Académique Documents
Professionnel Documents
Culture Documents
On
JUNE-JULY, 2012
Under the Guidance of
Mr. J. S. S. RAO
Principal Director
Prepared By
ABHINAV GUPTA
Roll No. 1120812182
MBA - Power Management, Batch: 2011-13
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
(Faculty)
Countersigned
Director/Principal of the Institute
ii
ACKNOWLEDGEMENT
Its 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. Its 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
iv
Page No.
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ii
iii
iv
vi
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ix
x
1
1
2
2
2
5
5
6
7
7
8
8
9
10
12
14
16
18
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20
21
22
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28
30
30
30
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34
35
36
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39
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
6
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
41
45
46
47
48
48
51
57
57
58
60
60
61
64
67
73
73
74
75
75
76
80
83
84
87
87
88
90
90
90
90
91
91
92
92
94
96
97
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
vi
Page No.
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11
12
13
14
15
18
18
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20
21
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29
30
31
31
31
37
37
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39
40
40
40
41
47
48
48
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51
51
58
60
61
61
62
62
62
63
63
65
74
75
76
77
77
78
78
79
79
80
84
86
87
88
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
vii
Page No.
7
9
10
13
19
20
22
24
25
28
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32
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36
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43
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viii
46
46
51
52
53
53
54
55
55
55
56
56
57
57
58
59
61
64
65
66
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67
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68
68
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71
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72
73
80
81
82
82
83
83
84
85
ABBREVIATIONS
ABC
IPTC
ACA
ACAR
IS
ISTS
ACS
I-STS
ACSR
JV
Joint Venture
AMR
kV
Kilo Volt
ARR
kWh
Kilowatt Hour
LCD
ATO
LTCT
CAGR
LV
Low Voltage
CEA
MCB
Ckm
Circuit Kilometer
MCCB
CRGO
MV
Medium Voltage
CT
Current Transformer
MVA
CTU
MW
Mega Watt
CVD
OCB
DISCOM
Distribution Company
PGCIL
DT
Distribution Transformer
R&D
ED
Energy Division
R-APDRP
Restructured-APDRD
EE
Electrical Equipment
RGGVY
EHV
RoW
Right of Way
EPC
SAD
EU
European Union
SCADA
FY
Financial Year
SEB
FYP
STU
GENCO
Generation Company
T&D
GIS
ToD
Time of Day
HCTC
TRANSCO
Transmission Company
HTMD
UHV
HVAC
VCB
HVDC
VT
Voltage Transformer
HVDS
WC
Whole Current
XLPE
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 countrys 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.
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 countrys
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
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
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 (SEBs) and other private distribution companies.
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.
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
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- Pacifics share
being 45%. This region is expected to see the strongest demand in future due to the regions
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.
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)
(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%
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,
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
600
400
671.9
631.5
612.5
500
592
700
566.7
witnessed
kWh (Unit)
has
814
sector
779
900
734.5
717.1
300
200
100
0
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.
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%
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%
Evacuation of power from inter-state generating stations which have beneficiaries in more
than one state.
Transfer of operational surpluses from surplus state(s) to deficit state(s) or from surplus
region(s) to deficit region(s).
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.
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
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
20
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
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.
12
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
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
250
151.027
156.497
92.942
116.363
8.2
0
25
11.2
60.38
40.865
5.2
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.
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.
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.
16
Increase in demand
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
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 worlds 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.
180
160
end
of
that
plan.
120
('000)
100
80
70.286
60
Transmission
40
8.607
20
2.197
0
Transmission Lines (Ckm)
153.362
140
Total
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 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
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.
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 countrys 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.
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
400 kV
45,000
220 kV
76,000
Total MVA
283,000
12th Plan
65,800
11th Plan
28,000
10th Plan
14,050
9th Plan
5,750
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.
4,000
3,000
2,000
sustainable
7391.599
1,000
solution
7094.129
5,000
4886.8
7079.025
6,000
6902.117
6580.949
7,000
'000 Ckm
5725.89
8,000
4358.297
Source: CEA
development and survival. In the 12th Plan period, certain goals have been set to achieve.
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
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
Nos.
4,400
Nos.
8,800
Transformation Capacity
MVA
88,000
II
III
Units
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
Nos.
850,000
33/11 kV
MVA
50,000
10,000
11/0.4 kV
MVA
50,000
10,000
Capacitors
MVAR
16,000
1,280
VI
Service Connections
50,000,000
25,000
VII
Re-Conductoring of Lines
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
61,940
Smart Grid
9,500
10,000
24
R&D
25
Total
306,235
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 industrys
size is estimated at INR 64,072 Crore.
Table 79: Transmission & Distribution Equipments
1
2
3
4
5
6
7
8
9
10
11
Substation Components
Circuit Breaker
Isolator
Current Transformer
Potential Transformer
Lighting Arrester
Bus Bar
Control Panels
Relays
Capacitor Bank
Battery Bank
Metering Instruments
64,072
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
1.2
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
30
voids is much more difficult. Belt insulation is used on Figure 74: Cross Sectional View of Three
Core Belted Cable
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.
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.
