importers. It is understood that some measures are already in process with the government for implementation within the framework of WTO agreement.”
Technological trends in the marketThe transformer business in India has grown rapidly in terms of technological advancements and now developed engineering base that prompts excellent completed items. Mr Kadam believes that Indian players have a proven innovation and ability to manufacture a array of power transformers, distribution transformers and different sorts of special transformers for furnace, traction, converter duty and so on. Today, around 85 per cent of the transformers introduced in the Indian power network are of indigenous source. Energy-efficient transformer can be manufactured in India to meet international requirements.
Research and development in transformer industry is a rigorous process for the transformer industry to adopt most modern trends and technologies in design and manufacture of transformers. “ITMA in a bid to update the technological advances globally arranges international conference on transformers, where experts from all over the world participate and interact with our engineers for adoption of new technology so that the transformers manufactured in India are acceptable in international market,” opines Mr Aggarwal.
Mission 2012-2022The Indian Electrical Equipment Industry Mission Plan 2012-2022 has planned to make India the country of choice for the production of electrical equipment and reach an output of $100 billion by balancing exports and imports. No doubt the next 5 years would be extremely crucial for the Indian electrical equipment industry as it prepares to meet the rapidly rising domestic demand. “Quality products at reasonable prices are the key differentiator in any market, and the transformer industry should continue to focus on R&D so that it can keep delivering superior products to its customers,” says Mr Kadam.
However, the Modi Government is well aware about the present market scenario. With the innovative “Make in India” campaign as well as manufacturing-friendly Union Budget, the electrical equipment industry is surely going to shine._________________________________Energy-efficient transformer can be manufactured in India to meet international requirements.
Anil Kadam, Senior Manager – Solution Architect (Utility Segment), Schneider Electric India______________________________________________
The industry is capable of catering the demand or requirement of domestic market besides 50 per cent of the export requirements.
Anil Kumar Aggarwal, CMD, PME Power Solutions (India) Ltd.

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Transformer market with a transforming future

