|
|
 |
|
Viewing report
|
|
|
|
Distribution & Power Transformers Market in India: 2010
Infraline Energy, Oct 2010, Pages: 160
The Indian Transformer industry has developed for over 50 years and has a well matured technology base and manufactures all types of transformers and can very well meet the country’s demand for transformers up to 800 KV now going up to 1200KV. The industry enjoys a good reputation in terms of quality, price and delivery in the domestic as well as overseas markets even in advanced countries. The Indian transformer industry can generally be divided into distribution transformers, power transformers, generating transformer and other types of special transformers for welding, traction, furnace etc.
A power transformer is installed at the generation site, and in every substation where the power is either stepped up or stepped down. Power transformers used in India are predominantly of oil filled type and can range from 11KV - 765KV. Power transformer forms the largest chunk of transformer market by value and account for about 60-70% of the total transformer industry. A distribution transformer is used to transfer power from a substation to the final point of consumption. The basic purpose of a distribution transformer is to provide end users with low voltage power. A distribution transformer could either be oil filled or dry type by nature, with range spanning from 1.1 – 11kV. Distribution transformers would account for the remaining 40-30% of the total value of the transformer industry.
In India many players belong to the unorganized segment of the industry and cater to the smaller ratings distribution transformer demand. This is due to lack of infrastructure, testing facilities and technical skill sets available with them. There are over 200+ transformer manufacturing companies of which over 80% has small to medium scale of operations. The top 7 to 8 companies which forms over 80% of the market share includes names like Bhel, Crompton, ABB, Areva T&D, Bharat Bijlee and Emco. Most of the transformer manufacturers cater to demand from SEBs, which forms about 70-75% of their revenues and balance is contributed from the industrial side. However, the case is reverse for Voltamp, which derives 95% of its revenues from industrial segment and the balance 5% from SEBs.
Opportunity
The Indian Transformer market is a high growth market and has been growing at a rate of 25-30%. For every additional MW of power generation capacity 7 MVA of transformer capacity is required. India is likely to add 78 GW in XIth plan and 86.5 GW in the XIth Plan. This means there will be a requirement of 550,039 MVA during XIth plan period of 2007-12 and 605,500 MVA during the XIth plan period of 2012-17. Coupled with this demand arising from the replacement market also points to a promising future for the companies in this segment. The average age of a transformer is 20-30 years, which means that transformers installed during 5th and 7th plan have become obsolete and needed to be replaced with newer ones. RGGVY, R-APDRP are some of the flagship government projects that are likely to further boost the demand for transformers in the immediate short to medium term. Looking at the robust growth, most of the big players have planned to increase their capacity. And even MNC’s like Siemens and Schneider which were earlier focused in switchgear later diversified into manufacturing transformer in India.
Challenges
The main challenge facing Indian transformer manufacturers is non-availability of CRGO (cold rolled grain oriented or electrical silicon steel). This is totally imported as it is not produced in India. The second problem is the import of second (defective) CRGO by unscrupulous suppliers, being freely allowed by Government of India, is causing lot of losses in the distribution system. The third problem is inadequate testing facilities for distribution and power transformers within the country. These issues are leading to high failure rate in transformers which can be in the range of 15% to 25%. The growing presence of MNCs in the Indian power and distribution transformers market is a cause for concern for local manufacturers. Multinational manufacturers have expertise in segments such as extra high voltage (EHV) power transformers and unitized substation technologies. Moreover, low investment in transformer research and development (R&D) in India poses a challenge to domestic participants that eventually tie-up with multinational giants for high-end technologies. In addition, the global price hike in transformer raw materials such as copper, aluminum, and oil resulted in the increase in transformer prices in India. Also, shortage of cold rolled grain oriented (CRGO) steel is further escalating the price of this essential 'transformer core' material. With growing demand and prices correspondingly rising, manufacturers are finding it difficult to maintain margins in the long term, thereby transferring the burden of increased costs to end users.
Infraline through its Market Research Report on Distribution and Power Transformers in India presents a comprehensive analysis of power and distribution transformers used in power generation, transmission, and distribution. It also includes an exclusive in-depth discussion of market trends, end user preferences, market drivers and restraints, as well as industry
Why refer to this Report?
The report will be useful to;
- Know the market landscape
- Know the total size of the market
- Know the market share of different companies
- Know whether there is an entry opportunity or the market is saturated with competition
- Know the how market is spread across the country
- Know what unique are the top companies doing to remain in the business
- Know what new is happening in the industry – new offerings, product innovation etc.
- Keep a track of your market share on an annual basis without paying huge cost to commission a separate market research engagement
|
|
|
|
