Voltamp Transformers Ltd expects to complete construction on its new transformer manufacturing facility by around July 2026.
In a release announcing the company’s performance for Q1FY25, Voltamp Transformers said that it has identified land near Vadodara in Gujarat, for a new manufacturing unit for power transformers.
The necessary approvals from government authorities are expected by October 2024. On getting requisite approvals, land purchase agreement will be executed and factory construction work will commence.
Completion of the new unit is expected about 15 months thereafter, which is by around July 2026.
Voltamp has proposed to build a new power transformer manufacturing plant with annual capacity of around 6,000 MVA, in the first phase. The plant will roll out transformer of up to 250 MVA capacity, in the 220kV class. Capacity expansion will be undertaken in future, governed by market conditions, the company said.
The capital outlay for the new unit is around Rs.200 crore that will be financed through internal accruals.
With increase demand for electricity and transformers projected over the next 5 to 6 years period, it has become imperative to enhance manufacturing capacity, the company said.
Since there is no space available for further expansion at both factory locations, Voltamp has decided to invest in new power transformer manufacturing unit, the company said explaining the rationale of the new project. According to information available, Voltamp’s two existing manufacturing units are located at Makarpura and Vadadla – both in Vadodara district.
Order inflow
Voltamp Transformers opened FY25 with an opening order book of Rs.840.66 crore corresponding to 7,839 MVA in physical terms. The new order inflow from April 1, 2024 to around July 29, 2024 stood at Rs.639 crore (5,040 MVA) providing revenue visibility of Rs.1,479.66 crore, or 12,879 MVA in physical terms.
Speaking of challenges, Voltamp said that though there will be increased demand for transformers both in the local and international markets, managing the supply chain, which includes sourcing raw material and components at budgeted costs and in time, will be the key challenge. While lower commodity prices supported corporate profitability in FY24, the recent uptick in input prices, led by industrial metal prices and scarcity of CRGO, is likely to result in higher input cost in the years ahead, Voltamp noted.
Also read: Voltamp Transformers sees 37 per cent growth in order inflow
Featured photograph (source: Voltamp Transformers) show a manufacturing facility of the company.