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T. Murrali

Chennai, Jan. 28 The Chennai-based Indo Tech Transformers Ltd (ITTL) will double its transformers manufacturing capacity to 7,450 MVA soon with the inauguration of its fifth manufacturing facility, with a capacity of 4,000 MVA, during the second week of next month. The company already has three manufacturing facilities in Chennai and one at Palakkad in Kerala.

The Director of ITTL, Mr P.S. Jagdish, told Business Line that the objective of setting up the greenfield facility at Kancheepuram was to focus more on manufacturing power transformers up to 315 MVA capacity in 400 KV class.

This would give the company lot of scope to grow by catering to the emerging demand in the domestic as well as exports markets, he said. Till now, the company has been manufacturing power transformers with a maximum capacity of 100 MVA in 220 KV class.

The company has received Rs 20 crore worth of order from a couple of companies in Europe and Africa, he said.

At present, the share of exports in total sales is less than one per cent, but would reach 20 per cent in three years, he said. To support capacity expansion, the company would add 200 more employees to the existing 394 people, he added.

ITTL makes distribution transformers at Palakkad with an installed capacity of 200MVA and Thirumazhisai near Chennai with an installed capacity of 750 MVA. The company also has power transformers manufacturing unit at Thirumazhisai with an installed capacity of 2,400 MVA.

The company recently commissioned a dedicated manufacturing facility to make ‘open ventilated dry type transformers’ in technical collaboration with E I Dupont, with an installed capacity of 100 MVA.

Though the cost of dry type transformers is twice as the regular oil-cooled transformers, it is picking up due to its inherent advantages.

According to Mr Jagdish, these transformers require minimal space, as there would not be a cooling unit. Besides, it is eco-friendly and safe and can be installed conveniently.

The key driver that spurred the growth of dry type transformers was skyrocketing real estate price, he said. The company has an order book for Rs 80 lakh as on date, he said.

During the last one year, the company spent Rs 62.15 crore towards capacity expansion. It spent Rs 7 crore towards shifting its unit in Saidapet to Thirumazhisai and Rs 1.5 crore towards setting up dry transformers plant, Rs 3.65 crore to increase capacity of its power transformer unit (at Thirumazhisai) from 1,800 to 2,400 MVA and Rs 50 crore towards the greenfield facility at Kancheepuram.

It may be noted that the company raised Rs 39 crore through IPO last year towards capacity expansion programmes.

In addition, it mobilised Rs 10 crore through term loan and the balance was adjusted from internal accruals.

During 2006-07, ITTL registered a turnover of Rs 155 crore and in the current fiscal it hopes to report Rs 210 crore.

With additional capacities becoming operational fully, the company hopes to cross the Rs 500-crore mark by 2009-10, he added.

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