TARIL acquires controlling stake in Posco-Poggenamp Electrical Steel
- January 30, 2025
Transformers & Rectifiers (India) Ltd [TARIL] has acquired controlling stake in Posco-Poggenamp Electrical Steel Pvt Ltd (PPESPL), marking an important step towards achieving complete backward integration.
In a stock exchange communication, TARIL said that it has acquired 137.70 lakh equity shares of PPESL from existing shareholders, aggregating to a controlling 51 per cent stake in the total paid-up share capital of PPESPL.
In November 2024, TARIL had decided to make a strategic investment in Posco-Poggenamp Electrical Steel Pvt Ltd, as a means to eventually achieve full backward integration.
PPESPL manufactures CRGO laminations for transformers and reactors up to 765kV class/500 MVA rating and is also capable of producing the same for 1,200kV class/1,000 MVA rating. Set up in 2010, PPESPL currently has a CRGO processing capacity of 24,000 tonnes per year, making it one of the largest such in the country.
As already reported by T&D India on October 11, 2024, Jitendra U. Mamtora, Chairman, TARIL had outlined several steps to achieve full backward integration. These include taking over a CRGO processing house based in Gujarat, entering into agreements with global suppliers to source the company’s CRGO requirements, as well as collaborating with a leading manufacturer for producing RIP (resin impregnated paper) bushings. This apart, Mamtora had also indicated that TARIL would be expanding its overall manufacturing capacity by 15,000 MVA per year.
CRGO (cold-rolled grain oriented) electrical steel is a critical raw material for any transformer and reactor, comprising about 33 per cent to 35 per cent of the total raw material cost. The reliable performance of transformer or reactor hinges on stringent manufacturing standards and precise process control when processing CRGO steel of the desired specifications.
In acquiring controlling stake in PPESPL, Transformers & Rectifiers (India) now has a dedicated CRGO processing plant, which ensures tighter control over the quality and consistency of electrical steel, the most important part of entire supply chain.
Performance in Q3FY25
During Q3 (October to December) of FY25, TARIL booked new orders worth Rs.631 crore, taking the outstanding order book position to Rs.3,686 crore, as of December 31, 2024. Besides, over Rs.19,000 crore worth of inquiries were under negotiation, TARIL said in an investor presentation.
The confirmed order book position of Rs.3,686 crore was spread over industrial utilities (share: 47 per cent), Central utilities (43 per cent) and state utilities (10 per cent). In terms of products, two-thirds of the order book related to power transformers, followed by reactors (27 per cent) and special duty transformers (7 per cent).
Featured photograph (source: posco-poggen.com) shows a slitting line at PPESPL’s facility in Ahmedabad, Gujarat.
