SUMMER TRAINING REPORT
On
PROSPECTS OF TRANSMISSION & DISTRIBUTION
EQUIPMENT MANUFACTURING IN INDIA
Exploring the Business Opportunity in Manufacturing Sector
At
Feedback Infrastructure Services Private Limited
JUNE-JULY, 2012
Under the Guidance of
Mr. ANURAG RAIZADA
Mr. J. S. S. RAO
Principal Consultant, Energy Division
Principal Director
Feedback Infrastructure Services Private Ltd.
National Power Training Institute
Prepared By
ABHINAV GUPTA
Roll No. 1120812182
MBA - Power Management, Batch: 2011-13
NATIONAL POWER TRAINING INSTITUTE (NPTI), Faridabad
Submitted to
MAHARISHI DAYANAND UNIVERSITY, ROHTAK
DECLARATION
I, ABHINAV GUPTA, Roll No. 1120812182, student of MBA-Power Management (2011-13)
at National Power Training Institute (NPTI), Faridabad hereby declare that the Summer Training
Report entitled
“PROSPECTS OF TRANSMISSION & DISTRIBUTION EQUIPMENT
MANUFACTURING IN INDIA”
is an original work and the same has not been submitted to any other institute for the award of
any other degree.
A Seminar presentation of the Training Report was made on 29th August, 2012 and the
suggestions as approved by the faculty were duly incorporated.
Presentation In-Charge
Signature of the Candidate
(Faculty)
Countersigned
Director/Principal of the Institute
ii
ACKNOWLEDGEMENT
It’s my immense pleasure to present this report under the subject of ‘Prospects of Transmission
& Distribution Equipment Manufacturing in India’. I take this opportunity to express my
gratitude to the people who have been instrumental in the successful completion of the project.
I would like to express my sincere gratitude to Mr. Devtosh Chaturvedi, Director, Energy
Division and Mr. Anurag Raizada, Principal Consultant, Energy Division of Feedback
Infrastructure Services Private Limited for giving me an opportunity to work under their
guidance and a rare chance to work on a prominent project.
I would like to express my heartiest thanks to Mr. Dilip Behera, Consultant, Energy Division,
Feedback Infrastructure Services Private Limited for giving me a chance to work with him,
providing me with the necessary resources, ideas and facilitating me in this project.
I am also thankful to Mr. J.S.S. Rao, Principal Director, CAMPS (NPTI); Mr. S.K. Chaudhary,
Principal Director, CAMPS; Mrs. Manju Mam, Dy. Director, NPTI; Mrs. Indu Maheshwari, Dy.
Director, NPTI; for arranging my summer internship at Feedback Infrastructure Services Private
Limited. It’s my privilege to have Mr. J.S.S. Rao, Principal Director, CAMPS (NPTI) as my
internal project guide. He has been a constant source of motivation and guidance throughout
the course of my internship.
I also extend my thanks to all the faculties and my batch mates in CAMPS (NPTI), for their
support and guidance throughout the course of internship.
ABHINAV GUPTA
iii
TABLE OF CONTENTS
Sr. No.
1
1.1
1.2
1.3
1.4
2
2.1
2.2
3
3.1
3.2
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.2.6
3.3
3.3.1
3.3.2
3.3.3
3.3.4
3.3.5
4
4.1
4.2
4.2.1
4.2.2
4.2.3
4.2.4
4.2.5
4.2.6
4.2.7
4.2.8
4.3
4.3.1
CONTENTS
CERTIFICATE FROM INDUSTRY
DECLARATION
ACKNOWLEDGEMENT
TABLE OF CONTENTS
LIST OF FIGURES
LIST OF TABLES
ABBREVIATIONS
EXECUTIVE SUMMARY
INTRODUCTION
Transmission & Distribution Equipment Industry
Problem Statement
Objective
Organization Profile
LITERATURE REVIEW AND RESEARCH METHODOLOGY
Literature Survey
Research Methodology
SCENARIO OF POWER SECTOR IN INDIA
Indian Power Sector
Power Sector Performance in 11th Plan
Capacity Addition: Generation
Transmission System in India
Capacity Addition: Transmission Lines
Capacity Addition: EHV Substations
Performance of Distribution Sector
Technological Development
Transmission & Distribution Sector in 12th Plan
Envisaged Growth in 12th Plan
Addition of Transmission Lines
Addition of Substations
Development of National Grid: Inter-State Transmission Capacity
Growth of Distribution Business
INDIAN ELECTRICAL T&D EQUIPMENT INDUSTRY
Industry Scenario
Cable & Conductor
Cable
Types of Cable
Conductor
Types of Conductor
Competitor Analysis
Financial Analysis
Industry Performance
Market Prospects
Transmission Tower
Types of Transmission Tower
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4.3.2
4.3.3
4.3.4
4.3.5
4.4
4.4.1
4.4.2
4.4.3
4.4.4
4.4.5
4.4.6
4.5
4.5.1
4.5.2
4.5.3
4.5.4
4.5.5
4.5.6
4.5.7
4.6
4.6.1
4.6.2
4.6.3
4.6.4
5
5.1
5.2
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6.1
6.2
6.3
6.4
6.5
6.6
6.7
Competitor Analysis
Financial Analysis
Industry Performance
Market Prospects
Switchgear & Control Instruments
Constituents of Switchgear
Competitor Analysis
Financial Analysis
Industry Performance
Demand Segments
Market Prospects
Transformer
Major Components of Transformer
Market Analysis
Competitor Analysis
Financial Analysis
Growth in Market Size
Prospective Clients
Business Risk
Energy Meter
Types of Energy Meter
Competitor Analysis
Industry Performance
Market Prospects
CHALLENGES AND ISSUES
Increasing Imports: A Major Challenge
Critical Issues
CONCLUSION AND RECOMMENDATIONS
Business Opportunities
Cables
Conductors
Transmission Towers
Switchgears & Controls
Transformers
Energy Meters
BIBLIOGRAPHY AND REFERENCES
ANNEXURE - I
ANNEXURE – II
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LIST OF FIGURES
NAME OF FIGURE
Figure 1: Per Capita Yearly Electricity Consumption
Figure 1: Trend in Transmission Line Growth
Figure 2: Voltage Segmentation in Growth of Transmission Lines
Figure 3: Trend in Substation Capacity Growth
Figure 4: Voltage Segmentation in Growth of Substation Capacity
Figure 5: AT&C Loss: Past Performance and Future Expectations
Figure 6: Infrastructure Addition in 11th Plan
Figure 7: Structure of T&D Network Planning
Figure 8: Sourcing of Financial Investment
Figure 9: Transmission Line Length (Ckm): Share of Voltage Level in Different Plans
Figure 10: Substation Capacity (MVA): Share of Voltage Level in Different Plans
Figure 11: Cumulative Growth of Inter-State Transmission Capacity (MW)
Figure 12: Growth of T&D Lines below 66 kV
Figure 13: Growth of (All) T&D Equipments Industry in India
Figure 14: Growth of Major T&D Equipments in India
Figure 15: Cable
Figure 16: Cross Sectional View of Three Core Belted Cable
Figure 17: Aluminum Conductor
Figure 18: ACSR Conductor
Figure 19: Cable Industry: Past Performance and Expected Market Size
Figure 20: Conductor Industry: Past Performance and Expected Market Size
Figure 21: Cable & Conductor: Export Trend
Figure 22: Transmission Tower
Figure 23: Waist Type Tower
Figure 24: Double Circuit Tower
Figure 25: Steel Tubular Pole
Figure 26: Guyed-V Tower
Figure 27: Tower Industry: Past Performance and Expected Market Size
Figure 28: Switchgear: Circuit Breaker
Figure 29: Oil Circuit Breaker
Figure 30: Voltage Circuit Breaker
Figure 31: Gas Circuit Breaker
Figure 32: Current Transformer
Figure 33: Voltage Transformer
Figure 34: Export of Switchgear Instruments
Figure 35: Switchgear Industry: Past Performance and Expected Market Size
Figure 36: Transformer
Figure 37: Transformer Windings
Figure 38: Core
Figure 39: Conservator Tank
Figure 40: Radiator
Figure 41: Buchholz Relay
Figure 42: Bushings
Figure 43: Demand Drivers fo Transformer
Figure 44: Transformer Industry: Past Performance and Expected Market Size
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Figure 45: Energy Meter
Figure 46: Electromechanical Meter
Figure 47: Electronic Meter
Figure 48: HTMD Meter
Figure 49: Apex Meters
Figure 50: LTCT Meter
Figure 51: LT Whole Current Meter
Figure 52: Prepaid Meter
Figure 53: Running Cycle of Prepaid Meter
Figure 54: Export of Electrical Meters
Figure 55: Metering Industry: Past Performance and Expected Market Size
Figure 56: CHINA: Import Trend of Electrical Equipments
Figure 57: KOREA: Import Trend of Electrical Equipments
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LIST OF TABLES
NAME OF TABLE
Table 1: Snapshot: Indian Power Sector
Table 1: Planwise Generation Capacity Addition
Table 2: Growth of Transmission Lines (Ckm)
Table 3: Growth of Substation Capacity (MVA)
Table 4: 12th Plan: Investment Layout in Power Sector
Table 5: Planned addition of Transmission Lines (Ckm) in 12th Plan (2012-2017)
Table 6: Planned Addition of Substation Capacity in 12th Plan (2012-2017)
Table 7: Distribution Sector: Network Enhancement in 12th Plan
Table 8: AT&C Losses: Projected Performance
Table 9: Transmission & Distribution Equipments
Table 10: Sterlite Technologies Limited
Table 11: JSK Industries Pvt. Limited
Table 12: Diamond Power Infrastructure Limited
Table 13: Deepak Cables (India) Limited
Table 14: KEC International
Table 15: Competitor Performance
Table 16: Performance of Cable & Transmission Line Industry
Table 17: Strategic Analysis
Table 18: Voltage Segmentation of Power System
Table 19: Kalpataru Power Transmission Limited
Table 20: IVRCL
Table 21: KEC International
Table 22: Diamond Power Infrastructure Limited
Table 23: Jyoti Structures Limited
Table 24: Gammon India Ltd
Table 25: Unitech Power Transmission Ltd
Table 26: Aster Private Ltd
Table 27: Man Structurals Pvt. Ltd
Table 28: Competitor Performance
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Table 29: Performance of Transmission Line Industry
Table 30: Strategic Analysis
Table 31: Bharat Heavy Electricals Limited (BHEL)
Table 32: Siemens India Limited
Table 33: ABB Limited
Table 34: Crompton Greaves Limited
Table 35: Alstom (Areva) T&D India Limited
Table 36: Biecco Lawrie Limited
Table 37: Jyoti Limited
Table 38: Vishal Transformers & Switchgears (P) Ltd
Table 39: Heptacare Power Industries Pvt. Limited
Table 40: Hivoltrans Electricals Pvt. Ltd
Table 41: Kappa Electricals
Table 42: Competitor Performance
Table 43: Performance of Switchgear Industry
Table 44: Strategic Analysis
Table 45: Types of Transformer
Table 46: Transformer: Domestic Demand Vs Supply
Table 47: Performance of Transformer Industry
Table 48: Transformer: Demand Creators
Table 49: Transformer Exports from India
Table 50: Transformer Industry: Prominent Players
Table 51: Bharat Heavy Electricals Limited (BHEL)
Table 52: Siemens India Limited
Table 53: ABB Limited
Table 54: Crompton Greaves Limited
Table 55: Alstom (Areva) T&D India Limited
Table 56: Transformers & Rectifiers
Table 57: Vijai Electricals
Table 58: Voltamp
Table 59: Bharat Bijlee
Table 60: EMCO
Table 61: Competitor Analysis
Table 62: Genus Power Infrastructures Ltd
Table 63: Secure Meters Limited
Table 64: L&T Limited (Electrical & Automation Division)
Table 65: ECE Industries Limited
Table 66: HPL Metering Pvt. Ltd
Table 67: Capital Power Systems Ltd
Table 68: Performance of Metering Industry
Table 69: Strategic Analysis
viii
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ABBREVIATIONS
ABC
Areal Bunched Conductor
IPTC
ACA
ACAR
Additional Central Assistance
Aluminum Core Alloy Reinforced
IS
ISTS
Independent Power Transmission
Company
Indian Standard
Interstate Transmission System
ACS
Average Cost of Supply
I-STS
Intra-State Transmission System
ACSR
Aluminum Core Steel Reinforced
JV
Joint Venture
AMR
Automatic Meter Reading
kV
Kilo Volt
ARR
kWh
Kilowatt Hour
LCD
Liquid Crystal Display
ATO
Average revenue Realized
Aggregate Technical & Commercial
Losses
Annual Turn Over
LTCT
Low Tension Current Transformer
CAGR
Compound Annual Growth Rate
LV
Low Voltage
CEA
Central Electricity Authority
MCB
Miniature Circuit Breaker
Ckm
Circuit Kilometer
MCCB
Molded Case Circuit Breaker
CRGO
Cold Rolled Grain Oriented
MV
Medium Voltage
CT
Current Transformer
MVA
Mega Volt Ampere
CTU
Central Transmission Utility
MW
Mega Watt
CVD
Counter Veiling Duty
OCB
Oil Circuit Breaker
DISCOM
Distribution Company
PGCIL
Power Grid Corporation of India Limited
DT
Distribution Transformer
R&D
Research & Development
ED
Energy Division
R-APDRP
Restructured-APDRD
EE
Electrical Equipment
RGGVY
Rajiv Gandhi Gramin Vidyutikaran Yojna
EHV
Extra High Voltage
RoW
Right of Way
EPC
Engineering, Procurement, Construction
SAD
EU
European Union
SCADA
FY
Financial Year
SEB
Special Additional Duty
Supervisory Control And Data Acquisition
System
State Electricity Board
FYP
Five Year Plan
STU
State Transmission Utility
GENCO
Generation Company
T&D
Transmission & Distribution
GIS
Gas Insulated Switchgear
ToD
Time of Day
HCTC
High Capacity Transmission Corridor
TRANSCO
Transmission Company
HTMD
High Tension Maximum Demand
UHV
Ultra High Voltage
HVAC
High Voltage Alternating Current
VCB
Vacuum Circuit Breaker
HVDC
High Voltage Direct Current
VT
Voltage Transformer
HVDS
High Voltage Distribution System
Indian Electrical Equipment
Manufacturing Association
Indian Rupees
WC
Whole Current
XLPE
Cross Link Poly Ethylene
YoY
Year on Year
AT&C
IEEMA
INR
ix
EXECUTIVE SUMMARY
Indian Power Sector has witnessed the robust growth during the 11th Five Year Plan. Power
generation capacity of 53,000 MW has been added in 11th Plan which is ever highest among any
five year plan. The focus of investments in the Indian Power Sector has typically been on the
generation segment, while the importance of Transmission and Distribution segment has always
been undervalued. During 11th Plan, about 55% of total investment in the power sector was in the
generation segment, 15% in transmission and 30% in distribution. This investment pattern needs
to be revised. Investment in the generation, transmission and distribution segments should ideally
be in the ratio of 2:1:2. During the 12th plan, 47% of the total investment in the sector has been
earmarked for the generation segment while the rest has been reserved for T&D and other
segments. Power transmission is the backbone of whole power system for any country. To
transmit more power from one end to another, even more robust and reliable network is required.
In India, voltage level at 220 kV and above is used for long distance power transfer. In the 11 th
Plan, focus has been to shift the operating transmission voltage level from 220 kV & 400 kV
towards 765 kV. Initial efforts in 1200 kV segment has also been made successfully. HVDC
transmission has emerged as more convenient way to transmit power for distance more than 8001000 km. Accordingly, availability of equipments of suitable voltage level have become prime
need of the time for the further development. Indian T&D equipment industry has grown faster
in 2009-10 and 2010-11 as compared to 2007-08 and 2008-09. It reflects high degree of
correlation between generation capacity addition activity and corresponding enhancement of
transmission & Distribution system.
In this development, now the importance of T&D manufacturing industry can not be subdued.
Balance between demand and; timely & cost effective supply of equipment affects the growth of
transmission & distribution network and hence connectivity between generator and the end
consumer. Today country’s major T&D equipment market has crossed the mark of INR 64,000
Crore. Indian T&D manufacturing industry comprises a mixture of around four hundred; Power,
Distribution and instrument transformer manufacturers, one hundred fifty switchgear
manufacturers, fifty energy meter manufacturers, seventy capacitor manufacturers, one hundred
fifty cable manufacturers and approx fifty insulator manufacturers.
x
Overall, Indian T&D equipment manufacturing industry is able to cater the domestic demand.
Additionally, industry exports various kinds of equipments to the foreign market. This portfolio
especially comprises small & medium; power and distribution transformers, switchgears,
conductors etc. Import portfolio includes EHV cables, large transformers electric rotating
machines etc.
Although this industry is flooded with more than one thousand manufacturers yet most of the
market share is held by a few leading multinational players. It is mainly because of poor
attention on Research and Development to explore new technologies. Today, in spite of being
one of the largest markets in the world; domestic manufacturers are not able to fulfill country’s
demand of equipments. In order to become self dependent, Indian Government has Vision 2022
set for Indian Electrical Equipment Industry to make India the country of choice for the
production of electrical equipment and reach an output of INR 5 Lakh Crore by balancing
exports and imports. To achieve the vision, concerted efforts by all stakeholders including
government, industry and industry association, needs to be deployed.
According to Indian Electrical Equipment Manufacturing Association (IEEMA) which consists
95% of Indian Manufacturing Companies; performance of industry has remained average
compared to last year. Cable and Energy Meter industry has been able to lead the industry in
2011-12.
Cables
Market Size in 2011-12
(INR Crore)
19,496
25.7%
14.5%
Conductors
5,914
4.3%
5.9%
Transmission Towers
6,257
-5.2%
6.4%
Switchgears
8,882
-2.4%
7.9%
Transformers
12,498
1.2%
5.5%
Capacitors
506
-1.8%
10.8%
Energy Meters
2,387
6.1%
5.8%
Rotating Machines
6,373
1%
5.5%
Equipment Category
Growth in 2011-12 (YoY)
CAGR (11th Plan)
Although Year on Year (YoY) basis, growth rate at 6.6% in 2011-12 half as compared to 13.7%
in 2010-11 yet over the last five years industry size has increased at a CAGR of 8.5%. It is a sign
of long term growth of the equipment industry.
xi
CHAPTER - 1
INTRODUCTION
1.1 Transmission & Distribution Equipment Industry
The process of power generation and its eventual transmission and distribution (T&D) can be
compared to the process by which food grains are supplied to cities from the places where they
are produced and stored. Even if the warehouses are full with food grains, the transport
infrastructure should be in good condition for the food grains to reach the end-users. If transport
infrastructure is inefficient and inadequate, it not only results in to supply shortage but also leads
to wastage during transport. In case of power, generation capacity is the warehouse and T&D
infrastructure plays the role of transport facility.
Considering the rapidly increasing demand of power in country, massive generation capacity is
planned to fulfill this demand. At the same time, huge investment is required in building up the
T&D infrastructure so as to ensure efficient supply of power. The power transmission and
distribution equipment industry is a critical part of the Indian power sector. Power generation is
key growth-driver for the equipment manufacturing industry.
In India, power transmission equipment companies include those who manufacture transmission
lines and towers, substations, equipments like transformers, reactors and electrical equipments
like electrical meters and metering solutions. Indian T&D equipment market is fragmented. It is
characterized by the presence of a number of small and medium enterprises yet some major
players dominate the market share. These companies do their business through different routes
available in the market. In an EPC contract route, the EPC contractor (EPCC) agrees to deliver a
completely commissioned plant to the owner for an agreed amount. This is just as a builder who
hands over the keys of a fully furnished flat to a purchaser. Transmission equipment companies
that are in the business of setting up transmission lines and towers; and substations follow the
EPC route wherein they take up turnkey projects. Companies that deal in manufacturing
transformers and electric meters, directly sell them to Power Grid Corp (PGCIL), State
Electricity Boards (SEB’s) and other private distribution companies.
1.2 Problem Statement
The electrical T&D equipment industry in India has a long history. Clocked at 6.6% growth in
the FY 2011-12, it covers over 1,500 units of varying sizes, amounting for an annual turnover of
about INR 64,000 Crores. It amounts for more than INR 20,000 Crores of annual exports and
above INR 32,000 Crores of annual imports; it has a negative trade balance which has been
increasing in recent times.
In spite of increasing imports, this industry has a very good potential for domestic as well as
export market in most of the developing and some of the developed countries. But matter is the
correct assessment of the market and selection of right equipment segment to enter in the
manufacturing business.
1.3 Objective
The objective of this report is as under
i) Analyzing the performance of Indian Electrical T&D equipment industry during last five to
ten years and current status.
ii) Analyzing the prospects and growth drivers of T&D equipment industry in next five to ten
years in India.
iii) Identification of equipment segment and exploring the business opportunity for a new entrant
in the market.
1.4 Organization Profile
Feedback Infrastructure Services Private Limited, more commonly known as Feedback Infra, is a
leading professional and technical services company in the infrastructure sector in India. From
concept to commissioning, Company offers an integrated suite of services across all sectors of
infrastructure.
Headquartered in Gurgaon, Feedback Infra has 5 regional offices and 70 project offices
nationally. Besides India, Feedback has projects in Afghanistan, Africa, Australia, Bangladesh,
Bhutan, Europe, Indonesia, Malaysia, Middle East, Nepal, Singapore, Sri Lanka and Syria.
2
Feedback Infra is enabled by a large pool of multidisciplinary experts; cutting-edge functional
and domain knowledge; an all-India network of offices; and a strong shareholding — L&T,
IDFC, and HDFC.
The Various sectors are Transportation & Logistics, Energy, Housing & Townships, Commercial
Infrastructure, Industrial Infrastructure, Water & Sanitation, Retail & Entertainment, Healthcare,
Hospitality, Urban Development and Special Economic Zones
Feedback is presently working on more than 35,000 MW of new power generation capacity;
20,000 km of National and State Highways; 100,000 acres of real estate development and a
building area of more than 22 million square feet.
Energy Division (ED) is an integral part of the energy and fuel landscape in India, handholding
utilities through the reform and re-structuring process and introducing and guiding private
investments in the sector. From, identifying and evaluating business opportunities, structuring of
projects, representing the clients in the financial and power markets, providing implementation
support and performance management capabilities, Feedback Infra has built valuable
relationships with utilities; Indian and global energy majors and with individual captive plants.
Its services range from policy framework creation addressing sectoral issues, to project-driven
customized services meeting specific needs of the client.
In generation, Energy Division (ED) offers coal and IPP entry strategies, tariff studies, project
structuring, business plans and long-term fuel strategy procurement.
In transmission, ED offers transmission service agreements, cost of service, energy accounting at
the SLDC level, merit and UI trade analysis and grid support changes.
In distribution, the division conducts the valuation of an existing business, a “go-no-go” analysis,
set up distribution franchisees, offer tariff rationalization, ways to enhance revenues, reduce
T&D losses and costs of service.
In the regulatory area, ED assists with the ARR filings, review of regulations and regulatory
comparison, open access regulations and PPA renegotiations.
3
In the renewable area, ED provides strategic advisory services through the entire project cycle from site evaluation to post commissioning support; including assessment of business models,
technology issues, policy and regulatory factors.
In the energy efficiency space, ED enjoys a strong domestic and an evolving international
presence. As a Grade-II ESCO, it goes beyond providing traditional advisory or engineering
design
services
-
offering
guaranteed
energy
conservation
solutions
and project
development/management services to the household, industry, commercial and rural sector.
In the information technology space, ED is a leader in providing IT solutions to the Power
Distribution utilities and has undertaken IT assisted performance improvement for utilities across
the country. The Division is also moving into the Smart Grid arena with international
accreditations under its belt.
4
CHAPTER – 2
LITERATURE REVIEW AND RESEARCH METHODOLOGY
2.1 Literature Survey
The global electrical equipment industry consists of the following two segments:
i) Global heavy electrical equipment market — power generating equipment, including wind
turbines, and other heavy electrical equipments such as power turbines, heavy electrical
machinery intended for fixed-use and large electrical systems.
ii) Global electrical components and equipment market — electric power cables, transformers
and electrical switchgear, transmission line towers, etc.
The global EE market is expected to increase from more than US$ 3 trillion (2008-15) to US$
6.8 trillion (2016-30). This translates into ~2% CAGR over the long term. Asia-Pacific and
Europe together account for more than 70% of the global market, with Asia- Pacific‘s share
being 45%. This region is expected to see the strongest demand in future due to the region‘s
strong expected economic growth rates.
Globally, growth rates have been less-than-impressive in recent years in the electrical equipment
market, but there is scope for expansion in certain geographical areas, such as the emerging
markets in the Asia-Pacific region. Robust economic growth in emerging countries such as China
and India, combined with rapid urbanization and strong growth in fixed investment spending in
these countries, is expected to boost the demand for electrical equipment in these countries.
A period of deregulation is being witnessed in the power sectors of most countries, with an
increase in the number of independent power distributors and operators who are capable of
supplying services at different points in the power sector value chain. In developed countries,
rising ecological concerns and investment in alternative sources of power generation should
benefit the heavy electric power equipment segment such as the wind turbines.
Global trade in EE products accounts for 3% of the overall trade. While global trade has grown
at 5.2% CAGR (2006-10), while trade in EE has grown by 5.8% over the same period, thus
increasing its share in the global trade. Global trade in EE has reached US$ 453 billion in 2010,
5
with China being the leading exporter of electrical equipment with over 15 percent share. India
accounts for less than 1% of the total share of exports. USA and China are the largest import
markets in the world for EE. India imports 2% of total EE trade of the world. India has a trade
deficit in EE trade, with imports higher than exports, consistently for the last many years.
Switchgears and rotating machines together cover ~36% of the trade market. China is the leading
exporter in rotating machines as well as transformers with more than 16% share, while India has
less than 2% share in global trade of these products. US is the largest importer of rotating
machines as well as transformers. China dominates trade in most of these product segments.
Segments such as rotating machines, transformers, lamps, cables are dominated by China with
double digit shares in global trade. Countries like Japan, US and Germany dominate trade in a
few segments like switchgears, insulators, capacitors etc.
2.2 Research Methodology
The project is based on the basic concept of research methodology. The following concepts are
directly or indirectly used while dong this project.
Collection of Data
Secondary source of data collection has been adopted. Sources of data have been the companies’
websites and different commercial & ministry websites.
Population
Prominent players in the manufacturing sector have been chosen from the population mean.
Analysis Pattern
Comparative analysis of different companies has been carried out.
6
CHAPTER - 3
SCENARIO OF POWER SECTOR IN INDIA
3.1 Indian Power Sector
Indian power sector has witnessed a rapid growth in all verticals i.e. generation, transmission and
distribution. Generation sector which saw the fastest growth during last five years was followed
by transmission capability enhancement. On the third dimension, distribution sector has now
achieved the pace of reforms especially in last five years. Corrective measures taken after
economic crisis of 1991, whole power sector has proved to be a great opportunity; especially for
private players.
Table 70: Snapshot: Indian Power Sector
Area
Population
32.8 Lakh sq km
(Census 2011)
Per Capita Electricity
Consumption
(2010-11)
Installed Generation
Capacity
205,340 MW
(June 2012)
Installed Transmission
Capacity
(May 2012)
Unbundled Discoms
(2000-11)
Average AT&C Losses
(2009-10)
Electrified Villages
Up to 11th Plan
Source: CEA, Planning Commission
1.21 Billion
814 kWh per annum
Thermal: 136,436 MW
Hydro: 39,291 MW
Nuclear: 4,780 MW
RES: 24,833 MW
Transmission Line Length
Total: 270,873 ckm
500 kV HVDC: 9,432 ckm
765 kV: 6,337 ckm
400 kV: 114,277 ckm
220 kV: 140,827 ckm
73
27.15%
90%
EHV Substation Capacity
Total: 420,561 MVA
500 kV HVDC: 11,200 MW
765 kV: 30,500 MVA
400 kV: 152,342 MVA
220 kV: 226,519 MVA
The power generation capacity added in the 11th Plan, which ended in March 2012, was around
53,000 MW. It is close to 68% of the originally projected addition (78,700 MW during the plan
period). But the capacity addition achieved is no mean accomplishment, given that the quantum
is similar to what the country had added in the previous three Five-Year Plans (15 years ended
March 2007). In fact, 20,501 MW of addition last fiscal was the highest for any year and is close
to 21,180 MW added in the whole of 10th Plan period (2002-07). Increasing population,
7
improving lifestyle, developing infrastructure and growth has led the higher demand of power.
Consistent increase in per capita annual electricity consumption is reflected by growth in power
sector. Elasticity between the overall growth of the country and that of power sector has been in
the range of 0.8 to 0.9.
The investment climate is very Figure 58: Per Capita Yearly Electricity Consumption
higher
800
investment flows than envisaged.
600
for adding 76,000 MW of electricity
400
671.9
631.5
612.5
500
592
The power ministry has set a target
700
566.7
witnessed
kWh (Unit)
has
814
sector
779
900
734.5
policy liberalization, the power
717.1
positive in the power sector. Due to
300
200
generation capacity in the 12th Plan
100
0
(2012-17) and 93,000 MW in the
13th Plan (2017-2022). The Working
Group on Power for formulation of
Source: CEA
th
the 12 Plan has estimated total fund requirement of INR 1,372,580 Crore for the power sector.
During the 12th Plan, main sources of financing are commercial banks, public financial
institutions, dedicated infrastructure/power finance institutions, insurance companies, overseas
markets, bilateral/multilateral credit, bond markets and equity markets. In addition, steps have
been taken by government to make available funds through Credit Enhancement Schemes and
Infrastructure Debt Fund etc.
3.2 Power Sector Performance in 11th Plan
3.2.1 Capacity Addition: Generation
11th Plan has emerged as the best inception period for private companies. On a positive note, the
better execution capabilities of private players came forth in the last FYP. Approx 23,000 MW of
capacity is added by the private sector during the 11th plan. Much of the capacity addition was
again through the thermal route. The working group envisages more than 40,015 MW of 76,000
MW of capacity to be added by private players in the current plan (ended 2017).
8
Table 71: Planwise Generation Capacity Addition
Plan
Central Sector
Target
Actual
State Sector
Target
Actual
Private Sector
Target
Actual
Total
Target
Actual
7th Plan
% Achievement
9,320
9,534.5
102%
12,925
11,867
92%
0
0
0%
22,245
21,406
96%
8th Plan
% Achievement
12,858
8,157
63.4%
14,870
6,835
46%
2,810
1,430
60%
30,538
16,423
54%
9th Plan
% Achievement
11,904
4,504
37.8%
10,748
9,353
87%
17,589
5,262
30%
40,245
19,119
48%
10th Plan
% Achievement
22,832
13,005
57%
11,157
6,245
56%
7,121
1,931
27%
41,110
21,180
52%
11th Plan
% Achievement
Source: CEA
21,222
15,220
71.7%
21,355
16,732
77%
19,797
23,013
118%
62,374
54,964
88%
3.2.2 Transmission Systems in India
The transmission systems that are in place in the country consist of Inter-State Transmission
System (ISTS) and Intra State Transmission System (Intra-STS).
Inter-State Transmission System (ISTS)
ISTS is mainly owned and operated by Power Grid Corporation of India Limited
(POWERGRID) which is also Central Transmission Utility (CTU). In future, Inter State
Transmission System (ISTS) schemes would be built through competitive bidding and many
private sector entities would own and operate the ISTS elements. Already, various ISTS schemes
owned by the private sector or joint venture (JV) between private sector and POWERGRID are
under construction. The ISTS serves the following purpose:

Evacuation of power from inter-state generating stations which have beneficiaries in more
than one state.

Onwards transmission of power to power from inter-state generation stations up to the
delivery point of the state grid.

Transfer of operational surpluses from surplus state(s) to deficit state(s) or from surplus
region(s) to deficit region(s).
9
Intra State Transmission System (Intra-STS)
Intra-STS within the state are mainly owned and operated by the state transmission utilities of
each state. The Intra-STS serves the following purpose:

Evacuation of power from generating stations having beneficiaries in the same state.

Power transmission within the State from ISTS boundary up to the various substations of the
state grid network.

Power transmission within the state grid for delivery to the load centre within the state.
3.2.3 Capacity Addition: Transmission Lines
A program for construction of 88,515 ckm transmission lines for evacuation of power from
generating stations as well as for strengthening of transmission network was envisaged at the
beginning of the 11th Plan corresponding to generation capacity addition program of 78,700
MW.
Table 72: Growth of Transmission Lines (Ckm)
At the end of
6th Plan
7th Plan
Central
State
JV/Private
Total
0
0
0
0
0
0
0
0
Central
State
Total
0
0
0
0
0
0
1,831
4,198
0
6,029
13,068
6,756
0
19,824
1,641
44,364
0
46,005
52,034
4,560
55,071
0
59,631
79,455
Central
State
JV/Private
Total
Central
State
JV/Private
Total
Progressive Growth
Source: CEA
8th Plan
9th Plan
±500 kV HVDC
1,634
3,234
0
1,504
0
0
1,634
4,738
765 kV
0
751
0
409
0
1,160
400 kV
23,001
29,345
13,141
20,033
0
0
36,142
49,378
220 kV
6,564
8,687
73,036
88,306
0
0
79,600
96,993
117,376
152,269
10
10th Plan
11th Plan(As on Mar-2012)
4,368
1,504
0
5,872
5,948
1,504
1,980
9,432
1,775
409
2,184
5,319
411
5,730
48,708
24,730
2,284
75,722
75,974
33,681
8,443
11,3367
9,444
105,185
0
114,629
198,407
11,004
128,823
468
140,164
Total# 268,693
Subsequently, during the mid-term appraisal by the Planning Commission, generation capacity
target for the 11th Plan was scaled down to 62,374 MW. Accordingly, 68,673 ckm of
transmission line addition in the 11th Plan was anticipated during Mid-Term appraisal of the
Planning Commission. This comprises 2,773 ckm of 765 kV lines, 40,000 ckm of 400 kV lines,
24,300 ckm for 220 kV lines and 1600 ckm for HVDC lines. Against this program, actual
addition of transmission lines during 11th Plan was 75,148 ckm comprising of 3,546 ckm of 765
kV lines, 3,560 ckm of HVDC lines, 37,645 ckm of 400 kV lines and 25,535 ckm of 220 kV
lines.
During last six Five Year Plans country has added the transmission line at a CAGR of 39%. 11th
Plan has witnessed the largest line addition of 75,148 ckm. Total length up to 11th plan has been
38% more over the cumulative length up to 10th Plan. It is more than 1.62 times of the lines
added during 10th Plan. During last six FYP, transmission lines at the voltage level of 400 kV
and 765 kV have grown at CAGR of 81% & 122% respectively. It indicates more focus towards
higher voltage level in order to minimize the transmission losses. Higher interest in HVDC
projects has been shown to overcome the limitation of AC transmission. In 11th Plan private
players have entered in to this segment.
Figure 59: Trend in Transmission Line Growth
300
268.693
250
198.407
('000 Ckm)
200
152.269
150
117.376
100
79.455
52.034
50
0
6th Plan
7th Plan
8th Plan
11
9th Plan
10th Plan
11th Plan
Transmission lines at the voltage level of 220 kV has shown consistent average growth rate of
25% over last six FYP. Central Transmission Utility (CTU) i.e. Power Grid has made an
impressive addition of more than 12,000 MW in interregional transmission capacity. Hence total
interregional transfer capacity has reached up to 28,000 MW by the end of 11th Plan.
75.722
96.993
5.73
9.432
5.872
2.184
4.738
1.16
0
0
0
0
20
0
6.029
40
1.634
19.824
60
36.142
80
49.378
59.631
79.6
100
46.005
('000 Ckm)
120
114.629
140
113.367
160
140.164
Figure 60: Voltage Segmentation in Growth of Transmission Lines
0
6th Plan
7th Plan
±500 kV HVDC
8th Plan
765 kV
9th Plan
400 kV
10th Plan
11th Plan
220 kV
India is now looking at linking the transmission system with its neighboring countries Bhutan,
Nepal and Sri Lanka. There are also plans to develop an undersea HVDC transmission link
between Sri Lanka and India.
3.2.4 Capacity Addition: EHV Substations
A program of 157,691 MVA of transformation capacity corresponding to generation capacity
addition program of 78,700 MW was envisaged at the beginning of the 11th Plan. During the
mid-term appraisal by the Planning Commission, no revision in transformation capacity addition
program was indicated. Actual achievement of transformation capacity addition during 11th Plan
clocked at 153,362 MVA comprising of 25,000 MVA at 765 kV level, 3,000 MW of HVDC,
58,085 MVA at 400 kV level and 67,277 MVA at 220 kV level.
12
Table 73: Growth of Substation Capacity (MVA)
6th Plan
At the end of
7th Plan
Central
State
JV/Private
Total
0
0
0
0
0
0
0
0
Central
State
Total
0
0
0
0
0
0
715
8,615
0
9,330
6,760
14,820
0
21,580
500
36,791
0
37,291
46,621
1,881
51,861
0
53,742
75,322
Central
State
JV/Private
Total
Central
State
JV/Private
Total
Progressive Growth
Source: CEA
8th Plan
9th Plan
±500 kV HVDC
0
3,500
0
1,700
0
0
0
5,200
765 kV
0
0
0
0
0
400 kV
17,340
23,575
23,525
36,805
0
0
40,865
60,380
220 kV
2,566
1,866
81,611
113,497
0
0
84,177
116,363
125,042
181,943
10th Plan
11th Plan(As on Mar-2012)
6,500
1,700
0
8,200
9,500
1,700
0
11,200
0
0
24,000
1,000
25,000
40,455
52,487
0
92,942
77,225
73,172
630
151,027
4,276
152,221
0
156,497
257,639
6,436
215,771
1,567
223,774
Total# 411,001
During last six FYP, country has added the substation capacity at a CAGR of 54%. Total
capacity up to 11th plan has been 60% more over the cumulative capacity up to 10th Plan.
Figure 61: Trend in Substation Capacity Growth
450
411.001
400
('000 MVA)
350
300
257.639
250
200
181.943
150
125.042
100
75.322
46.621
50
0
6th Plan
7th Plan
8th Plan
13
9th Plan
10th Plan
11th Plan
During the 10th Plan, capacity addition was of 75,696 MVA while in 11th Plan it reached the
record level of 153,362 MVA. It is almost two times of the capacity added during 10th Plan.
Transmission substations at the voltage level of 400 kV and 220 kV have grown at CAGR of
74% & 43% respectively.
223.774
Figure 62: Voltage Segmentation in Growth of Substation Capacity
250
151.027
156.497
92.942
116.363
25
0
8.2
11.2
60.38
5.2
40.865
0
0
0
0
0
9.33
50
21.58
37.291
53.742
100
84.177
150
0
0
('000 MVA)
200
0
6th Plan
7th Plan
±500 kV HVDC
8th Plan
765 kV
9th Plan
400 kV
10th Plan
11th Plan
220 kV
Over a span of five years, involvement of private players in T&D sector has changed from
nascent stage to mature level. In the IPTC & JV route collectively INR 20,000 has been invested
so far. Eight Inter-state transmission projects have been awarded through competitive bidding in
the past few years. On the state level several STUs have awarded projects to private players to
develop Intra-state transmission network.
In the manufacturing/manufacturing cum EPC segment there are more than fifty players in the
market. Further this segment is very broad due to presence of several small, medium & large
manufacturing companies and several medium & large EPC companies in the field. This segment
consists of Indian as well as foreign players and has witnessed a large growth in terms of number
of players and manufacturing capacity.
3.2.5 Performance of Distribution Sector
14
During the 11th Plan, emphasis was on creation of capacity in Sub-transmission & Distribution
system to strengthen the Distribution sector. Emphasis has been given to Metering, Consumer
Indexing, adoption of IT facilities, GIS mapping, modern payment system, HVDS, Rural
franchise etc.
Access to Power for Population of India
As per Census 2001, 80% of the total inhabited villages were electrified and 44% of the rural
households had access to electricity. As on 31st July 2011, total of 96% of the villages of the
country have access to electricity.
Aggregate Technical & Commercial Losses
Accelerated Power Development and Reforms Program (APDRP) was launched in 2002-03 as an
Additional Central Assistance (ACA) to finance the modernization of sub-transmission &
distribution networks with the main objectives to reduce AT&C losses to 15%. AT&C loss at
national level has been reduced from 38.86% in 2001-02 to 27.15% during 2009-10. While some
states have shown an improvement in AT&C Loss reduction, it is pertinent to note that the
absolute loss levels are still at a higher level with respect to losses and require further efforts for
Figure 63: AT&C Loss: Past Performance and Future Expectations
40
34.8
35
32.5
34.3
33.0
30.6
30
29.5
27.7
27.2
Percentage (%)
25.2
23.3
25
21.5
19.7
20
18.0
15
10
5
0
Source: CEA
15
loss reduction.
Revenue Loss (ARR and ACS Gap)
As per the PFC report on ‘Performance of State Power Utilities’ for the year 2009-10 the cash
losses (revenue and subsidy realized basis) of utilities selling power directly to consumers
increased from INR 17,620 Crore in the FY 2007-08 to INR 42,415 Crore in the FY 2009-10.
The cumulative book losses (accrual basis) of the state utilities have increased from INR 79,339
Crore as on 31.03.2009 to INR 106,247 Crore at the end of year 2009-10. Gap between Average
Cost of Supply (ACS) and Average Revenue Realized (ARR) is widening and has increased to
INR 0.73 per unit in 2009-10 from Rs.0.37 per unit in 2007-08 on subsidy realized basis. While
some states have shown improvement in the financial health, others are yet to demonstrate the
impact of the policy initiatives. In order to restore the commercial viability of the distribution
companies it is necessary to eliminate the gap between (ARR) and (ACS).
Mounting of Debt on Utilities
The total borrowings of state DISCOMs have touched INR 177,602 Crore as on 31.03.2010 and
total interest charged from state utilities in year 2009-10 is INR 15,651 Crore. RBI has taken
cognizance of the difficult financial situations of DISCOMs and their attempts to bridge cash
losses by short term borrowings. In order to bridge the gap between revenue and expenditure and
to service interest on borrowing states resort to short-term borrowing and even divert long-term
loans to bridge cash losses. Conversion of existing Government loans to DISCOMs into
Government equity will help cash flow of DISCOMs because now subsidy payable by State
Government is adjusted against interest on loan.
3.2.6 Technological Development
In order to utilize the resources optimally, transmission and distribution network planning has
been moved away from the earlier generation evacuation system planning to integral system
planning. T&D network planning is a continuous process of identification of system addition
requirements, their timing and need. The transmission requirements could arise from

