Shilchar Technologies has completed a capacity expansion at its transformer manufacturing facility in Gavasad, Vadodara district, Gujarat. The facility’s capacity grew by 3,500 MVA in August 2024, reaching a total of 7,500 MVA annually, effective from October 1, 2024 (H2FY25). Senior management highlighted that the company is fully prepared to maximize this expanded capacity.
Shilchar’s order book currently stands at approximately Rs 4.5 billion, expected to be executed over the coming nine months. Demand remains robust, driven by domestic and export markets.
The management addressed industry concerns over the availability of CRGO (cold-rolled grain-oriented) steel, used in transformer production. While the material is accessible, recent price increases have impacted costs.
Specializing in inverter duty transformers (IDTs) critical to renewable energy projects like solar and wind, Shilchar allocates about 60% of its total 7,500 MVA capacity to IDT production. IDTs play a key role in converting DC to AC for renewable energy projects, with each 100 MW installation requiring a corresponding 100 MVA IDT.
The company has an established export market in the USA, Canada, and the Middle East, with a recent breakthrough order from Europe, though further details are pending. Shilchar is set to focus on the renewable energy sector, which is projected to see new installations of 15-20 GW annually. Renewable energy transformers account for 60% of the company’s revenue, with exports comprising the remaining share.