Chota Packet Bada Dhamaka Supreme Power Equipment LtdTransformer Market size is valued at USD 54 billion in 2022 and is anticipated to
grow at a CAGR of 7.2% between 2023 and 2032.
o Large scale integration of renewable energy sources coupled with increasing
electrification programs primarily across the emerging economies will
accelerate the industry scenario.
o Expanding urban infrastructure to proliferate product demand for commercial &
industrial applications Power transformer market from the commercial &
industrial applications segment is expected to exhibit nearly 7% growth rate
between 2023 and 2032.
o The global power transformer market size was valued at $27.7 billion in 2019, and
is expected to reach $50.8 billion by 2027, registering a CAGR of 7.9% from 2020
to 2027.
Indian Transformer Market Size
o The India transformer market is expected to rise at a CAGR of more than
5% during the forecast period.
o The Transformer market in India can be pegged at more than INR 12,000
Crores. Power Transformers contribute 45 percent of the total market and
distribution transformers, 55 percent.
o Anticipating the huge domestic, requirement of power sector expansion
and overseas demand, the transformer industry in India has more than
doubled its manufacturing capacity over the last five years.
o Transformer manufacturing capacity in India stands at ~370 GVA with
capacity utilization rates hovering around 60- 70 percent on an average
over the last 5 years.
Power Sector
o India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 416.59 GW as of April 30, 2023.
o India's power generation witnessed its highest growth rate in over 30 years in FY23. Power generation in India increased by 8.87% to 1,624.15 billion
kilowatt-hours (kWh) in FY23.
o According to data from the Ministry of Power, India's power consumption stood at 130.57 BU in April, 2023.
o The peak power demand in the country stood at 226.87 GW in April, 2023.
Attractive Opportunities
In Union Budget 2023-24, the government allocated US$ 885 million (Rs. 7,327
crore) for the solar power sector including grid, off-grid, and PM-KUSUM
projects. •
To meet India’s 500 GW renewable energy target and tackle the
annual issue of coal demand supply mismatch, the Ministry of Power has
identified 81 thermal units which will replace coal with renewable energy
generation by 2026.
In Budget 2023-24, Government has committed an outlay of Rs. 10 lakh crore
(US$ 120 billion) during 2023-24 towards infrastructure capital expenditure
compared to Rs. 7.5 lakh crore (US$ 90 billion) (BE) during 2022–23.
Company has reduced debt.
Company is almost debt free.
Company has delivered good profit growth of 108% CAGR over last 5 years.
Company has a good return on equity (ROE) track record: 3 Years ROE 67.2%.
Debtor days have improved from 114 to 83.3 days.
Company's working capital requirements have reduced from 87.0 days to 67.8 days
