Mumbai: Transformers and Rectifiers (India) Ltd will start production at its Moraiya plant near Ahmedabad from June, more-than-tripling capacity to 23,200 MVA in FY10, its top official said.
“We will start production next month; first year we are expecting 3,000 to 4,000 MVA from that plant, next year around 10,000 MVA,” Jitendra Mamtora, chairman and managing director, said.
The new plant will make transformers of above 220 KV class and the company had earmarked more than Rs8 billion raised through an IPO for commissioning the plant, Mamtora said.
India faces peak power shortage of about 12-16% and plans to add 78,577 MW of power by 2012, which is expected to fuel growth in the electrical equipment industry.
“The market is going to be so huge, that whoever is having the capacity will benefit from demand that is going to come,” he said.
The Ahmedabad-based transformer maker is looking to grow revenues by 25% to 30% in FY10, Mamtora said.
The company reported 33.3% rise in its FY09 net profit to Rs441.2 million on income of Rs4.31 billion.
It supplies transformers to the industrial sector that has seen sluggish demand after the general slowdown, Mamtora said.
“As far as the demand for the rectifiers and furnace transformers (industrial segment) are concerned, it had slowed down a little bit.”
But demand from the chemicals and steel industry is picking up again and a revival of overall industrial demand is on the cards, he said.
Its pending order book as of 30 April stood at Rs4.7 billion, of which orders worth about 2 billion were received in April, he added.
About 15% of that is from the industrial segment, while 20% from exports, about 8% from state-owned Power Grid and NTPC and the rest from power utilities, Mamtora said.
The company’s shares closed 3.68% up at Rs285.70, in a flat Mumbai market.