Cospower Engineering Ltd Management Discussions

Cospower Engineering Limited

1. BUSINESS OVERVIEW

Cospower Engineering Limited ("Cospower" or "the Company") is engaged in the design, engineering, manufacturing, supply, installation and commissioning of products and solutions for reactive power compensation and power quality improvement.

Founded in 2004 by industry veterans Mr. Oswald DSouza and Mr. Felix Kadam, the Company has evolved over the past two decades from a focused capacitor manufacturer into an integrated power-quality solutions provider. The Companys business is built around addressing critical electrical-system challenges such as reactive power, poor power factor, harmonic distortion and associated power-quality issues.

Cospower provides solutions across both renewable and conventional/non-renewable power applications and serves industrial, utility, infrastructure, EPC and commercial customers.

The Companys product and solution portfolio includes High Tension ("HT") and Low Tension ("LT") capacitors, HT fixed capacitor banks, HT Automatic Power Factor Correction ("APFC") panels, LT APFC and Real-Time Power Factor Correction ("RTPFC") panels, hybrid power-factor correction panels, LT series reactors and harmonic-filter solutions. The Company takes pride in its in-house expertise in the design of passive harmonic filters and has successfully executed more than 400 power-quality improvement projects for the non-renewable sector.

The Companys objective is to provide application-specific solutions rather than standard off-the-shelf products. Each solution is engineered with reference to the customers load profile, electrical-network conditions and required performance parameters.

Backed by a robust back-office support team, the Company excels in establishing strong client relationships, offering swift response times and precise information dissemination.

Milestones

Year	Milestone
2004	Company launched as a partnership firm by professionals from the capacitor field, initially supplying capacitors and allied equipment.
2006	Began offering turnkey solutions and substation equipment (VCB, CT, PT, LA, Isolators, Battery and Battery Chargers) through tie-ups with reputed manufacturers.
2010	Converted into a private limited company; acquired a 3,500 sq. ft. industrial premises at Vasai East with fabrication facilities and commenced manufacturing of electrical panels, including APFC panels and substation structures.
2020	Converted into a public limited company; completed an oversubscribed IPO in March 2020 and listed on the Bombay Stock Exchange.
2020	Acquired a 20,000 sq. ft. property at Vasai and relocated manufacturing operations to the new premises.
2020	Commissioned a world-class capacitor manufacturing facility.
2021	Products type-tested at NABL-approved laboratories HT and LT capacitors at ERDA, Baroda, and panels at CPRI, Bhopal.
2022	Recognised as one of the most innovative companies in the sector (February 2022) by Futurology Life, London.
2023	Products successfully cleared the endurance test one of the industrys most stringent tests at CPRI, Bangalore.
2024	Commenced manufacturing of LT Series Reactors.
2025	Commenced manufacturing of Damping Resistors, a highly specialised allied product.

Landmark Projects Executed during the Financial Year

ReNew Power - Bhadla Project Sterling & Wilson Renewable-GIPCL Project AVAADA Clean Project SECI Project INOX Wind Limited TATA Power Renewable Amara Raja Infra NTPC Projects L & T Construction Div NTPC Projects

2. COMPANYS MANUFACTURING AND ENGINEERING CAPABILITIES

During the year under review, Cospower continued to strengthen its manufacturing and engineering capabilities with an emphasis on vertical integration, quality control and end-to-end project execution.

The Company operates a manufacturing facility of approximately 30,000 sq. ft. with a team of more than 100 professionals. The facility integrates multiple specialised manufacturing and testing functions under one roof, enabling greater control over production quality, traceability and delivery.

The manufacturing ecosystem comprises the following specialised divisions:

Clean Room

Vacuum Impregnation Plant

Fabrication

Painting and Surface Treatment

Testing

The Clean Room division is equipped with automatic and semi-automatic winding infrastructure, supported by dry-element testing at various stages of production.

The Vacuum Impregnation Plant provides multi-stage, high-vacuum impregnation capability for HT and LT capacitors, supported by dedicated oil-filtration and degassing systems.

The fabrication facilities include robotic and MIG welding, power-press operations, CNC-grade sheet bending and shearing, and in-house laser name-plate printing. These capabilities enable the Company to exercise greater control over dimensional accuracy, enclosure quality and manufacturing consistency.

The Company also maintains in-house surface-treatment capabilities, including shot blasting, phosphating, controlled drying, painting and oven curing, supporting the durability and corrosion protection required of equipment deployed in demanding environments.

3. IN-HOUSE TESTING AND QUALITY ASSURANCE

A key strength of Cospower is its in-house testing infrastructure.

The Company maintains a comprehensive range of calibrated testing instruments covering electrical testing requirements, including high-voltage AC/DC testing up to 100 kV, capacitance and tan-delta measurement, insulation evaluation, power-quality analysis and injection testing.

