Apar to enter power transmission sector

Apar to enter power transmission sector

India’s second largest power conductor manufacturer after Sterlite Opticals Ltd, Apar Industries Ltd, is planning to enter the booming power transmission sector.

Apar, which is the largest exporter of overhead transmission wires from India, is considering entering the sector in a potential collaboration with transmission companies such as RPG Transmission Ltd and Kalpataru Power Transmission Ltd.

“We are talking to several players in the transmission sector for jointly bidding for the forthcoming transmission projects, but have not firmed up on partners till date," said Chaitanya Desai, joint managing director at Apar.

The Indian transmission sector is booming with the central power transmission utility planning to nearly double the transmission network by 78,000MW in 2012. The total investments in power transmission and distribution sector is expected to be around Rs17.5 trillion.

The requirement for power conductors is expected to be in the region of 2.1 million tonnes (mt) at an investment of Rs3,200 crore over the next five years.

Apar reported a net profit of Rs45.97crore and net sales of Rs1,465 crore for the quarter ended September. It has a net worth of Rs211.28 crore and a market capitalization of Rs825.71 crore. The company’s stock closed at Rs250.6, down 1.88% on the Bombay Stock Exchange on Thursday.

Apar has an estimated 30% share of the power conductor business in India. Nearly 30% of Apar’s sales come from exports of wires and specialty oils, Desai said. The company has approvals to sell wires in 43 countries and supplies transformer oils to 32 countries.

Last year, Apar expanded its conductor capacity with a new factory at Nalagarh in Himachal Pradesh. The new unit has a conductor manufacturing capacity of 15,000mt.

Apar is also looking to enter the European market through acquisitions in both the power conductors and specialty oils business, Desai said.