With new policies as well as ‘Make In India’ initiative, the transformer industry is surely going to shine brighter
 The global electrical equipment market is expected to increase from a cumulative size of more than $3 trillion (2008-15) to $ 6.8 trillion (2016-30), and transformers market is expected to have more than 30 per cent share. There has been an overall growth in most segments of the electrical equipment industry — transformers — due to the high demand from central and state power utilities.
Growing transformer marketThe transformer market in India has been in a sound state for a few years now. “The market is further anticipated to witness sound healthy growth rates and empowering demand for the impending years,” believes Anil Kadam, Senior Manager – Solution Architect (Utility Segment), Schneider Electric India. “The government initiatives alongside the need of substitution of transformers introduced in the previous years are relied upon to drive development in the Indian transformers market. Schneider Electric India is a well-established manufacturer having capabilities to develop all type of transformers up to the 800 kV and 1,200 kV levels.”
Anil Kumar Aggarwal, Chairman and Managing Director, PME Power Solutions (India) Ltd., also feels the same. He explains, “Transformer industry is completely geared up with latest innovations and technologies for manufacture of transformer of highest ratings, i.e. 1,500 MVA at 765 KV voltage class. The industry is capable of catering the demand or requirement of domestic market besides 50 per cent of the export requirements.”
Industrial and commercial segment growth and transformers marketThe transformer industry is totally dependent on the load growth in the industrial and commercial sectors. “One cannot lose sight of growth in agriculture and domestic sectors, as transformer industry caters to the later sector 30 per cent of the power utilised in the country,” says Mr Aggarwal. “At present, the installed capacity of the power generation is about 2,60,000 MW with maximum demand of 1,80,000 MW. The main hurdle in the growth of the sector is the availability of power in the country.”For the past couple of decades, power planning had a great setback, as the planed schemes could not be completed in time and has only been accomplished not more than 50 per cent of the target. There is, now, ray of hope with the installation of the new government, since tangible progress in getting clearances of various power projects have been observed. Mr Aggarwal adds, “Recently, each of four UMPPs of 4,000 MW has been cleared for execution, still India has a long way to go in harnessing the resources in respect of fuel for supply both locally and import coupled with giving impetus to the renewal energy particularly solar energy for which the government has elaborate programme to add to 20,000 MW grid connected solar power by 2022. Unless sufficient power is injected in the system which itself needs equal augmentation to supply power to industry and to all other sectors. It is pointed out that the growth of railways is also tremendous in the coming years together with industrialisation and development of smart cities along the freight corridors earmarked by the government.”
He also adds there is a tremendous scope of growth of transformer industry which has a crucial raw material problem. “As a president of ITMA, we have been striving hard with the Indian Government to arrange establishment of plants for manufacturing CRGO so that the dependence of industry on the import of CRGO is done away with,” remarks Mr Aggarwal. “Transformer industry in India is already spending foreign exchange of $ 5,000 crore and equal amount for rotating machines industry, i.e. motors and generation, which uses CRNGO. About 50 per cent of its requirement is hardly produced or manufactured in India.”
Addressing growing concern about importsImports have captured about 43 per cent of the market for electrical equipment in India, and the transformer market is definitely facing some stiff competition from outside as cheaper imports from China and Korea have majorly impacted the industry. “This is a serious matter of concern as direct impact on small- and medium-sized transformer manufacturers,” opines Mr Kadam. “However, the government’s continued efforts to revive the power and the infrastructure sector augur very well for the transformers industry as both these sectors would need strong electrification which shall help the local players maintain a healthy growth rate.”
Mr Aggarwal also echoes the same opinion. According to him, “It is a serious concern for the growth of electrical industry in India. At present, electrical industry contributes only 1 per cent of the global requirement which is going to be seriously affected if import is not stopped and virtually threatens the industrial growth. The Government of India has to device ways and means to stop the import by imposing the anti-dumping duties as well as provide incentives to the Indian industry so that the industry is at level-playing field with the importers. It is understood that some measures are already in process with the government for implementation within the framework of WTO agreement.”
Technological trends in the marketThe transformer business in India has grown rapidly in terms of technological advancements and now developed engineering base that prompts excellent completed items. Mr Kadam believes that Indian players have a proven innovation and ability to manufacture a array of power transformers, distribution transformers and different sorts of special transformers for furnace, traction, converter duty and so on. Today, around 85 per cent of the transformers introduced in the Indian power network are of indigenous source. Energy-efficient transformer can be manufactured in India to meet international requirements.
Research and development in transformer industry is a rigorous process for the transformer industry to adopt most modern trends and technologies in design and manufacture of transformers. “ITMA in a bid to update the technological advances globally arranges international conference on transformers, where experts from all over the world participate and interact with our engineers for adoption of new technology so that the transformers manufactured in India are acceptable in international market,” opines Mr Aggarwal.
Mission 2012-2022The Indian Electrical Equipment Industry Mission Plan 2012-2022 has planned to make India the country of choice for the production of electrical equipment and reach an output of $100 billion by balancing exports and imports. No doubt the next 5 years would be extremely crucial for the Indian electrical equipment industry as it prepares to meet the rapidly rising domestic demand. “Quality products at reasonable prices are the key differentiator in any market, and the transformer industry should continue to focus on R&D so that it can keep delivering superior products to its customers,” says Mr Kadam.
However, the Modi Government is well aware about the present market scenario. With the innovative “Make in India” campaign as well as manufacturing-friendly Union Budget, the electrical equipment industry is surely going to shine._________________________________Energy-efficient transformer can be manufactured in India to meet international requirements.
Anil Kadam, Senior Manager – Solution Architect (Utility Segment), Schneider Electric India______________________________________________
The industry is capable of catering the demand or requirement of domestic market besides 50 per cent of the export requirements.
Anil Kumar Aggarwal, CMD, PME Power Solutions (India) Ltd.

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