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On
JUNE-JULY, 2012
Under the Guidance of
Mr. J. S. S. RAO
Principal Director
National Power Training Institute
Prepared By
ABHINAV GUPTA
Roll No. 1120812182
MBA - Power Management, Batch: 2011-13
Submitted to
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
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
TABLE OF CONTENTS
Sr. No.
CONTENTS
Page No.
DECLARATION
ii
ACKNOWLEDGEMENT
iii
TABLE OF CONTENTS
iv
LIST OF FIGURES
vi
LIST OF TABLES
vii
ABBREVIATIONS
ix
EXECUTIVE SUMMARY
INTRODUCTION
1.1
1.2
Problem Statement
1.3
Objective
1.4
Organization Profile
2.1
Literature Survey
2.2
Research Methodology
3.1
3.2
3.3
10
12
14
16
18
18
20
21
22
23
28
4.1
Industry Scenario
28
4.2
30
4.3
4.2.1 Cable
30
30
4.2.3 Conductor
31
31
32
34
35
36
Transmission Tower
38
39
41
45
46
47
4.4
48
48
51
57
57
58
60
4.5
Transformer
60
61
64
67
73
73
74
75
Energy Meter
75
4.6
76
80
83
84
87
5.1
87
5.2
Critical Issues
88
90
6.1
Business Opportunities
90
6.2
Cables
90
6.3
Conductors
90
6.4
Transmission Towers
91
6.5
91
6.6
Transformers
92
6.7
Energy Meters
92
94
ANNEXURE - I
96
ANNEXURE II
97
LIST OF FIGURES
NAME OF FIGURE
Page No.
11
12
13
14
15
18
18
19
Figure 10: Transmission Line Length (Ckm): Share of Voltage Level in Different Plans
20
Figure 11: Substation Capacity (MVA): Share of Voltage Level in Different Plans
21
22
23
28
29
30
31
31
31
Figure 20: Cable Industry: Past Performance and Expected Market Size
37
Figure 21: Conductor Industry: Past Performance and Expected Market Size
37
38
39
40
40
40
41
Figure 28: Tower Industry: Past Performance and Expected Market Size
47
48
48
49
50
51
51
58
Figure 36: Switchgear Industry: Past Performance and Expected Market Size
60
61
61
62
62
62
63
63
65
Figure 45: Transformer Industry: Past Performance and Expected Market Size
74
75
76
77
77
78
78
79
79
80
84
Figure 56: Metering Industry: Past Performance and Expected Market Size
86
87
88
LIST OF TABLES
NAME OF TABLE
Page No.
10
13
19
20
22
24
25
28
32
32
33
33
34
34
35
36
38
41
41
42
42
43
43
44
44
45
45
46
46
51
52
53
53
54
55
55
55
56
56
57
57
58
59
61
64
65
66
66
67
67
68
68
69
70
71
71
71
72
72
73
80
81
82
82
83
83
84
85
ABBREVIATIONS
ABC
IPTC
ACA
IS
Indian Standard
ACAR
ISTS
ACS
I-STS
ACSR
JV
Joint Venture
AMR
kV
Kilo Volt
ARR
kWh
Kilowatt Hour
AT&C
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
DISCO
M
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
T&D
GIS
ToD
Time of Day
HCTC
TRANSC
O
Transmission Company
HTMD
UHV
HVAC
VCB
HVDC
VT
Voltage Transformer
HVDS
WC
Whole Current
IEEMA
XLPE
INR
Indian Rupees
YoY
Year on Year
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 11thPlan, 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
11th 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.
Equipment Category
Cables
19,496
25.7%
14.5%
Conductors
5,914
4.3%
5.9%
Transmission Towers
6,257
-5.2%
6.4%
Switchgears
8,882
-2.4%
7.9%
Transformers
12,498
1.2%
5.5%
Capacitors
506
-1.8%
10.8%
Energy Meters
2,387
6.1%
5.8%
Rotating Machines
6,373
1%
5.5%
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.
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.
In spite of increasing imports, this industry has a very good potential for domestic as well as
export market in most of the developing and some of the developed countries. But matter is the
correct assessment of the market and selection of right equipment segment to enter in the
manufacturing business.
1.3 Objective
The objective of this report is as under
i. Analyzing the performance of Indian Electrical T&D equipment industry during last five
to ten years and current status.
ii. Analyzing the prospects and growth drivers of T&D equipment industry in next five to
ten years in India.
iii. Identification of equipment segment and exploring the business opportunity for a new
entrant in the market.
relationships with utilities; Indian and global energy majors and with individual captive plants.
Its services range from policy framework creation addressing sectoral issues, to project-driven
customized services meeting specific needs of the client.
In generation, Energy Division (ED) offers coal and IPP entry strategies, tariff studies, project
structuring, business plans and long-term fuel strategy procurement.
In transmission, ED offers transmission service agreements, cost of service, energy accounting at
the SLDC level, merit and UI trade analysis and grid support changes.
In distribution, the division conducts the valuation of an existing business, a go-no-go analysis,
set up distribution franchisees, offer tariff rationalization, ways to enhance revenues, reduce
T&D losses and costs of service.
In the regulatory area, ED assists with the ARR filings, review of regulations and regulatory
comparison, open access regulations and PPA renegotiations.
In the renewable area, ED provides strategic advisory services through the entire project cycle from site evaluation to post commissioning support; including assessment of business models,
technology issues, policy and regulatory factors.
In the energy efficiency space, ED enjoys a strong domestic and an evolving international
presence. As a Grade-II ESCO, it goes beyond providing traditional advisory or engineering
design services - offering guaranteed energy conservation solutions and project
development/management services to the household, industry, commercial and rural sector.
In the information technology space, ED is a leader in providing IT solutions to the Power
Distribution utilities and has undertaken IT assisted performance improvement for utilities across
the country. The Division is also moving into the Smart Grid arena with international
accreditations under its belt.
CHAPTER 2
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,
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 1: Snapshot: Indian Power Sector
Area
32.8 Lakh sq km
Population
(Census 2011)
1.21 Billion
(2010-11)
205,340 MW
Thermal: 136,436 MW
Hydro: 39,291 MW
(June 2012)
Nuclear: 4,780 MW
RES: 24,833 MW
(May 2012)
Unbundled Discoms
(2000-11)
73
(2009-10)
27.15%
Electrified Villages
th
Up to 11 Plan
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.
Source: CEA
The investment climate is very positive in the power sector. Due to policy liberalization, the
power sector has witnessed higher investment flows than envisaged. The power ministry has set
a target for adding 76,000 MW of electricity generation capacity in the 12th Plan (2012-17) and
93,000 MW in the 13th Plan (2017-2022). The Working Group on Power for formulation of the
12th 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.
11th Plan has emerged as the best inception period for private companies. On a positive note, the
better execution capabilities of private players came forth in the last FYP. Approx 23,000 MW of
capacity is added by the private sector during the 11th plan. Much of the capacity addition was
again through the thermal route. The working group envisages more than 40,015 MW of 76,000
MW of capacity to be added by private players in the current plan (ended 2017).
