Chennai, Aug 6 (IANS): Power transmission and distribution equipment company Areva T&D India Ltd said it is looking to complete its restructuring operations by early next year and is betting big on high capacity transformers for future growth.
"As per current estimates, the restructuring of our operations will be completed by early next year," the firm's managing director Rathindra Nath Basu told IANS.
The company is in the process of demerging its distribution business (medium voltage systems, equipment and related automation) into a wholly-owned subsidiary Smartgrid Automation Distribution and Switchgear Ltd.
Basu said the business to be hived off accounts for around 25-28 percent of Areva T&D India's business and the balance is contributed by the transmission business (high voltage systems equipment, power electronics and automation).
"Post restructuring, Areva T&D will be a power transmission products company," Basu said.
Last year, the global activities of French company Areva T&D were acquired by a French consortium of Alstom and Schneider Electric.
Following this acquisition, the high voltage transmission and the power electronics activities are to be carried on under the control of Alstom and the medium voltage activities under control of Schneider Electric.
Last December, Alstom and Schneider Electric announced that they had assumed operational control of Areva T&D India.
As per the demerger plans, Areva T&D India's shareholders will be issued new shares in Smartgrid Automation Distribution and Switchgear.
Meanwhile, Areva T&D is betting on 1200 kV capacitative voltage transformer for energised growth in the future.
Areva T&D India is the first company in India to develop and type test such a transformer.
Agreeing that the market for transformers is flat for the past one and half years and that margins are getting thinner, Basu said the future depends on the government's action in solving land, allocation of coal blocks and other issues.
He said the company's order book position is good at Rs.5,000 crore and will take care of the next 14-15 months' production.