Favourable policies and technological upgrades pump fresh blood into transformers

The transformer market is on a high growth trajectory, as design improvements and government schemes and policies are helping the segment to achieve its full potential.

Transformers are a crucial aspect of power transmission and distribution, without which power voltage cannot be converted into the desired level and transferred over long distances. They are a backbone of power transmission, and hence it is important to develop this market in order to improve power supply and achieve the goal of an electrified nation. With the country’s electricity needs undergoing a slow and steady transformation due to increased manufacturing and widening outreach of electricity, the transformer segment is gradually changing, and new technologies and government schemes are helping companies maximise their growth and cope with the challenges and needs of the power industry.

The state of the T&D sector directly affects the transformer market, and with the current slowdown in the sector, transformer companies need to be well equipped to stay afloat and profitable. N.K. Duggal, GM (Marketing), ABC Transformers, says, “Although there is a slight slowdown in the transmission and distribution sector, our company has not been greatly impacted as we make multi prototype products and strictly adhere to the set standards and specifications. We get references from the industry and also repeat orders from our customers. Our old customers still partner with us because of our excellent quality. Moreover, we work with DISCOMs like BSES Rajdhani Power Limited, BSES Yamuna Power Limited, Tata Power and other major players. We cater to new transformers too and get new tenders. Many of our tenders and contracts are drafted for a period of 2-3 years, which helps us stay stable amidst the market slowdown.”

Regulatory policies give the needed boost

Government schemes and programmes like DeendayalUpadhyaya Gram JyotiYojana (DDUGJY), Ujwal DISCOM Assurance Yojana (UDAY), and Integrated Power Development Scheme (IPDS) are aiding transformer manufacturers to increase demand for their products and attract investments. Duggal says, “Consumers are now more aware of the products they are buying, so they want good quality products that meet their demands. They are ready to pay the right price for the product. These government schemes are disseminating knowledge to the consumers and manufacturers, which is encouraging us manufacturers to make good quality products that can compete on a global level.”

Atul Agrawal, Managing Director, Uttam (Bharat) Electricals Pvt. Ltd. comments, “The power and distribution market of India is on a growth momentum. It is believed that India’s power and distribution transformer market is set to reach $2.9 billion by 2022. The reason is that some of the major initiatives taken by the government, especially in the electrical equipment industry and distribution transformer segment, have helped in financial turnaround of power distribution companies.

Schemes such as DeendayalUpadhyaya Gram JyotiYojana (Scheme of Govt of India for Rural Electrification), Integrated Power Development Scheme (IPDS), Saubhagya etc. has led to huge demand for transformers in recent years. These initiatives are set to result in a significant uptick in demand for towers, cables, conductors and reactive power equipment. Further, smart metering has also received a push from the government in recent years through programmes like the Integrated Power Development Scheme, the UjwalDiscom Assurance Yojana, etc. The government’s augmentation of transmission lines for creating green energy corridors, and system strengthening is also creating new opportunities for T&D equipment and technology providers.”

Design and technology upgrades for transformer efficiency

Transformers, considered as one of the most efficient machines designed by humans, help in maintaining the safety and efficacy of a power system by controlling the rise and fall of voltage levels as and when needed. As transformers act as a mediator for the smooth passage of electricity, a small efficiency improvement in the transformer results in significant electricity savings. With an increase in residential and industrial applications, transformer plays an important role in the distribution and regulation of power across long distances.

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Agrawal has a positive view on the future of the transformer market. He says, “India’s transformer industry is on a growth trajectory. With a paradigm shift of the government towards providing electricity to every household, it has become one of the key constituents for an increase in demand for transformers in India. The demand for power in India has been fostered by an increase in capacity utilisation, industrialisation, urbanisation, and population. India has the fifth largest installed capacity in the power sector worldwide. Reforms such as “Power for All” will further boost the demand for power transmission and distribution equipment. Thus, we can say that India’s T&D market will envisage a tremendous growth due to increase in demand for sustainable and affordable 24×7 electricity and strengthening of the transmission network pan India.”

He concludes that in the coming years, a positive growth is expected in the power transmission and distribution sector. Increase in consumption of electricity in rural areas, urbanisation, industrialisation, electric vehicle charging stations, generation of solar and wind energy, etc. will be some of the other major growth drivers in the rising demand of transformers in India, which will in turn lead to a strengthened T&D sector.

N.K. Duggal, GM (Marketing), ABC Transformers
The new transformers are helping companies to cut down their energy usage and costs.

Atul Agrawal, Managing Director, Uttam (Bharat) Electricals Pvt. Ltd.
The government’s augmentation of transmission lines for creating green energy corridors, and system strengthening is also creating new opportunities for T&D equipment and technology providers.