Table 2: Planwise Generation Capacity Addition
Plan
7th Plan
Central Sector
State Sector
Private Sector
Total
Target
Actual
Target
Actual
Target
Actual
Target
Actual
9,320
9,534.5
12,925
11,867
22,245
21,406
% Achievement
8th Plan
102%
12,858
% Achievement
9th Plan
11,904
% Achievement
4,504
22,832
13,005
10,748
15,220
2,810
9,353
11,157
6,245
17,589
71.7%
16,732
77%
30,538
5,262
7,121
1,931
40,245
23,013
118%
19,119
48%
41,110
27%
19,797
16,423
54%
30%
56%
21,355
1,430
96%
60%
87%
57%
21,222
6,835
0%
46%
37.8%
% Achievement
11th Plan
14,870
63.4%
% Achievement
10th Plan
8,157
92%
21,180
52%
62,374
54,964
88%
Source: CEA
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.
3.2.3 Capacity Addition: Transmission Lines
A program for construction of 88,515 ckm transmission lines for evacuation of power from
generating stations as well as for strengthening of transmission network was envisaged at the
beginning of the 11th Plan corresponding to generation capacity addition program of 78,700
MW.
Table 3: Growth of Transmission Lines (Ckm)
6th Plan
7th Plan
8th Plan
9th Plan
10th Plan
Central
1,634
3,234
4,368
5,948
State
1,504
1,504
1,504
JV/Private
1,980
Total
1,634
4,738
5,872
9,432
Central
751
1,775
5,319
State
409
409
411
Total
1,160
2,184
5,730
1,831
13,068
23,001
29,345
48,708
75,974
At the end of
500 kV HVDC
765 kV
400 kV
Central
State
4,198
6,756
13,141
20,033
24,730
33,681
JV/Private
2,284
8,443
Total
6,029
19,824
36,142
49,378
75,722
11,3367
Central
1,641
4,560
6,564
8,687
9,444
11,004
State
44,364
55,071
73,036
88,306
105,185
128,823
JV/Private
468
Total
46,005
59,631
79,600
96,993
114,629
140,164
Progressive Growth
52,034
79,455
117,376
152,269
198,407
Total# 268,693
220 kV
Source: CEA
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 2: Trend in Transmission Line Growth
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.
Figure 3: Voltage Segmentation in Growth of Transmission Lines
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.
7th Plan
8th Plan
9th Plan
10th Plan
Central
3,500
6,500
9,500
State
1,700
1,700
1,700
JV/Private
Total
5,200
8,200
11,200
Central
24,000
State
Total
25,000
Central
715
6,760
17,340
23,575
40,455
77,225
State
8,615
14,820
23,525
36,805
52,487
73,172
JV/Private
630
Total
9,330
21,580
40,865
60,380
92,942
151,027
Central
500
1,881
2,566
1,866
4,276
6,436
State
36,791
51,861
81,611
113,497
152,221
215,771
JV/Private
1,567
Total
37,291
53,742
84,177
116,363
156,497
223,774
Progressive Growth
46,621
75,322
125,042
181,943
257,639
Total# 411,001
At the end of
500 kV HVDC
765 kV
1,000
400 kV
220 kV
Source: CEA
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 4: Trend in Substation Capacity Growth
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.
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.
Source: CEA
Accelerated Power Development and Reforms Program (APDRP) was launched in 2002-03 as
an Additional Central Assistance (ACA) to finance the modernization of sub-transmission &
distribution networks with the main objectives to reduce AT&C losses to 15%. AT&C loss at
national level has been reduced from 38.86% in 2001-02 to 27.15% during 2009-10. While some
states have shown an improvement in AT&C Loss reduction, it is pertinent to note that the
absolute loss levels are still at a higher level with respect to losses and require further efforts for
loss reduction.
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
Source: CEA
Identification of transmission expansion requirement for a plan period is done based on power
system studies corresponding to the generation capacity addition program and forecasted demand
scenario expected at the end of that plan. Transmission alternatives are identified after the
detailed studies based on which the specific schemes are evolved, and re-evolved taking into
account the changes in the generation program from time to time and subsequently discussed and
firmed up.
Figure 8: Structure of T&D Network Planning
Sub-transmission System
132 kV and 66 kV
Distribution System
33 kV, 11 kV & below
Transmission System
Power system above 220 kV
New connections
Increase in demand
Intra-state transmission ability
General system strengthening
Implementation of new technology
Generation
75,785 MW
638,600
Transmission
180,000
Distribution
306,000
Total
1,124,600
The total fund requirement for development of 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 intraState 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
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.
765 kV
400 kV
220 kV
Total Ckm
9,440
27,000
38,000
35,000
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 10: Transmission Line Length (Ckm): Share of Voltage Level in Different Plans
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.
During the 12th Plan 270,000 MVA of AC transformation capacity and 13,000 MW of HVDC
substations are planned to be added.
Figure 11: Substation Capacity (MVA): Share of Voltage Level in Different Plans
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.
Table 7: Planned Addition of Substation Capacity in 12th Plan (2012-2017)
HVDC
765 kV
400 kV
220 kV
Total MVA
13,000
14,9000
45,000
76,000
283,000
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 10th Plan capacity reached
at 14,050 MW which has crossed the level of 28,000 MW by the end of 11th Plan. 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.
Source: CEA
Distribution sector has been remaining the underperformer since late 70s. Various reasons
as described earlier did not let the distribution business run on commercial principles. Now
the discoms are in the dire need of financial bail out package but it doesnt seem the long
term solution for sustainable development and survival. In the 12th Plan period, certain goals
have been set to achieve.
Units
Physical
2012-17
2012-17
New Lines
(i)
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
(ii)
22,400
11 kV U/G Cable
Ckm
112,000
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
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
(iii)
II
III
IV
22,400
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
R&D
25
Total
306,235
State
2009-10
Bihar
9,281
43.92
Jharkhand
8,396
10.43
8.93
CESCO
6,232
39.99
NESCO
4,705
36.68
SESCO
2,286
51.01
WESCO
6,301
37.58
Sikkim
512
51.37
WB
25,427
33.24
AP
670
52.99
Assam
4,392
29.03
Manipur
454
48.02
Meghalaya
1,342
48.73
Mizoram
320
39.06
Nagaland
385
45.97
Tripura
672
29.17
7.43
5.93
4.43
2.93
Orissa
Eastern
North East
Delhi
BRPL
9,667
19.83
BYPL
5,645
28.63
NDPL
6,910
15.69
8.19
DHBVNL
15,884
28.1
26.6
20.6
UHBVNL
15,211
29.91
HP
6,806
18.47
J&K
9,813
70.45
Punjab
38,806
17.73
AVVNL
12,345
33.04
JDVVNL
12,820
31.51
JVVNL
16,286
26.69
DVVNL
13,143
49.62
MVVNL
9,653
28.72
PaVVNL
17,766
27.92
PoVVNL
12,783
54.46
KESCO
2,722
37.36
Uttaranchal
8,280
33.53
APCPDCL
31,933
17.93
10.43
APEPDCL
10,814
9.69
8.19
2.19
APNPDCL
10,464
18.52
APSPDCL
15,300
16.63
BESCOM
20,317
21.1
19.6
GESCOM
5,764
38.05
HESCOM
7,402
28.51
MESCOM
3,274
18.39
CHESCOM
4,245
28.22
Kerala
16,129
14.89
Pondicherry
2,527
19.35
Tamil Nadu
66,974
20.15
Chhattisgarh
18,476
37.98
Goa
2,962
7.77
6.27
1.77
0.27
10,565
15.23
7.73
Haryana
Northern
25.1
23.6
22.1
10.23
Rajasthan
UP
AP
6.69
5.19
3.69
Karnataka
Southern
Western
18.1
4.77
16.6
3027
15.1
13.6
7.39
Gujarat
DGVCL
MGVCL
6,727
15.27
7.77
PGVCL
19,858
32.34
UGVCL
14,891
18.89
MPMKVVCL
10,563
42.26
MPPKVVCL
12,705
36.16
MPPUKVVCL
9,632
46.11
MSEDCL
80,526
25.02
Grand Total
667,963
27.15
MP
Maharashtra
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 10: Transmission & Distribution Equipments
Transmission Line Components
Substation Components
Conductors
Circuit Breaker
Transmission Towers
Isolator
Insulators
Current Transformer
Wave Trap
Potential Transformer
Auto Re-Closer
Lighting Arrester
Vibration Damper
Bus Bar
Corona Rings
Control Panels
Other Accessories
Relays
Capacitor Bank
10
Battery Bank
11
Metering Instruments
Source: IEEMA
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.