The Company also maintains a dedicated shunt-reactor bank for functional testing of complete capacitor-filter systems at rated reactive-power levels, enabling validation of system behaviour in addition to individual component parameters prior to dispatch.

The availability of calibrated in-house testing infrastructure provides greater control over quality assurance, reduces dependence on external test facilities for routine qualification and supports traceability of the product from manufacturing through final validation.

The Companys manufacturing philosophy emphasises precision equipment, process control, traceability and repeatable quality outcomes.

4. PRODUCT PORTFOLIO

Cospower has developed a comprehensive product portfolio addressing various reactive-power and power-quality requirements.

4.1 Harmonic Filters

An important part of the Companys power-quality offering, designed to suppress harmonic distortion and support grid compliance, equipment protection and stable power delivery. Configurations offered include C-Type, High Pass, Single Tune and Band Pass harmonic filters. The Company has designed, engineered, supplied and commissioned more than 300 harmonic-filter systems during the period from 2023 to 2026.

4.2 Harmonic Filters for Renewable Energy Applications

Solutions designed for grid-connected solar and wind installations, with emphasis on grid compliance, reliable operation under demanding conditions and long-term reactive-power stability.

4.3Harmonic Filters for Industrial and Conventional Applications

Solutions addressing harmonic distortion arising from variable-frequency drives, power-electronic equipment, furnaces, converters and other nonlinear loads, improving power quality and supporting compliance with utility requirements.

4.4 HT APFC Panels

Panels that continuously monitor reactive-power requirements and automatically switch capacitor steps to maintain the desired power factor, available for indoor and outdoor use across industries and utilities with dynamic load patterns.

4.5 HT Capacitors and HT Fixed Capacitor Banks

Core components of the Companys reactive-power-compensation solutions, used in fixed capacitor banks, APFC systems and harmonic-filter applications, including outdoor HT fixed capacitor banks for heavy industries, utilities and infrastructure projects.

4.6 LT Capacitor Banks

LT capacitor units and capacitor-bank solutions for industrial, commercial and infrastructure applications, designed for integration with APFC and RTPFC panels, SVG systems and LT series-reactor applications.

4.7 LT APFC Panels

Panels for 415/440 V applications that automatically switch capacitor banks in response to changing reactive-power demand, suitable for motors, welding equipment, compressors and other variable loads.

4.8 LT RTPFC Panels

Panels using thyristor-switching technology for rapid power-factor correction, suited to highly dynamic loads such as steel rolling mills, arc furnaces and installations with frequent motor starting.

4.9 LT Hybrid APFC Panels

Panels combining contactor and thyristor switching, enabling economic operation for stable base loads alongside rapid response for fluctuating reactive-power variations.

4.10 LT Series Reactors

Used with capacitor banks to reduce the risk of resonance and limit the impact of harmonic currents, protecting capacitor banks and extending the operating life of associated equipment in installations with VFDs, solar inverters, arc furnaces and other non-linear loads.

5.SOLUTIONS FOR RENEWABLE AND NON-RENEWABLE SECTORS

Cospower has expanded its focus beyond individual electrical components to provide integrated power-quality solutions for both renewable and conventional power infrastructure.

In renewable-energy applications, the Company addresses harmonic distortion, reactive-power compensation and grid-compliance requirements associated with solar and wind installations.

In industrial and conventional power environments, the Company provides solutions aimed at improving power quality, reducing equipment stress, preventing premature capacitor failures and avoiding potential utility penalties.

This diversified application base provides the Company with opportunities across multiple segments of the electrical infrastructure and power-quality market.

6. END-TO-END PROJECT CAPABILITY

Cospower follows an end-to-end approach to project execution.

Its capabilities extend from system studies and engineering design through manufacturing, testing, installation, commissioning and after-sales maintenance.

The Company undertakes electrical-system analysis and develops solutions based on site-specific requirements. Its engineering capabilities include drawing and design support, AutoCAD and 3D drawing facilities, and power-quality analysis.

The Companys vertically integrated manufacturing and testing capabilities further enable it to maintain control over critical stages of the project lifecycle.

This integrated approach enables the Company to take greater responsibility for the overall performance and reliability of the solutions supplied to customers.

7. TECHNOLOGY, ENGINEERING AND PRODUCT DEVELOPMENT

Technology and engineering remain important pillars of the Companys strategy.

Cospower continuously evaluates technological developments in reactive-power compensation, power-quality management and harmonic mitigation to ensure that its products remain relevant to evolving electrical-system requirements.

The Company has developed in-house capabilities for analysing electrical systems and designing appropriately rated harmonic-filter solutions. Designs are validated through system simulations to assess expected performance under relevant operating conditions.

The Company also places emphasis on engineering responsiveness. Its drawing and design team uses modern design tools, including AutoCAD and 3D modelling, to respond to customer requirements and develop application-specific solutions.

