Supreme Power Equipment Limited (Supreme, SPEL, The Company), a Tamil Nadu-based company founded in 1994, has been operating in this field for three decades, manufacturing a wide range of Power and Distribution transformers. It has emerged as a prominent supplier of transformers to local electric utilities.

The company's entry into the windmill segment showcased its innovative design approach, precisely aligning with the rigorous technical requirements of its customers. Their specialty is in developing transformers engineered to handle frequent switching, voltage fluctuations, and efficiently channelling power from windmill generators to the grid. Known for quality and reliability, their transformers are in operation across multiple sites. The company was listed on the NSE Emerge Platform on December 29, 2023.

The Company is committed to achieving customer satisfaction by delivering quality products on time, ensuring the effectiveness of its quality management system. It aims for 100% on-time delivery and continuously works towards zero rejection at the customer end.

1.	Vee Rajmohan (Chairman and Managing Director)

He has extensive expertise in electrical transformers, from design to manufacturing, ensuring strict quality and industry standards. With a deep understanding of regional regulations and commercial standards, he consistently achieves compliance and product excellence.

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2.	Vishwambran Nair Pradeep Kumar (Whole Time Director)

He is a seasoned technocrat with over three decades of experience in engineering, specializing in power transformers up to 100MVA/230KV. His expertise spans across procurement, production, planning, and marketing.

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The company is ISO 9001:2015 certified for design, manufacture, service, and supply of transformers. The company's manufacturing facility is spread across 17,876 square meters in Thirumazhisai, Thiruvallur Chennai.

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The company has supported numerous windmill projects across India, serving both multinational and Indian industry players with 17000+ units manufactured and supplied across 28+ sectors.

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In FY24, the top five customers accounted for 72.32% of the company’s revenue.

Power transformers are essential components in electrical power systems. They perform critical functions to facilitate the efficient transmission of electrical energy and have applications across various sectors and industries. 

1.	Power Transformers

Generator transformers are crucial in power generation plants, ensuring that electricity produced by various sources is efficiently converted and transmitted to the electrical grid and are used in power plants and large scale industrial facilities.

2.	Generator Transformer

3.	Windmill Transformers

Distribution transformers are vital components in the electrical distribution system, ensuring that electrical power is delivered safely, efficiently, and reliably to homes, businesses, and industries.

4.	Distribution Transformers

Isolation transformers are critical for electrical safety, noise reduction, and interference elimination across numerous applications and industries. They protect both equipment and personnel, making them an indispensable part of many electrical systems.

5.	Isolation Transformers

Solar transformers are essential components in solar energy systems, playing a crucial role in ensuring grid compatibility. They support the widespread adoption of solar energy across residential, commercial, industrial, and utility-scale applications.

6.	Solar Transformers

: Energy-efficient transformers are designed to reduce energy losses during the transmission and distribution of electrical power. They provide numerous advantages, such as enhanced efficiency, reduced operating costs, and a smaller environmental impact.

7.	Energy Efficient Transformers

Converter and rectifier transformers are specialized devices that enable the conversion of electrical power across different voltage levels.

8.	Converter and Rectifier Transformers

Oil Cooled Transformers are enclosed in sturdy metallic tanks built to withstand a full vacuum during transformer processing, as well as oil pressure and concentrated point loads from lifting, hauling, and jacking.

9.	Tanks & Accessories of Transformers

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1.	The demand for transformers is fuelled by the expansion of electrical infrastructure, particularly in renewable energy sectors like solar and wind. The current order book comprises 30%-40% from renewable energy projects, 10% from government utilities, with the remainder coming from various other sectors.

2.	With a strong order book valued at around ₹62 Cr, Supreme Power Equipment enjoys consistent demand for its products and services.

3.	In FY24, Supreme Power Equipment exceeded ₹100 crores in revenue, reflecting steady and reliable growth over the years. This achievement underscores the company’s solid financial foundation and its capability to scale operations effectively.

4.	To reduce the risk of delayed payments from government clients, the company has strategically diversified its customer base, with 65% of FY24 revenue coming from private tenders. This shift towards private contracts decreases reliance on government projects and improves cash flow stability.

5.	The current plant operates at a utilization rate of 30% to 50%. The existing facility can produce power transformers up to 25 MVA, while the new facility will expand capacity to manufacture larger transformers, handling up to 160 MVA.