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).
4.2.1 Cable
Cables are used when underground transmission or distribution is required. These cables are laid
in ducts or may be buried in the ground. Unlike in overhead lines, air does not form part of the
insulation, and the conductor must be completely insulated. Thus cables are much more costly
than overhead lines. Cable consists of core that is made of copper. For insulation purpose,
different type of material & medium are used. It depends upon the level of voltage to
transmitting power.
voids is much more difficult. Belt insulation is used on top of all three core insulations, and
the lead sheath is extruded over this. Over the lead sheath, there is generally bitumen to
prevent damage.
4.2.3 Conductor
A conductor is a material that facilitates the flow of electricity (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.
Manufacturing
EPC
Mfg Unit: 4
Technology Sourcing
Indigenous
Across 70 countries such as: China, Denmark, India, Netherlands, Russia, South
Africa, Taiwan, Turkey, UAE, UK, USA
Nature of Business
Products/Services
Leading
Product/Service
Infrastructure
Annual Turnover
Global Footprints
Indian Clientele
Certification
Manufacturing
Products/Services
Power Conductors
Leading
Product/Service
Aluminum Conductor
Infrastructure
Mfg unit: 2
Technology Sourcing
Indigenous
Dubai
Annual Turnover
Global Footprints
Indian Clientele
Certification
Private companies such as: ABB, L&T Ltd, Torrent Power, Suzlon Energy, EMI
Transmission, Essar Power
ISO 9001-2008
1970
Manufacturing
EPC
Transformer Manufacturing
Nature of Business
Products/Services
Leading
Product/Service
Production Capacity
Annual Turnover
(2010-2011 and 200910)
Technology Sourcing
Indigenous
Global Footprints
Various SEBs of states such as: Assam, Gujarat, Haryana, Rajasthan, Karnataka,
MP, Maharashtra, Punjab, UP, West Bengal
Private companies such as: ABB, L&T Ltd, EMCO, CGL, Enercon, Suzlon Energy,
Kalpataru Power Transmission, Jindal, Essar Power
Indian Clientele
Certification
Nature of Business
1982
Manufacturing
EPC
Turnkey Projects
Products/Services
Leading Product/Service
Infrastructure
Mfg Unit: 2
Indigenous
Central utilities
Production Capacity
Technology Sourcing
Indian Clientele
Certification
ISO 9001-2000
Nature of Business
Manufacturing
EPC
Services
Power Cable
Products/Services
Power Cable
Infrastructure
Production Capacity
Technology Sourcing
Indigenous
Across 40 countries spread over Africa, Middle East, Central Asia, North America;
Leading
Product/Service
Annual Turnover
Global Footprints
Indian Clientele
Certification
Sr
No
ATO
(V)
Op Ex
(W)
EBIDTA
(Y)
PAT (Z)
INR
INR
INR
X/W
INR Y/V
IN
R
Z/
V
2,317
1,995
1,585
79%
320
14% 185 8%
763
NA
NA
NA
NA
NA
1,285
1,149
1,098
95%
159
12% 98
KEC International
4,057
3,593
2,172
60%
463
11% 275 7%
NA NA
8%
Cables
25.8
15,510
4.4
12.1
16.9
25.7
17.9
9,710
14.3
14.5
17.4
7.9
4,300
-26.6
2.4
34.3
44.5
Transmission Lines
23.4
14,070
13.5
9.2
-0.8
12.6
6,600
6.5
19
6.8
-5.2
Conductors
10.8
5,670
21.3
0.2
-0.8
4.3
Source: IEEMA
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%. 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 18: Strategic Analysis
Growth Drivers
12th Five Year Plan
New Transmission Lines: 109,440 Ckm
New Distribution : 1,305,000 Ckm
Re-Conductoring of Distribution Lines: 1,600,000 Ckm
Replacement of Old Transmission Lines
RGGVY scheme
System strengthening under R-APDRP Projects
Market Competitors
o JSK Industries Pvt. Limited
o Finolex Cables
o Diamond Power Infrastructure Limited
o Cable Corporation of India
o Birla Group
o Havells India
o Nicco Corp.
Prospective Clients
Central Transmission Utility
State Transmission Utilities
Existing & forthcoming private distribution companies
EPC companies
Major industries e.g. Petrochemicals, Mining, Steel/Metallurgical, Ship
building, Engineering, Cement, Railway, Defense
Entry Opportunity
o Very few dominant players
o Unorganized sector
Various local & regional manufacturers
Business Risk
Fluctuating raw material prices
Pricing issue specially with Govt. clients
Figure 20: Cable Industry: Past Performance and Expected Market Size
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.
Source: IEEMA
Figure 21: Conductor Industry: Past Performance and Expected Market Size
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.
Source: IEEMA
While being optimistic, this industry is expected to grow up to the size of INR 38,394 Crore.
Conductor industry has not witnessed a good growth rate over last five years. CAGR in 11th Plan
has been 5.9% with fluctuating performance.
Transmission
Transmission Lines
Sub-Transmission lines
Distribution
With operating voltages of 66 kV, 132 kV and up to 220 kV the sub-transmission system
distributes energy within an entire district and regularly uses overhead lines. With operating
voltage exceeding 220 kV, the transmission system interconnects generating stations and large
substations located close to load centers by using overhead lines.
poles. Lower-voltage lines use post insulators, while the high-voltage lines are built with
insulator chains or long-rod composite insulators. The normal distance between the supporting
towers is a few hundred feet. Transmission lines are subject to environmental adversities,
including wide variations of temperature, high winds, and ice and snow deposits. Typically
designed to withstand environmental stresses occurring once every 50100 years, lines are
intended to operate safely in adverse conditions.
A distinction is made between the anchor towers and the intermediate towers of a power
transmission line. The rigid and strong construction of the anchoring towers is intended to
withstand considerable stresses caused by tension in the lines. Anchor towers are installed at the
beginning and end of a power transmission line, at turns, and at points where the line passes over
water or through mountains. Intermediate towers are not as strongly constructed, serving mainly
to support the power lines and cables along straight sections.
Type of the transmission towers used in a circuit depends mainly on following factors.
Featuring a streamlined, aesthetic shape, this structure is less massive than other
towers, allowing it to blend easily into the environment. Therefore, it's being used more
and more in urban centre. Measuring between 27 and 45 meters in height, it's suitable
for voltages ranging from 110 to 315 kV.
Guyed-V Tower
This tower is designed for voltages ranging from 230 to 735 kV. It is more economical
than the double-circuit and waist-type towers. These towers have also been
used by the transmission companies in cases where more space is
available. These are simple, easy and cheaper to install. The guyed
towers also require less time for installation. The main disadvantage is
that these towers require more space due to presence of guy wires.