The Company continues to invest in employee training and technical development to strengthen its ability to address increasingly complex power-quality applications.

8. MARKET OPPORTUNITIES

The demand for power-quality and reactive-power-compensation solutions is supported by increasing industrial electrification, growing renewable-energy capacity, greater use of power-electronic equipment and the need for improved electrical efficiency and grid compliance.

The expansion of solar and wind generation is creating additional requirements for harmonic mitigation and reactive-power management.

Similarly, industrial sectors such as steel, cement, pharmaceuticals, manufacturing, utilities and infrastructure require reliable power-quality solutions to minimise equipment stress, improve electrical efficiency and maintain continuity of operations.

Cospowers diversified portfolio across HT and LT systems, combined with its engineering and manufacturing capabilities, positions the Company to participate in these emerging opportunities.

9. COMPETITIVE STRENGTHS

The Company believes that its principal competitive strengths include:

More than two decades of experience in reactive-power compensation and power-quality improvement;

Integrated manufacturing capabilities;

In-house testing and quality-control infrastructure;

Application-specific engineering and system-design capability;

Experience across renewable and conventional power applications;

Comprehensive HT and LT product portfolio;

End-to-end project execution capability;

Experienced engineering and technical personnel; and

Ability to provide complete solutions covering design, manufacturing, installation, commissioning and after-sales support.

The Companys approach is focused on measurable customer outcomes, including improved power quality, energy savings, equipment protection and compliance with applicable grid and utility requirements.

10. HUMAN RESOURCES

People remain an important component of Cospowers operating model.

The Companys engineering, manufacturing, project-execution and support functions are supported by experienced professionals with domain knowledge in electrical engineering, power quality, reactive-power compensation and system design.

The Company recognises that continued investment in employee capability is essential as power-quality applications become increasingly specialised.

Accordingly, the Company continues to encourage technical training, knowledge development and exposure to evolving technologies and industry practices.

The Company remains committed to maintaining a work environment that supports employee development, operational discipline and long-term organisational growth.

Key Persons of CosPower Engineering Limited

Oswald Dsouza (Chairman & Director) - Oswald Dsouza, a first-generation entrepreneur, boasts over two decades of experience and co- founds CosPower. He gained invaluable expertise at Khatau Junker, pioneers in capacitors. His specialty lies in the core competency of CosPower, driving innovation in the industry. He is an eminent personality in the Capacitor Industry in India.

Felix Kadam (Managing Director) - Felix Kadam, a first-generation entrepreneur, brings over a decade of experience as co-founder of CosPower. His senior roles in Indian and multinational firms, including Rittal India, honed his marketing expertise. He attributes the companys success to teamwork and adept market leveraging and is heading multiple operation in CosPower.

Maxie Dsouza (Chief Financial Officer) MBA in Finance having 38 Years work experience in a Multi-State Co-Operative Bank and last retired as AGM MSME finance business development. Expertise in entire Branch operations and retail finance. Proven track record of ensuring proper due diligence and compliance as per RBI regulations strong communication, analytical skills, commitment to professional ethics.

Ashok Gopale (Vice President Works) - With over 30 years of experience, Ashok is a seasoned expert in HT and LT capacitor design and production. His tenure at Power Cap, one of Indias oldest capacitor manufacturers, provided him with invaluable insights. Known for his meticulous approach and dedication to innovation, Mr. Gopale continues to drive advancements in the field.

Sandeep Wagh (Factory Head) - With a lifelong dedication to the capacitor industry, Sandeeps illustrious career spans over 20 years at Epcos (now TDK). Known for his expertise in quality control, he is a staunch advocate for robust systems and processes. Sandeep commitment to excellence has been instrumental in fostering a culture of perfection among employees.

Navin Kathade (President Marketing) Management Professional with 30 years of cross function expertise in Sales, Marketing, Operations and Supply Chain. Proven track record in strategic planning, business growth, and team leadership. Successfully develops domestic and international accounts while consistently exceeding objectives. Strong communicator skilled in training and motivating high-performance teams to achieve organisational goals.

Avalon Cabral (Vice President Marketing) - Avalon is a young and dynamic person who has the ability to develop and maintain excellent relations with clients. He has the technical skills to study the problems clients and offer them appropriate solutions. He heads the Marketing functions of renewable power and has has an excellent rapport with the clients.

Mahendra Kumar Pandey (Vice President Business Development) With 40 years of experience in the global power utility sector, Mr. Pandey will lead our strategic expansion, business development initiatives, and Delhi operations. His distinguished career includes serving as Director of Operations for a 4,000 MW National Grid and as Chief Technical Officer (CTO) for International Utilities, alongside leadership positions within TATA Power Group companies spanning Network Planning, Engineering, AT&C Loss Reduction, and Projects. He brings a proven track record of leading CAPEX portfolios exceeding $500M and executing large-scale electrification and smart metering programmes.

