Tell us in brief about the journey of HPS in India, and how it progressed after the acquisition of Pete Transformers.
The journey of HPS in India has been both challenging and exciting. The challenge lies in scaling operations to meet the high demand for our products in the market. This challenge brings excitement as we align our products with industries that significantly impact the electrification of our world.
Can we presume that your Indian entity is a wholly-owned subsidiary of HPS?
Yes, it is.
What are the various transformers that are currently produced by HPS in India? Globally, HPS is renowned for dry-type transformers. Does HPS produce them in India as well?
We produce a broad range of transformers, predominantly oil-filled transformers for the Asia-Pacific market. The markets we serve include renewables such as solar and wind, hydro, infrastructure, oil & gas, as well as a service model. Additionally, we supply transformers for special applications and various other markets, including dry-type transformers, in addition to our oil-filled solutions.
How do you rate the prospects for dry transformers in India, especially in view of rapid growth in commercial realty, urban transportation, etc?
The prospects are strong for all transformer construction styles due to the high demand for electrification both in India and globally.
HPS benefits from a wide range of customers, with a strong focus on the end-users of our products and services. Our customers include OEMs, project management firms, and some government projects. There are very few markets or customers that we do not engage with.
HPS India, along with our operations in Canada, the USA, and Mexico, is constantly reviewing capacity to meet our customers needs. Over the last couple of years, HPS has invested approximately Rs.480 crore in capital expenditure globally to support its strategic growth. This investment is reflected in the excellent results we have achieved as an organization, all supported by the rich culture and experience of being a company with over 100 years of history.
Tell us about the in-house testing facilities of HPS in India. In general, how do you see India’s self-sufficiency with respect to transformer testing labs like ERDA, CPRI, NHPTL, etc?
Very limited availability of prime grade CRGO has been a contentious issue in India for many years, and so has been the alleged use of imported inferior/scrap CRGO by domestic transformer manufacturers. What is your overall view on the matter? In particular, do you see shortage of prime grade CRGO—whether domestic or imported—for Indian transformer manufacturers?
The benefit of being a large global organization is having very strong and influential relationships with our supply base, not only here in India, but around the globe. Our procurement teams in each facility around the world and in our organizational headquarters, uses this strength to secure materials in a way that is superior to smaller organizations. As a global organization we are aware of the alleged use of inferior CRGO, however our testing facilities ensure that only the highest quality materials are used within our products. This provides us with a great advantage over some competitors in the space in which we operate.
How do you see the years ahead for HPS in India, and what do you consider as your main business growth drivers in the subcontinent?
We expect that our extraordinary growth will continue at varying levels across the broad portfolio we have. The benefits of having a large range of products and markets that we serve is that it shields us from having a downfall as a result of a change or slowdown within one market segment. This strength again, sets us apart from many of those operating within our India market.
Some of our largest growth drivers are renewable energy conversions, significant infrastructure demands and our ability to be an Indian manufacturer staged to supply globally.