Manufacturing
EPC
Tower Manufacturing
Nature of Business
Products/Services
Tower Manufacturing
Infrastructure
Mfg unit: 2
Production Capacity
Leading
Product/Service
Annual Turnover
(2010-2011 and 200910)
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
o
ISO 9001-14001
Manufacturing
Tower Manufacturing
Tower Manufacturing
Infrastructure
Mfg unit: 1
Production Capacity
Nature of Business
Products/Services
Leading
Product/Service
Annual Turnover
(2010-2011 and 200910)
Global Footprints
Government utilities such as: BHEL, NTPC, ONGC, NPCIL, BPCL, IOCL,
PGCIL, AAI, Indian Railways, Ministry of Defense, Konkan Railway, MSETCL,
HVPNL
Indian Clientele
Certification
ISO 9001:2000, IS
Manufacturing
EPC
Services
Power Cable
Tower Manufacturing
Tower Manufacturing
Power Cable
Infrastructure
Production Capacity
Nature of Business
Products/Services
Leading
Product/Service
Annual Turnover
(2010-2011 and 200910)
Global Footprints
o
o
o
Indian Clientele
o
Certification
Across 40 countries spread over Africa, Middle East, Central Asia, North
America;
Manufacturing in Brazil and Mexico
1970
Manufacturing
EPC
Tower Manufacturing
Transformer Manufacturing
Nature of Business
Products/Services
Leading
Product/Service
Production Capacity
Annual Turnover
(2010-2011 and 200910)
Global Footprints
Israel
o
o
Indian Clientele
Certification
Manufacturing
EPC
Tower Manufacturing
Conductor Manufacturing
Nature of Business
Products/Services
Infrastructure
Production Capacity
Annual Turnover
(2011-2012 and 201011)
Global Footprints
Indian Clientele
Certification
1984
Manufacturing
EPC
Turnkey Projects
Tower Manufacturing
Nature of Business
Products/Services
Infrastructure
Infrastructure
Mfg unit: 3
Production Capacity
Global Footprints
Annual Turnover
Indian Clientele
Various state such as: Govt. of Andhra Pradesh, Govt. of West Bengal
Certification
1972
Manufacturing
EPC
Tower Manufacturing
Nature of Business
Products/Services
Infrastructure
Mfg unit: 1
Production Capacity
Global Footprints
Indian Clientele
Certification
Manufacturing
EPC
Tower Manufacturing
Mfg unit: 6
Nature of Business
Products/Services
Infrastructure
Production Capacity
Global Footprints
Indian Clientele
o
o
Certification
Manufacturing
EPC
Tower Manufacturing
Tower Manufacturing
Mfg unit: 3
Nature of Business
Products/Services
Leading
Product/Service
Infrastructure
Indian Clientele
Certification
ISO 9001:2000
Sr No Company Name
ATO (V) Op Ex (W) Raw Mat. Cost (X) EBIDTA (Y) PAT (Z)
INR
INR
INR
X/W
INR
Y/V
INR Z/V
2,874
2,497
1,277
51%
377
13%
149 5%
IVRCL
5,659
NA
NA
NA
523
9%
158 3%
KEC International
4,057
3,593
2,172
60%
463
11%
275 7%
1,285
1,149
1,098
95%
159
12%
98
8%
Jyoti Limited
2,647
2,376
1,431
60%
271
10%
61
2.3%
5,636
5,297
1,488
28%
339
6%
184 3.3%
SPML
1,219
1104
420
38%
115
10%
25
ICSA
1,406
1,115
1,011
90%
291
20%
118 8%
2%
Weight (%)
YoY % Change
2010-11
Transmission Lines
23.4
14,070
13.5
9.2
-0.8
12.6
6,600
6.5
19
6.8
-5.2
Conductors
10.8
5,670
21.3
0.2
-0.8
4.3
Source: IEEMA
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 31: Strategic Analysis
Growth Drivers
12th Five Year Plan
o New Transmission Lines: 109,440 Ckm
o New Distribution : 1,305,000 Ckm
o Interregional Transmission Capacity: 37,000 MW
o Investment of INR 180,000 in 12th Plan
o RGGVY and R-APDRP Projects
Market Competitors
Kalpataru Power Transmission Ltd
IVRCL
KEC International
Diamond Power Infrastructure Limited
o Jyoti Structures Limited
o Gammon India Ltd
o Unitech Power Transmission Ltd
o Aster Private Ltd
o Man Structurals Pvt. Ltd
Prospective Clients
o Central Transmission Utility
o State Transmission Utilities
o Private transmission and distribution companies
o EPC players
Entry Opportunity
Increasing voltage level for bulk transmission and hence EHV
RoW requirement
Business Risk
o Fluctuating raw material prices
o Pricing issue specially with Govt. clients
o Industry is highly dependent and driven by growth in power sector
o Lack of domestic testing facilities for EHV towers
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.
o Fiscal performance of state transcos and discoms continues to be poor with little
or no funds for planned investment.
Figure 28: Tower Industry: Past Performance and Expected Market Size
Tower manufacturing capacity is a mature enough industry in the country. It has been
showing fluctuating performance for last five years. Still future of this segment is bright
due to adoption of higher voltage for power transmission.
Source: IEEMA
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.
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
Current Transformers
Voltage Transformers
When voltage level of a circuit is too high to 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.
