Best is waiting for transformers market

“CG is witnessing demand upswing and new opportunities in the market place,” says Biswaroop Ukil, Vice President – Direct Sales (India Region), CG
 The future of transformer industry is promising. India’s installed generating capacity is set increase from the present level of 228 GW to over 700 GW by 2030. In an interview with EPR, Biswaroop Ukil talks how CG is getting ready to meet the future demand.
Factors influencing transformer marketHistorically growth of transformer market has been driven by the generation, transmission and distribution segments. The last decade witnessed phenomenal growth in the transmission segment across the voltage class, i.e. EHV and UHV for evacuation of power from one end of the country to the other. This has driven the demand for power transformers. The present focus is on improvement of distribution network which is driving the demand of distribution transformers. On the whole, the transformer industry has witnessed a CAGR of 11 per cent for last 10 years. While the market for transformer remained stagnant for last couple of years, with clear policy framework in place, one expects this market to grow fast. The future of transformer industry looks pretty promising as the country’s installed generating capacity is set increase from the present level of 228 GW to over 700 GW by 2030. Addition in generating capacity, strengthening transmission lines for evacuation, creating a national grid interconnecting the five regions of the country through “Transmission Super Highways” and smart city initiative are expected to drive the demand for transformers in the Indian market.
Required R&DIndian electrical equipment industry is fully equipped to meet the domestic demand on the back of its strong technology, manufacturing base and robust supply chain management. The industry has evolved over the years to meet the growing demand in the country. As the national network is gaining maturity, need for new products and technologies are being envisaged which the Indian industry is working towards with their indigenous R&D initiatives.
Changing T&D trendsThe government has approved Rs. 32,000 crore for integrated power development scheme to reduce AT&C losses for strengthening sub-transmission network in the urban areas. This will fuel the growth of distribution equipment. With Rs. 40,000 crore of funds approved, there is special focus on rural electrification through “Deendayal Upadhyaya Gram Jyoti Yojana” which will further drive the distribution equipment business. Transmission sector is also witnessing a change in business model from its erstwhile nomination-based construction of transmission system, to tariff based bidding on BOOT/BOOM basis. This will bring a lot or private players in the transmission segment and will create a completely different revenue model.
Mission ‘Make In India’“Make in India” is a mission by the prime minister aimed at making the Indian industry competitive to take on the global competition with world-class quality. Various industry associations are working with government department to create a framework which will benefit the Indian industry. Once implemented, this will give new impetus to the Indian economy by attracting fresh investments and creating better manufacturing environment. Further focus on “Make in India” will foster innovation and technological advancement as well as enhance skill level of the domestic industry.
CG and current market scenarioCG is witnessing demand upswing and new opportunities in the market place. It expects this to gain further momentum in the coming financial year and is strategically aligned to leverage these opportunities.