New generation additions in the system
16

Increase in demand

General system strengthening
These transmission addition requirements are identified, studied and firmed through the
transmission planning process. While the predominant technology for electricity transmission
and distribution has been Alternating Current (AC) technology, High Voltage Direct Current
(HVDC) technology has also been used for interconnection of all regional grids across the
country and for bulk transmission of power over long distances.
On the distribution end, system automation, implementation of SCADA, GIS, Asset
Management and High Voltage Distribution System (HVDS) has attracted the industry. This is
an effort to minimize system losses and energy pilferage which is degrading the financial health
of distribution utilities at a very fast pace. The reforms in distribution sector could arise from

Increase in demand and new connections

High system losses

Replacement of old system

Lack of new technology in distribution system

Lack of commercial principles
In order to meet the increasing power demand and address right-of-way (RoW) issue, higher
voltage technology is being adopted for developing transmission infrastructure. PGCIL has tried
to be an early adopter of new technologies and is moving towards higher voltage transmission
systems. It is currently focused on introducing 1,200 kV A/C voltage in the country. In May
2012, PGCIL in collaboration with 35 local and global manufacturers established 1,200 kV ultra
high voltages A/C test station at Bina (Madhya Pradesh) for the development of 1,200kV
equipment at large scale. In HVDC segment, it is implementing world’s longest ±800 kV, 6,000
MW Bi-pole multi terminal link of 2,000 km. It will connect Biswanath Chariyali in the northeastern region which is rich in hydro resources; to the Agra in northern region which is a power
deficit region.
Extensive use of Gas Insulated Switchgear substations, SCADA, Compact Tower Design, Phasor
Measurement Units, and Wide Area Measurement System etc is being done.
17
In the distribution segment, implementation of Supervisory Control and Data Acquisition System
(SCADA), Geographical Information System (GIS), Automatic Meter Reading (AMR), Smart
Metering, High Voltage Distribution System (HVDS), Prepaid Metering, 24*7 Customer Care,
DT Metering etc. are under progress.
3.3 Transmission & Distribution Sector in 12th Plan
3.3.1 Envisaged Growth in 12th Plan
Figure 64: Infrastructure Addition in 11th Plan
Identification of transmission expansion
180
requirement for a plan period is done based
160
on power system studies corresponding to
and forecasted demand scenario expected at
the
end
of
that
plan.
120
('000)
the generation capacity addition program
100
80
70.286
60
Transmission
40
8.607
20
alternatives are identified after the detailed
2.197
0
Transmission Lines (Ckm)
studies based on which the specific schemes
are evolved, and re-evolved taking into
153.362
140
Total
Substation Capacity (MVA)
Private
Source: CEA
account the changes in the generation program from time to time and subsequently discussed and
firmed up.
Figure 65: Structure of T&D Network Planning
18
The implementation program is subsequently worked out keeping in view identification of
projects, schemes and transmission elements that should be implemented matching with program
of generation capacity addition and load growth on yearly basis during the plan.
The 11th Plan fund requirement for the power sector was INR 1,031,600 Crore. The All India
Expenditure in power sector for 11th Plan has been about INR 707,278 Crore. For 12th Plan,
Planning Commission has envisaged an ambitious investment of INR 1,124,600 Crore. This is
9% more than earlier envisaged amount and 59% higher than actual expenditure during 11th Plan.
Table 74: 12th Plan: Investment Layout in Power Sector
Physical Plan
Generation
75,785 MW
Transmission
109,440 Ckm; 283,000 MVA
Distribution
System Automation, RAPDRP, RGGVY
Total
Source: Planning Commission
Investment (INR) Crore
638,600
180,000
306,000
1,124,600
The total fund requirement for development of Figure 66: Sourcing of Financial Investment
T&D system is estimated to be of the order of
INR 180,000 Crore (INR 100,000 Crore in
Central Sector, INR 55,000 Crore in State Sector
and INR 25,000 Crore in Private Sector).
In the Central Sector, there is no problem of
capital resources for setting up transmission
facilities. However, in the State Sector some of
the STUs require financial support, especially for
building transmission system for renewable
energy sources such as wind, solar and small
Source: Planning Commission
hydro. It is proposed that viability gap funding may be provided on case to case basis for
building intra-State transmission system for renewable generation and conventional hydro
stations.
The increase in the transmission lines of 220 kV and above voltage levels, in terms of circuit km,
have been around five times in last 26 years and that for substation capacity more than seven
times in the same period. There has been more increase in the transmission system at higher
19
voltage levels and substation capacities. This aspect of growth in transmission highlights
requirements of transmission network to carry bulk power over longer distances and at the same
time optimize right of way, minimize losses and improve grid reliability.
3.3.2 Addition of Transmission Lines
During 11th Plan, various 765 kV lines and substations have been added and a more are under
construction. The trend of increasing 765 kV systems in the grid is going to continue in the 12th
Plan also. A number of new 765 kV lines and substations have been planned for evacuation of
bulk power in the range of 3,000 - 6,000 MW to longer distances. Their actual realization would
depend upon progress of associated generation projects. The planned 765 kV transmission
systems are expected to be implemented during 12th Plan or early 13th Plan period. Most of the
planned 765 kV systems are initially being operated at 400 kV. Their 765 kV operation depends
upon associated generation projects, which could be in 12th Plan or beyond.
Table 75: Planned addition of Transmission Lines (Ckm) in 12th Plan (2012-2017)
HVDC Bi-pole
765 kV
9,440
27,000
Source: Ministry of Power
400 kV
38,000
220 kV
35,000
Total Ckm
109,440
During 12th Plan period, a total of about 109,440 ckm of transmission lines have been planned
for addition. In this, 400 kV lines will dominate over other voltage levels but simultaneously
there is a decrement of 21% contribution than in 11th Plan.
Figure 67: Transmission Line Length (Ckm): Share of Voltage Level in Different Plans
60%
57%
500
kV/800
kV HVDC
56%
50%
40%
38%
34%
35%
765 kV
32%
30%
400 kV
25%
20%
9%
10%
2%
0%
2%
10th Plan
5%
5%
11th Plan
20
12th Plan
220 kV
765 kV lines are going to take place of 400 kV lines as there is direct increment of 20% in their
contribution during 12th Plan. Over a period of last three FYP it will achieve a CAGR of 413%
which shows the country’s rapid adoption of higher voltage technology in order to facilitate large
amount of power transmission lines and reducing the need of ‘Right of Way’ requirement.
PGCIL is constructing 11 High Capacity Transmission Corridors (HCTC) to evacuate 80 GW of
generation capacity consisting six UMPPs of 28,000 MW and 55,000 MW for IPPs in coal rich
eastern region and coastal areas. The high capacity corridors entail the construction of 23,000
ckm. 70% of total ckm will be in 765 kV level while 30% in 400 kV level. These ambitious
corridors require estimated fund of INR 58,000 Crore. These projects are scheduled to be
commissioned over next five to seven year of time.
3.3.3 Addition of Substations
During the 12th Plan 270,000 MVA of AC transformation capacity and 13,000 MW of HVDC
substations are planned to be added.
Figure 68: Substation Capacity (MVA): Share of Voltage Level in Different Plans
60%
53%
54%
500 kV/800 kV
HVDC
50%
44%
42%
40%
38%
30%
765 kV
27%
400 kV
20%
16%
16%
10%
220 kV
4%
0%
2%
5%
0%
10th Plan
11th Plan
12th Plan
Contribution of 765 kV substations will achieve robust growth. Just within next five years its
contribution will increase from mere 16% to highest level of 53%. 400 kV substations will see
steep downfall from 38% to only 16%. As the development of substation is to be kept in pace
with corresponding voltage level of transmission lines therefore 765 kV will dominate here too.
21
Table 76: Planned Addition of Substation Capacity in 12th Plan (2012-2017)
HVDC
765 kV
13,000
14,9000
Source: Ministry of Power
400 kV
45,000
220 kV
76,000
Total MVA
283,000
Timely development of transmission network requires firming up of the specific transmission
schemes corresponding to specific generation projects, which particularly in respect of inter-state
transmission system, need to be done 3 to 5 years ahead of the target date of completion. There
has been a consistent increase in the transmission network and transformation capacity of the
country. This increase is in consonance with increase in generation and demand of electricity in
the country. 11 HCTC under construction require 29 EHV substations aggregating over 60,000
MVA and four HVDC terminals totaling 7,000 MW Capacity.
3.3.4 Development of National Grid: Inter-State Transmission Capacity
Generation planning studies carried out by CEA had indicated that the capacity addition planned
on all-India basis is less than that planned on regional basis. Further, a strong all-India integrated
national grid enables harnessing of unevenly distributed generation resources in the country.
Recognizing the need for development of National grid, thrust was given to enhance the capacity
of inter-regional links in a phased manner.
Figure 69: Cumulative Growth of Inter-State Transmission Capacity (MW)
12th Plan
65,800
11th Plan
28,000
10th Plan
14,050
9th Plan
5,750
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Source: CEA
Total Inter-regional transmission capacity by the end of 9th Plan was 5,750 MW. During 10th
Plan i.e. 2002-07, a total of 8,300 MW of capacity was added. At the end of 10 th Plan capacity
reached at 14,050 MW which has crossed the level of 28,000 MW by the end of 11th Plan.
22
Addition of 37,800 MW in 12th Plan has been envisaged to make cumulative capacity to the
mark of 65,800 MW.
It is expected that, at the end of 12th Plan, each region in the country would be connected to an
adjacent region(s) through at least two high capacity synchronous 400 kV or 765 kV lines and a
HVDC Bi-pole/back-to-back link. This would make the National Grid a large, meshed
synchronous transmission grid where all the regional and State grids in them would be
electrically connected and operating at single frequency.
3.3.5 Growth of Distribution Business
Figure 70: Growth of T&D Lines below 66 kV
remaining the underperformer
commercial principles. Now the
4,000
3,000
2,000
discoms are in the dire need of
0
doesn’t seem the long term
for
sustainable
7391.599
1,000
financial bail out package but it
solution
7094.129
5,000
4886.8
the distribution business run on
7079.025
6,000
6902.117
as described earlier did not let
6580.949
7,000
'000 Ckm
since late 70s. Various reasons
5725.89
8,000
4358.297
Distribution sector has been
Source: CEA
development and survival. In the 12th Plan period, certain goals have been set to achieve.
Capacity Addition and Investment
Planning Commission has envisaged the investment of INR 306,235 Crore in distribution sector.
This investment can majorly be further divided in to following category of equipments and
activities.
New Lines: In the 12th Plan, 1,305,000 ckm of new lines are required to be added. In this, share
of LV lines will be 47%, while 11 kV lines and 33 kV will be 43% and 10% respectively. This
will require a sum of INR 92,730 Crore.
New Substations: In the 12th Plan, 4,400 new distribution substations of 33 kV/11 kV voltage
level are to be added. In these substations, 8,800 new power transformers are required to be put
23
in the service which will comprise transformation capacity of 88,000 MVA. The activity will
require a sum of INR 22,000 Crore.
Table 77: Distribution Sector: Network Enhancement in 12th Plan
Sr. No.
Name of Segment
I
(i)
(ii)
(iii)
Physical
Financial (INR Crore)
2012-17
2012-17
New Lines
33 kV O/H Line
Ckm
121,500
9,720
33 kV U/G Cable
Ckm
13,500
4,050
Total 33 kV line
Ckm
135,000
11 kV O/H Line
Ckm
448,000
22,400
11 kV U/G Cable
Ckm
112,000
22,400
Total 11 kV Line
Ckm
560,000
LV O/H
Ckm
488,000
24,400
LV ABC
Ckm
122,000
9,760
Total LV
Ckm
610,000
33/11 kV (2*10 MVA)
Nos.
4,400
No. of 10 MVA Transformers
Nos.
8,800
Transformation Capacity
MVA
88,000
II
III
Units
Installation of New S/S
22,000
MVA
105,000
1000 KVA
Nos.
10,500
1,260
630 KVA
Nos.
33,500
3,350
315 KVA
Nos.
67,000
4,020
200 KVA
Nos.
105,000
5,250
100 KVA
Nos.
210,000
8,400
25 KVA
Nos.
424,000
8,480
Total No. of DT's
Nos.
850,000
33/11 kV
MVA
50,000
10,000
11/0.4 kV
MVA
50,000
10,000
V
Capacitors
MVAR
16,000
1,280
VI
Service Connections
50,000,000
25,000
VII
Re-Conductoring of Lines
Installation of DT's Including all Accessories
IV
Augmentation of S/S
(i) 33 kV
Ckm
100,000
3,000
(ii) 11 kV
Ckm
500,000
10,000
(iii) LV
Ckm
1,000,000
20,000
Sub Total
224,770
Productive Load Scheme
61,940
Smart Grid
9,500
IT facilities & SCADA including HRD
10,000
24
R&D
25
Total
306,235
Source: Planning Commission
Distribution Transformers: Distribution transformers comprising transformation capacity of
105,000 MVA are to be be added in the 12th Plan. Total number of required transformer will be
850,000 in which DTs of 25 kVA will have largest chunk of 424,000 nos. This is because of
greater focus on rural electrification in which DTs of small capacity are required in large
number. It will require an investment of INR 30,760 Crore.
System Augmentation: Capacity enhancement of existing substations, replacement of old
components and equipment revamping will need an investment of INR 79,280 Crore. It will
comprise substation’s transformation capacity enhancement, installation of capacitors, expenses
due to new service connections, re-conductoring of distribution line etc.
IT Implementation: With increased focus on IT implementation in distribution system, a sum of
INR 81,465 Crore has been planned for investment. This is to enhance the operational and
commercial performance of the distribution utilities.
Reduction of AT&C Losses
It has been the most focused activity for last ten years in the Indian power distribution industry.
Still, expected results have not been received in last ten years. For the next five years, Planning
Commission is very optimistic in terms of AT&C loss reduction from a current level to 18% by
the end of FY 2014-15.
Table 78: AT&C Losses: Projected Performance
Region
State
2009-10
Input Energy
(MU)
Eastern
Bihar
Jharkhand
Orissa
CESCO
NESCO
SESCO
WESCO
10-11
11-12
12-13
13-14
14-15
AT&C Loss
(%)
9,281
8,396
43.92
10.43
40.92
8.93
37.92
7.43
34.92
5.93
31.92
4.43
28.92
2.93
6,232
4,705
2,286
6,301
39.99
36.68
51.01
37.58
36.99
33.68
48.01
34.58
33.99
30.68
45.01
31.58
30.99
27.68
42.01
28.58
27.99
26.18
39.01
27.08
26.49
24.58
36.01
25.58
25
North
East
Northern
Southern
Western
Sikkim
WB
AP
Assam
Manipur
Meghalaya
Mizoram
Nagaland
Tripura
Delhi
BRPL
BYPL
NDPL
Haryana
DHBVNL
UHBVNL
HP
J&K
Punjab
Rajasthan
AVVNL
JDVVNL
JVVNL
UP
DVVNL
MVVNL
PaVVNL
PoVVNL
KESCO
Uttaranchal
AP
APCPDCL
APEPDCL
APNPDCL
APSPDCL
Karnataka
BESCOM
GESCOM
HESCOM
MESCOM
CHESCOM
Kerala
Pondicherry
Tamil Nadu
Chhattisgarh
512
25,427
670
4,392
454
1,342
320
385
672
51.37
33.24
52.99
29.03
48.02
48.73
39.06
45.97
29.17
48.37
30.24
49.99
27.53
45.02
45.73
36.06
42.97
27.67
45.37
27.24
46.99
26.03
42.02
42.73
33.06
39.97
24.67
42.37
25.74
43.99
24.53
39.02
39.73
30.06
36.97
21.67
39.37
24.24
40.99
23.03
36.02
36.73
28.56
33.97
18.67
36.37
22.74
37.99
21.53
33.02
33.73
27.06
30.97
15.67
9,667
5,645
6,910
19.83
28.63
15.69
18.33
27.13
14.19
16.83
25.63
12.69
15.33
24.13
11.19
13.83
22.63
9.69
12.33
21.13
8.19
15,884
15,211
6,806
9,813
38,806
28.1
29.91
18.47
70.45
17.73
26.6
28.41
16.97
67.45
16.23
25.1
26.91
15.47
64.45
14.73
23.6
25.41
13.97
61.45
13.23
22.1
23.91
12.47
58.45
11.73
20.6
22.41
10.97
55.45
10.23
12,345
12,820
16,286
33.04
31.51
26.69
30.04
28.51
25.19
27.04
25.51
23.69
22.04
22.51
22.19
21.04
19.51
20.69
18.04
16.51
19.19
13,143
9,653
17,766
12,783
2,722
8,280
49.62
28.72
27.92
54.46
37.36
33.53
46.62
27.22
26.42
51.46
34.36
30.53
43.62
25.72
24.92
48.46
31.36
27.53
40.62
24.22
23.42
45.46
28.36
24.53
37.62
22.72
21.92
42.46
26.86
21.53
34.62
21.22
20.42
39.46
25.36
18.53
31,933
10,814
10,464
15,300
17.93
9.69
18.52
16.63
16.43
8.19
17.02
15.13
14.93
6.69
15.52
13.63
13.43
5.19
14.02
12.13
11.93
3.69
12.52
10.63
10.43
2.19
11.02
9.13
20,317
5,764
7,402
3,274
4,245
16,129
2,527
66,974
18,476
21.1
38.05
28.51
18.39
28.22
14.89
19.35
20.15
37.98
19.6
35.05
27.01
16.89
26.72
13.39
17.85
18.65
34.98
18.1
32.05
25.51
15.39
25.22
11.89
16.35
17.15
31.98
16.6
29.05
24.01
13.89
23.72
10.39
14.85
15.65
28.98
15.1
27.55
22.51
12.39
22.22
8.89
13.35
14.15
27.48
13.6
26.05
21.01
10.89
20.72
7.39
11.85
12.65
25.98
26
Goa
Gujarat
DGVCL
MGVCL
PGVCL
UGVCL
MP
MPMKVVC
L
MPPKVVCL
MPPUKVVC
L
Maharashtra
MSEDCL
Grand Total
Source: Planning Commission
2,962
7.77
6.27
4.77
3027
1.77
0.27
10,565
6,727
19,858
14,891
15.23
15.27
32.34
18.89
13.73
13.77
30.84
17.39
12.23
12.27
29.34
15.89
10.73
10.77
27.84
14.39
9.23
9.27
26.34
12.89
7.73
7.77
24.84
11.39
10,563
12,705
9,632
42.26
36.16
46.11
39.26
33.16
43.11
36.26
30.16
40.11
33.26
28.66
37.11
30.26
27.16
34.11
27.26
25.66
31.11
80,526
667,963
25.02
27.15
23.52
25.23
22.02
23.31
20.52
21.48
19.02
19.73
17.52
17.99
27
CHAPTER – 4
INDIAN ELECTRICAL T&D EQUIPMENT INDUSTRY
4.1 Industry Scenario
Transmission and Distribution sector encompasses more than hundred major, medium and small
equipments and components. From application point of view it can divide broadly in two
sections. Indian T&D equipment industry consist of variety of products. Today the industry’s
size is estimated at INR 64,072 Crore.
Table 79: Transmission & Distribution Equipments
1
2
3
4
5
6
7
8
9
10
11
Transmission Line Components
Conductors
Transmission Towers
Insulators
Wave Trap
Auto Re-Closer
Vibration Damper
Corona Rings
Other Accessories
Substation Components
Circuit Breaker
Isolator
Current Transformer
Potential Transformer
Lighting Arrester
Bus Bar
Control Panels
Relays
Capacitor Bank
Battery Bank
Metering Instruments
64,072
Figure 71: Growth of (All) T&D Equipments Industry in India
90,000
10,000
10,200
7,415
20,000
9,660
30,000
18,020
40,000
47,496
60,105
24,300
50,000
45,730
38,920
60,000
12,105
INR Crore
70,000
52,863
80,000
0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Source: IEEMA
28
The T&D equipment market has registered a compound annual growth rate (CAGR) of 21.7%,
from INR 7,400 Crore in 2000-2001 to INR 64,072 Crore in 2011-12. This growth has been
driven by increased generation capacity addition and subsequent need to augment the T&D
network.
Figure 72: Growth of Major T&D Equipments in India
Switchgear
Cables
Transformers
Capacitors
Energy Meters
Transmission Lines
Total
13.7
15.4
13.5
16.9
12.2
11.3
2009-10
2010-11
-0.8
2011-12
-8.2
2008-09
-1.8
-2.4
-1.2
-3.5
0
1
1.2
4
2.7
2.6
4.4
6.1
6.6
9.2
11.3
10.7
9.1
14.5
12.1
13.3
13.5
21.2
25.7
34.9
Rotating Machines
Source: IEEMA
Growth rate of the Indian electrical equipment industry has decelerated to 6.6% in 2011-12 as
compared to 11.3% and 13.7% in 2009-10 and 2010-11 respectively. Imports of electrical
equipment have grown in the past five years at a CAGR of 28.28%. Current export-import trends
based on 27 major ports trade data indicates that imports continue to rise for 765 kV transformers
& reactors (mostly through power project imports), insulators, LV switchgear and HV cables.
Total Imports of 765 kV transformers & reactors in 2011-12 were INR 1,229 Crores; in the last
quarter (Q4) 2011-12, imports sharply increased by 125% (INR 687 Crores) over the combined
total of the first three quarters (INR 542 Crores).
29
4.2 Cable & Conductor
4.2.1 Cable
Cables are used when underground transmission or Figure 73: Cable
distribution is required. These cables are laid in ducts or
may be buried in the ground. Unlike in overhead lines,
air does not form part of the insulation, and the conductor
must be completely insulated. Thus cables are much
more costly than overhead lines. Cable consists of core
that is made of copper. For insulation purpose, different
type of material & medium are used. It depends upon the
level of voltage to transmitting power.
4.2.2 Types of Cable
High voltage cables are generally single cored, and hence have their separate insulation and
mechanical protection by sheaths. In the older paper insulated cables, the sheath was of extruded
lead.
Paper Insulated Power Cables
The insulation consists mainly of paper tape impregnated with compound. The paper must be
free from ligneous fibers and from metallic or other conducting spots. The compound with
which the paper is insulated should be of such a consistency that it is plastic at ordinary
temperatures, and has no tendency to drain away from the cable.
The impregnating compound varies from manufacturer to manufacturer, but they all are based on
paraffinic or naphthenic mineral oil, with resin frequently added to lower the viscosity and to
improve its impregnating qualities. The paper is made from Manila fiber or wood pulp.
Three-Core Belted Type Cables
In the case of a 3-core cable, the 3-cores are individually insulated with paper insulation. The
filler space between the core insulation is also filled up with insulation, but depriving these of
30
voids is much more difficult. Belt insulation is used on Figure 74: Cross Sectional View of Three
Core Belted Cable
top of all three core insulations, and the lead sheath is
extruded over this. Over the lead sheath, there is
generally bitumen to prevent damage.
Pressurized High Voltage Cables