1964
Nature of Business
Manufacturing
EPC
R&D
Power Transformers
Switchgear
BTG Sets
BOP
Power Transformers
BTG Sets
Switchgear
Mfg unit: 15
Business office: 15
Service centre: 8
Siemens AG Germany
Germany ABB
Switzerland
General Electric
USA
Products/Services
Leading
Product/Service
Infrastructure
Annual Turnover
(20010-11 and 200910)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Steel Industry
ASME, API
Manufacturing
EPC
Services
R&D
Power Transformers
Switchgear
Substation Erection
Consumer Products
Power Transformers
Switchgear
Nature of Business
Products/Services
Leading
Product/Service
System Automation
Mfg unit: 8
Sales offices: 19
R&D center: 10
Technology Sourcing
Indigenous technology
Global Footprints
Indian Clientele
Infrastructure
Annual Turnover
Certification
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
Manufacturing
EPC
Services
R&D
Power Transformers
Nature of Business
Products/Services
Switchgear
Substation Erection
Consumer Products
Power Transformers
Switchgear
System Automation
Mfg unit: 12
Marketing offices: 23
Service center: 8
Logistic warehouse: 3
Training centers: 4
Technology Sourcing
Indigenous technology
Leading
Product/Service
Infrastructure
Annual Turnover
Global Footprints
Indian Clientele
Certification
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
Manufacturing
EPC
Services
R&D
Power Transformers
Switchgear
Substation Erection
Consumer Products
Power Transformers
Switchgear
Nature of Business
Products/Services
Leading
Product/Service
Rotating Machines
System Automation
Mfg unit: 20
Infrastructure
Annual Turnover
(20010-11 and 200910)
Technology Sourcing
Global Footprints
Indian Clientele
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Steel Industry
Certification
ISO 9001, ISO 14001, OHSAS 18001, CPRI, IEC, ANSI, IS, KEMA, BS, CSA, UL, ATEX,
CE
Manufacturing
EPC
Services
R&D
Nature of Business
Power Transformers
Switchgear
Substation Erection
Power Transformers
Switchgear
System Automation
Mfg unit: 8
Sales offices: 25
R&D center: 4
Engineering center: 2
(20010-11)
Technology Sourcing
Indigenous technology
Global Footprints
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Products/Services
Leading
Product/Service
Infrastructure
Annual Turnover
Indian Clientele
1943
Manufacturing
Turnkey Projects
Electrical Repairs
Switchgear
Switchgear
(2009-10)
INR 66 Crore
Technology Sourcing
Indigenous
Indian Clientele
Nature of Business
Products/Services
Leading
Product/Service
Annual Turnover
Certification
Manufacturing
EPC
Services
R&D
Switchgear
Switchgear
Technology Sourcing
Global Footprints
Indian Clientele
Nature of Business
Products/Services
Leading
Product/Service
Annual Turnover
Certification
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Fertilizer Industry, Steel Industry
ISO 9001
Manufacturing
Instrument Transformers
Auxiliary Transformers
Distribution Transformers
Metering Cubicle
Leading
Product/Service
Instrument Transformers
Infrastructure
Mfg unit: 3
Technology Sourcing
Indigenous
Nature of Business
Products/Services
Indian Clientele
Certification
Entities such as: BHEL, Siemens, ABB, CGL, ALSTOM, L&T, CGL,
Nagarjuna Construction Company, Indian Railways, Subhash Projects
ISO 9001-2008, IS
1994
Manufacturing
Instrument Transformers
Products/Services
Leading
Product/Service
Instrument Transformers
Infrastructure
Mfg unit: 1
Technology Sourcing
Indigenous
Power utilities such as: Areva, ABB, BBMB, BHEL, CGL, INRCL
International Ltd, KEC International, Nagarjuna Construction
Indian Clientele
Certification
Manufacturing
Instrument Transformers
Isolating Transformers
HV Testing Transformers
Leading
Product/Service
Instrument Transformers
Infrastructure
Mfg unit: 1
Nature of Business
Products/Services
Technology Sourcing
Indian Clientele
Certification
Indigenous
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
1966
Manufacturing
Instrument Transformers
Products/Services
Instrument Transformers
Technology Sourcing
Indigenous
Global Footprint
Indian Subcontinent, East Asia, Middle East and South East Asia
Various SEBs
Private Utilities
Nature of Business
Products/Services
Indian Clientele
o
Certification
Industrial Consumers
Sr No Company Name
INR
INR
X/W
INR
Y/V
INR Z/V
BHEL
43,337
33,856
23,209
69%
9,538
12,253
3,895
2,162
56%
1,409
12% 868
7%
ABB Limited
7,693
7,126
5,518
77%
393
5%
2%
6,276
5,018
2,828
56%
937
15% 694
11%
3,718
2,875
77%
319
8%
65
2%
Biecco Lawrie*
66
62
39
63%
6%
3%
Jyoti Limited
395
341
270
80%
54
14% 18
185
5%
After two consecutive years of double-digit growth, the switchgear industry had to
contend with a 2.4 per cent fall in FY12. In FY11, the segment had grown by 21.2% that
had come over and above a 14.5% growth in FY10. It is estimated that the size of the
switchgear market, (not including domestic switches), was around INR 9,100 Crore in
2010-11.
Table 44: Performance of Switchgear Industry
Name of the Equipment
Weight (%)
YoY % Change
2011-11
Switchgear
15.1
9,100
14.5
21.2
-2.4
Power Contactors
2.6
1,000
-17.8
41
28.7
-10.4
LT Circuit Breakers
3.6
1,360
-1
29.4
19.5
-5.8
MCBs
2.8
1,050
9.7
23
7.7
15.5
0.5
207
-11.1
5.3
3.8
-4.3
HT Circuit Breakers
5.6
2,140
2.4
-5.8
28.4
-5.8
Source: IEEMA
Growth Drivers
12th Five Year Plan
o Focus on RGGVY schemes
System
o Introduction of gas insulated switchgears which require less space
o Increasing system automation
Market Competitors
o Siemens India Limited
o ABB Limited
o Crompton Greaves Limited
o BHEL
o Schneider Electric
o Pentagon Switch Gear
o Biecco Lawrie Limited
o Jyoti Limited
o Power Protection
Prospective Clients
o Central Transmission Utility
o State Transmission Utilities
o Existing & forthcoming private distribution companies
o EPC companies
Entry Opportunity
o Around 15-20 leading manufacturers in country
o Present market is dominated by multinational players, therefore good
facilities
o Competitive pricing
o Volatile price of raw material
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 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.
Figure 36: Switchgear Industry: Past Performance and Expected Market Size
Switchgear industry has been growing for last years at a CAGR of 7.9%. Only in FY
2011-12 it witnessed negative growth. Still future of this product is good enough due to
R&M plans of old power plants. This factor is the main growth driver of this industry.
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
A transformer is a static machine used for transforming voltage level from one circuit
to another circuit without changing frequency. By using a step up transformer at the
sending end of the power system network we transmit the power at high voltage. This
power may not be distributed to the consumers directly and must be stepped down to the
desired level at the receiving end with help of step down transformer.
Table 46: Types of Transformer
Power Transformer
Distribution
Transformer
Instrument
Transformer
Above 1 MVA, 33 kV
Up to 1 MVA, 11 kV
Distribution
Types
Rating
the current travels throughout every turn. Larger power transformers operating at high
voltages may be wound with copper rectangular strip conductors insulated by oilimpregnated 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
Conservator Tank
Two main roles of conservator: whenever high electrical stress are produces inside the
transformer due to fault then temperature raise of oil it gives contraction effect & gases
also produced inside the main tank then it takes a path to release the pressure via
Buchholz relay to the conservator & breather releases the gas.
Conservator tank is provided to maintain the oil level in the transformer. It is never
filled with oil up to the neck. Thermal expansion nature of the oil is kept in the view and
therefore oil is filled only up to 3/4th of conservator tank level.
Radiator
Radiators are used in a transformer to cool the transformer oil through natural air or
forced air flowing in these radiator fins. As the transformer oil temperature goes down
due to cooling it goes to the transformer tank from bottom, cool the windings and gets
heated, and then returns to the radiator for next cooling. This cycle repeats as the oil
flow is also natural due difference in temperature of oil on bottom and top. In big power
transformers this oil circulation is forced by oil pumps for effective cooling. The
radiator has many small fins and there are 4-10 radiator banks in a transformer
depending on capacity and make of the transformer.
Buchholz Relay
Buchholz Relay in transformer is an oil container housed the connecting pipe from main
tank to conservator tank. It has mainly two elements. The upper element consists of a
float. The float is attached to a hinge in such a way that it can move up and down
depending upon the oil level in the Buchholz Relay Container. One mercury switch is
fixed on the float. The alignment of mercury switch hence depends upon the position of
the float. The lower element consists of a baffle plate and mercury switch. This plate is
fitted on a hinge just in front of the inlet (main tank side) of Buchholz Relay in
transformer in such a way that when oil enters in the relay from that inlet in high
pressure the alignment of the baffle plate along with the mercury switch attached to it,
will change. In addition to these main elements a Buchholz Relay has gas release
pockets on top. The electrical leads from both mercury switches are taken out through a
molded terminal block.
Bushings
A bushing is a hollow electrical insulator through which a conductor may pass. The
bushing is a hollow insulating liner that fits through a hole in a wall or metal case,
allowing a conductor to pass along its centre and connect at both ends to other
equipment. The purpose of the bushing is to keep the conductor insulated from the
surface it is passing through. Bushings are often made of wet-process fired porcelain,
and may be coated with a semi-conducting glaze to assist in equalizing the electrical
stress along the length of the bushing.