Kamalnayan Bhalchandra Patil (Business Head) With over 40 years of experience in the electrical sector, he brings deep expertise in business development, global markets, and strategic growth, having led key roles at Apar Industries, Stelmec, Khatau Junker, and more. His distinguished career spans Pan-India and overseas business development across sales and marketing, channel sales management, product management, client relationship management, and accounts receivable. He has spent over 10 years driving export and business growth across South-East Asia, the Far East, Oceania, and the Middle East, with hands-on stints in Saudi Arabia and export markets spanning Japan, China, Taiwan, South Korea, Indonesia, Australia, and New Zealand.

Hiren Solanki (General Manager Projects) With more than 15 years of dedicated service to CosPower, Hiren plays a pivotal role in managing government orders, vendor registrations, and ensuring top-notch after-sales service. His wealth of experience and attention to detail are instrumental in maintaining high standards across various operational aspects.

Kalpana Pawar (SCM Head) Having been an integral part of CosPower for over 12 years, Kalpana leads the projects division with aplomb. Her journey within the company has equipped her with the skills and capabilities to efficiently handle procurement, planning, and execution of orders, contributing significantly to the companys success.

Consultant and Advisor of CosPower Engineering Limited

Mr. Jaymin Modi	Company Secretary and Corporate Advisor
Mr. Nitin Chavan	Finance and Accounts Advisor
Mr. Devan Rathod &	EPF, ESIC, Factories Act, Contract
Mr. Sanjay Rane	Labour Act, Shops Establishments Act etc.
Mr. Mayank Shah	Insurance and Investment Advisors
Mr. Valance Quadros	Management Consultant
Mr. P. K. Bhandari	Technical Consultant

11. QUALITY AND CUSTOMER FOCUS

Cospowers business is built around providing reliable and application-specific solutions to customers.

The Companys quality approach extends across design, manufacturing, testing and project execution. Its in-house testing infrastructure enables validation of products and complete systems before dispatch.

The Company believes that long-term customer relationships are built through consistent product quality, engineering support, responsiveness and successful project execution.

12. BUSINESS OUTLOOK

The Company expects opportunities in the power-quality and reactive-power-compensation market to remain favourable, supported by industrial expansion, increasing renewable-energy integration, electrification and growing awareness of the financial and operational impact of poor power quality.

Going forward, Cospower intends to strengthen its position as an integrated provider of reactive-power compensation and power-quality solutions. The Company will continue to focus on:

Expanding its product and solution portfolio;

Strengthening manufacturing and testing capabilities;

Increasing its presence in renewable-energy applications;

Developing opportunities in industrial and utility markets;

Building strategic relationships and partnerships;

Improving engineering and project-execution capabilities; and

Expanding its domestic and international market reach.

The Company will continue to evaluate emerging technologies and strategic partnerships that complement its core capabilities and enable it to address changing customer and grid requirements.

13. RISKS AND CHALLENGES

The Company operates in a competitive and technology-driven market and is exposed to various business risks, including fluctuations in raw-material prices, competitive pricing pressures, changes in technology, project execution risks, customer concentration, regulatory and grid-code developments, and changes in demand across industrial and infrastructure sectors.

The Company seeks to manage these risks through its diversified product portfolio, in-house manufacturing and testing capabilities, engineering expertise, customer relationships and focus on application-specific solutions.

The Company also continues to monitor developments in renewable-energy technologies, power-quality standards and grid requirements in order to adapt its products and solutions to changing market conditions.

14. INTERNAL CAPABILITIES AND VERTICAL INTEGRATION

A significant aspect of Cospowers business strategy is the development of internal manufacturing and engineering capabilities.

The Companys integrated production environment enables greater control over key stages of the manufacturing process and reduces dependence on external vendors for critical activities.

The combination of manufacturing, fabrication, surface treatment, testing and engineering capabilities allows the Company to provide more controlled quality, improved traceability and greater responsiveness to customer requirements.

This vertical integration is expected to remain an important differentiator as the Company scales its business.

15. CONCLUSION

Cospower Engineering Limited has evolved over two decades into an integrated provider of reactive-power compensation and power-quality solutions.

The Companys capabilities now extend across HT and LT capacitors, capacitor banks, APFC and RTPFC panels, hybrid power-factor correction solutions, harmonic filters, LT series reactors and associated electrical systems.

With its manufacturing infrastructure, in-house testing capabilities, engineering expertise and growing presence across renewable and conventional power applications, the Company is positioned to pursue opportunities arising from the continuing transformation of the electrical-power ecosystem.

The Company remains committed to innovation, quality, customer service and responsible growth, with the objective of creating sustainable long-term value for its customers, employees, shareholders and other stakeholders.