Shirdi Sai Electricals plans Rs 1,000 cr investment on transformer capacity, conductor unit

YSR District: Shirdi Sai Electricals is planning to invest around Rs 1,000 crore to expand transformers manufacturing capacity to cater to the growing domestic and international demand and set up a conductor unit, CMD N Visweswara Reddy said.

The investment amount will also be used to set up ingots to conductor manufacturing units in YSR District (formerly known as Kadapa), the Chairman and Managing Director (CMD) said.

The company will use internal accruals to execute these business plans over the next 8-12 months, Reddy told PTI during an interview.

Shirdi Sai Electricals Ltd (SSEL) will build a capacity of up to 53,000 MVA (Mega Volt Amp) transformers annually, up from the present 33,500 MVA, he said.

The capacity of the company's Kadapa unit is 10,000 MVA, while that of the facility at Naini in Uttar Pradesh is 20,000 MVA, while Indo Tech Transformers Ltd, which is a listed entity of the group, has an installed capacity of 3,500 MVA.

The plan is to scale up the capacity of the Kadapa plant to up to 25,000 MVA and that of the Indo Tech Transformers unit near Chennai to 8,000 MVA, Reddy said, adding that at Naini the vision is to increase the capacity utilisation to 100 per cent from the current 10-15 per cent.

"These investments will create direct and indirect employment opportunities and contribute to the economic development of the areas around the plants," he said.

The CMD said around Rs 300 crore is being invested to set up the ingots to the conductor unit in Kadapa through a wholly-owned arm Shuchi Alloys and Conductors Technologies Pvt Ltd.

The capacity of the plant is 300 tonnes of ingots to conductors per day, he said.

Around 50 per cent of the production will be consumed by the company's EPC transmission business, while the rest will be sold in the open market, he said.

On his outlook on the transformers and transmission industries, Reddy said the sectors are expected to continue to perform well over the next 10 years with the government's focus on building power and infrastructure projects across the country.

New age transformers and more efficient transmission will help reduce aggregate technical and commercial (AT&C) losses, he said.

Established in 1994 as a transformer repairing company, SSEL Group has over the years grown to become India's largest transformer manufacturing company.

It is also into setting up transmission projects on an EPC basis. SSEL Group employs around 5,000 people and had a revenue of Rs 2,680 crore in FY 2022-23.

The group is targeting a revenue of around Rs 5,000 crore in the current fiscal year, Reddy added.