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 lowvoltage 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 directcurrent 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 47: Transformer: Domestic Demand Vs Supply
2006-07
2007-08
2008-09
2009-10
2010-11
1,13,360
1,44,190
1,52,065
1,72,065
2,10,000
Production (MVA)
90,810
1,07,723
1,22,487
1,29,049
1,68,000
1,39,364
1,60,129
1,83,988
2,11,402
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.
Table 48: Performance of Transformer Industry
Name of the Equipment
Weight (%)
YoY % Change
2010-11
Transformers
20.6
12,350
-1.2
9.1
13.5
1.2
Power Transformers
8.6
5,150
25.8
17.2
13.2
7.4
Distribution Transformers
12
7,200
-16.9
13.8
-3.3
Source: IEEMA
Demand Segments
The Indian transformer manufacturing is a mature industry with large manufacturing
base. Huge capacity has been added by several manufacturers over the last 5-7 years
based on the planned programs. Indian Electrical Equipment industry over the years has
also gained global acceptance and India has emerged as a preferred destination for
sourcing of quality, reliable and competitively priced 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 Planthe 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.
Table 49: Transformer: Demand Creators
Transformer Demand Segment
2012-13
2013-14
2014-15
2015-16
2016-17
TOTAL
GT Capacity (MVA)
20,497
19,011
19,974
21,090
16,265
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
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 50: Transformer Exports from India
Figures in INR Crore
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
CAGR
Up to 650 kVA
65.1
175.9
234.7
251.2
379.1
460.1
48%
38
127.6
161.8
200.2
189
212.4
41%
Above 10 MVA
307.6
488.7
699
1273.5
1221.2
748.9
19%
410.7
792.2
1095.5
1724.9
1789.3
1421.4
28%
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 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.
Vijai Electricals
BHEL
ABB Limited
Alstom (Areva)
Bharat Bijlee
EMCO
Voltamp
Prospective Clients
RTS Power
Accurate Transformer
TELK
IMP
EPC Companies
o
o
Diamond Power
Infrastructure Limited
1964
Manufacturing
EPC
R&D
Power Transformers
Switchgear
BTG Sets
BOP
Nature of Business
Products/Services
Power Transformers
BTG Sets
Switchgear
Mfg unit: 15
Business office: 15
Service centre: 8
Siemens AG Germany
Germany ABB
Switzerland
General Electric
USA
Global Footprints
Indian Clientele
Leading
Product/Service
Infrastructure
Annual Turnover
(20010-11 and 200910)
Technology Sourcing
Certification
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Steel Industry
ASME, API
Manufacturing
EPC
Services
R&D
Power Transformers
Switchgear
Substation Erection
Consumer Products
Power Transformers
Switchgear
System Automation
Mfg unit: 8
Sales offices: 19
R&D center: 10
Indigenous technology
Nature of Business
Products/Services
Leading
Product/Service
Infrastructure
Annual Turnover
(20010-11 and 200910)
Technology Sourcing
Global Footprints
Indian Clientele
Certification
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
Manufacturing
EPC
Services
R&D
Power Transformers
Switchgear
Capacitors
Substation Erection
Consumer Products
Nature of Business
Products/Services
Power Transformers
Switchgear
System Automation
Mfg unit: 12
Marketing offices: 23
Service center: 8
Logistic warehouse: 3
Training centers: 4
Technology Sourcing
Indigenous technology
Global Footprints
Indian Clientele
Leading
Product/Service
Infrastructure
Annual Turnover
Certification
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
Manufacturing
EPC
Services
R&D
Power Transformers
Switchgear
Substation Erection
Consumer Products
Power Transformers
Switchgear
Rotating Machines
System Automation
Mfg unit: 20
Nature of Business
Products/Services
Leading
Product/Service
Infrastructure
Annual Turnover
(20010-11 and 200910)
Technology Sourcing
Technology
Global Footprints
Indian Clientele
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Steel Industry
Certification
ISO 9001, ISO 14001, OHSAS 18001, CPRI, IEC, ANSI, IS, KEMA, BS, CSA, UL, ATEX,
CE
Manufacturing
EPC
Services
R&D
Power Transformers
Switchgear
Substation Erection
Power Transformers
Nature of Business
Products/Services
Leading
Product/Service
Switchgear
System Automation
Mfg unit: 8
Sales offices: 25
R&D center: 4
Engineering center: 2
(20010-11)
Technology Sourcing
Indigenous technology
Global Footprints
Indian Clientele
Infrastructure
Annual Turnover
Certification
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Steel Industry
Manufacturing
Products/Services
Power Transformers
Distribution Transformers
Leading
Product/Service
Rectifier Transformers
Furnace Transformers
Reactors
Transformers
Mfg unit: 3
Infrastructure
Annual Turnover
(20010-11 and 200910)
Technology Sourcing
Indigenous technology
Global Footprints
South Africa, Ethiopia, Bhutan, Canada, Congo, Tanzania, Bangladesh, Mozambique, Oman,
Iran, Nepal, Kenya, Ghana, USA, Australia, Uzbekistan, Saudi Arabia, UK, Philippines, UAE,
Bangladesh
Indian Clientele
Certification
Power Utilities, Oil & Gas Sector, Mining Sector, Indian Railways, EPC
Contractors, Cement Industry, Steel Industry
Products/Services
1973
Manufacturing
Power Transformers
Distribution Transformers
Switchgear
Leading
Product/Service
Transformers
Technology Sourcing
Global Footprints
Infrastructure
Annual Turnover
APEB, MSEB, Gujarat SEB, Rajasthan SEB, ABB, UPSEB, Asam SEB,
BSEB, BSES,Enercon India Ltd, HSEB, KSEB
Indian Clientele
Certification
Lloyds-UK, Crown Agents- UK, BSI Inspectorate Griffith, OMIC Japan, CAPE- Thailand,
Tubescope Vecto GmbH Germany
1963
Manufacturing
Services
Transformers
Unitized Substation
Nature of Business
Products/Services
Induction Furnace
Lighting Arrestor
Electrical Maintenance
Leading Product/Service
Transformers
Infrastructure
Mfg unit: 2
Technology Sourcing
Indigenous technology
Global Footprints
Indian Clientele
Annual Turnover
Certification
Nature of
Business
Products/Service
s
1946
Manufacturing
EPC
Transformers
Mfg unit: 1
Branch Office: 13
Technology
Sourcing
Indigenous technology
Global Footprints
Leading
Product/Service
Infrastructure
Annual Turnover
Indian Clientele
Certification
1964
Nature of Business
Manufacturing
EPC
Services
Transformers
Sub-station EPC
Energy meters
Transformers
EPC
Mfg unit: 6
Technology Sourcing
Indigenous technology
Products/Services
Leading
Product/Service
Infrastructure
Annual Turnover
Global Footprints
Indian Clientele
Certification
Power Utilities, Oil & Gas Sector, Mining, EPC Contractors, Cement
Industries, Steel Industries
Sr No Company Name
INR
INR
INR
X/W
INR
Y/V
INR Z/V
BHEL
43,337
33,856
23,209
69%
9,538
22%
6,011 14%
12,253
3,895
2,162
56%
1,409
12%
868
7%
ABB Limited
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%
Vijai Electricals
1,849
1,689
1,350
80%
160
9%
18
1%
Voltamp
526
470
442
94%
67
13%
51
9%
Bharat Bijlee**
781
685
535
78%
96
12%
60
7%
10
EMCO
1049
1054
900
(4.7)
(67)
Figure 45: Transformer Industry: Past Performance and Expected Market Size
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 29,500Crore. While looking at the past trend, this industry is expected to
grow up to the size of INR 16,323 Crore.
