Areva T&D holds groundbreaking ceremony for its new high voltage transformer factory

Areva T&D India Ltd has announced that the Company's division, one of the world's leading T&D Companies, held a groundbreaking ceremony for its new power transformer factory to be built in Vadodara, Gujarat, India.

Shri. Narendra Modi, honorable Chief Minister of Gujarat laid the foundation stone of the new facility near Kotambi village in Vadodara, at an official ceremony, which took place in the presence of the Chairman & CEO of the Company, Philippe Guillemot, senior Company representatives and local officials.

The current installed generation capacity of India is around 130,000 MW. The government of India has a target of 225,000 MW for the year 2012 (conforming to the twelfth Five-Year plan). Thus the scope of additional generation capacity is at least 20,000 MW per year, which in turn means a demand of 120,000 MVA additional capacity per year from the perspective of the Transformers business.

In addition, due to the growing potential for super thermal power projects, the increased demand for power transmission and distribution products lines is booming. The products manufactured in the Company's new state-of-the-art factory will contribute to the country's mega power projects.

This strategic move demonstrates the Company's technical competence in the high-voltage transformers business. The Company has planned to invest - 35 million in its new manufacturing unit, and the first transformer is due for delivery in December 2008.

Vadodara is an ideal manufacturing base as it has an efficient supplier portfolio. The new manufacturing facility will directly employ 500 people at full capacity, and indirectly employ over 2,000 people through the creation of a world-class supply chain and vendor base.

Source : Equity Bulls

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