Alfa Transformers Ltd Management Discussions.



Transformer is the key link between generation and end user of electric power. The Industry is expected to witness vibrant growth due to Government s firm resolve through the following schemes/policies:

1. Various reforms to revitalize power sector

UDAY: Ujwal discom assurance jojana for Operational and financial turnaround of power distribution Companies.

DDUGJY: Deen Daual Upadhyaya Gram Jyoti Jojana for 100% village rectification.

Green energy Capacity of 175 GW by 2022: Commitment to generate 175 GW of solar, wind, mini hydel and biomass based power by 2022.

Power for all Programme: Government of India s focus on attaining power for all has accelerated capacity addition in the country which resulted in the increase in the of the transformer market and supply side like logistics, manpower, finance etc.

2. 12th five year plan has increased investment considerably on transmission and Distribution network and extra high voltage national grid.

3. Projected GDP Growth of 7% over next five year can only be achieved if power is available to industry and agriculture on sustained basis. This would envisage a growth of 8 % to 10% in power sector over next five years.

Transformer Industry is dependant fully on government policies and the above policies are expected to support the industry.


Export of transformers is expected to grow @ 20% in the next few years of aggregate turnover of Indian Transformers Industries. The global annual transformers orders are expected to be in the range of 1.90 Lakh Crores over next few years. Indian Transformers Manufacturers have a nominal share of 1.61% in the global market and this exhibit a good export potential.


The transformers installed during 1985-90 are expected to be replaced during 12th Financial Year Plan considering average transformer life of 25 years.


Orissa will attract more investment based on this policy of present Government. With further initiative of the Government and strengthening the transmission grid, reduction of power losses, replacing very old transformers and picking off of exports etc. the transformer industry expects sustained growth in coming years.



We are concerned with distribution transformers which are installed networks at 11kv, 22kv and 33 kv transmission lines to supply power to user. The distribution transformer business suffered from challenges last few years emerging from mandatory certification of BIS as per IS 1180 and MEPS through BEE star Programme. These two statutory regulations were not synchronized initially resulting confusion and financial burden. Dual certification and different specification increased the financial burden and created confusion in the mind of both buyer and industrial user alike. Initial absence of clarification on confusion created by these orders caused siscord and resulted in financial burden to those who follow law and rules and Standards. Enforcing regulation on large number of small and medium industries by two Govt. of India entities is extremely difficult operations by enforcing authorities BIS and BEE because of lack of resources of trained manpower and logistics. Unfair Competitions due to abnormally low pricing pattern of some manufactures who on absence of proper enforcement and monitoring mechanism, were able to supply products deviating from specification. other were left either to adopt unfair practice or loss in Business.


Warranty: Discoms are demanding for guarantee period of 3 to 5 years in place 12 to 18 months which is resulting increase in requirement of bank guarantee. This is unfair demands by Discoms having no standards process of maintenance. Efforts are being made by ITMA to redress the situation. However Unified oppositions to this unfair treatment is yet to be seen. Besides above, the factors like addition of huge manufacturing capacity of existing units, increase in input cost and requirement of working capital will lead to subdued financial performance.


Transformer industry is expected to go through the growth potentials in midst of issues/bottlenecks. Despite problems we expect industry would grow and expect a healthy growth will come with better regulating environment.


Focus on type testing of various rating of transformers so as to qualify more Empanelment with PGCIL, NTPC, Railways etc. Solar project companies

In Vadodara Unit sales is to be increased to benefit from economies of scale leading to improved profitability and emphasis is to be given for timely execution to avoid penalty. In Bhubaneswar Unit focus is to be given on private orders, export and repairing and opt out from Govt. orders due to insufficient margin and absence of price variation clause.

Focus on energy efficient transformers

Technological advancement to improve performance parameters and productivity