TD Power signs tech transfer agreement with Siemens AG

In an interview to CNBC-TV18, Nikhil Kumar, joint managing director, TD Power Systems Ltd says that post Siemens AG agreement the company plans to capture a decent market share. TD Power will pay royalty to Siemens AG for each unit it will sell. In generator business, TD Power expects margins to increase from the current 15-16% at the Ebitda level.

Kumar further says that he expects custom duty to come down for machines in 100-200 megawatt range in near future. Below is the edited version of the interview. Also watch the accompanying video. Q: What is your business expectation post Siemens AG agreement?
A: The market is quite large in this segment. BHEL is the only other manufacturer of larger size machines in the country. Currently, whatever is coming into India or getting installed into India is imported. We hope to capture a decent market share. Q: What exactly is this licence agreement?
A: It is a technology-transfer agreement. We make the entire machine right from scratch and do parts of design in Bangalore. We also manufacture generators and sell in India and outside India in certain territories. Q: Do you pay a licence fee for each unit sold to Siemens?
A: We pay royalty for every unit to Siemens. Q: What is the royalty percentage or margins you are expecting to make at these new generators. What is the revenue projection for next three years?
A: The royalty payments will be bound by the confidentiality agreements with Siemens, so it can