Which Companies Manufacture Transformers in India?

In India, where the demand for electricity is constantly on the rise due to rapid industrialization and urbanization, the role of transformers is indispensable.

Transformers are the backbone of the power sector, responsible for ensuring that electricity is efficiently transmitted from generation plants to homes, businesses, and industries.

As India continues to push forward with its electrification goals and infrastructure modernization, the need for reliable transformers has never been greater.

This demand has fuelled the growth of several listed companies in India that specialize in manufacturing transformers.

In this article, we look at the leading transformer manufacturers in India. These companies are making good transformers that are able to perform in harsh environmental conditions.

# Bharat Heavy Electricals Limited (BHEL)

Bharat Heavy Electricals, or BHEL, is a giant in India's electrical industry. Founded in 1964, BHEL is one of the oldest and most established public sector enterprises in the country.

It manufactures a wide range of transformers, including power transformers, instrument transformers, and specialized transformers used in various industries.

The company is the market leader in terms of manufacturing power equipment utility sets and accounts for more than 53% of India's installed conventional capacity.

At the end of June 2024, BHEL had a strong orderbook worth Rs 1.35 trillion (tn), which is almost 6 times the company's FY24 revenues.

The company received major orders for building two 1,600 mega-watt power plants in Raipur and Mirzapur respectively.

It also received orders for supply of transformers from the railways for locomotives and two units of 175 mega-watt air cooled generators for a thermal power plant in Botswana.

BHEL's management says that it expects revenue to compound at the rate of 12-15% in the medium term. The company has also guided for order wins of Rs 25 billion (bn) for the year.

The company also has a lot of projects in the pipeline and the opportunity can be close to Rs 650-700 bn potential order inflow over the next few years.

The company is also working on developing transformers that cater specifically to solar and wind power projects, which are becoming increasingly important as India shifts towards greener energy sources.

To know more, check out BHEL's financial factsheet.

# Siemens India Ltd.

Siemens India, a subsidiary of the German conglomerate Siemens AG, is another major force in India's transformer manufacturing sector. Siemens has been operating in India for many years, offering advanced electrical solutions tailored to meet the unique needs of the Indian market.

The company manufactures a variety of transformers, including distribution transformers, power transformers, and specialty transformers used in industries such as railways and mining.

It has a long history of providing cutting-edge railway technology, making it a valuable partner for Indian Railways. It's multifaceted approach positions the company as a one-stop shop for Indian Railways' technological needs.

In January 2023, the company won its biggest-ever railway order. It won an order of around Rs 260 bn. It includes an order of 1,200 locomotives from the Indian railways. These 1,200 locomotives will be delivered over the period of 11 years followed by a maintenance period of 35 years.

Apart from railways and transformers, growing electric vehicles (EVs) industry also gives a growth opportunity to Siemens.

The latest earnings report of Siemens suggests that it's all set for another year of bumper earnings as private capex turns around the laggard cycle.

The company's order book and earnings growth anticipated over the next two years suggests that the best is yet to come.

To know more, check out Siemens' financial factsheet.

# ABB India Ltd.

ABB India Ltd., a subsidiary of the Switzerland-based ABB Group, is a well-known name in the power and automation technology sector.

It has a long-standing presence in India and the company's transformers are widely recognized for their high performance, safety features, and environmental sustainability.

It also provides advanced BESS solutions, including lithium-ion batteries, inverters, and control systems.

The company supports the development of micro grids, which are localised power systems that can operate independently or in conjunction with the main grid. Energy storage plays a crucial role in enabling microgrids to function effectively, especially in remote areas.

ABB India is currently focusing on digitalization, integrating smart technologies into its transformers to enhance operational efficiency and reduce environmental impact. The company's future plans include expanding its manufacturing capacity in India and increasing its share in the global market.

In terms of financial performance, ABB India has demonstrated steady growth over the years. Its partnership with the parent company ABB Ltd gives it access to cutting-edge technology and resources, which will help it maintain its position in the market.

Despite its strong market position, ABB India faces challenges such as the need to continuously innovate and adapt to changing market demands.

To know more, check out ABB's financial factsheet.

# GE T&D India Ltd.

GE T&D India Ltd., part of the American multinational General Electric, is a prominent manufacturer of electrical transmission and distribution equipment in India.

The company has a strong heritage in the power sector, offering a range of transformers designed to meet the demands of modern power grids.

GE T&D's transformers are used in various applications, including utilities, industrial projects, and commercial installations.

