The power T&D sector accounted for 88 per cent of Skipper Ltd’s outstanding order book position as of December 31, 2020, according to a company communication.
As of December 31, 2020, the outstanding order book position of Skipper Ltd was Rs.1599 crore out of which the power T&D sector accounted for Rs.1412 crore or 88 per cent.
Of the order book of Rs.1412 crore, exports accounted for 38 per cent or roughly Rs.536 crore. Central PSU Power Grid Corporation of India had a share of 27 per cent while the remaining 35 per cent was accounted for by state power utilities and other customers.
The new order inflow in Q3 (October to December) of FY21 for engineering products stood at Rs.230 crore. This included mandates from PGCIL, state power utilities and railways, as well as exports orders. The cumulative order inflow during the first three quarters (April to December) of FY21 was Rs.494 crore. [Order inflow purely for the power T&D sector is not available.]
Skipper Ltd, in an investor presentation, said that the domestic power T&D activities are showing signs of rebound after a lull period of two years. The company expects that large orders that were postponed will come up in the near future, providing the much needed boost to the domestic power transmission industry. Accordingly, Skipper expects that orders worth some Rs.50,000 crore, relating largely to Green Energy Corridor (GEC) projects, will come up for bidding in Q4 of FY21 or Q1 of FY22.
As far as the international market goes, Skipper feels that majority of new transmission lines are now coming up for renewable energy evacuation. This is leading to shorter execution cycle and faster supplies. Besides, the strong “anti-China” sentiment has made the global supply chain reduce its dependence on China, bringing opportunities to other supplier countries including India.
Tower testing facility
Skipper Ltd recently started operations at its new transmission line tower testing facility. Spread over 14 acres of land in Howrah, West Bengal, the testing centre was commissioned in March 2020. Approved by the Department of Scientific & Industrial Research (DSIR), Government of India, this testing centre is understood to be the first of its kind in eastern India. Equipped to test all kinds of lattice towers, monopoles and guyed towers, Skipper Ltd feels that this testing facility would be the “ultimate destination” for overhead transmission line contractors and manufacturers, for prototype testing.
Largest transmission tower manufacturer
Skipper is understood to be the largest power transmission tower manufacturer in India, and also the tenth such largest in the world. Transmission towers falls under the “Engineering Products” business of Skipper Ltd. With an aggregate capacity of 3 lakh tonnes per year, the engineering products division includes power transmission towers, power distribution poles, monopoles, tower accessories, high-tensile angles, fasteners, etc. The division also makes structures for railway electrification.
Skipper also has an “Infrastructure Projects” division that handles EPC contracts related to power transmission and railway electrification.
Featured photograph shows a collage of Skipper’s new transmission testing facility at Howrah in West Bengal.