Oil Pressure Cables

Gas Pressure Cables
These are used for extra high voltage transmission.
4.2.3 Conductor
A conductor is a material that facilitates the flow of electricity Figure 75: Aluminum Conductor
(or electric current) through a transmission line. Different types
of conductor are used in transmission lines. They vary in
number and size, depending on the type of circuit and the
transmission voltage. Steel, Aluminium and copper are the
most common conducting materials used in transmission lines.
4.2.4 Types of Conductor
Broadly two types of conductors ACSR (Aluminium Core Steel Reinforced) and ACAR
(Aluminium Core, Alloy Reinforced) are used.
Aluminum Core Steel Reinforced (ACSR)
In an ACSR conductor, a stranded steel core carries the Figure 76: ACSR Conductor
mechanical load, and layers of stranded aluminium
surrounding the core carry the current. ACSR conductors
are usually used for high-voltage transmission lines. Steel
strands forms central core which is surrounded by two
layers of aluminum strands. For a given resistance
conductors of different strengths can be made by taking
31
different properties of steel and aluminum areas. The steel core does not contribute to conduction
of current practically. The current carrying capacity and resistance of this conductor is dependent
on conductivity of aluminum.
Aluminum Core, Alloy Reinforced (ACAR)
An ACAR conductor is a stranded cable made of an aluminium alloy with low resistance and
high mechanical strength. The central core is made up from aluminum alloy which is surrounded
by layers of aluminum conductors. The conductivity is better and strength to weight ratio is equal
to ACSR conductor having same diameter. As compared to ACSR conductor, ACSR conductor
is smaller in size and lower in weight for the same electrical capacity. ACAR conductors are
used for sub transmission and distribution lines.
4.2.5 Competitor Analysis
Table 80: Sterlite Technologies Limited
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(2010-2011 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
2006-2007
 Manufacturing
 EPC
 Transmission Tower Manufacturing
 Commissioning and Testing of Transmission Lines & Substation
 Power Conductor and Cable Manufacturing
 Power Conductor and Cable Manufacturing
 Transmission Tower Manufacturing
 Mfg Unit: 4

INR 2,317 Crore and INR 2,432 Crore


Indigenous
Across 70 countries such as: China, Denmark, India, Netherlands, Russia, South
Africa, Taiwan, Turkey, UAE, UK, USA
 Various SEBs across India
 Private companies in Power T&D field
ISO 9001-2000, ISO 14001, OHSAS 18001, NABL
Table 81: JSK Industries Pvt. Limited
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
1965
 Manufacturing
 Power Conductors
 Aluminum Conductor
 Mfg unit: 2
32
Annual Turnover
(2010-2011 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification

INR 763 Crore and INR 498 Crore





Indigenous
Dubai
Various SEBs such as: MPPTCL, GETCO, LPTCL, MAHATRANSCO, TNEB
PSUs: PGCIL, BHEL
Private companies such as: ABB, L&T Ltd, Torrent Power, Suzlon Energy,
EMI Transmission, Essar Power
ISO 9001-2008
Table 82: Diamond Power Infrastructure Limited
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Production Capacity
Annual Turnover
(2010-2011 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
1970
 Manufacturing
 EPC
 Transmission Tower Manufacturing
 Transformer Manufacturing
 Commissioning and Testing of Transmission Lines & Substation
 Power Conductor and Cable Manufacturing
 Commissioning and Testing of Transmission Lines & Substation
 Power Conductor and Cable Manufacturing
 LV Cable: 34,300 kmpa
 HV Cable: 5,800 kmpa
 EHV Cable: 2,000 kmpa
 Tower Manufacturing: 48,000 tpa

INR 1285 Crore and INR 735 Crore



Indigenous
New-Zealand, Zimbabwe, Tanzania, Sri Lanka, Tajikistan, Bangladesh, Israel
Various SEBs of states such as: Assam, Gujarat, Haryana, Rajasthan,
Karnataka, MP, Maharashtra, Punjab, UP, West Bengal
 PSUs: PGCIL, BHEL, BHEL, NTPC, PGCIL, SAIL
 Private companies such as: ABB, L&T Ltd, EMCO, CGL, Enercon, Suzlon
Energy, Kalpataru Power Transmission, Jindal, Essar Power
ISO 9001-2008, ERDA, CPRI, BIS, BSI, DIN, IEC, ASTM
Table 83: Deepak Cables (India) Limited
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
1982
 Manufacturing
 EPC
 Turnkey Projects
 Power Conductor and Cable Manufacturing
 Erection, Commissioning and Testing of Transmission Lines & Substation
 Power Conductor and Cable Manufacturing
33
Infrastructure
Production Capacity
Technology Sourcing
Indian Clientele
Certification
 Mfg Unit: 2
 Aluminum Conductor: 36,000 tpa
 Aluminum Wire Rods: 18,000 tpa
 Indigenous
 Various SEBs across India
 Central utilities
 Private companies in Power T&D field
ISO 9001-2000
Table 84: KEC International
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Production Capacity
Annual Turnover
(2010-2011 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
1945
 Manufacturing
 EPC
 Services
 Power Cable
 Transmission Tower Manufacturing
 Commissioning and Testing of Transmission Lines & Substation
 Infrastructure Development (Railways, Oil & Gas, Construction)
 Power Cable
 Transmission Tower Manufacturing
 Commissioning and Testing of Transmission Lines & Substation
 Mfg unit: 6 (India) + 2 (Abroad)
 Tower Manufacturing: 311,000 tpa

INR 4,057 Crore and INR 3,923 Crore


Indigenous
Across 40 countries spread over Africa, Middle East, Central Asia, North
America;
 Manufacturing in Brazil and Mexico
 Government utilities such as: WBSEDCL, MSEDCL, PGCIL, NHPC,
MAHATRANSCO, J&K Power Development
 Private companies in Power T&D field
ISO 9001:2000, CPRI, ISO, BIS
4.2.6 Financial Analysis
Table 85: Competitor Performance
Sr No
Company Name
ATO (V)
INR
1
Sterlite Technologies
Limited
2,317
2010-2011 (Figures in Crore)
Op Ex (W) Raw Mat. Cost (X)
EBIDTA (Y)
INR
INR
1,995
34
1,585
X/W
79%
INR
320
Y/V
14%
PAT (Z)
INR
Z/V
185
8%
2
3
4
JSK Industries Pvt.
Limited
Diamond Power
Infrastructure Limited
(Conductor)
KEC International
763
NA
NA
NA
NA
NA
NA
NA
1,285
1,149
1,098
95%
159
12%
98
8%
4,057
3,593
2,172
60%
463
11%
275
7%
4.2.7 Industry Performance
Table 86: Performance of Cable & Transmission Line Industry
Name of the Equipment
Weight
(%)
Industry Size
(INR Crore)
2010-11
Cables
PVC Power Cables
Control & Special Purpose Cables
Transmission Lines
Transmission Line Towers
Conductors
Source: IEEMA
25.8
17.9
7.9
23.4
12.6
10.8
15,510
9,710
4,300
14,070
6,600
5,670
YoY % Change
2008-09
4.4
14.3
-26.6
13.5
6.5
21.3
2009-10
12.1
14.5
2.4
9.2
19
0.2
2010-11
16.9
9
34.3
4
6.8
-0.8
2011-12
25.7
17.4
44.5
-0.8
-5.2
4.3
The Indian cable industry is highly fragmented with hundreds of cable manufacturing
companies; a larger total than can be found in any other country in the world except China. Many
of these Indian companies are small-scale cable producers. The 6.6% growth seen in the overall
electrical equipment industry during FY12 was largely driven by remarkable performance of the
cables industry. It grew by 25.7% in FY12, which came over and above the 16.9% rise in FY11.
In fact, growth in the cables industry has been steadily inching up from 4.4% in FY09. The
cables industry has grown appreciably in size. In FY11, the cables industry was estimated to be
worth INR 15,510 Crore. With changing specifications, kilometers are not the sole barometer to
judge the growth of the industry. Though there seems a slight volume growth in the industry, the
same is mandate due to increase in commodity prices. The weight age of cable industry is about
25.8% of the overall electrical industry. The growth of HV & EHV cable industry was mainly
due to acceleration in implementation to the ongoing and new projects in the pipeline. In year
2010-2011, the total production of LV, PVC & XLPE power cables was about 2.65 lakh km both
in organized & unorganized sector, amounting to an increase over previous year by 12.7%.
35
While PVC & XLPE power cables (3.3 kV- 33 kV), the production was about 24,200 km which
is an increase over the previous year by 6.6%.
Table 87: Strategic Analysis
About 1000 km of Power cables above 33 kV was produced in this fiscal an increase of about
33%. The estimated industry size in 2010-11 for power cables is INR 9710 Crore, an increase of
25% over the previous year 2009-2010.
4.2.8 Market Prospects
36
Cable industry has emerged as most consistent and fastest growing market in last five years. This
trend is expected to continue in future also. One of the best positive aspects with the cable
industry is that all three verticals of power sector i.e. generation, transmission and distribution
are the demand drivers for cable industry.
Figure 77: Cable Industry: Past Performance and Expected Market Size
45,000
11,836
2007-08
2008-09
5,000
15,510
11,337
10,000
13,268
15,000
29,278
25,567
20,000
22,326
25,000
19,496
INR Crore
30,000
33,528
35,000
38,394
40,000
0
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
Source: IEEMA
In the 11th Plan cable industry has grown at a CAGR of 14.5%. By the end of 12th Plan, CEA has
envisaged this market size of INR 37,000 Crore.
Figure 78: Conductor Industry: Past Performance and Expected Market Size
9,000
2009-10
2010-11
7,875
7,023
6,632
5,670
2008-09
5,914
5,716
4,000
5,704
5,000
4,703
INR Crore
6,000
6,263
7,000
7,437
8,000
3,000
2,000
1,000
0
2007-08
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
Source: IEEMA
While being optimistic, this industry is expected to grow up to the size of INR 38,394 Crore.
37
Conductor industry has not witnessed a good growth rate over last five years. CAGR in 11th Plan
has been 5.9% with fluctuating performance.
Major users of power cables are
Figure 79: Cable & Conductor: Export Trend
broadly classified into:
3,500

Power sector: Central, State and
Private electricity utilities
2,500
Major
industries
Petrochemicals,
like:
2,049
2,000
1,000
Steel/Metallurgical, Ship building,
500
Cement,
Railway,
0
2006-07
Defense etc.
2,021
1,723
1,500
Mining,
Engineering,
3,126
2,515
INR Crore

3,000
2007-08
2008-09
2009-10
2010-11
Source: Ministry of Commerce
Many overseas cable companies are looking at Indian market as the upcoming market for HV &
EHV cables. Considering the strong domestic demand for cables in the power sector, overseas
cable manufacturing giants have entered into market through joint ventures with Indian cable
manufacturers for manufacturing EHV cables and special types of cables.
Major imports of HV/EHV cables are from Thailand, China, Germany, Switzerland and Korea
whereas export destinations are UK, UAE, Afghanistan, Nigeria, Ethiopia and Oman.
4.3 Transmission Tower
The electric power system can be divided into transmission, sub-transmission, and distribution
systems. With operating voltages less than 33 kV, the distribution system carries energy from the
local substation to individual households, using both overhead and underground lines.
Table 88: Voltage Segmentation of Power System
Generation
Transmission
 Transmission Lines
 Sub-Transmission lines
Distribution
11kV, 15.5kV, 22kV etc.
HVAC: 765kV, 400kV, 220kV; HVDC: 500kV, 800 kV
132kV, 110kV, 66kV
33kV, 22kV, 11kV, 6.6kV, 440 Volts, 220Volts
38
With operating voltages of 66 kV, 132 kV Figure 80: Transmission Tower
and up to 220 kV the sub-transmission
system distributes energy within an entire
district and regularly uses overhead lines.
With operating voltage exceeding 220
kV,
the
transmission
system
interconnects generating stations and
large substations located close to load
centers by using overhead lines.
4.3.1 Types of Transmission Tower
Overhead transmission lines distribute
the majority of the electric energy in the
system. A typical HVAC line has three phase conductors to carry the current and transport the
energy, and two grounded shield conductors to protect the line from direct lightning strikes. The
usually bare conductors are insulated from the supporting towers by insulators attached to
grounded towers or poles. Lower-voltage lines use post insulators, while the high-voltage lines
are built with insulator chains or long-rod composite insulators. The normal distance between the
supporting towers is a few hundred feet. Transmission lines are subject to environmental
adversities, including wide variations of temperature, high winds, and ice and snow deposits.
Typically designed to withstand environmental stresses occurring once every 50–100 years, lines
are intended to operate safely in adverse conditions.
A distinction is made between the anchor towers and the intermediate towers of a power
transmission line. The rigid and strong construction of the anchoring towers is intended to
withstand considerable stresses caused by tension in the lines. Anchor towers are installed at the
beginning and end of a power transmission line, at turns, and at points where the line passes over
water or through mountains. Intermediate towers are not as strongly constructed, serving mainly
to support the power lines and cables along straight sections.
39
The transmission towers are usually made from steel and galvanized steels. Aluminum is also
used as construction material for transmission lines. Type of the transmission towers used in a
circuit depends mainly on following factors.
Figure 81: Waist Type Tower

Working voltage level

Amount of power

Wind speed profile in the zone

Physical environment

Availability of RoW (Right of Way)
Waist Type Tower
This is the most common type of transmission tower. It's used for voltages ranging from 110 to
735 kV. Because they're easily assembled, these towers are suitable for power lines that cross
very uneven terrain. But this type of tower requires large RoW for single circuit.
Double Circuit Tower
Figure 82: Double Circuit Tower
Both tubular and lattice steel towers can be designed so
as to support either one or two circuits of electrical
current.
Double-circuit
towers
hold
the
different
conductors stacked atop one another, while in singlecircuit towers the conductors are lined up horizontally.
This small-footprint tower is used for voltages ranging
from 110 to 315 kV. Its height ranges from 25 to 60
meters.
Steel Tubular Pole
Featuring a streamlined, aesthetic shape, this structure is
less massive than other towers, allowing it to blend easily
into the environment. Therefore, it's being used more and
more in urban centre. Measuring between 27 and 45
meters in height, it's suitable for voltages ranging from
Figure 83: Steel Tubular Pole
40
110 to 315 kV.
Guyed-V Tower
Figure 84: Guyed-V Tower
This tower is designed for voltages ranging from 230 to
735 kV. It is more economical than the double-circuit and
waist-type towers. These towers have also been used by
the transmission companies in cases where more space is
available. These are simple, easy and cheaper to install.
The guyed towers also require less time for installation.
The main disadvantage is that these towers require more
space due to presence of guy wires.
4.3.2 Competitor Analysis
Table 89: Kalpataru Power Transmission Limited
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Production Capacity
Annual Turnover
(2010-2011 and 2009-10)
1981
 Manufacturing
 EPC
 Tower Manufacturing
 Commissioning and Testing of Transmission Lines & Substation
 Infrastructure Development (Railways, Oil & Gas, Construction)
 Tower Manufacturing
 Commissioning and Testing of Transmission Lines & Substation
 Mfg unit: 2
 Tower Manufacturing: 100,000 tpa