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
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
1965
Manufacturing
Power Conductors
Aluminum Conductor
Mfg unit: 2
32
Annual Turnover
(2010-2011 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
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
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
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
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
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
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
Company Name
ATO (V)
INR
Sterlite Technologies
Limited
2,317
INR
1,995
34
1,585
X/W
79%
INR
320
Y/V
14%
PAT (Z)
INR
Z/V
185
8%
2
3
4
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%
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.
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
2,500
Major
industries
Petrochemicals,
like:
2,049
2,000
1,000
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
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.
38
the
transmission
system
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
Amount of power
Physical environment
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.
40
Guyed-V Tower
Figure 84: Guyed-V Tower
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
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
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
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
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
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
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
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
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
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
1998
Manufacturing
EPC
Tower Manufacturing
Commissioning and Testing of Transmission Lines & Substation
Mfg unit: 6
Tower Manufacturing: 142,320 tpa
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
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
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
Op Ex (W)
INR
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
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.
The decline in growth of tower industry has led the manufacturing facilities to operate on 67%
capacity utilization only.
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, PGCILs 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
PGCILs 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.
are
integral
component
at
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).
49
The SF6 circuit breakers are very effective for high power
and high voltage service.
Dielectric strength of SF6 gas is 2 to 3 times that of air, such breakers can interrupt much
larger currents
Closed gas enclosure keeps the interior dry so that there is no moisture problem
Low maintenance cost, light foundation requirements and minimum auxiliary equipment
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,
current
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.
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
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
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(20010-11 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
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
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(20010-11 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
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
Nature of Business
Products/Services
53
Leading Product/Service
Infrastructure
Annual Turnover
(20010-11 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(20010-11)
Technology Sourcing
Global Footprints
Indian Clientele
Indigenous technology
More than 100 countries
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
54
Certification
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
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
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
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
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
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
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
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%
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
1,200
1,000
INR Crore
800
614
600
400
200
0
2006-07
813
751
705
2007-08
2008-09
2009-10
2010-11
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
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.
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
Distribution Transformer
Instrument Transformer
Rating
Above 1 MVA, 33 kV
Up to 1 MVA, 11 kV
Application
Distribution
Types
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
Radiator
Figure 98: Radiator
Buchholz Relay
Buchholz Relay in transformer is an oil container
Bushings
Figure 100: Bushings
conductor
may
pass.
The
bushing
is
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.
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
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
20%
15%
2%
15%
48%
Transformation
Capacity
Industrial
Demand
Replacement
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
2012-13
20,497
2013-14
19,011
2014-15
19,974
2015-16
21,090
2016-17
16,265
TOTAL
96,837
67,372
62,488
65,654
69,321
53,462
318,297
3,369
3,124
3,283
3,466
2,673
15,915
18,000
21,420
25,490
30,333
36,096
131,339
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.
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.
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
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
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(20010-11 and 2009-10)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
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
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
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
Nature of Business
Products/Services
Leading Product/Service
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
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(20010-11)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
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
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 90012008, ISO 140012004, OHSAS 180012007
Indian Clientele
Certification
1973
Manufacturing
Power Transformers
Distribution Transformers
Switchgear
Transformers
Mfg unit: 4 (India) + 2 (Abroad)
Strategic unit: For indigenous component development
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
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
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
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 90012008, BIS, Canadian Standards Association
Indian Clientele
Certification
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
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 90012008, ISO 14001-2004, OHSAS 18001-2007, IS, IEC, ANSI
Cement
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
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)
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.
Distribution Utilities
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.
Repeating orders.
Almost all major players have increased their capacities leading to excess supply situation in
the industry.
CRGO Steel and Copper are the key raw material, which are highly price volatile which can
cause unfavourable impacts on pricing.
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.
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.
Electromechanical Meter
Figure 104: Electromechanical Meter
The
number
of
revolutions
is
thus
Electronic Meter
76
HTMD Meter
This is instrument transformers supported metering
Type: 3 Phase
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
Application:
Distribution Substations
HT Consumers
LTCT Meter
Figure 108: LTCT Meter
Type: 3 Phase
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
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:
Application:
Domestic Consumers
79
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.
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
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.
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)
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
Products/Services
Leading Product/Service
Infrastructure
Technology Sourcing
Global Footprints
Indian Clientele
Certification
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(2010-2011 and 2009-10)
Technology Sourcing
Indian Clientele
Certification
82
Products/Services
Leading Product/Service
Infrastructure
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,
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
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.
300
256
250
200
INR Crore
165
150
100
71
71
2007-08
2008-09
51
50
2006-07
2009-10
2010-11
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.
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
150
146
109
100
79
48
50
46
32
3
14
19
5
46
54
49
31
12
19
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--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
40
40
30
24
22
20
20
16
13
8
10
2
9
6
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.
Lack of Standardization
88
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
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
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
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
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
93
2012
[2] Ministry of Power, R-APDRP, RGGVY
[3] Planning Commission, Shunglu Committee Report, Report of High Level Panel on
Distribution Work
[7] Department of Industrial Policy and Promotion, Indian Electrical Equipment Industry
[11]
[12]
[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
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
-1.8%
195
191
188
184
181
3.9%
2095
2177
2263
2352
2444
Cables
14.5%
22326
25567
29278
33528
38394
37000
104%
13.8%
12968
14752
16782
19091
21718
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