‘Power’ dragons make Vadodara their battleground
- May 8, 2012
- Posted by: btwatlanta
- Category: Uncategorized
VADODARA: Two ‘power’ dragons who are already competitors in China are making Vadodara their battleground to gain share in India’s growing power sector.
Tebian Electric Apparatus Stock Co. Ltd (TBEA) and Baoding Tianwei Baodian Electric Co. (TWBB) – the two biggest players in China’s transmission field, will now compete with each other from Vadodara.
If TBEA (India) Private Limited is investing Rs 2,500 crore for manufacturing transformers at Karjan where it is developing TBEA Green Energy Park with ultra high voltage transformer plant, TWBB on Monday formally incorporated its joint venture (JV) with Anand-based Atlanta Electricals Private Limited for setting up a transformer factory on Padra-Jambusar Road with Rs 400 crore investment.
Both these Chinese firms are making Vadodara their base while targeting the growing business opportunities in India as demand for ultra high voltage transformers is rising.
“Yes, we are competitors not only in China but also at global level,” Jiao Zihe, director of BTW Atlanta Transformers India Private Limited, the JV between TWBB and Atlanta Electricals Private Limited told TOI on Monday. “In China’s transmission sector, we (TBEA and TWBB) are biggest players. We are competitors but also co-operate with each other. Also, presence of a lot of suppliers will be good for overall development of the sector and benefit consumers in India,” said Zihe.
BTW Atlanta Transformers India Private Limited has been formed with majority stake (51%) of TWBB, a subsidiary of Baoding Tianwei Group Company Limited which has annual turnover of Rs 14,000 crore and 18,000 employees in its 40 subsidiaries. Atlanta Electricals Private Limited which has Rs 210 crore annual turnover will have 49 percent stake in the JV.
Through the JV a transformer factory to manufacture ultra high voltage transformers and reactors in the range of 220 Kv to 765 Kv class (to be expanded to 1200 Kv class in future) with the annual capacity of 20,000 Mega Volt Ampere (MVA) will be set up.
“It is a completely green field project that will generate employment of 500 persons, most of which are likely to be from Gujarat,” said director Niral Patel, adding that land for the project has been acquired at Ankhi village where construction will start from June 2012 and it will go for commercial production by May 2013.
The company is expecting to reach sales of over Rs 1,000 crore per annum in a short period after commencement of commercial production. “Demand for ultra high voltage transformers is growing in the country as the XI five year plan itself envisages a total addition of 85 Gigawatt (GW) of electricity to the installed capacity,” added Patel.
It is worth mentioning here that the transmission sector is likely to see investment of Rs 2.5 trillion in the XII Plan period with Rs 4 trillion going towards power distribution projects. It is estimated that business purely from transmission projects is Rs 37,500 crore in the XII Plan period.