INR 2,874 Crore and INR 2,678 Crore

Global Footprints
Indian Clientele
Certification
Across 31 countries such as: Ethiopia, Algeria, Vietnam, UAE, South Africa,
Nigeria, Kenya, Kuwait, Philippines, Syria, Mexico, Thailand, Abu Dhabi,
USA, Canada, Peru
 PGCIL, GETCO, Essar Power, MSETCL, TNEB, WBSEB, ADANI Power
ISO 9001-14001
Table 90: IVRCL
Year of Establishment
Nature of Business
Products/Services
1987
 Manufacturing
 Tower Manufacturing
 Commissioning and Testing of Transmission Lines & Substation
41
Leading Product/Service
Infrastructure
Production Capacity
Annual Turnover
(2010-2011 and 2009-10)
Global Footprints
Indian Clientele
Certification





Infrastructure Development (Railways, Oil & Gas, Construction)
Tower Manufacturing
Commissioning and Testing of Transmission Lines & Substation
Mfg unit: 1
Tower Manufacturing: 36,000 tpa

INR 5,659 Crore and INR 5,494 Crore


Across 45 countries world wide
Government utilities such as: BHEL, NTPC, ONGC, NPCIL, BPCL, IOCL,
PGCIL, AAI, Indian Railways, Ministry of Defense, Konkan Railway,
MSETCL, HVPNL
 Private companies such as: BITS, DLF, Telco Construction Equipment
Company Ltd, Tata Projects Ltd, JSPL, Tata Docomo, Tata Cummins
ISO 9001:2000, IS
Table 91: KEC International
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Production Capacity
Annual Turnover
(2010-2011 and 2009-10)
1945
 Manufacturing
 EPC
 Services
 Power Cable
 Tower Manufacturing
 Commissioning and Testing of Transmission Lines & Substation
 Infrastructure Development (Railways, Oil & Gas, Construction)
 Tower Manufacturing
 Power Cable
 Commissioning and Testing of Transmission Lines & Substation
 Mfg unit: 6 (India) + 2 (Abroad)
 Tower Manufacturing: 311,000 tpa

INR 4,057 Crore and INR 3,923 Crore

Global Footprints
Indian Clientele
Certification
Across 40 countries spread over Africa, Middle East, Central Asia, North
America;
 Manufacturing in Brazil and Mexico
 Government utilities such as: WBSEDCL, MSEDCL, PGCIL, NHPC,
MAHATRANSCO, J&K Power Development
 Various private companies
ISO 9001:2000, CPRI, ISO, BIS
Table 92: Diamond Power Infrastructure Limited
Year of Establishment
Nature of Business
1970
 Manufacturing
 EPC
42
Products/Services
Leading Product/Service
Production Capacity
Annual Turnover
(2010-2011 and 2009-10)
Global Footprints
Indian Clientele
Certification










Tower Manufacturing
Transformer Manufacturing
Commissioning and Testing of Transmission Lines & Substation
Power Conductor and Cable Manufacturing
Commissioning and Testing of Transmission Lines & Substation
Power Conductor and Cable Manufacturing
Tower Manufacturing: 48,000 tpa
LV Cable: 34,300 kmpa
HV Cable: 5,800 kmpa
EHV Cable: 2,000 kmpa

INR 1285 Crore and INR 735 Crore


New-Zealand, Zimbabwe, Tanzania, Sri Lanka, Tajikistan, Bangladesh, Israel
Various SEBs of states such as: Assam, Gujarat, Haryana, Rajasthan,
Karnataka, MP, Maharashtra, Punjab, UP, West Bengal;
 PSUs: PGCIL, BHEL, BHEL, NTPC, PGCIL, SAIL
 Private companies such as: ABB, L&T Ltd, EMCO, CGL, Enercon, Suzlon
Energy, Kalpataru Power Transmission, Jindal, Essar Power
ISO 9001-2008, ERDA, CPRI, BIS, BSI, DIN, IEC, ASTM
Table 93: Jyoti Structures Limited
Year of Establishment
Nature of Business
Products/Services
Infrastructure
Production Capacity
Annual Turnover
(2011-2012 and 2010-11)
1974
 Manufacturing
 EPC
 Tower Manufacturing
 Conductor Manufacturing
 Commissioning and Testing of Transmission Lines & Substation
 Mfg unit: 2 (India) + 1 (Dubai)
 Tower Manufacturing: 110,000 tpa (India) + 50,000 tpa (Dubai)
 Conductor Manufacturing: 2,500 ckm per annum

INR 2,647 Crore and INR 2,460 Crore

Global Footprints
Indian Clientele
Certification
Presence across 40 countries such as: Australia, Chile, Canada, Ethiopia, Egypt,
France, Iran, Indonesia, Malaysia, Namibia, Nigeria, Oman, Philippines, Peru,
Qatar, South Africa, Sri Lanka, Thailand, Tunisia, UAE, Uganda etc.
 Various Transcos in country
 PSUs: PGCIL & NTPC
ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007
Table 94: Gammon India Ltd
Year of Establishment
Nature of Business
1984
 Manufacturing
 EPC
43
Products/Services
Infrastructure
Production Capacity
Annual Turnover
(2010-2011 and 2009-10)
Global Footprints
Indian Clientele
Certification







Turnkey Projects
Engineering & Design
Tower Manufacturing
Commissioning and Testing of Transmission Lines & Substation
Infrastructure
Mfg unit: 3
Tower Manufacturing: 110,000 tpa

INR 5,636 Crore and INR 4,534 Crore

Afghanistan, Kenya, Afghanistan, Nigeria, Ethiopia, Ghana, Sri Lanka, Oman
 Various state such as: Govt. of Andhra Pradesh, Govt. of West Bengal
 DMRC, GAIL, PGCIL, NTPC, NHPC, NPCIL, NHAI, SJVNL
 Private companies such as: Godrej Properties, Municipal Corporation of
Amritsar
ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007
Table 95: Unitech Power Transmission Ltd
Year of Establishment
Nature of Business
Products/Services
Infrastructure
Production Capacity
Average Annual Turnover
Global Footprints
Indian Clientele
Certification
1972
 Manufacturing
 EPC
 Tower Manufacturing
 Commissioning and Testing of T&D Lines & Substations
 Mfg unit: 1
 Tower Manufacturing: 35,000 tpa
 INR 1,500 Crore
 Nepal, Korea, Sudan, Finland, Spain, France, Libya, Germany,
 Various SEBs across India
 PSUs: PGCIL, NTPC
 Private companies such as: Tata Power, Fortrum, Hyundai, Inabensa, Alstom,
Seimens
ISO 9001:2008, ISO 14001:2004
Table 96: Aster Private Ltd
Year of Establishment
Nature of Business
Products/Services
Infrastructure
Production Capacity
Global Footprints
1998
 Manufacturing
 EPC
 Tower Manufacturing
 Commissioning and Testing of Transmission Lines & Substation
 Mfg unit: 6
 Tower Manufacturing: 142,320 tpa

Afghanistan, Bahrain, Burkina Faso, Cambodia, Congo, Ethiopia, Ghana, India,
Kenya, Madagascar, Mauritius, Nepal, Cameroon, Nigeria, Oman, Qatar,
44
Indian Clientele
Certification
Rwanda, Saudi Arabia, Seychelles, Sri Lanka, Sudan, Tanzania, UAE, Yemen
 Various State Transcos such as: MSETCL, APTRANSCO, GETCO, MSEDCL,
OPTCL, UPPTCL, KPTCL, MPPTCL, HVPTNL, KSEB, RRVPNL
 PSUs: PGCIL & NTPC
 Private players such as: Alstom, Siemens, ABB, TATA, Lanco, L&T, Sterlite,
KSK, JSPL, Vijay Electricals, EMC Limited, ECI, Deepak Cables
ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007
Table 97: Man Structurals Pvt. Ltd
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Indian Clientele
Certification
1960
 Manufacturing
 EPC
 Tower Manufacturing
 Commissioning and Testing of Transmission Lines & Substation
 Infrastructure Development (Railways, Construction)
 Tower Manufacturing
 Commissioning and Testing of Transmission Lines & Substation
 Mfg unit: 3
 Government utilities such as: PGCIL, RRVPNL, KPTCL, GEB, OSEB, HPEB;
 Other players such as Kalindee Rail Nirman, SIEMENS Ltd, KEC International,
Hindustan Zinc Ltd, Tata Projects Ltd, Techno Electric & engineers Co. Ltd,
Nepal Electricity Supply Co.
ISO 9001:2000
4.3.3 Financial Analysis
Table 98: Competitor Performance
Sr No
1
2
3
4
5
Company Name
Kalpataru Power
Transmission Ltd
IVRCL
KEC International
Diamond Power
Infrastructure Ltd
Jyoti Limited
6
Gammon India Ltd+
7
SPML
8
ICSA
+
Revenue from all businesses
2010-2011 (Figures in Crore)
ATO (V)
INR
Op Ex (W)
INR
Raw Mat. Cost (X)
INR
X/W
2,874
2,497
1,277
51%
377
13%
149
5%
5,659
4,057
NA
3,593
NA
2,172
NA
60%
523
463
9%
11%
158
275
3%
7%
1,285
1,149
1,098
95%
159
12%
98
8%
2,647
2,376
1,431
60%
271
10%
61
2.3%
5,636
1,219
1,406
5,297
1104
1,115
1,488
420
1,011
28%
38%
90%
339
115
291
6%
10%
20%
184
25
118
3.3%
2%
8%
45
EBIDTA (Y)
INR
Y/V
PAT (Z)
INR
Z/V
4.3.4 Industry Performance
Table 99: Performance of Transmission Line Industry
Name of the Equipment
Weight
(%)
Industry Size
(INR Crore)
2010-11
Transmission Lines
Transmission Line Towers
Conductors
Source: IEEMA
23.4
12.6
10.8
14,070
6,600
5,670
YoY % Change
2008-09
13.5
6.5
21.3
2009-10
9.2
19
0.2
2010-11
4
6.8
-0.8
2011-12
-0.8
-5.2
4.3
This important segment (having a weight of 23.4 per cent in the total industry in FY11) has been
on a downturn over the past four years.
Table 100: Strategic Analysis
46
Growth in this industry has consistently decreasing from 13.5 per cent in FY09 to 4 per cent in
FY11. It has further declined to -5.2% in FY12. Transmission line manufacturing sector has its
own issues. Some of them are as under.

Fiscal performance of state transcos and discoms continues to be poor with little or no funds
for planned investment.

Poor credit-worthiness of state utilities is leading to lack of payment security for private
investors.

Procedural delays for both public & private projects and long time taken for the entire
bidding process.

Lack of coordination in transmission planning and implementation activity.

Commercial conditions such as unrealistic terms of payment, non-availability of price
variation clauses often lead imbalance in price levels.
The decline in growth of tower industry has led the manufacturing facilities to operate on 67%
capacity utilization only.
4.3.5 Market Prospects
Tower manufacturing capacity is a mature enough industry in the country. It has been showing
fluctuating performance for last five years. Still future of this segment is bright due to adoption
of higher voltage for power transmission.
Figure 85: Tower Industry: Past Performance and Expected Market Size
4,000
3,000
8,028
7,087
6,659
6,600
6,257
5,193
5,000
4,876
INR Crore
6,000
6,180
7,000
7,543
8,000
8,545
9,000
2,000
1,000
0
2007-08
2008-09
2009-10
2010-11
2011-12
Source: IEEMA
47
2012-13
2013-14
2014-15
2015-16
2016-17
This factor is the main growth driver of this industry which needs more testing facility of
transmission towers. Apart from it, PGCIL’s aggressive planning to invest INR 100,000 Crore
for line addition in 12th Plan is being considered as leading demand driver. It is worth to note that
PGCIL’s investment during 11th Plan was INR 55,000 Crore while in the 12th Plan this amount
would be around INR 100,000 Crore.
In the 11th Plan this industry has grown at a CAGR of 6.4%. By the end of 12th Plan, CEA has
envisaged this market size of INR 18,038 Crore. While looking at the past trend, this industry is
expected to grow up to the size of INR 8,545 Crore in next five years.
4.4 Switchgear & Control Instruments
Switchgears
are
integral
component
at
every Figure 86: Switchgear: Circuit Breaker
switching point in power systems. Basic function
of switchgear in power system is the measurement
and protection from short circuits and overload fault
currents while simultaneously providing service
continuously to unaffected circuits while avoiding the
creation of an electrical hazard. Switchgear power
system also provides important isolation of various circuits from different power supplies for
safety issues.
4.4.1 Constituents of Switchgear
Figure 87: Oil Circuit Breaker
There are many different types and classifications
of switchgear power systems to meet a variety of
different needs. On the basis of different application,
theses are classified accordingly.
Oil Circuit Breaker (OCB)
The oil in OCBs serves two purposes. It insulates
between the phases and between the phases &
ground, and it provides the medium for the
extinguishing of the arc. When electric arc is drawn under oil, the arc vaporizes the oil and
48
creates a large bubble that surrounds the arc. The gas inside the bubble is around 80% hydrogen,
which impairs ionization. The decomposition of oil into gas requires energy that comes from the
heat generated by the arc. The oil surrounding the bubble conducts the heat away from the arc
and thus also contributes to deionization of the arc. Main disadvantage of the oil circuit breakers
is the flammability of the oil, and the maintenance necessary to keep the oil in good condition
(i.e. changing and purifying the oil).
Vacuum Circuit Breaker (VCB)
In this breaker, vacuum is being used as the arc quenching
Figure 88: Voltage Circuit Breaker
medium. Vacuum offers highest insulating strength; it has
far superior arc quenching properties than any other
medium. When contacts of a breaker are opened in
vacuum, the interruption occurs at first current zero with
dielectric strength between the contacts building up at a
rate thousands of times that obtained with other circuit
breakers. It consists of fixed contact, moving contact and
arc shield mounted inside a vacuum chamber. The movable member is connected to the control
mechanism by stainless steel bellows .This enables the permanent sealing of the vacuum
chamber so as to eliminate the possibility of leak. A glass vessel or ceramic vessel is used as the
outer insulating body. The arc shield prevents the deterioration of the internal dielectric strength
by preventing metallic vapors falling on the inside surface of the outer insulating cover.
VCB are used for outdoor applications ranging from 22 kV to 66 kV. These are suitable for
majority of applications in rural area.
Gas Circuit Breaker
In this circuit breaker, Sulphar Hexafluoride (SF6) gas is used as the arc quenching medium.
The SF6 gas is an electro negative gas and has a strong tendency to absorb free electrons. The
contacts of the breaker are opened in a high pressure flow of SF6 gas and an arc is struck
between them. The conducting free electrons in the arc are rapidly captured by the gas to form
relatively immobile negative ions. This loss of conducting electrons in the arc quickly builds up
49
enough insulation strength to extinguish the arc.
Figure 89: Gas Circuit Breaker
The SF6 circuit breakers are very effective for high power
and high voltage service.
Advantages of Gas Circuit Breaker

Due to superior arc quenching property of SF6, such
breakers have very short arcing time

Dielectric strength of SF6 gas is 2 to 3 times that of air, such breakers can interrupt much
larger currents

Gives noiseless operation due to its closed gas circuit

Closed gas enclosure keeps the interior dry so that there is no moisture problem

There is no risk of fire as SF6 is non inflammable

There are no carbon deposits

Low maintenance cost, light foundation requirements and minimum auxiliary equipment
Disadvantages of Gas Circuit Breaker

High cost of SF6

SF6 gas has to be reconditioned after every operation of the breaker, additional equipment is
required for this purpose
Instrument Transformers
Instrument transformers are used for measurement and protective application, together with
equipment such as meters and relays. It is also a part of switchgear family. Their role in electrical
systems is of primary importance as they are a means of "stepping down" the current or voltage
of a system to measurable values, such as 5A or 1A in the case of a current transformers and
110V or 100V in the case of a voltage transformer. This offers the advantage that measurement
and protective equipment can be standardized on a few values of current and voltage. Current
transformers, together with Voltage Transformers (VT) (or Potential Transformers (PT)), are
known as instrument transformers.
Current Transformers
50
When current in a circuit is too high to directly Figure 90: Current Transformer
apply
to
measuring
instruments,
a
current
transformer produces a reduced current accurately
proportional to the current in the circuit, which can
be conveniently connected to measuring and
recording instruments. A current transformer also
isolates the measuring instruments from what may
be very high voltage in the monitored circuit.
Current transformers are commonly used in metering and protective relays in the electrical
power industry.
Voltage Transformers
When voltage level of a circuit is too high to Figure 91: Voltage Transformer
directly apply to measuring instruments, a voltage
transformer produces a stepped down voltage level
accurately proportional to the voltage level of the
circuit, which can be conveniently connected to
measuring and recording instruments. A voltage
transformer also isolates the measuring instruments
from what may be very high voltage in the
monitored circuit. Voltage (Potential) transformers are commonly used in metering and
protective relays in the electrical power industry.
4.4.2 Competitor Analysis
Table 101: Bharat Heavy Electricals Limited (BHEL)
Year of Establishment
Nature of Business
Products/Services
1964
 Manufacturing
 EPC
 Oil & Gas
 R&D
 Power Transformers
 Switchgear
 BTG Sets
 BOP
51
Leading Product/Service
Infrastructure
Annual Turnover
(20010-11 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification






Power Transformers
BTG Sets
Switchgear
Mfg unit: 15
Business office: 15
Service centre: 8

INR 43,337 Crore and INR 34,154 Crore







Siemens AG Germany
Germany ABB
Switzerland
General Electric
USA
More than 70 countries
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Steel Industry
ASME, API
Table 102: Siemens India Limited
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(20010-11 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
1956-57 (In India)
 Manufacturing
 EPC
 Services
 R&D
 Power Transformers
 Switchgear
 Network Protection & Control
 System Automation & Robotics
 Electric Motors & Alternators
 Substation Erection
 Consumer Products
 Power Transformers
 Switchgear
 System Automation
 Mfg unit: 8
 Sales offices: 19
 R&D center: 10

INR 12,253 Crore and INR 9,477 Crore



Indigenous technology
More than 190 countries
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Steel Industry
IEC, ANSI, IEEE, CPRI, ISO 9001, ISO 14001, OHSAS 18001
52
Table 103: ABB Limited
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(20010-11 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
1949 (In India)
 Manufacturing
 EPC
 Services
 R&D
 Power Transformers
 Switchgear
 Network Protection & Control
 System Automation & Robotics
 Electric Motors & Alternators
 Substation Erection
 Consumer Products
 Power Transformers
 Switchgear
 System Automation
 Mfg unit: 12
 Marketing offices: 23
 Service center: 8
 Logistic warehouse: 3
 Training centers: 4
 Power & Automation engineering centers: 2
 Channel partners: 550

INR 7,693 Crore and INR 6,372 Crore



Indigenous technology
More than 100 countries
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Steel Industry
IEC, ANSI, IS, KEMA, BS, CSA, UL, ATEX, CE, CPRI, ISO 9001, ISO 14001,
OHSAS 18001
Table 104: Crompton Greaves Limited
Year of Establishment
Nature of Business
Products/Services
1937 (In India)
 Manufacturing
 EPC
 Services
 R&D
 Power Transformers
 Switchgear
 Network Protection & Control
 System Automation & Robotics
53
Leading Product/Service
Infrastructure
Annual Turnover
(20010-11 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification









Electric Motors & Alternators
Substation Erection
Consumer Products
Power Transformers
Switchgear
Rotating Machines
System Automation
Mfg unit: 20
More than 30 communication points in India

INR 6,276 Crore and INR 5,368 Crore


For SLIM Transformers with Dupont’s Nomex Thermal Insulating Technology
Indonesia, Belgium, Hungary, Canada, USA, UK, Ireland, Netherland, Sweden,
France, UAE, China, Australia, New Zealand, Curacao
 Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Steel Industry
ISO 9001, ISO 14001, OHSAS 18001, CPRI, IEC, ANSI, IS, KEMA, BS, CSA, UL,
ATEX, CE
Table 105: Alstom (Areva) T&D India Limited
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(20010-11)
Technology Sourcing
Global Footprints
Indian Clientele
1911 (In India)
 Manufacturing
 EPC
 Services
 R&D
 Power Transformers
 Gas Insulated Switchgear
 Switchgear
 Network Protection & Control
 Electric Motors & Alternators
 Substation Erection
 Power Transformers
 Switchgear
 System Automation
 Mfg unit: 8
 Sales offices: 25
 R&D center: 4
 Engineering center: 2
 Channel partners: 500

