See demand pick up post Budget: Transformers & Rectifiers

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.