India plans to significantly expand its transmission and distribution (T&D) infrastructure due to which the annual sales of domestic transformers is expected to surpass the Rs 40,000 crore mark by growing at an estimated 10% annually through next fiscal. The sales growth will lift the capacity utilisation of manufacturers well above 80% leading to an increase in working capital requirement and capital expenditure, which would be funded through incremental debt. The demand for power transformers is being driven by two factors - one is the addition of electricity generation capacity, and other is the increasing demand causing robust electricity distribution infrastructure. The installed power generation capacity is expected to increase from the existing 485 GW to 575 GW, while peak power demand is seen up more than 20% from the current level, underscoring the need to augment the installed capacity of transformers. Some of the companies that will benefit from this expansion are -

SIEMENS

TARIL

VOLTAMP

ABB

KIRLOSBROS

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