INDUSTRY

POWER EQUIPMENT

COMPANY
VOLTAMP
TRANSFORMERS LTD.
 TRANSFORMERS-INDUSTRY

q
q India has the fifth largest power generation capacity in the
world.
q
q Demand for transformers is directly proportional to power
generation capacity and T&D N/W.


q Transformers (Power equipment) market is pegged at Rs

10,000 crore.
q
q Strong base of over 500 transformer industries with overall
capacity of 1000 GVA sufficient for domestic and export
market.
q
q Export: 30-35 % of annual production.
ROLE OF TRANSFORMERS
 PRESENT SCENARIO


 Power generation in March 2010 grew by 8.3% (Y-o-Y) to
62,070 MW. In March 2010, thermal power and Hydel
power generation increased by a 7.3% and 16.6%
respectively.
 


 FY10 recorded 6.6% growth in power generation to 771.55

billion kWh.
 


 Every MW requires approximately 8 MVA Transformers.

 


 In 2010-11, the country is expected to add 21,441 MW of

fresh power projects – the highest ever in a single year.


SWOT ANALYSIS OF INDUSTRY
PEERS
VOLTAMP
TRANSFORMERS LTD
 COMPANY OVERVIEW

q Voltamp Transformers Ltd. , initially incorporated in 1963 and was

characterisedas Private Limited Company in year 1967 in
Vadodara, It was converted into public ltd in 2006.
q
q 80% of the present annual sales is from project business.
q
q Clientele includes leaders in Government and Semi-Government
projects, Refineries, Fertilizer Plants, Power sector, Pharma ,
Paper, Steel, Cement sectors etc and various other Industries
and State Electricity Boards.
q
Manufacturing process
 GROWTH STRATEGY

 It has levered its position into dry type transformers (realizations

and margins are better).It has a market share of 40-45% in dry
type transformers.


 It is focusing on export markets targeting the high growth markets –

Middle East, African and South East Asian countries.


 As of the latest , the order book of VTL stood at Rs 420 crs of which
80-90% is from non SEBs.


 VTL has planned a capex of Rs 11 crs for FY11 which will be mainly
to equip power transformer facility with better handling and
modern testing facility.



 CONCERNS

 Growth is dependent on pace of industrial capexwhich could be

hampered in case of slowdown.


 China and Russia can be major threats as they provide cheaper

substitutes.


 The company does not have any long term contracts with suppliers
of key raw materials which could pressurize the margins in case
of price fluctuations.


 Major competitors include BHEL, SujanaTowers, Techno Elect Ltd.

etc.



Revenue Projections
THANK YOU