Mason says bidding for orders in partnership with technology partner Fuji will start in two weeks
Demand for Transformers & Rectifiers India’s products is seen picking up after the Budget, says Vinod Mason, Director, Strategy of the company.
In an interview to CNBC-TV18, Mason says the new gas policy is conducive for CNG, piped gas and power generation companies. The company recently entered into a technology pact with Japan’s Fuji Electrical. Mason says bidding for orders in partnership with Fuji will start in two weeks. He expects the company to start receiving orders in 4-5 months.
Below is the verbatim transcript of the interview:
Latha: Transformers sector has been kind of a transformed sector, has been in focus, have you seen any up tick in the order book either for your company or for the sector as a whole?
A: Definitely because once the projects start getting cleared the first thing in the whole substation is transformers. So, Transformers is a longest delivery period product in that. Obviously the orders will start coming in and some of the projects are getting cleared now.
Latha: Last time when we spoke the company had Rs 535 crore in unexecuted orders, what is the situation now?
A: It is approximately Rs 500 crore because during this period we have executed more than what we got so it is about Rs 500 crore and that is quite comfortable for us.
Ekta: The market hasn’t picked up as per your companies expectations but you are hopeful of the government’s actions and the pace of movement. Are you content with it now?
A: The position still holds because there is not much of a change as such. The last couple of days, the Power Minister has made certain statements by which it appears that the government is on the line and we expect that after the Budget now there will be a big demand coming up. From Power Grid which is the biggest buyer of transformers and especially all the electrical equipment for T&D sector, the demand has picked up. In the last one month we have seen couple of tenders being floated for large transformers of 765 KV plus the reactors and that should take care of it.
Ekta: Any update on the gas plant lying ideal due to lack of clarity on the gas policy?
A: Not exactly but I was talking to one of the manufacturers couple of days back and he said that the cabinet note has been prepared and it is lying but we don’t know exactly when it will be cleared. However, the gas policy which has been announced it is quite conducive for these people and it favours them. Earlier the first priority was given for the fertiliser sector which has been put on the fourth priority and the first priority has now been given to the pipe gas and the CNG, second for the nuclear establishments and the third for power. The biggest two consumers are power and fertiliser, fertilisers have been put on the last one so that gives that power will get an edge over the others. So, this people are hopeful that in the next couple of day because after all, 25,000 megawatt of capacity which has been already built and if it is not being utilised it is not fair for the whole country.
Latha: What is the status on orders with respect to the technology transfer deal you had Fuji Electricals, anything coming up?
A: As I mentioned last time that we have signed the agreement with them, the tenders, we will now start quoting for that that the first tender with their technology is expected in another two weeks time and that will set the ball rolling; that is for the 765 KV reactors. As I mentioned we have three products for which we have signed for them. 765 KV reactors, 400 KV reactors and the generated transformers of 400 KV. 400 KV generated transformers are primarily purchased by NTPC and IIPs. The NTPC tenders are also there in the pipeline so we will be quoting for it, as you know that this is a product and this is a sector where it takes almost about three to four months or even at times goes to six months for the orders to get finalised. So, by the time we starting getting order it would be another 4-5 months from now. So, we have already started bidding for that.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.