— Anurag Mundra, Director,
M & B Switchgears Ltd
Incorporated in 1976, Indore-based M & B Switchgears is a leading
name in the field of distribution transformers, power transformers
and special-purpose transformers.
Anurag Mundra, in an exclusive
interaction with
Venugopal Pillai, dwells on a number of important
issues in the Indian transformer industry like BEE's mandatory
star-labeling programme for distribution transformers, lack of
high-voltage testing facilities in India, competition from China, etc.
About his company, Mundra observes that the approach of
continuously changing the market-mix and focusing on industrial
clients has paid rich dividends.
With India expected to add 15,000 mw of new power generation
capacity per year, with matching T&D infrastructure, how do
you see the prospects for the Indian transformer industry?
At present India has total power generation capacity of around
1,70,000 mw, generating approximately 800 billion units (kwh)
annually. This generation is dominated by thermal power
plants to the extent of 65 per cent. Given the supply side
bottleneck in coal, at both availability and price front, capacity
addition of 15,000 mw per year for the next few years seems
little optimistic. However energy shortage of 9 per cent and
peak demand shortage of 10 per cent reflects good demand
potential. It is a well known fact 1 mw of power generation
capacity requires 8 mw of transformers. Hence even a humble
growth of 7-8 per cent in power generation added with the
replacement demand, portrays a very bright picture of the
Indian transformer industry.
We understand that M&B currently has an annual
transformer manufacturing capacity aggregating 9 lakh KVA.
Do you have plans to scale up this capacity in keeping with the
projected demand?
We have recently completed our expansion; we don't forecast
capacity addition in near future. However, the search for a
better product and market mix is a continuous process at M&B.
With lack of availability of prime CRGO often cited to be a major
concern in the Indian transformer industry, do you see the
situation improving after the proposed Steel Quality Control
Order comes into force?
Though availability of CRGO has improved in past 6-8 months,
we don't foresee any improvement because of the proposed
Steel Quality Control Order.
India allegedly has a large number of transformer
manufacturers in the unorganised sector, particularly with
respect to low-rating distribution transformers. What is your
opinion?
Yes, the transformer market in the sub-33kV segment is largely
dominated by unorganized sector. Though process and quality
systems are challenging issue in unorganized sector, this sector
is significantly contributing in Gross Domestic Product and in
providing local employment.
Do you see the mandatory "star-label" programme for
distribution transformers having a positive impact?
The "Star-Label" programme will have positive impact in the
long term. Electrical utility companies are not very keen to
purchase star rated transformers. Effective execution and
supervision of star label programme will give positive result.
India is moving to the EHV and even UHVAC power transmission
regime. In keeping with this, do you intend to graduate to
producing higher-kV transformers?
At present we are focusing only upto 132kV segment.
We understand that majority of M&B clients are power utilities.
What is your plan for penetrating the industrial segment and
even designing niche transformers for special applications?
Since the last two years we are changing our market mix and
targeting significant revenue from non-utility companies. Our
transformers have got much needed appreciation from steel
mills and mining companies. Converter duty transformers, dual
ratio transformer, AVR, K-class transformers, special duty
transformers have been accepted by the market and we see a
huge upside potential in this segment.
What is your opinion on the availability of testing facilities in
India, particularly with respect to high-rating equipment, like
power transformers?
Though testing facility for the higher rating transformers
requires huge capital investment, in the past it has been
observed that stoppage of testing activity has restricted
developmental plans of various companies and virtually all the
R&D activities came to a standstill. With huge pendency of
electrification in country and lack of standardized specification,
our country deserves one more testing facility for higher rating
transformers.
With India expected to widespread addition to its transformer
installation base, coupled with ageing of existing transformers,
how do you rate the prospects of maintenance and repair of
transformers as a standalone business?
The prospects for maintenance and repair of transformer on a
standalone basis are bright but this requires a little caution
from both the sides, and not to repair transformers whose
designs are outdated.
How has been M&B doing on the exports front? Which countries do you currently export transformers to?
We are not exporting transformers. However a certain part of
sales is classified as deemed exports.
We hear of reports of Chinese transformer companies planning
to set up shop in India. What is your take on this matter?
I wish all the very best to Chinese companies. I would
like to quote the Late Shri Aditya Vikram Birla, "we should
not be afraid of competition, let the competition be afraid
of us!"
Tell us in brief about your diversification in the solar
power business.
India being a tropical country, sunlight is available for longer
hours with high intensity. Hence solar energy has great
potential. Moreover modular structure (solar photovoltaic)
allows decentralized distribution of energy and power
production as per need.
M&B has rich experience of more than 30 years on the
transmission and distribution side of power, it's a logical
extension and not diversification for us to move to
generation side. We are putting up 6 mw (2 mw in first phase
and 4 mw in the second) of grid-connected solar PV plant in
Madhya Pradesh.