Transforming India
Growing economy and increasing electricity consumption are proving to be the energiser for Indian transformer industry
Transformer plays an important role in the reliable transmission and distribution of power -be it any industry. The quality of a transformer is based on the quality of all process which are necessary from project acquisition to project closing. The Indian transformer industry is growing at 8 per cent CAGR and it comprises primarily of power and distribution transformer manufacturers.
The Indian transformer industry—which comprises primarily of power and distribution transformer manufacturers—is one of the key pillars of India’s more than Rs. 1,10,000 crore power industry. Power transformers account for 70-75 per cent of the total installed capacity, while distribution transformer accounts for the remaining 20-25 per cent. Power sector will see investment of Rs. 4.7 trillion in the 12th Five-Year Plan period. The capacity of 1,00,000 MW is expected to be added during the 12th Five-Year Plan.
“There is huge growth opportunity for transformer industry in India,” Mahendra Diwani, Director, Arya Transformers Pvt. Ltd., said. “The size of industry is 40 per cent of electric product and our market share is less than 1 per cent and demand-supply ratio is almost balance.”
The 12th Five-Year Plan working group has estimated a huge requirement for additional new lines and substations under distribution. Corresponding with generation capacity addition plans, transmission and distribution have been also planned to facilitate power reaching the ultimate consumer. Total investments expected in generation segment alone will be in excess of Rs. 6 lakh crore.
For the 12th Five-Year Plan, government is planning an inter-regional transmission capacity addition of about 38,000 MW. In addition, about 1,09,000 ckm of transmission lines, about 2.7 lakh MVA of DC transmission capacity and 13,000 MW of HVDC systems are estimated to be added. The total investment is expected to be about Rs. 1,80,000 crore in the transmission segment.
Key driversThere are several fundamental drivers for growing Indian transformer market. These include growing economy, growth in electricity consumption and industrial demand, expanding export market, large-scale generation capacity addition, setting up of national grid, rapid expansion of urban and rural distribution infrastructure.
The Government, through the Rajiv Gandhi Grameen Vidyutikaran Yojana, is planning rural electrification of 1,10,000 villages during the 12th Five-Year Plan. The Government is also coming out with a comprehensive plan – Roadmap for Power Generation, Transmission and Distribution 22 – to enhance policy and implementation strategy.
“The roadmap would be unveiled before December 31st, 2012 and the intense consultations among the stakeholders are on,” Ambuj Sharma, Joint Secretary, Department of Heavy Industry, Ministry of Heavy Industries and Public Enterprises, Government of India, said. “There is good domestic market, best export opportunities, many manufacturers have technical tie‑up/collaboration with renowned MNC.”
Import and exportIndian transformer industry, which is technically at par with the leading international companies, is expected to have significant export opportunities. Indian players have built considerable presence in conformity with global standards.
Technological trendIndia has technology and capacity to manufacture a wide range of power transformers, distribution transformers and other type of special transformers for welding, traction, furnace, etc. The Bureau of Energy Efficiency (BEE) is actively working to ensure that quality products are procured by the electricity boards and has accordingly stipulated mandatory star rating for distribution transformers.
ConclusionWith the rapid socio-economic development, the electricity consumption is growing, and the government is targeting rural electrification during the 12th Five-Year Plan which will boost the transformer business in India. With the ‘Roadmap for Power Generation, Transmission and Distribution 22’, government will spell out policy and implementation strategy which need to be followed in strengthening the power sector in the country.