INR 4,037 Crore



Indigenous technology
More than 100 countries
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
54
Certification
Contractors, Cement Industry, Steel Industry
IEC, ANSI, IEEE, ISO 9001, ISO 14001, OHSAS 18001
Table 106: Biecco Lawrie Limited
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Annual Turnover
(2009-10)
Technology Sourcing
Indian Clientele
Certification
1943
 Manufacturing
 Turnkey Projects
 Electrical Repairs
 Switchgear
 Electronics & Control (Relays Division)
 Switchgear

INR 66 Crore


Indigenous
Power Utilities, Indian Railways, EPC Contractors, Cement Industry, Steel
Industry
ISO 9001-2008, ISO-14000
Table 107: Jyoti Limited
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Annual Turnover
(20010-11 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
1943
 Manufacturing
 EPC
 Services
 R&D
 Switchgear
 Electronics & Control (Relays Division)
 Rotating Electrical Machines
 Hydel System, Electrical Pump
 Switchgear
 Rotating Electrical Machines

INR 395 Crore and INR299 Crore



Toshiba Corporation, Japan
Bhutan, Oman, Nepal,
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Fertilizer Industry, Steel Industry
ISO 9001
Table 108: Vishal Transformers & Switchgears (P) Ltd
Year of Establishment
Nature of Business
1970
 Manufacturing
55
Products/Services
Leading Product/Service
Infrastructure
Technology Sourcing
Indian Clientele
Certification










Instrument Transformers
Auxiliary Transformers
Distribution Transformers
Special Purpose CT & VT
Metering Cubicle
Instrument Transformers
Mfg unit: 3
Indigenous
Various SEBs of ctates such as: UP, Uttarakhand, Rajasthan, Punjab, Haryana
Entities such as: BHEL, Siemens, ABB, CGL, ALSTOM, L&T, CGL,
Nagarjuna Construction Company, Indian Railways, Subhash Projects
ISO 9001-2008, IS
Table 109: Heptacare Power Industries Pvt. Limited
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Technology Sourcing
Indian Clientele
Certification
1994
 Manufacturing
 Instrument Transformers
 Instrument Transformers
 Mfg unit: 1
 Indigenous
 Various SEBs of states such as: UP, UttraKhand, Rajasthan, Punjab, Haryana,
J&K, HP, Chhattisgarh, Odissa
 Power utilities such as: Areva, ABB, BBMB, BHEL, CGL, INRCL
International Ltd, KEC International, Nagarjuna Construction
ISO 9001-2000, IEC,IS
Table 110: Hivoltrans Electricals Pvt. Ltd
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Technology Sourcing
Indian Clientele
Certification
1985
 Manufacturing
 Instrument Transformers
 Isolating Transformers
 HV Testing Transformers
 Instrument Transformers
 Mfg unit: 1
 Indigenous
 Government utilities such as: MSEB, ASEB, MPSEB, GEB, NEEPCO, BBMB,
APSEB, RSEB, GRIDCO, WBSEB
 Others such as: ABB, ALSTOM, CGL, Bharat Bijlee, EMCO, Essar, GAIL,
IOCL, Railways, KRIBHCO, Jyoti Enterprises, Suzlon Energy, Torrent Power,
UltraTech
ISO 9001:2000, IS
56
Table 111: Kappa Electricals
Year of Establishment
Nature of Business
Products/Services
Products/Services
Technology Sourcing
Global Footprint
Indian Clientele
Certification
1966
 Manufacturing
 Instrument Transformers
 Control & Auto Transformers
 Relays, Switches and Fuses
 Instrument Transformers
 Indigenous
 Indian Subcontinent, East Asia, Middle East and South East Asia
 Various SEBs
 Private Utilities
 Industrial Consumers
ISO 9001:1994, BS, IEC, AS, DIN, KEMA
4.4.3 Financial Analysis
Table 112: Competitor Performance
Sr No
1
Company Name
BHEL
Siemens
India
2
Limited
3
ABB Limited
Crompton Greaves
4
Limited
Alstom
(Areva)
5
T&D India Limited*
6
Biecco Lawrie*
7
Jyoti Limited
*Figure for FY10
2010-2011 (Figures in Crore)
Raw Mat. Cost (X)
EBIDTA (Y)
ATO (V)
Op Ex (W)
INR
43,337
INR
33,856
INR
23,209
X/W
69%
INR
9,538
Y/V
22%
INR
6,011
PAT (Z)
Z/V
14%
12,253
3,895
2,162
56%
1,409
12%
868
7%
7,693
7,126
5,518
77%
393
5%
185
2%
6,276
5,018
2,828
56%
937
15%
694
11%
4,037
3,718
2,875
77%
319
8%
65
2%
66
395
62
341
39
270
63%
80%
4
54
6%
14%
2
18
3%
5%
4.4.4 Industry Performance
The switchgear industry in India manufactures the entire range of circuit breakers from bulk oil,
minimum oil, and air blast, vacuum; to Sulphar Hexafluoride (SF6) as per standard
specifications. There are a few leading circuit breaker manufacturers in the country. Rests are
medium scale manufacturers. In the field of instrument transformer also there are eight to ten
players who are majorly involved in manufacturing of instrument transformers at EHV level
57
only. Other players manufacture these components at sub-transmission and distribution voltage
level. At the medium and low voltage level, it is an unorganized market and regional players are
involved in doing business in their area of reach.
Figure 92: Export of Switchgear Instruments
After two consecutive years of double-digit
1,105
1,200
growth, the switchgear industry had to contend
1,000
INR Crore
with a 2.4 per cent fall in FY12. In FY11, the
segment had grown by 21.2% that had come
over and above a 14.5% growth in FY10. It is
800
614
600
400
estimated that the size of the switchgear
200
market, (not including domestic switches), was
0
2006-07
around INR 9,100 Crore in 2010-11.
813
751
705
2007-08
2008-09
2009-10
2010-11
Source: Ministry of Commerce
Table 113: Performance of Switchgear Industry
Name of the Equipment
Weight
(%)
Industry Size
(INR Crore)
2011-11
Switchgear
Power Contactors
LT Circuit Breakers
MCBs
S/F and F/S Units
HT Circuit Breakers
Source: IEEMA
15.1
2.6
3.6
2.8
0.5
5.6
9,100
1,000
1,360
1,050
207
2,140
YoY % Change
2008-09
0
-17.8
-1
9.7
-11.1
2.4
2009-10
14.5
41
29.4
23
5.3
-5.8
2010-11
21.2
28.7
19.5
7.7
3.8
28.4
2011-12
-2.4
-10.4
-5.8
15.5
-4.3
-5.8
4.4.5 Demand Segments
Utilities: HV and EHV demand majorly comes from the utilities. India's power generation
capacity of 2,300 MW in 1950 expanded to 200,000 MW in 2012. With the 12th Plan the
capacity is expected to increase by around 75,000 MW. The Government is focusing on
increasing the penetration of power supply in villages. Schemes like APDRP and RGGVY are
providing an excellent opportunity for the LV and MV switchgear market with about 10-15%
villages yet to be electrified.
Industrial Segment: An increase in process automation levels observed which support pushbuttons, contactors and switching relays, as well as the protection relays market, which finds
58
application extensively for motor control. Investment in new infrastructural setup is set to
increase the market for Insulated Switchgears, Ring Main Units, Molded Case Circuit Breakers,
Air Circuit Breakers and Control & Relay Panels.
Table 114: Strategic Analysis
Power Plant Modernization and Refurbishment: As in other parts of the world, numerous
power plants in India are nearing the end of their services plan, thus requiring overhauling and
modernization. This includes replacement of existing transformers and LV, MV and HV
59
switchgear, which are on average over 30 years old. Power plant modernization and
refurbishment is expected to additionally support growth of the switchgear market.
Alternative Energy Sources: The India Government continues to research and invest in
renewable energy sources such as wind, solar-thermal and hydroelectric power. The increase in
investment in alternative energy sources is also expected to support market growth, as LV and
MV switchgear products are required for general protection as well as switching. The MCCB
and MCB markets are expected to benefit considerably from alternative energy expansion.
4.4.6 Market Prospects
Switchgear industry has been growing for last years at a CAGR of 7.9%. Only in FY 2011-12 it
witnessed negative growth. Still future of this product is good enough due to R&M plans of old
power plants. This factor is the main growth driver of this industry.
Figure 93: Switchgear Industry: Past Performance and Expected Market Size
2008-09
2010-11
2011-12
12,030
11,151
9,581
8,882
2007-08
7,508
6,557
6,000
6,557
8,000
9,100
10,000
10,336
12,000
12,977
14,000
4,000
2,000
0
2009-10
2012-13
2013-14
2014-15
2015-16
2016-17
Source: IEEMA
By the end of 12th Plan, CEA has envisaged this market size of INR 22,000 Crore. While looking
at the past trend, this industry is expected to grow up to the size of INR 12,977 Crore.
4.5 Transformer
60
A transformer is a static machine used for Figure 94: Transformer
transforming voltage level from one circuit to
another circuit without changing frequency. By using
a step up transformer at the sending end of the power
system network we transmit the power at high
voltage. This power may not be distributed to the
consumers directly and must be stepped down to the
desired level at the receiving end with help of step
down transformer.
Table 115: Types of Transformer
Power Transformer
Distribution Transformer
Instrument Transformer
Rating
Above 1 MVA, 33 kV
Up to 1 MVA, 11 kV
440 Volts to 1200 kV
Application
Generation, Transmission, Subtransmission and Distribution
Distribution
Measuring & Protection
Types
Oil filled & Dry Type
Oil filled & Dry type
Oil filled & Dry type
4.5.1 Major Components of Transformer
Figure 95: Transformer Windings
Windings
The conducting material used for the windings depends upon
the application, but in all cases the individual turns must be
electrically insulated from each other to ensure that the
current travels throughout every turn. Larger power
transformers operating at high voltages may be wound with
copper rectangular strip conductors insulated by oil-impregnated paper and blocks of pressboard.
Core
For efficient flux linking between the two windings, one low reluctance magnetic path common
to both of them should be provided in the transformer. This low reluctance magnetic path in
transformer is known as core of transformer. The main problem with transformer core is the
61
hysteresis and eddy current loss in transformer. Hysteresis Figure 96: Core
loss in transformer mainly depends upon its core materials.
The core steel which has under gone through the both silicon
alloying and cold rolling treatments is commonly known as
CRGOS or Cold Rolled Grain Oriented Silicon Steel. This
material is now universally used for manufacturing for
transformer core.
Conservator Tank
Two main roles of conservator: whenever high
Figure 97: Conservator Tank
electrical stress are produces inside the transformer
due to fault then temperature raise of oil it gives
contraction effect & gases also produced inside the
main tank then it takes a path to release the pressure
via Buchholz relay to the conservator & breather
releases the gas.
Conservator tank is provided to maintain the oil level in the transformer. It is never filled with oil
up to the neck. Thermal expansion nature of the oil is kept in the view and therefore oil is filled
only up to 3/4th of conservator tank level.
Radiator
Figure 98: Radiator
Radiators are used in a transformer to cool the
transformer oil through natural air or forced air
flowing in these radiator fins. As the transformer oil
temperature goes down due to cooling it goes to the
transformer tank from bottom, cool the windings and
gets heated, and then returns to the radiator for next
cooling. This cycle repeats as the oil flow is also natural due difference in temperature of oil on
bottom and top. In big power transformers this oil circulation is forced by oil pumps for effective
cooling. The radiator has many small fins and there are 4-10 radiator banks in a transformer
depending on capacity and make of the transformer.
62
Buchholz Relay
Buchholz Relay in transformer is an oil container
Figure 99: Buchholz Relay
housed the connecting pipe from main tank to
conservator tank. It has mainly two elements. The
upper element consists of a float. The float is
attached to a hinge in such a way that it can move
up and down depending upon the oil level in
the Buchholz Relay Container. One mercury
switch is fixed on the float. The alignment of
mercury switch hence depends upon the position
of the float. The lower element consists of a
baffle plate and mercury switch. This plate is fitted on a hinge just in front of the inlet (main tank
side) of Buchholz Relay in transformer in such a way that when oil enters in the relay from that
inlet in high pressure the alignment of the baffle plate along with the mercury switch attached to
it, will change. In addition to these main elements a Buchholz Relay has gas release pockets on
top. The electrical leads from both mercury switches are taken out through a molded terminal
block.
Bushings
Figure 100: Bushings
A bushing is a hollow electrical insulator through which
a
conductor
may
pass.
The
bushing
is
a
hollow insulating liner that fits through a hole in a wall
or metal case, allowing a conductor to pass along its
centre and connect at both ends to other equipment. The
purpose of the bushing is to keep the conductor insulated
from the surface it is passing through. Bushings are often
made of wet-process fired porcelain, and may be coated
with a semi-conducting glaze to assist in equalizing the electrical stress along the length of the
bushing.
63
The inside of the bushing may contain paper insulation and the bushing is often filled with oil to
provide additional insulation. Bushings for medium-voltage and low-voltage apparatus may be
made of resins reinforced with paper. The use of polymer bushings for high voltage applications
is becoming more common. The largest high-voltage bushings made are usually associated
with high-voltage direct-current converters.
4.5.2 Market Analysis
Transformer is the most costly and critical component in a substation. It accounts for 10-15% of
the total cost of switchyard in a power system. The Indian transformer industry is more than five
decade old and manufactures all types of transformers. The industry enjoys a good reputation in
terms of quality, price and delivery in the domestic as well as overseas markets even in advanced
countries. The Indian transformer industry can generally be divided into distribution
transformers, power transformers, generating transformer and other types of special transformers
for welding, traction, furnace etc.
Past Performance
Power transformers account for about 65-70% of the total transformer industry in MVA terms.
Distribution transformers account for the remaining 30-35% of the total transformer industry in
MVA terms. A transformer could either be oil filled or dry type by nature, with voltage ranging
from 1.1 kV-33 kV.
Table 116: Transformer: Domestic Demand Vs Supply
Installed manufacturing Capacity (MVA)
Production (MVA)
Total Transformer Demand (MVA)
2006-07
1,13,360
90,810
1,39,364
2007-08
1,44,190
1,07,723
1,60,129
2008-09
1,52,065
1,22,487
1,83,988
2009-10
1,72,065
1,29,049
2,11,402
2010-11
2,10,000
1,68,000
2,42,901
The transformer industry grew by a feeble 1.2% in FY12 as against a very healthy 13.5% in
FY11. While power transformers have performed consistently, it is distribution transformers that
have shown erratic trend. In FY12, the distribution transformer category suffered a 3.3% against
the 7.4% growth seen in power transformers.
64
Table 117: Performance of Transformer Industry
Name of the Equipment
Weight
(%)
Industry Size
(INR Crore)
YoY % Change
2010-11
Transformers
Power Transformers
Distribution Transformers
Source: IEEMA
20.6
8.6
12
2008-09
12,350
5,150
7,200
-1.2
25.8
-16.9
2009-10
9.1
17.2
3
2010-11
2011-12
13.5
13.2
13.8
1.2
7.4
-3.3
Demand Segments
Figure 101: Demand Drivers fo Transformer
The Indian transformer manufacturing is a
mature industry with large manufacturing
Generator
Transformer
base. Huge capacity has been added by
several manufacturers over the last 5-7
20%
years based on the planned programs.
15%
Indian Electrical Equipment industry over
2%
15%
48%
the years has also gained global acceptance
Transformation
Capacity
Industrial
Demand
Replacement
and India has emerged as a preferred
destination for sourcing of quality, reliable
and
competitively
priced
Export
equipment
including transformers.
Generator Transformers: These are used primarily as step up transformer in power generation
plants. Power transformer is said to be one of the main and costly plant equipment. With the 12th
Plan the capacity is expected to increase by around 75,000 MW which reflects the requirement of
96,837 MVA of generator transformers.
Transformation Capacity: Substation capacity has been added satisfactorily in 11th plan and it
will continue in the 12th plan also because of good target of generation capacity addition.
Transformation capacity addition is the primary requirement for evacuation of power from any
generating power plant. Therefore this segment will keep a high demand of the tune of 60-65
thousand MVA per annum. Transformation capacity in 11th FYP has increased at CAGR of 54%.
12th Plan also, is likely to perform in same way in order to achieve the national target.
65
Table 118: Transformer: Demand Creators
Transformer Demand Segment
GT Capacity (MVA)
2012-13
20,497
2013-14
19,011
2014-15
19,974
2015-16
21,090
2016-17
16,265
TOTAL
96,837
Transformation Capacity (MVA)
67,372
62,488
65,654
69,321
53,462
318,297
Industry Installations (MVA)
3,369
3,124
3,283
3,466
2,673
15,915
Export Demand (MVA)
18,000
21,420
25,490
30,333
36,096
131,339
Replacement Demand (MVA)
20,000
20,000
20,000
20,000
20,000
100,000
Total (MVA)
129,238
126,043
134,401
144,210
128,496
662,388
Industrial Installation: Whatever loom in industrial growth was to happen, has occurred
already. Therefore, in future more development is obvious. Although Industrial segment
contributes only 2% of total demand but it encourages customized product which can give better
profitability. Industries such as steel, oil, cement, textile, sugar, heavy engineering etc are the
segment growth drivers.
Export Demand: In the global market, performance of Indian product is acknowledged as
technically at par with the leading international companies since Indian transformer industry is
matured enough as a reliable supplier, it is exporting transformer in various parts of the world
including countries like USA, Europe, African Countries, Cyprus, Syria, Iraq and other Middle
East countries.
Table 119: Transformer Exports from India
Figures in INR Crore
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
CAGR
65.1
175.9
234.7
251.2
379.1
460.1
48%
38
127.6
161.8
200.2
189
212.4
41%
307.6
488.7
699
1273.5
1221.2
748.9
19%
410.7
Source: Ministry of Commerce
792.2
1095.5
1724.9
1789.3
1421.4
28%
Up to 650 kVA
650 kVA-10 MVA
Above 10 MVA
Over a period of six years industry has exported the transformers at a robust CAGR of 28%. In
this, small manufacturers are now emerging as leading exporters in small transformer which has
seen highest growth rate of 48%.
Replacement Demand: As in other parts of the world, numerous power plants in India are
nearing the end of their service plan, thus requiring overhauling and modernization. This
66
includes replacement of existing transformers, which are on average over 30 years old and the
replacement of distribution and power transformers. BEE has started the program of efficiency
wise star rating of the transformers. It has provided additional market to the industry which ill
drive the extensive use of more efficient and reliable transformers in the future. Further, the
strengthening of the transmission and distribution grid under the R-APDRP scheme will be
growth driver for the industry.
4.5.3 Competitor Analysis
Table 120: Transformer Industry: Prominent Players















Key Attributes
 Over all more than 300 players in market
 Volume wise 70:30 ratio between organized and
unorganized market
 Organized market consist 15-20 established players
who dominate Power Transformer segment
 Local manufacturers dominate Distribution
Transformer segment
 Lack of EHV transformer testing facility
Prospective Clients
 Central & State Transmission Utilities
 EPC Companies
 State & Private Discoms
 Major industries e.g. Heavy Engineering, Cement,
Steel, Railway, Defense etc.
Transformers & Rectifiers
Vijai Electricals
BHEL
Siemens India Limited
ABB Limited
Crompton Greaves Limited
Alstom (Areva) T&D India Ltd
Bharat Bijlee
EMCO
Voltamp
RTS Power
Accurate Transformer
TELK
IMP
Diamond Power Infrastructure Limited
Table 121: Bharat Heavy Electricals Limited (BHEL)
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
1964
 Manufacturing
 EPC
 Oil & Gas
 R&D
 Power Transformers
 Switchgear
 BTG Sets
 BOP
 Power Transformers
 BTG Sets
 Switchgear
 Mfg unit: 15
 Business office: 15
67
Annual Turnover
(20010-11 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification

Service centre: 8

INR 43,337 Crore and INR 34,154 Crore







Siemens AG Germany
Germany ABB
Switzerland
General Electric
USA
More than 70 countries across the world
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Steel Industry
ASME, API
Table 122: Siemens India Limited
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(20010-11 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
1956-57 (In India)
 Manufacturing
 EPC
 Services
 R&D
 Power Transformers
 Switchgear
 Network Protection & Control
 System Automation & Robotics
 Electric Motors & Alternators
 Substation Erection
 Consumer Products
 Power Transformers
 Switchgear
 System Automation
 Mfg unit: 8
 Sales offices: 19
 R&D center: 10

INR 12,253 Crore and INR 9,477 Crore



Indigenous technology
More than 190 countries across the world
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Steel Industry
IEC, ANSI, IEEE, CPRI, ISO 9001, ISO 14001, OHSAS 18001
Table 123: ABB Limited
Year of Establishment
Nature of Business
1949 (In India)
 Manufacturing
68
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(20010-11 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification





















EPC
Services
R&D
Power Transformers
Switchgear
Capacitors
Network Protection & Control
System Automation & Robotics
Electric Motors & Alternators
Substation Erection
Consumer Products
Power Transformers
Switchgear
System Automation
Mfg unit: 12
Marketing offices: 23
Service center: 8
Logistic warehouse: 3
Training centers: 4
Power & Automation engineering centers: 2
Channel partners: 550

INR 7,693 Crore and INR 6,372 Crore



Indigenous technology
More than 100 countries across the world
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Steel Industry
IEC, ANSI, IS, KEMA, BS, CSA, UL, ATEX, CE, CPRI, ISO 9001, ISO 14001,
OHSAS 18001
Table 124: Crompton Greaves Limited
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
1937 (In India)
 Manufacturing
 EPC
 Services
 R&D
 Power Transformers
 Switchgear
 Network Protection & Control
 System Automation & Robotics
 Electric Motors & Alternators
 Substation Erection
 Consumer Products
 Power Transformers
69
Infrastructure
Annual Turnover
(20010-11 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification





Switchgear
Rotating Machines
System Automation
Mfg unit: 20
30 Communication points in India

INR 6,276 Crore and INR 5,368 Crore


For SLIM Transformers with Dupont’s Nomex Thermal Insulating Technology
Indonesia, Belgium, Hungary, Canada, USA, UK, Ireland, Netherland, Sweden,
France, UAE, China, Australia, New Zealand, Curacao
 Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Steel Industry
ISO 9001, ISO 14001, OHSAS 18001, CPRI, IEC, ANSI, IS, KEMA, BS, CSA, UL,
ATEX, CE
Table 125: Alstom (Areva) T&D India Limited
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(20010-11)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
1911 (In India)
 Manufacturing
 EPC
 Services
 R&D
 Power Transformers
 Gas Insulated Switchgear
 Switchgear
 Network Protection & Control
 Electric Motors & Alternators
 Substation Erection
 Power Transformers
 Switchgear
 System Automation
 Mfg unit: 8
 Sales offices: 25
 R&D center: 4
 Engineering center: 2
 Channel partners: 500

INR 4,037 Crore



Indigenous technology
More than 100 countries
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Steel Industry
IEC, ANSI, IEEE, ISO 9001, ISO 14001, OHSAS 18001
70
Table 126: Transformers & Rectifiers
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(20010-11 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
1994
Manufacturing
 Power Transformers
 Distribution Transformers
 Rectifier Transformers
 Furnace Transformers
 Reactors
 Transformers
Mfg unit: 3
Strategic unit: 3 (for transformer component mfg)
INR 577 Crore and INR 515.09 Crore
Indigenous technology
South Africa, Ethiopia, Bhutan, Canada, Congo, Tanzania, Bangladesh,
Mozambique, Oman, Iran, Nepal, Kenya, Ghana, USA, Australia, Uzbekistan, Saudi
Arabia, UK, Philippines, UAE, Bangladesh
 Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Steel Industry
ISO 9001–2008, ISO 14001–2004, OHSAS 18001–2007
Table 127: Vijai Electricals
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(2010-11 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
1973
 Manufacturing
 Power Transformers
 Distribution Transformers
 Switchgear
 Transformers
 Mfg unit: 4 (India) + 2 (Abroad)
 Strategic unit: For indigenous component development

INR 1849 Crore and INR 1609 Crore



Daihen Corporation, Japan
USA, Mexico, Venezuela, Brazil
APEB, MSEB, Gujarat SEB, Rajasthan SEB, ABB, UPSEB, Asam SEB, BSEB,
BSES, Enercon India Ltd, HSEB, KSEB
 Kalpataru Power, PGCIL, NTPC, NPCL, Reliance Energy, Wilson Power
Solutions, Siemens Ltd
Lloyds-UK, Crown Agents- UK, BSI Inspectorate Griffith, OMIC Japan, CAPEThailand, Tubescope Vecto GmbH Germany
Table 128: Voltamp
Year of Establishment
1963
71
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(2010-11 and 2009-2010)
Technology Sourcing
Global Footprints
Indian Clientele
Certification









Manufacturing
Services
Transformers
Unitized Substation
Induction Furnace
Lighting Arrestor
Electrical Maintenance
Transformers
Mfg unit: 2

INR 526 Crore and INR 542 Crore
 Indigenous technology
 India, Nepal, Bhutan, Indonesia, Sri Lanka, Middle East Asian Countries
 NTPC, ONGC, NALCO, IOCL, BPCL, AEC-SEC, GSFC, GACL
ISO 9001 – 2000, ISOQAR Accreditation, IEC
Table 129: Bharat Bijlee
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(2011-12 and 2010-11)
Technology Sourcing
Global Footprints
1946
 Manufacturing
 EPC
 Power transformers: Station transformer, Unit Auxiliary transformer
 Elevator System: Gearless motors
 Motors: 3-phase induction motors, Pumps,
 Sub Station erection projects
 Transformers
 Mfg unit: 1
 Branch Office: 13

INR 781 Crore and INR 769 Crore


Indigenous technology
Bangladesh, Tanzania, Algeria, Indonesia, Nepal, Philippines, Kenya, Namibia,
Oman, UAE, Egypt, Jordan, South Africa
AAI, NTPC, PGCIL, BSEB, BSES, MPPTCL, MSETCL, TATA POWER,
TORRENT POWER, RILAINCE INFRA, UPPTCL, WBSETCL, BGR Energy,
NALCO, Singareni Collieries
ISO 9001–2008, BIS, Canadian Standards Association

Indian Clientele
Certification

Table 130: EMCO
Year of Establishment
Nature of Business
Products/Services
1964
 Manufacturing
 EPC
 Services
 Transformers
72
Leading Product/Service
Infrastructure
Annual Turnover
(2010-11 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification






Sub-station EPC
Energy meters
Transmission Line & Towers
Transformers
EPC
Mfg unit: 6

INR 1049 Crore and INR 978 Crore




Indigenous technology
Presence across 45 nations
America, Europe, Middle-East countries, Asia Pacific
Power Utilities, Oil & Gas Sector, Mining, EPC Contractors,
Industries, Steel Industries
ISO 9001–2008, ISO 14001-2004, OHSAS 18001-2007, IS, IEC, ANSI
Cement
4.5.4 Financial Analysis
Table 131: Competitor Analysis
Sr No
1
2
3
4
5
6
7
8
9
Company Name
BHEL
Siemens India
Limited
ABB Limited
Crompton Greaves
Limited
Alstom (Areva)
T&D India Ltd*
Transformers &
Rectifiers
Vijai Electricals
Voltamp
Bharat Bijlee**
ATO (V)
INR
43,337
2010-2011 (Figures in Crore)
Op Ex (W) Raw Mat. Cost (X)
EBIDTA (Y)
INR
INR
X/W
INR
Y/V
33,856
23,209
69% 9,538
22%
PAT (Z)
INR
Z/V
6,011 14%
12,253
3,895
2,162
56%
1,409
12%
868
7%
7,693
7,126
5,518
77%
393
5%
185
2%
6,276
5,018
2,828
56%
937
15%
694
11%
4,037
3,718
2,875
77%
319
8%
65
2%
577
510
454
89%
66
11%
40
7%
1,849
526
781
1,689
470
685
1,350
442
535
80%
94%
78%
160
67
96
9%
13%
12%
18
51
60
1%
9%
7%
1054
900
10
EMCO
1049
*Figures for 2009-10; **Figures for 2011-2012
-
(4.7)
-
(67)
-
4.5.5 Growth in Market Size
Transformer industry has witnessed consistent growth in the market size and this trend is likely
to continue in the future also. Indian small and medium transformer manufacturers are expected
to gain momentum due to various government reform programs.
73
Figure 102: Transformer Industry: Past Performance and Expected Market Size
2008-09
2011-12
14,670
13,907
2010-11
13,184
12,498
2007-08
8,000
10,881
9,973
10,000
10,095
INR Crore
12,000
12,350
14,000
15,474
16,000
16,323
18,000
6,000
4,000
2,000
0
2009-10
2012-13
2013-14
2014-15
2015-16
2016-17
Source: IEEMA
Export will also be a good growth driver for this industry. In the 11th Plan this industry has
grown at a CAGR of 5.5%. By the end of 12th Plan, CEA has envisaged this market size of INR
29,500 Crore. While looking at the past trend, this industry is expected to grow up to the size of
INR 16,323 Crore.
4.5.6 Prospective Clients
Transmission Utilities

Large amount of projects planned by PGCIL and State transmission Utilities.

Nodal investors in transmission sector.
Distribution Utilities

Large number of projects coming up under R-APDRP and RGGVY.

Thrust on decreasing the AT&C losses: investments in distribution and sub transmission
infrastructure.
EPC Companies

EPC players are flooded with projects due to transformation in utility approach from cost
plus to turnkey basis.

Better commercial arrangement can be outlined.
74

Repeating orders.

Easy reach to clients exposed to limited established players (transformer manufacturers).
4.5.7 Business Risk
Industry Level risk

Almost all major players have increased their capacities leading to excess supply situation in
the industry.

Pricing becoming an issue especially with Govt. clients.

CRGO Steel and Copper are the key raw material, which are highly price volatile which can
cause unfavourable impacts on pricing.

Transformer Industry is highly dependent and driven by growth in power sector.

Any dent in performance of sector affects the growth of the industry.
Consumer Level Risk

Choice of states and schemes: Certain states and schemes have had huge execution
challenges, administrative and payment issues.

The L1 guidelines are objective leaves no room for subjective matters like quality.

Unilateral testing by State Utilities: Leading to false results and develops dispute. Also
bottleneck in High Voltage Transformer Testing in the Country.

Local administrative and executive staff at utilities: Results in to delayed payments.
4.6 Energy Meter
Figure 103: Energy Meter
An electricity meter or energy meter is a device that
measures the amount of electric energy consumed by a
residence, business, or an electrically powered device.
Electricity meters are typically calibrated in billing units,
the most common one being the kilowatt hour (kWh).
Periodic reading of electric meters establishes billing cycles
and energy used during a cycle.
75
In settings when energy savings during certain periods are desired, meters may measure demand,
the maximum use of power in some interval. ‘Time of Day’ metering allows electric rates to be
changed during a day, to record usage during peak high-cost periods and off-peak, lower-cost,
periods. Also, in some areas meters have relays for demand response shedding of loads during
peak load periods.
4.6.1 Types of Energy Meter
Electricity meters operate by continuously measuring the instantaneous voltage (volts) and
current (amperes) and finding the product of these to give instantaneous electrical power (watts)
which is then integrated against time to give energy used (joules, kilowatt-hours etc.). Meters for
smaller services (such as small residential customers) can be connected directly in-line between
source and customer. For larger loads, more than about 200 ampere of load, current transformers
are used, so that the meter can be located other than in line with the service conductors. The
meters fall into two basic categories, electromechanical and electronic.
Electromechanical Meter
Figure 104: Electromechanical Meter
The most common type of electricity meter is the
electromechanical induction watt-hour meter. The
electromechanical induction meter operates by
counting the revolutions of an aluminum disc which
is made to rotate at a speed proportional to the
power.
The
number
of
revolutions
is
thus
proportional to the energy usage. The voltage coil
consumes a small and relatively constant amount of
power, typically around 2 watts which is not
registered on the meter. The current coil similarly
consumes a small amount of power in proportion to the square of the current flowing through it,
typically up to a couple of watts at full load, which is registered on the meter.
Electronic Meter
76
Figure 105: Electronic Meter
Electronic meters display the energy used on an
LCD display, and can also transmit readings to
remote places. In addition to measuring energy
used, electronic meters can also record other
parameters of the load and supply such as maximum
demand, power factor and reactive power used etc.
They can also support time-of-day billing, for
example, recording the amount of energy used
during on-peak and off-peak hours.
Now a day, electronic meters are able to store the data for a long time which can be downloaded
at any time of need. Meters with battery back up are able to transmit the data even when main
power supply is off. Various kinds of signaling and indication functions are available to detect
any kind of tempering or violation of safety norms. All of these functions are controlled through
inbuilt electronic microprocessor.
HTMD Meter
This is instrument transformers supported metering
Figure 106: HTMD Meter
system. This type of meter is connected through the
secondary of current transformer and potential
transformer. These are used at the points in power
system where voltage and current both are at very high
level and their direct measurement is not possible.
Technical Specification:

Type: 3 Phase

Accuracy Class: 0.1, 0.2, 0.5

Current Rating: For the load above 200 Ampere where CT is used

Voltage Rating: For the system above 440 Volts where PT is used
77
Figure 107: Apex Meters
Application:

Generating Stations (Apex Meters)

EHV Substations (Apex Meters)

Distribution Substations

HT Consumers
LTCT Meter
Figure 108: LTCT Meter
This is current transformer supported metering
system. This type of meter is connected through
the secondary of current transformer but potential
transformer is not used. These are used at the
points in power system current is at very high
level and its direct measurement is not possible.
Technical Specification:

Type: 3 Phase

Accuracy Class: 0.5, 1.0

Current Rating: For the load above 200 Ampere where CT is used

Voltage Rating: For the system up to 440 Volts where PT is not used
Application:

HT Consumers

LT Consumers

DT Metering
LT Whole Current Meter
These meters are free from the use of instrument transformers. These meters are put in to the
path of main electrical circuit. Whole current implies the fact that the entire load current in the
electrical circuit passes through the meter. These energy meters are installed for single and three
phase supply connection types with different current ratings. They are suitable for low voltage
78
residential supply connections, small and medium enterprises and low voltage distribution
transformer metering. They are designated with single or three phase supply type, current
carrying capacity and accuracy class indices of 1.0 and 2.0 in compliance with international
metering standards.
Figure 109: LT Whole Current Meter
Technical Specification:

Type: 1 Phase and 3 Phase

Accuracy Class: 1.0, 2.0

Current Rating: For the load up to 100 Ampere
where CT is not used

Voltage Rating: For the system up to 440 Volts
where PT is not used
Application:

Domestic Consumers

Small Commercial Complexes etc.
Smart Metering System: Prepaid Meter
Smart metering has gained popularity by bringing
benefits to all stakeholders in the utilities industry.
Different payment methods available via smart meters
for the amount of energy consumed help end users to
increase payment transparency and enable utilities to
easily comply with regulations on consumer rights.
Prepaid service options have become an attractive
payment solution allowing users to better manage their
energy consumption and optimize their budget
allocation.
79
Figure 110: Prepaid Meter
Figure 111: Running Cycle of Prepaid Meter
Prepayment metering is simple and user friendly. Prepayment or ‘pay as you go’ has been
accepted by the utilities worldwide as a way to improve customer service, cash flow and the
revenue cycle. It is altogether a new arena in India and is likely to be important for revenue and
energy management. This will benefit the State Electricity Boards (SEBs), private utilities and
the electricity consumers.
4.6.2 Competitor Analysis
There are more than twenty five companies manufacturing approximately 20 million energy
meters per year in India.
Table 132: Genus Power Infrastructures Ltd
Year of Establishment
Nature of Business
Products/Services
1992
 Manufacturing
 Turnkey Services
 Automation
 R&D
 Various Kind of Meter Manufacturing
 EPC in T&D
 Manufacturing of Meter Testing Equipments
 Inverters & Solar Product Manufacturing
 System Automation & SCADA Implementation
80
Leading Product/Service
Infrastructure
Annual Turnover
(2010-2011 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification





Custom Built Software
Billing Solutions
Meter Manufacturing
System Automation
Mfg unit: 2 (Rajasthan, Uttarakhand)

INR 720 Crore and INR 623 Crore


Indigenous Technology
USA, Germany, UK, Ireland, Canada, Bangladesh, Middle East, Africa, Brazil,
China, Singapore, Nepal
 Various SEBs of States such as: KSEB, ASEB, RSEB, MSEB, MPSEB,
UPPCL, UPCL, DHBVNL, JKPDD
 Various Government Organization Such as: ITI, CDOT, Central Electronics
Ltd., BSNL, DRDO, BEL
 Other Players Such as: Reliance Energy, Ahmadabad Electricity Co., Surat
Electricity Company, Tata Power, Torrent Power Ltd, Maruti Udyog Ltd,
Instruments Ltd
ISO 9001:1994, IECQ, DLMS Certification, IS, IDEMI, ERTL
Awards from BHEL, NPCL etc.
Table 133: Secure Meters Limited
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(2010-2011)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
1988
 Manufacturing
 Turnkey Services
 Automation
 R&D
 Various Kind of Meter Manufacturing
 EPC in T&D
 Manufacturing of Meter Testing Equipments
 System Automation & SCADA Implementation
 Custom Built Software
 Billing Solutions
 Meter Manufacturing
 System Automation
 Manufacturing of Meter Testing Equipments
 Mfg unit: 3 (India) + 4 (UK & Sweden)

INR 599 Crore
 In house R&D
Presence in 50 countries across the world
 Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Steel Industry
NABL, IEC, ANSI, IEEE, ISO 9001, ISO 14001, OHSAS 18001
81
Table 134: L&T Limited (Electrical & Automation Division)
Presence in Market
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Technology Sourcing
Global Footprints
Indian Clientele
Certification
Since early 90s
 Manufacturing
 Turnkey Services
 R&D
 Various Kind of Meter Manufacturing
 System Automation & SCADA Implementation
 Energy Management Services
 Relay Manufacturing
 Meter Manufacturing
 Relay Manufacturing
 Mfg unit: 1 (Mysore)
 Indigenous Technology
 Mfg in UK: Collaboration with CyanTechnology;
 South East Asia, Middle East Countries, Africa
 Focus on European Markets
 Various SEBs across country
 Industrial Consumers
 Private Utilities
NABL
Table 135: ECE Industries Limited
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(2010-2011 and 2009-10)
Technology Sourcing
Indian Clientele
Certification
1945 (Metering Division Since 1962)
 Manufacturing
 Turnkey Projects
 Energy Meter
 AMR Solutions
 Transformer
 Switchgear
 Elevator
 Energy Meter
 Transformers
 Mfg unit: 1 (Energy Meter at Hyderabad)