Distribution Utilities
o Large number of projects coming up under R-APDRP and RGGVY.
o Thrust on decreasing the AT&C losses: investments in distribution and sub
transmission infrastructure.
EPC Companies
o EPC players are flooded with projects due to transformation in utility approach
from cost plus to turnkey basis.
o Better commercial arrangement can be outlined.
o Repeating orders.
o Easy reach to clients exposed to limited established players (transformer
manufacturers).
Electromechanical Meter
The most common type of electricity meter is the electromechanical induction watt-hour
meter. The electromechanical induction meter operates by counting the revolutions of
an aluminum disc which is made to rotate at a speed proportional to the power. The
number of revolutions is thus proportional to the energy usage. The voltage coil
consumes a small and relatively constant amount of power, typically around 2 watts
which is not registered on the meter. The current coil similarly consumes a small amount
of power in proportion to the square of the current flowing through it, typically up to a
couple of watts at full load, which is registered on the meter.
Electronic Meter
Electronic meters display the energy used on an LCD display, and can also transmit
readings to remote places. In addition to measuring energy used, electronic meters can
also record other parameters of the load and supply such as maximum demand, power
factor and reactive power used etc. They can also support time-of-day billing, for
example, recording the amount of energy used during on-peak and off-peak hours.
Now a day, electronic meters are able to store the data for a long time which can be
downloaded at any time of need. Meters with battery back up are able to transmit the
data even when main power supply is off. Various kinds of signaling and indication
functions are available to detect any kind of tempering or violation of safety norms. All
of these functions are controlled through inbuilt electronic microprocessor.
HTMD Meter
This is instrument transformers supported metering system. This type of meter is
connected through the secondary of current transformer and potential transformer. These
are used at the points in power system where voltage and current both are at
very high level and their direct measurement is not possible.
Technical Specification:
o Type: 3 Phase
o Accuracy Class: 0.1, 0.2, 0.5
o Current Rating: For the load above 200 Ampere where CT is used
o Voltage Rating: For the system above 440 Volts where PT is used
Application:
o Generating Stations (Apex Meters)
LTCT Meter
This is current transformer supported metering system. This type of meter is connected
through the secondary of current transformer but potential transformer is not used.
These are used at the points in power system current is at very high level and its direct
measurement is not possible.
Technical Specification:
o Type: 3 Phase
o Accuracy Class: 0.5, 1.0
o Current Rating: For the load above 200 Ampere where CT is used
o Voltage Rating: For the system up to 440 Volts where PT is not used
Application:
o HT Consumers
o LT Consumers
o DT Metering
metering standards.
Technical Specification:
o Type: 1 Phase and 3 Phase
o Accuracy Class: 1.0, 2.0
o Current Rating: For the load up to 100 Ampere where CT is not used
o Voltage Rating: For the system up to 440 Volts where PT is not used
Application:
o Domestic Consumers
o Small Commercial Complexes etc.
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.
There are more than twenty five companies manufacturing approximately 20 million
energy meters per year in India.
Table 63: Genus Power Infrastructures Ltd
Year of Establishment 1992
Manufacturing
Turnkey Services
Automation
R&D
EPC in T&D
Billing Solutions
Meter Manufacturing
System Automation
Indigenous Technology
Nature of Business
Products/Services
Leading
Product/Service
Infrastructure
Annual Turnover
(2010-2011 and 200910)
Technology Sourcing
Global Footprints
Indian Clientele
Various SEBs of States such as: KSEB, ASEB, RSEB, MSEB, MPSEB,
UPPCL, UPCL, DHBVNL, JKPDD
Other Players Such as: Reliance Energy, Ahmadabad Electricity Co., Surat
Electricity Company, Tata Power, Torrent Power Ltd, Maruti Udyog Ltd, Instruments
Ltd
1988
Manufacturing
Turnkey Services
Automation
R&D
Nature of Business
EPC in T&D
Billing Solutions
Meter Manufacturing
System Automation
(2010-2011)
Technology Sourcing
In house R&D
Products/Services
Leading
Product/Service
Infrastructure
Annual Turnover
Global Footprints
Indian Clientele
Certification
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
Nature of Business
Manufacturing
Turnkey Services
R&D
Relay Manufacturing
Meter Manufacturing
Relay Manufacturing
Infrastructure
Technology Sourcing
Indigenous Technology
Products/Services
Leading Product/Service
Global Footprints
Indian Clientele
Certification
Industrial Consumers
Private Utilities
NABL
Manufacturing
Turnkey Projects
Energy Meter
AMR Solutions
Transformer
Switchgear
Elevator
Energy Meter
Transformers
Nature of Business
Products/Services
Leading Product/Service
Infrastructure
Annual Turnover
(2010-2011 and 2009-10)
Technology Sourcing
Indian Clientele
Certification
Industrial Consumers
Private Utilities
1956
Manufacturing
Energy Meter
Relays
Switchgears
Lighting
Luminaries
Energy Meter
Switchgears
Marketing Offices: 69
Products/Services
Leading Product/Service
Infrastructure
Dealers: 1,200
Retailers: 15,000
European Markets
Industrial Consumers
Private Utilities
Global Footprints
Indian Clientele
Certification
1988
Manufacturing
Energy Meter
Relays
Products/Services
Leading
Product/Service
Energy Meter
Infrastructure
Mfg unit: 1
Annual Turnover
(2009-10)
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
Indian Clientele
Certification
Energy Meters
Weight (%)
3.7
Source: IEEMA
YoY % Change
2010-11
2,250
-8.2
11.3
15.4
6.1
This can be attributed to sharp decline in financial health of most of distribution utilities
during the FY 2011-2012.
During the Year 2009-10 sales of energy meters increased by over 11.3% mainly due to
38% growth in Single phase static meters. Share of Electromagnetic meters has further
reduced to 4.5%. CEA guidelines, which have mandated use of static meters, have seen
the Indian energy 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.
Growth Drivers
12th Five Year Plan
o RGGVY and R-APDRP Projects
o 5 Crore new connections to be added
o Investment in Smart Grid: INR 9,500 Crore
Market Competitors
Genus Power Infrastructures Ltd
o Secure Meters Ltd
o L&T Limited
Capital Meters Ltd
ECE Industries Ltd
Elster Metering Pvt. Ltd.
Landis Gyr Ltd
HPL Metering Pvt. Ltd
Mahashakti Energy Ltd
o Automatic Electric Ltd
o Power Protection
o Bentec Electricals & Electronics Ltd
Prospective Clients
o Central & State transmission utilities
o Govt. & private discoms
o Industrial Consumers
Current Issues
Business Risk
o More than 50% market share is held by top two players
o Pricing issue specially with Govt. clients
o Industry is highly dependent and driven by growth in power sector
o Lack of domestic testing facility at large scale
Figure 56: Metering Industry: Past Performance and Expected Market Size
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 metermanufacturing 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.
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.
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 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
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.
