Power equipment makers hit by input price hike
Small-scale units have either cut-down on production or shut down
Vishal Sharma
Vishal Sharma
New Delhi/ Agra. At a time when the entire state of UP is facing the worst power crisis in recent times, the power transformer manufacturing industry of Agra was hoping for good business this year, expecting a rise in demand of power correcting equipment like voltage stabilisers, CVTs and inverters but the more than two-fold rise in copper and aluminum prices over the past four months has destroyed all hopes of good business of the local transformer manufactures.
As the prices of both these metals began rising since February, the small-scale power transformer manufacturing units of Agra have been facing a tough competition from the branded manufacturers whose prices have now come almost at par with the locally manufactured brands after the huge rise in metal prices.
A number of such small-scale units affected by the price rise have either cut-down on their production or temporarily shut down till the metals ease down to a lower level.
In Agra, the raw materials for transformer manufacturer could be sourced from both the Hing Ki Mandi and Chhippitola areas and in both these markets, the prices of copper wire for transformer winding had become prohibitively high and the manufacturers were using aluminum wires instead of copper to bring the prices of the transformers down to the earlier prices but still, the power stabilizers that used to cost just Rs. 3300-3500 four months back, was costing about Rs 5700 at present while a branded stabilizer with copper winding base could be purchased for less than Rs. 7000 reducing the profit margin available to the stabilizer manufacturers.
According to the market sources, enameled copper wire was costing as high as Rs 450 per kg against earlier prices of Rs 150 per kg. Even aluminum wires had risen from Rs 140 to Rs 220 per kg and iron sheets used to fill the transformer core had picked up the heat, rising up from Rs 30 to Rs 40 per kg and as a result, the overall cost of the power transformers had doubled.
Similar situation is being faced by the companies engaged in the manufacture of power inverters and large outdoor transformers used by the power discoms, where a number of industrial units are now beginning to ponder over re-negotiating the prices of the power transformers that they are supplying to the power companies owing to the price hike in metals.
As the prices of both these metals began rising since February, the small-scale power transformer manufacturing units of Agra have been facing a tough competition from the branded manufacturers whose prices have now come almost at par with the locally manufactured brands after the huge rise in metal prices.
A number of such small-scale units affected by the price rise have either cut-down on their production or temporarily shut down till the metals ease down to a lower level.
In Agra, the raw materials for transformer manufacturer could be sourced from both the Hing Ki Mandi and Chhippitola areas and in both these markets, the prices of copper wire for transformer winding had become prohibitively high and the manufacturers were using aluminum wires instead of copper to bring the prices of the transformers down to the earlier prices but still, the power stabilizers that used to cost just Rs. 3300-3500 four months back, was costing about Rs 5700 at present while a branded stabilizer with copper winding base could be purchased for less than Rs. 7000 reducing the profit margin available to the stabilizer manufacturers.
According to the market sources, enameled copper wire was costing as high as Rs 450 per kg against earlier prices of Rs 150 per kg. Even aluminum wires had risen from Rs 140 to Rs 220 per kg and iron sheets used to fill the transformer core had picked up the heat, rising up from Rs 30 to Rs 40 per kg and as a result, the overall cost of the power transformers had doubled.
Similar situation is being faced by the companies engaged in the manufacture of power inverters and large outdoor transformers used by the power discoms, where a number of industrial units are now beginning to ponder over re-negotiating the prices of the power transformers that they are supplying to the power companies owing to the price hike in metals.
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