INR 201 Crore and INR 159 Crore
 Veb Electo Apparate-Werke, Germany
 Various SEBs across country
 Industrial Consumers
 Private Utilities
ISO 9001-2000, BIS,
82
Table 136: HPL Metering Pvt. Ltd
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Average Annual Turnover
Global Footprints
Indian Clientele
Certification
1956
 Manufacturing
 Energy Meter
 Relays
 Switchgears
 Lighting
 Luminaries
 Wires & Cables
 Energy Meter
 Switchgears
 Mfg unit: 9 (Meters: 2)
 Marketing Offices: 69
 Dealers: 1,200
 Retailers: 15,000
 INR 1,000 Crore
 Middle East and SAARC countries
 European Markets
 Various SEBs across country
 Industrial Consumers
 Private Utilities
ISO 9001:2000, IEC,
Table 137: Capital Power Systems Ltd
Year of Establishment
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover (2009-10)
Indian Clientele
Certification
1988
 Manufacturing
 Energy Meter
 Relays
 Energy Meter
 Mfg unit: 1
 INR 72.5 Crore
 Various Govt. Utilities such as: DHBVN, JSEB, Orissa utilities, CSEB,
WBSEDCL, UP utilities, KSEB, Maharashtra utilities, Jaipur utilities, AP
utilities, Haryana utilities
 Private companies such as: Lanco, Tata, KEC International, Yamuna Power &
Infrastructure, NCC Ltd, IVRCL, Kalpataru, Maytas, RPG, Kirlosker, A2Z,
Jyoti Structures Ltd, Shyama Power India Ltd
ISO 9001:2000, IEC, IS
4.6.3 Industry Performance
83
100% metering of power supply connections insisted by many state regulatory commissions and
support by Ministry of Power through various reform programs, particularly RGGVY and now
RAPDRP has provided impetus to demand for meters. Overall environment for metering
industry in 09-10 has been generally good. Though physical sales did pick up as compared to
2008-09, prices have continued to fall. During the 2011-2012, growth rate of energy meters has
remained 6.1% which is 60% lower as compared to FY 2010-2011 that saw a growth of 15.4%.
Table 138: Performance of Metering Industry
Name of the Equipment
Weight
(%)
Industry Size
(INR Crore)
2010-11
Energy Meters
Source: IEEMA
3.7
YoY % Change
2008-09
2,250
-8.2
2009-10
2010-11
11.3
2011-12
15.4
6.1
This can be attributed to sharp decline in financial health of most of distribution utilities during
the FY 2011-2012.
Figure 112: Export of Electrical Meters
During the Year 2009-10 sales of
300
256
250
11.3% mainly due to 38% growth in
200
Single phase static meters. Share of
Electromagnetic meters has further
INR Crore
energy meters increased by over
165
150
100
71
71
2007-08
2008-09
51
reduced to 4.5%. CEA guidelines,
50
which have mandated use of static
0
meters, have seen the Indian energy
2006-07
2009-10
2010-11
Source: Ministry of Commerce
meter market shift largely to static meters. Market share of conventional electromagnetic meters
is on decline and is less than the 5% in 2010-2011.
4.6.4 Market Prospects
The demand for meters, both for Single Phase and Three Phase, is expected to remain good for
next 2-3 years. Utilities are also procuring Indian companion standard compliant meters for
feeders, transformers and HT Consumers. This will lead to good demand for system meters.
Reasonable flow of enquiries with short delivery schedules have been observed from various
SEBs. Procurement of meters for RGGVY is being done by project contractors. An overall sale
84
of meter industry is expected to remain at current level. The basic underlying problems being
faced by the industry remain same, some of them are actually found to be on the rise.
Varying tender specifications, decreasing prices, practically little attention to quality in the
procurement procedures, etc. continue to bother manufacturers. Huge numbers of meters are
being procured for BPL consumers under RGGVY program through contractors, where both
quality and price have received severe beating. Lack of proper metering at every required point
has been the critical issue with the whole power sector (especially with distribution sector) in
India. But now efforts are being made to put the power sector on track of commercial principle.
It can be achieved only when a utility ensures 100% metering status.
Table 139: Strategic Analysis
85
Metering industry has witnessed consistent growth in all aspects such as market size, volume and
quality etc. This trend is likely to continue in the future even at a higher pace. Indian meter
manufacturing industry may gain momentum because of power sector reforms, reduction of
T&D and commercial losses etc. In the 11th Plan this industry has grown at an aggressive CAGR
of 5.8%. By the end of 12th Plan, CEA has envisaged this market size of INR 5,500 Crore. While
looking at the past trend, this industry is expected to grow up to the size of INR 3,158 Crore.
Figure 113: Metering Industry: Past Performance and Expected Market Size
2,327
2010-11
2011-12
2,986
2,824
2,525
2,250
1,950
1,500
1,752
2,000
1,908
INR Crore
2,500
2,627
3,000
3,158
3,500
1,000
500
0
2007-08
2008-09
2009-10
86
2012-13
2013-14
2014-15
2015-16
2016-17
CHAPTER – 5
CHALLENGES AND ISSUES
5.1 Increasing Imports: A Major Challenge
Imports of electrical equipment have grown in the past five years at a CAGR of 28.28%. Current
export-import trends based on select major ports trade data indicates alarming growth of almost
20% in imports; especially from China, South Korea, Germany and other EU countries. The
unfavorable domestic economic situation due to depreciation in Indian Rupee, high inflation,
high interest costs, credit squeeze etc. is having a significant adverse effect on the bottom line of
the industry; apart from intense overseas competition. This situation is getting exacerbated by the
turmoil in the global economy.
Figure 114: CHINA: Import Trend of Electrical Equipments
250
212
198
200
148
INR ('000 Crore)
150
146
109
100
79
48
50
46
32
3
14
19
5
8
46
54
49
31
12
19
0
Source: Ministry of Commerce
Electrical Equipments
Total Imports
Prices of key inputs / raw material, especially which are imported in large quantities, are on an
upward trend. Stiff competition in the domestic market from foreign suppliers and also in global
markets is eroding the price competitiveness of Indian manufacturers. The price difference
between domestic companies vis-à-vis Chinese manufacturers is mainly due to disadvantages
faced by domestic manufacturers (State and local levies, higher financing costs, lack of quality
infrastructure, dependence on foreign sources for critical inputs / raw material, etc.), as well as
subsidies / incentives provided to the Chinese manufacturers by their government. It is widely
87
known that Chinese imports are relatively cheaper because equipment makers from China benefit
from low interest rates and an undervalued currency, which in itself leads to cheaper exports.
India now has adequate domestic capacity to fulfill the anticipated annual demand for power
generation capacity augmentation, which was not the case earlier.
Figure 115: KOREA: Import Trend of Electrical Equipments
60
48
50
45
41
(INR '000 Crore)
40
40
30
24
22
20
20
16
13
8
7
10
2
5
6
7
5
4
9
6
6
0
Source: Ministry of Commerce
Electrical Equipments
Total Imports
A most recent positive step taken by Indian Government is the approval of long-delayed proposal
to levy 21% import duty on sourcing power equipment from overseas. This move will benefit
domestic equipment manufacturers in the country. In the July 2012, Indian Govt. has approved
5% basic customs duty, 12% Counter Veiling Duty (Excise Duty) and 4% Special Additional
Duty (SAD), totaling 21%. Earlier, the government had imposed of 5% customs duty on import
of power equipment for projects of less than 1,000 megawatt (MW) capacity, while projects with
more than that capacity did not attract import levy.
5.2 Critical Issues
The T&D sector today faces several major challenges. Some of them are as under.

Inadequate Availability of Critical Inputs (Raw Material)

Looming Skill Gap, Manpower Issues

Lack of Standardization

Inadequate Domestic Testing and Calibrating Infrastructure
88

Frame Model Procurement Guidelines/Practices for Utilities

Promotion of Innovation and R&D in the Industry

Right of Way, Forest Clearances and Land Acquisition Issues

Price Variation Issues
89
CHAPTER – 6
CONCLUSION AND RECOMMENDATIONS
6.1 Business Opportunities
After the comprehensive analysis of the present market scenario, market players, growth drivers
of the sector, imports & exports, future investment etc. following market has been explored as a
business opportunity for a new entrant in the market.
Name of the Equipment
Business Opportunity
Outstanding
Low
Medium
High
Medium to High
Outstanding
Cable
Conductor
Transmission Tower
Switchgear & Control
Transformer
Energy Meter
6.2 Cable
Cable manufacturing in India is the business full of opportunity. Although this segment has
witnessed the highest growth in the market size, yet India needs more cable manufacturing
capacity in EHV segment. Since EHV cable manufacturing is highly technology oriented process
therefore number of existing players in this segment is relative low. For entering in to this field
now Indian manufacturers are doing partnership with some technologically mature player
irrespective of Indian or foreign origin. Future of this industry can be rated as ‘Outstanding’.
Cable
Market Size (2011-12)
Manufacturing Capacity Utilization (2010-11)
CAGR (11th FYP)
Optimistic Market Size (2016-17) (Y)
Most Likely Market Size (2016-17) (X)
Relative Achievement (X/Y)
Business Opportunity
INR 19,496 Crore
47% (Power Cables Only)
14.5%
INR 37,000 Crore
INR 38,394 Crore
104%
Outstanding
6.3 Conductor
90
Conductor manufacturing capacity in India is sufficient and it is not being considered as a very
attractive field from manufacturer point of view. It can be attributed to plans and process to
adopt HVDS and ABC technology by distribution utilities in the various states. Overall business
opportunity in this segment is ‘Low’.
Conductor
Market Size (2011-12)
Manufacturing Capacity Utilization (2010-11)
CAGR (11th FYP)
Optimistic Market Size (2016-17) (Y)
Most Likely Market Size (2016-17) (X)
Relative Achievement (X/Y)
Business Opportunity
INR 5,914 Crore
68%
5.9%
INR 15,462 Crore
INR 7,875 Crore
51%
Low
6.4 Transmission Tower
Tower manufacturing in India is in good state and performing satisfactorily apart from lack of
EHV and UHV tower testing facilities with some players. Domestic manufacturers have
sufficient capacity and they are increasing their capacity on the right pace. It is EPC and Turnkey
Solution Provider route which can let a new player enter in to the market easily. It is because of
now most of the companies are shifting from manufacturing to additional construction activities.
Future of this industry can be rated as ‘Medium’.
Transmission Tower
Market Size (2011-12)
Manufacturing Capacity Utilization (2010-11)
CAGR (11th FYP)
Optimistic Market Size (2016-17) (Y)
Most Likely Market Size (2016-17) (X)
Relative Achievement (X/Y)
Business Opportunity
INR 6,257 Crore
67%
6.4%
INR 1,8038 Crore
INR 8,545 Crore
47%
Medium
6.5 Switchgear & Control
Switchgear manufacturing in India is dominated by a few big players followed by medium and
small players. Since this industry is highly technology oriented therefore number of capable
players in this segment is relative low. This segment may be one of the most rewarding for a new
entrant because of lack of domestic players in EHV and UHV category. Technological
91
partnership with some technologically mature player may be the entry strategy for a new player.
Therefore future of this industry can be rated as ‘High’.
Switchgear & Control
Market Size (2011-12)
Manufacturing Capacity Utilization (2010-11)
CAG (11th FYP)
Optimistic Market Size (2016-17) (Y)
Most Likely Market Size (2016-17) (X)
Relative Achievement (X/Y)
Business Opportunity
INR 8,882 Crore
66% (HT Switchgears Only)
7.9%
INR 22,000 Crore
INR 12,977 Crore
59%
High
6.6 Transformer
Transformer manufacturing can be divided in to two segments. One is Distribution transformers
and another is Power transformers. Indian market is performing well with respect to both
segments. Some major bottlenecks such as limited domestic EHV and UHV transformer testing
facilities and in house sourcing of key raw material are hindering the sector growth. In spite of
these challenges transformer industry is able to cope up with the foreign players. Future of this
industry can be rated as ‘Medium to High’.
Transformer
Market Size (2011-12)
Manufacturing Capacity Utilization (2010-11)
CAGR (11th FYP)
Optimistic Market Size (2016-17) (Y)
Most Likely Market Size (2016-17) (X)
Relative Achievement (X/Y)
Business Opportunity
INR 12,498 Crore
75%
5.5%
INR 29,500 Crore
INR 16,323 Crore
55%
Medium to High
6.7 Energy Meter
Manufacturing of Energy Meters in India can promise any manufacturer for a long lasting and
consistent growth. This business is likely to follow one of the highest growth rates at least for
next ten to fifteen years. Modern technology and state of the art manufacturing facility is the key
to success in this business. Lack of adequate Meter testing facility is one of the major bottlenecks
of this industry. Now it has become technology oriented process therefore number of leading
92
players in this segment is very low. For the initial stage, technological partnership with a
domestic or international mature player can be the entry strategy.
Energy Meter
Market Size (2011-12)
11th FYP CAGR
Optimistic Market Size (2016-17) (Y)
Most Likely Market Size (2016-17) (X)
Relative Achievement (X/Y)
Business Opportunity
INR 2,387 Crore
5.8%
INR 5,500 Crore
INR 3,158 Crore
57%
Outstanding
93
BIBLIOGRAPHY AND REFERENCE
[1] Ministry of Power, GoI, “Report of the Working Group on Power for 12th Plan: January
2012”
[2] Ministry of Power, R-APDRP, RGGVY
[3] Planning Commission, Shunglu Committee Report, “Report of High Level Panel on
Financial Position of Distribution Utilities” December 2011
[4] Power Finance Corporation
[5] Central Electricity Authority, “Draft, National Electricity Plan (Volume I and Volume II)”
[6] Central Electricity Authority, “Annual and Monthly Summary Report” of Transmission &
Distribution Work
[7] Department of Industrial Policy and Promotion, “Indian Electrical Equipment Industry
Mission Plan: 2012-2022, Base Document”
[8] Central Electricity Regulatory Commission
[9] Ministry of Commerce, GoI
[10]
Indian Electrical & Electronics Manufacturer Association (IEEMA)
[11]
Powerline Magazine, June 2012
[12]
Electrical Monitor Magazine’s Website
[13]
Websites and Annual Reports (of last two to three years) of following companies
1. Bharat Heavy Electricals Limited
2. Power Grid Corporation of India
3. ALSTOM (AREVA) T&D India Ltd.
4. Crompton Greaves Limited
5. SIEMENS India Limited
6. ABB Limited
7. Transformers & Rectifiers
8. Vijay Electricals Limited
9. EMCO
10. Voltamp
11. Bharat Bijlee Limited
12. Sterlite Technologies Limited
13. JSK Industries Pvt. Limited
14. Diamond Power Infrastructure Limited
15. Deepak Cables (India) Limited
16. KEC International
17. Kalpataru Power Transmission Limited
18. IVRCL
19. Jyoti Structures Limited
94
20. Gammon India Ltd
21. Unitech Power Transmission Ltd
22. Aster Private Ltd
23. Man Structurals Pvt. Ltd
24. Biecco Lawrie Limited
25. Jyoti Limited
26. Vishal Transformers & Switchgears (P) Ltd
27. Heptacare Power Industries Pvt. Limited
28. Hivoltrans Electricals Pvt. Ltd
29. SCT Limited
30. Macroplast Pvt. Ltd
31. Kappa Electricals
32. Genus Power Infrastructures Ltd
33. Secure Meters Limited
34. L&T Limited (Electrical & Automation Division)
35. ECE Industries Limited
36. HPL Metering Pvt. Ltd
37. Capital Power Systems Ltd
For Annexure I and Annexure II
Following assumption and steps have been adopted while finding out the future market size as
per tables displayed below.
[1] This data sheet includes major T&D equipments as per mentioned by IEEMA. IEEMA
consists 95% Indian Electrical Equipment Manufacturers.
[2] Actual market size for 2010-11 was available. Apart from it YoY % growth rate was
available. Accordingly, markat size for 2008-09, 2009-10 and 2011-12 has been calculated.
[3] On the basis of available market size of last five consecutive years, CAGR has been
calculated.
[4] Assumption for market size forecasting: Conservative approach has been adopted with
consideration that Market will grow at the same CAGR of last five years.
[5] Prospective market has been calculated with the help of found CAGR.
[6] Assessed Market in 2017 and 2022 by CEA has been taken from "Indian Electrical
Equipment Industry Mission Plan 2012-2022: Base Document" from "Ministry of Heavy
Industries and Public Enterprises"
95
ANNEXURE– I (Following raw data sourced from IEEMA, CEA & thereafter calculated)
Performance of Major T&D Equipments Industry: 2007-08 to 2011-12
Weight
(%)
Rotating
Machines
LT Motors
HT Motors
Alternators
FHP Motors
Switchgear
Power
Contactors
LT Circuit
Breakers
MCBs
S/F and F/S
Units
HT Circuit
Breakers
Cables
PVC Power
Cables
Control &
Special
Purpose
Cables
Transformers
Power
Transformers
Distribution
Transformers
Capacitors
HT Capacitors
LT Capacitors
Energy
Meters
Transmission
Lines
Transmission
Line Towers
Conductors
Total
200708
2008-09
2009-10
2010-11
2011-12
Market
Size
Market
Size
YoY
Growth
(%)
Market
Size
YoY
Growth
(%)
Market
Size
YoY
Growth
(%)
Market
Size
YoY
Growth
(%)
10.5
5144
4964
-3.5%
5624
13.3%
6310
12.2%
6373
1.0%
5.1
2.1
1.9
1.4
15.1
2305
996
888
733
6557
2155
1126
914
642
6557
-6.5%
13.1%
2.9%
-12.3%
0.0%
2644
1242
924
665
7508
22.7%
10.3%
1.1%
3.5%
14.5%
2985
1225
1115
780
9100
12.9%
-1.4%
20.7%
17.3%
21.2%
3021
1492
918
734
8882
1.2%
21.8%
-17.7%
-5.9%
-2.4%
2.6
670
551
-17.8%
777
41.0%
1000
28.7%
896
-10.4%
3.6
888
880
-1.0%
1138
29.4%
1360
19.5%
1281
-5.8%
2.8
723
793
9.7%
975
23.0%
1050
7.7%
1213
15.5%
0.5
213
189
-11.1%
199
5.3%
207
3.8%
198
-4.3%
5.6
1728
1769
2.4%
1667
-5.8%
2140
28.4%
2016
-5.8%
25.8
11337
11836
4.4%
13268
12.1%
15510
16.9%
19496
25.7%
17.9
6807
7780
14.3%
8908
14.5%
9710
9.0%
11400
17.4%
7.9
4260
3127
-26.6%
3202
2.4%
4300
34.3%
6214
44.5%
20.6
10095
9973
-1.2%
10881
9.1%
12350
13.5%
12498
1.2%
8.6
3086
3882
25.8%
4549
17.2%
5150
13.2%
5531
7.4%
12
7392
6143
-16.9%
6327
3.0%
7200
13.8%
6962
-3.3%
0.9
0.3
0.6
336
120
220
345
128
222
2.6%
6.7%
1.0%
382
169
217
10.7%
32.2%
-2.2%
515
200
315
34.9%
18.2%
44.9%
506
183
319
-1.8%
-8.3%
1.4%
3.7
1908
1752
-8.2%
1950
11.3%
2250
15.4%
2387
6.1%
23.4
10915
12389
13.5%
13529
9.2%
14070
4.0%
13957
-0.8%
12.6
4876
5193
6.5%
6180
19.0%
6600
6.8%
6257
-5.2%
10.8
100
4703
46247
5704
47496
21.3%
2.7%
5716
52863
0.2%
11.3%
5670
60105
-0.8%
13.7%
5914
64072
4.3%
6.6%
96
ANNEXURE– II (Following raw data sourced from IEEMA, CEA & thereafter calculated)
Prospective Market Size
CAGR
08-09
to 1112
Rotating Machines
2012-13
201314
201415
201516
Market Size
Market
Size
Market
Size
Market
Size
201617
Market
Size
(X)
Market
Size in
2017
(Assessed
by CEA)
(Y)
Relative
Achievement
(Y/X)
5.5%
6724
7094
7484
7896
8331
15000
56%
7.0%
10.6%
0.8%
0.0%
7.9%
3232
1651
925
734
9581
3459
1826
933
735
10336
3701
2020
941
735
11151
3960
2235
948
735
12030
4237
2473
956
736
12977
22000
59%
Power Contactors
7.5%
963
1036
1114
1198
1288
LT Circuit Breakers
9.6%
1404
1538
1686
1847
2025
MCBs
13.8%
1380
1571
1788
2036
2317
S/F and F/S Units
-1.8%
195
191
188
184
181
3.9%
2095
2177
2263
2352
2444
Cables
14.5%
22326
25567
29278
33528
38394
37000
104%
PVC Power Cables
13.8%
12968
14752
16782
19091
21718
Control & Special
Purpose Cables
9.9%
6828
7504
8247
9063
9960
Transformers
5.5%
13184
13907
14670
15474
16323
29500
55%
15.7%
6400
7405
8569
9914
11472
-1.5%
6859
6757
6657
6558
6461
10.8%
11.2%
9.8%
5.8%
560
204
351
2525
620
227
385
2670
687
252
422
2824
761
280
464
2986
843
312
509
3158
1000
84%
5500
57%
6.3%
14842
15783
16783
17847
18978
33500
57%
6.4%
6659
7087
7543
8028
8545
18038
47%
5.9%
8.5%
6263
69513
6632
75415
7023
81819
7437
88767
7875
96305
15462
177000
51%
54%
LT Motors
HT Motors
Alternators
FHP Motors
Switchgear
HT Circuit Breakers
Power Transformers
Distribution
Transformers
Capacitors
HT Capacitors
LT Capacitors
Energy Meters
Transmission Lines
Transmission Line
Towers
Conductors
Total
97