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
Cable
Outstanding
Conductor
Low
Transmission Tower
Medium
High
Transformer
Medium to High
Energy Meter
Outstanding
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)
th
14.5%
104%
Business Opportunity
Outstanding
6.3 Conductor
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)
68%
th
5.9%
51%
Business Opportunity
Low
67%
th
6.4%
47%
Business Opportunity
Medium
th
7.9%
59%
Business Opportunity
High
6.6 Transformer
Transformer manufacturing can be divided in to two segments. One is Distribution
transformers and another is Power transformers. Indian market is performing well with
respect to both segments.Some major bottlenecks such as limited domestic EHV and
UHV transformer testing facilities and in house sourcing of key raw material are
hindering the sector growth. In spite of these challenges transformer industry is able to
cope up with the foreign players. Future of this industry can be rated as Medium to
High.
Transformer
Market Size (2011-12)
75%
th
5.5%
55%
Business Opportunity
Medium to High
Manufacturing of Energy Meters in India can promise any manufacturer for a long
lasting and consistent growth. This business is likely to follow one of the highest growth
rates at least for next ten to fifteen years. Modern technology and state of the art
manufacturing facility is the key to success in this business. Lack of adequate Meter
testing facility is one of the major bottlenecks of this industry. Now it has
become technology oriented process therefore number of leading 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)
th
11 FYP CAGR
5.8%
57%
Business Opportunity
Outstanding
IVRCL
Jyoti Structures Limited
Gammon India Ltd
Unitech Power Transmission Ltd
Aster Private Ltd
Man Structurals Pvt. Ltd
Biecco Lawrie Limited
Jyoti Limited
Vishal Transformers & Switchgears (P) Ltd
Heptacare Power Industries Pvt. Limited
Hivoltrans Electricals Pvt. Ltd
SCT Limited
Macroplast Pvt. Ltd
Kappa Electricals
Genus Power Infrastructures Ltd
Secure Meters Limited
L&T Limited (Electrical & Automation Division)
ECE Industries Limited
HPL Metering Pvt. Ltd
Capital Power Systems Ltd
Following assumption and steps have been adopted while finding out the future market
size as per tables displayed below.
2. This data sheet includes major T&D equipments as per mentioned by IEEMA.
IEEMA consists 95% Indian Electrical Equipment Manufacturers.
3. Actual market size for 2010-11 was available. Apart from it YoY % growth rate
was available. Accordingly, markat size for 2008-09, 2009-10 and 2011-12 has
been calculated.
4. On the basis of available market size of last five consecutive years, CAGR has
been calculated.
5. Assumption for market size forecasting: Conservative approach has been
adopted with consideration that Market will grow at the same CAGR of last five
years.
6. Prospective market has been calculated with the help of found CAGR.
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"
ANNEXURE I (Following raw data sourced from IEEMA, CEA & thereafter
calculated)
Performance of Major T&D Equipments Industry: 2007-08 to 2011-12
Weight 2007(%)
08
2008-09
2009-10
2010-11
2011-12
YoY
Market Market
Growth
Size
Size
(%)
YoY
Market
Growth
Size
(%)
YoY
Market
Growth
Size
(%)
YoY
Market
Growth
Size
(%)
Rotating
Machines
10.5
5144
4964
-3.5%
5624
13.3%
6310
12.2%
6373
1.0%
LT Motors
5.1
2305
2155
-6.5%
2644
22.7%
2985
12.9%
3021
1.2%
HT Motors
2.1
996
1126
13.1%
1242
10.3%
1225
-1.4%
1492
21.8%
Alternators
1.9
888
914
2.9%
924
1.1%
1115
20.7%
918
-17.7%
FHP Motors
1.4
733
642
-12.3%
665
3.5%
780
17.3%
734
-5.9%
Switchgear
15.1
6557
6557
0.0%
7508
14.5%
9100
21.2%
8882
-2.4%
670
551
-17.8%
777
41.0%
1000
28.7%
896
-10.4%
LT Circuit
Breakers
3.6
888
880
-1.0%
1138
29.4%
1360
19.5%
1281
-5.8%
MCBs
2.8
723
793
9.7%
975
23.0%
1050
7.7%
1213
15.5%
213
189
-11.1%
199
5.3%
207
3.8%
198
-4.3%
HT Circuit
Breakers
5.6
1728
1769
2.4%
1667
-5.8%
2140
28.4%
2016
-5.8%
Cables
25.8
11337
11836
4.4%
13268
12.1%
15510
16.9%
19496
25.7%
6807
7780
14.3%
8908
14.5%
9710
9.0%
11400
17.4%
4260
3127
-26.6%
3202
2.4%
4300
34.3%
6214
44.5%
Transformers
20.6
10095
9973
-1.2%
10881
9.1%
12350
13.5%
12498
1.2%
Power
Transformers
8.6
3086
3882
25.8%
4549
17.2%
5150
13.2%
5531
7.4%
Distribution
Transformers
12
7392
6143
-16.9%
6327
3.0%
7200
13.8%
6962
-3.3%
Capacitors
0.9
336
345
2.6%
382
10.7%
515
34.9%
506
-1.8%
HT Capacitors
0.3
120
128
6.7%
169
32.2%
200
18.2%
183
-8.3%
LT Capacitors
0.6
220
222
1.0%
217
-2.2%
315
44.9%
319
1.4%
Energy Meters
3.7
1908
1752
-8.2%
1950
11.3%
2250
15.4%
2387
6.1%
Transmission
Lines
23.4
10915
12389
13.5%
13529
9.2%
14070
4.0%
13957
-0.8%
Transmission Line
12.6
Towers
4876
5193
6.5%
6180
19.0%
6600
6.8%
6257
-5.2%
Conductors
10.8
4703
5704
21.3%
5716
0.2%
5670
-0.8%
5914
4.3%
Total
100
46247
47496
2.7%
52863
11.3%
60105
13.7%
64072
6.6%
ANNEXURE II (Following raw data sourced from IEEMA, CEA & thereafter
calculated)
Prospective Market Size
CAGR 0809 to 11-12 2012-13 2013-14 2014-15 2015-16 2016-17
Market Size in
Relative
2017 (Assessed by Achievement
CEA) (Y)
(Y/X)
5.5%
6724
7094
7484
7896
8331
LT Motors
7.0%
3232
3459
3701
3960
4237
HT Motors
10.6%
1651
1826
2020
2235
2473
Alternators
0.8%
925
933
941
948
956
FHP Motors
0.0%
734
735
735
735
736
Switchgear
7.9%
9581
10336
11151
12030
12977
Power Contactors
7.5%
963
1036
1114
1198
1288
1404
1538
1686
1847
2025
15000
56%
22000
59%
MCBs
13.8%
1380
1571
1788
2036
2317
-1.8%
195
191
188
184
181
HT Circuit
Breakers
3.9%
2095
2177
2263
2352
2444
Cables
14.5%
22326
25567
29278
33528
38394
12968
14752
16782
19091
21718
9.9%
6828
7504
8247
9063
9960
Transformers
5.5%
13184
13907
14670
15474
16323
Power
Transformers
15.7%
6400
7405
8569
9914
11472
Distribution
Transformers
-1.5%
6859
6757
6657
6558
6461
Capacitors
10.8%
560
620
687
761
843
HT Capacitors
11.2%
204
227
252
280
312
LT Capacitors
9.8%
351
385
422
464
509
Energy Meters
5.8%
2525
2670
2824
2986
Transmission
Lines
6.3%
14842
15783
16783
Transmission Line
6.4%
Towers
6659
7087
Conductors
5.9%
6263
Total
8.5%
69513
37000
104%
29500
55%
1000
84%
3158
5500
57%
17847
18978
33500
57%
7543
8028
8545
18038
47%
6632
7023
7437
7875
15462
51%
75415
81819
88767
96305
177000
54%