HPL Electric & Power Ltd is upbeat on business prospects from the smart metering segment, the company said in an investor presentation.
The company has estimated that tenders amounting to around Rs.10,000 crore have been floated or are expected to be floated in the near term. This gives a healthy enquiry base for the company with respect to smart metering opportunities.
As of September 30, 2022, HPL Electric & Power had an outstanding order book of Rs.834 crore. Out of this, the “meter & systems” business accounted for around 60 per cent and the remaining 40 per cent was taken up by the “industrial segment”. [The industrial segment includes switchgear, lighting equipment and wires & cables.]
HPL Electric & Power has stated that it has positioned itself very well in the smart meter market and is receiving good traction from customers. The current metering order book (discussed above) has a 50 per cent share of smart meters.
High-growth opportunities
Commenting on the company’s performance during Q2 of FY23, Gautam Seth, Joint Managing Director, HPL Electric & Power Ltd, said, “For the metering and business segment, the market is presenting high growth opportunities that is backed by favourable government plans to support the segment. Policies like National Smart Grid Mission (NSGM) and Integrated Power Development Scheme (IPDS), coupled with Revamped Distribution Sector Scheme (RDSS), are favourable in creating strong consumer demand and working as a push factors toward the strong market of smart meters and hence the demand for smart meters seems to get good pace in the coming days.”
Also read: HPL Electric Upbeat On Metering Business
Approved bidder
HPL Electric has said that it has been approved as an eligible bidder for participation in the tendering process for appointment of advanced metering infrastructure (AMI) service provider for smart prepaid metering in India under the Revamped Distribution Sector Scheme (RDSS). Under RDSS, AMI services are provided under the design, build, finance, own, operate and transfer (DBFOOT) basis.
HPL is one of the few participants to receive the Empanelment Certificate after being subjected to vigorous testing carried out at the Central Power Research Institute (CPRI) laboratory. This Certificate enables the company to participate in the massive opportunity of the 25 crore smart-meter market. It may be mentioned that the Centre has targeted to install 25 crore smart prepaid meters by 2025, on a pan-India basis.
