Transformers and Switchgears/Control Gears Sectors in India

Posted By Team MCG On

India has an installed power capacity of close to 250,000 MW and is gearing up to balance the rising domestic demand. Installed power generation capacity targeted for 2017 is around 318,400 MW. Despite rapid power capacity additions, the country still faces a peak demand-supply gap of around 8-9% (2012-13.)

The domestic electrical equipment industry has witnessed a decline in demand during the last 2 years owing to delay in project execution and increasing imports, especially from China and South Korea. Going forward, backed by the planned augmentation of power capacity, electrical equipment industry is expected to witness increasing demand. Transmission and distribution equipment are among the key electrical equipment.

Key factors influencing growth in the T&D sector are;

Key factors influencing growth in the T&D sector

Production of transmission and distribution equipment accounted for around 52% of the overall production in the Indian electrical equipment industry and was valued at around INR 681 billion in 2012-13. The transformer production was valued at around INR 129 billion in 2012-13, of which power and distribution transformers account for over 80%. Around 95% of the transformers installed in the country’s power network are of indigenous production. The inter-regional power transfer capacity across the country is being spruced up to reach the Central Government plan to achieve63,450 MW capacity by the end of Twelfth Five Year Plan (2012-17). Demand for power and distribution transformers also is driven by the replacement market.

T&D Equipment Production: Breakup by Segments, 2012-13
Total value: INR 681 billion<

T&D Equipment Production: Breakup by Segments

Source: Industry association

Production of switchgear/control gear (excl. domestic switches) was valued at around INR 102billion in 2012-13. Demand for high-voltage and extra high-voltage switchgear and control gear are mainly from power utilities and demand for medium voltage switchgears are accounted for by distribution sector. Low-voltage switchgears are mainly used in building and construction, telecom, industrial and infrastructure segments.

The T&D equipment sector in India is highly fragmented with a large number of small and medium players. Power transformers and ultra-high voltage transformers are manufactured by the bigger players due to the need for high level of technology and sophisticated testing laboratories. Production of high voltage switchgears are technology intensive and the segment has a noted presence of multinational players as well as large Indian companies. Crompton Greaves is the market leader in the transformer segment followed by Vijai Electricals, BHEL and ABB. The switchgear segment has the presence of leading multinational players such as Siemens, ABB, Larsen & Tubro and Alstom T&D. Anchor Electricals, Havell India, Crompton Greaves and BHEL are other noted players in the switch gear segment.