The demand for Electrical equipment in India is expected to see a significant growth in line with the growth in power sector. During the twelfth 5 yr plan (2012-17) investments are expected to be $85 billion for power generation, 45 bln for transmission and 70 billion for distribution, as per one estimate.
There would thus be many opportunities for global electrical companies to participate in this space. One such example is given below.
Power Grid Corporation of India Limited (PGCIL) is the leading agency to setup the Transmission & Distribution (T&D) business in India. (The other major companies being Private Utility firms, State Electricity Boards and Power producers etc)
PGCIL floats business worth around 4Bln US$ every year to companies in T&D sector through different packages. The major packages are : Tower packages, HVDC and Substation packages. Other packages include Conductor, Transmission line, Insulator, Reactor and Transformer packages.
Bulk of the business is being catered to by Indian companies (around 60%), around 10% by Chinese/Korean companies (Insulator/Transformer packages) and 30% by other global players especially in HVDC etc.
The competition is intense and the players seems to be playing the revolving chairs game at winning contracts. The winners of one year become the looser of other, except for some technology driven areas like HVDC. This is one area where local Indian players are not able to pre-qualify for projects. There are only very few global players active in this space as of now, thus there is room for other strong global companies to come in the HVDC segment directly or by forming JV’s with existing Indian companies. According to one estimate the HVDC package is roughly around 20% of the total T&D packages. The rapid economic growth and the drive to complete national electrification grids are likely to fuel the HVDC demand in India in the coming years.
The major Indian companies who participate in these T&D projects are Jyoti Structures, Kalpataru Power Transmission, KEC Transmission, Crompton greaves, Tata Power, BHEL, ABB , Alstom, L&T..
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