The company is focused on incorporating advanced technologies such as digital twins and predictive analytics into its transformers to enhance performance and reliability. It's also exploring opportunities in the renewable energy sector, particularly in the development of transformers for solar and wind power applications.

It's order backlog surged to a record-breaking Rs 62.7 bn as of March 2024, reflecting a massive 69% increase year-on-year compared to Rs 37.0 bn in March 2023. This robust backlog indicates a strong pipeline for future revenue.

To know more, check out the company's financial factsheet here.

# Schneider Electric India

Schneider Electric, a global leader in energy management and automation, has a significant presence in India's transformer market.

The company manufactures a variety of transformers, including distribution transformers, power transformers, and specialized transformers for renewable energy applications.

The company is heavily invested in digital solutions, with a focus on smart transformers that incorporate sensors and communication technologies to enhance monitoring and control.

Schneider Electric's future strategy includes expanding its footprint in the Indian market and increasing its offerings in the sustainable energy segment.

In recent years, the company has showed tremendous improvement in its financials on on the back of optimising its data centre infrastructure.

It has a partnership with NVIDIA, where Schneider Electric aims to provide data centre owners and operators with the tools and resources necessary to seamlessly integrate new and evolving AI solutions.

Going forward, the company wants to focus more on the AI space.

To know more, check out Schneider Electric's financials here.

# Voltamp Transformers Ltd.

Voltamp Transformers Ltd. is a leading Indian manufacturer specializing in the production of transformers.

Its product portfolio mainly comprises oil-filled power and distribution transformers with a voltage ranging up to 160 MVA, 220 kV, and dry-type transformers up to 12.5 MVA, 33 kV class.

The company has an installed capacity of 14,000 MVA in Gujarat but sells its products in various countries such as India, Nepal, Bhutan, Sri Lanka, Middle East Asia, South East, and African countries.

It has a diversified client base of over 1,000 customers across various industries such as power, oil refineries, textile, chemical, real estate, automobile, infrastructure, and steel.

With a strong order book, a robust balance sheet, and a positive outlook for profitability, the company is expected to grow well.

To know more, check out Voltamp's financial factsheet.

# Transformers and Rectifiers India Ltd. (TRIL)

Transformers and Rectifiers India Ltd. is a prominent player in the Indian transformer manufacturing industry.

It holds a prominent position as a leading manufacturer of transformers, boasting a capability to produce units up to the high voltage range of 1,200 kV.

The company's diverse product portfolio encompasses power & distribution transformers, furnace transformers, rectifier transformers and speciality transformers, catering to various applications.

Adding to the strong foundation, TRIL reported a record-breaking order inflow during FY24, totalling Rs. 20.5 bn. This impressive figure includes export orders of 11%, demonstrating their reach across diverse sectors like solar power plants, private industries, metro projects, railways and power utilities.

TRIL's success stems from its strong in-house design and technical expertise. It has further bolstered the company's capabilities through technical collaborations and joint ventures specifically for 765 kV transformers and reactors.

While it's primary focus remains domestic, with 88% of revenue generated within India, it is actively expanding the reach internationally, currently serving over 25 countries.

To know more, check out TRIL's financial factsheet.

# Indo Tech Transformers Ltd.

Indo Tech Transformers specializes in power and distribution transformers. The company has a strong presence in the domestic market and has also made inroads into international markets.

It manufactures a range of distribution transformers suitable for use in utilities and industries ranging between 100 KVA / 11KV to up to 5000 KVA / 33KV for residential, commercial, and industrial applications.

It currently has a manufacturing facility for distribution transformer of up to 1000 MVA and up to 9000 MVA for power transformers.

The company has a strong order book and new order inflows are expected in the latter half of the year, which could translate to healthy revenue growth and improvement in profitability.

Indo Tech Transformers is a subsidiary of Shirdi Sai Electricals Limited (SSEL), and SSEL currently holds a 75% stake in the company. SSEL bought a majority stake from Indo Tech Transformers' erstwhile promoters - Prolec GE.

To know more, check out Indo Tech's financial factsheet.

Snapshot of Top Transformer Stocks on Equitymaster Screener

Here's a table showing some more companies involved in the transformer industry -

In Conclusion

At Equitymaster, we've been writing about this major transformer theme for months.

Going forward, the Indian transformer industry is poised for substantial growth, buoyed by favourable demand for transmission and distribution products.

Additionally, increased international orders, rising infrastructure spending globally, the "China plus one" strategy, the embrace of renewable energy, and supplier consolidation collectively contribute to a promising future for the industry.

For more, check out the below video where Zill Jain talks about the top 5 transformer stocks in India.

Happy Investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...