6.	Increased investment in power transmission and distribution (T&D) infrastructure is anticipated to drive up demand for transformers, as these upgrades require enhanced capacity and reliability in power delivery systems.

7.	Employee count has increased from 18 in Mar’24 to 37 in Sep’24, 2x growth.

1.	SPEL is undergoing a significant expansion, with a new 6-acre facility poised to boost its manufacturing capacity from 2,500 MVA to 9,000 MVA annually. This expansion will strengthen its capability to meet rising demand, enhance profit margins, and support operational growth.

2.	The new facility will expand the company’s product range to include transformers from 25 KV to 160 KV, allowing it to serve a broader market and strengthening its competitive position in the industry.

3.	With the expanded facility, the company expects a revenue potential of ₹500 to ₹550 crore at full capacity, along with annual growth rates of 10% to 30%.

4.	SPEL’s entry into the design, construction, and commissioning of switchyards opens up new business opportunities and broadens its market reach.

5.	Management is optimistic about achieving strong growth in H2 FY '25, supported by a growing order book and rising demand.

6.	Emphasis on sustaining margins despite growing competition and industry-wide capacity expansions.

Financial of Supreme Power Equipment Ltd - 2024

Particulars(In Crores)	FY22	FY23	FY24	TTM

Particulars(In Crores)	FY22	FY23	FY24	H1FY25

Sales

The transformer market, valued at USD 54 billion in 2022, is projected to grow at a CAGR of 7.2% from 2023 to 2032. This growth is driven by large-scale integration of renewable energy sources and increasing electrification initiatives, especially in emerging economies. Additionally, expanding urban infrastructure is boosting demand for transformers in commercial and industrial applications, with this segment anticipated to grow at a rate of nearly 7% during the forecast period. Globally, the power transformer market, valued at $27.7 billion in 2019, is expected to reach $50.8 billion by 2027, with a CAGR of 7.9% from 2020 to 2027.

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India’s significant position as the third-largest electricity producer and consumer, with an installed capacity of 446.18 GW as of June 2024, underpins strong demand for transformers. The country’s power generation growth, reaching its highest rate in over three decades in FY23 with a 6.80% increase to 1,452.43 billion kWh by January 2024, alongside power consumption of 1,503.65 BU in April 2023, highlights a rapidly expanding need for transformer infrastructure. Additionally, the peak power demand of 249.85 GW in June 2024 emphasizes the critical role of transformers in supporting India’s evolving power needs. 

The Indian transformer market is projected to grow at a CAGR of over 5% during the forecast period. Currently valued at more than INR 12,000 crore, the market comprises 45% power transformers and 55% distribution transformers. Driven by substantial domestic demand for power sector expansion and rising overseas demand, India’s transformer industry has more than doubled its manufacturing capacity in the past five years. The country's transformer manufacturing capacity is approximately 370 GVA, with an average capacity utilization rate of around 60-70% over this period.

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Transformer 

1.	September 1st, 2024: Supreme Power Equipment has received new order of worth INR 26 Cr from Solar Energy Company, for Manufacturing and Supply of transformers, needs to be executed within 5 months. This new order marks a significant milestone as the company expands into the construction and commissioning of switchyards, broadening its portfolio and market presence.

2.	August 19th, 2024: Supreme Power Equipment has secured a INR 3.4 Cr order from Seshasayee Paper and Boards Limited to refurbish their power and distribution transformers. The project includes replacing old parts with high-performance components designed and manufactured by Supreme Power Equipment, with completion expected within three to four months to minimize operational disruption.

3.	May 13th, 2024: Supreme Power Equipments has secured an INR 11.3 Cr order from a solar project company for the manufacturing and supply of transformers, with completion scheduled within 6 months.

4.	The company’s total order book has reached ₹61.3 crore, with additional orders totaling INR 4.6 crore secured in October 2024. Key highlights include an INR 2.7 crore order from a prominent tea estate in Munnar, Kerala, for two 20 MVA, 33/11 KV power transformers, and a notable INR 57.9 lakh order from the Department of Electricity in Lakshadweep, marking the company’s entry into a new market.

5.	A new 6-acre facility is set to become operational by December 2025, substantially boosting production capacity to 9,000 MVA annually. The investment in the new facility is projected to range between ₹70 to ₹75 crores, with an expected revenue potential of ₹500 to ₹550 crores at full capacity. Construction is currently 20% to 30% complete, and all required approvals have been obtained.

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Supreme Power Equipment Ltd

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