Industrials: No respite in T&D - competition high and project investments weak :: Kotak Securities PDF Link

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Industrials
India
No respite in T&D – competition high and project investments weak. We share
feedback from the Voltamp discussion as well as PGCIL February ordering. Voltamp
(220 kV and below business) suggested challenges to break even on (1) competition
from substantial overcapacity and (2) no visibility of improving project investments.
PGCIL’s ordering remains strong (Rs33 bn in Feb 2012) although competition remains
high from (1) Chinese (90% share of Feb equipment ordering, majority share in the
year, building domestic capacities) and (2) new domestic entrants (TRIL, Techno Electric
getting 13-14% share). View on CRG is affected as well though the impact is cushioned
by relatively small domestic power exposure (16% of consolidated revenues).