Distribution transformer is very important equipment that allows the delivery of electricity with a high degree of capillarity. Electricity can be generated from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power to non-conventional sources such as wind, solar, and agricultural and domestic waste, but transmitted through Transformer only. “Many ways for Generation <-> Single way for Transmission.”

The Indian economy is witnessing signs of restoration and so is the power sector. A shift in the Government of India’s focus to strengthen the power T&D system opens up abundant opportunities for the transformer market too. The Indian distribution transformer market is predominantly unorganized with few participants supplying the higher range.

Market Overview

Obviously, reforms in T&D sector boost prospects for the Indian distribution transformer market too. The Indian distribution transformer market has grown by leaps and bounds for over five decades and has a well-matured technology base for all types of applications using different types of construction and materials. As there is a demand upswing for reliable power in the country, the transformer market is witnessing a growth trend. The Indian economy is witnessing a restoration and so is the electrical industry and its various segments including the transformer industry. . Developments in the power sector will have huge ramifications for the Indian transformer industry. Strengthening of power transmission and distribution system has created opportunities for the power and distribution transformer market.”

The Government of India is encouraging investments at the transmission and distribution level to increase access to reliable and continuous power supply through schemes such as Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY). The scheme aims to provide power for every village and thereby provide power to everybody. This entails huge investments in the T&D sector including use of energy efficient transformers, besides renovation, modernization, restructuring, and up gradation of the sub-transmission and distribution infrastructure. Major manufacturers have geared up their manufacturing facilities to meet the spurt in demand due to this project initiated by GOI. The Bureau of Indian Standard, Ministry of Power & DHI, are actively working to ensure that quality products are procured by the electricity boards and has accordingly stipulated mandatory Level-2 rating for distribution transformers for DDUGJY scheme.

As power is one of the most critical components of infrastructure crucial for the economic growth and welfare of nations, the existence and development of adequate infrastructure is essential for sustained growth of the Indian economy.
The major challenges faced by the Indian distribution transformer manufacturers are dearth of cold rolled grain oriented (CRGO) steel, import of low grade secondary defective CRGO steel, and fluctuating metal prices This is the high time that Indian Steel Companies must catch the opportunity for manufacturing CRGO Laminations in India under make in India program, which will benefit the nation by guarding forex reserves, which are being spent on CRGO Imports.