High-Voltage Power Transformer Manufacturing Facility

Project Overview

An Indian electrical equipment major and a European transformer technology partner engaged IMARC Engineering to establish a greenfield high-voltage power transformer manufacturing facility within the Bhiwadi Integrated Industrial Township (RIICO Industrial Area, Bhiwadi) in Alwar District, Rajasthan.

The project was structured against the Public Procurement (Preference to Make in India) Order 2017 issued by DPIIT (with product-specific local content thresholds administered by the Ministry of Power for transmission and distribution equipment), the Central Electricity Authority Domestic Value Addition requirements applicable to Power Grid Corporation and Central Transmission Utility tenders, and the Basic Customs Duty framework on transformer imports.

The project involved establishing 12,000 MVA per annum of manufacturing capacity across 66 kV, 132 kV, 220 kV, and 400 kV voltage classes, targeting central and state transmission utilities, private transmission developers building renewable evacuation infrastructure, and industrial and export aftermarket demand. Site infrastructure was designed for Phase 2 expansion adding EHV 765 kV transformer manufacturing and gas-insulated switchgear (GIS) lines aligned with India's grid modernisation trajectory.

Client's Challenges

The client faced several specific challenges in establishing greenfield HV power transformer manufacturing in India:

• Core and coil engineering precision: Engineering precision manufacturing of stacked and step-lap core assemblies using cold-rolled grain-oriented (CRGO) electrical steel, alongside precision winding of high-voltage and low-voltage coils to the dimensional and dielectric tolerances required for reliable HV transformer operation.
• Extended-duration factory testing: Establishing high-voltage test infrastructure covering routine tests, type tests, and special tests per IS 2026 and IEC 60076 protocols, including impulse withstand, temperature rise, and short-circuit withstand tests, along with the associated shielded test hall infrastructure engineered for HV testing safety.
• PPI-MII local content certification: Achieving Public Procurement (Preference to Make in India) Order Class-I local supplier status through documented achievement of the DPIIT-notified local content thresholds, essential for participation in Central Transmission Utility, PGCIL, and state utility tenders.
• CPRI type testing pathway: Securing Central Power Research Institute type testing certifications across the voltage class portfolio — a prerequisite for utility procurement participation and one of the longest-lead-time certification pathways in Indian HV equipment manufacturing.
• Specialty material supply: Managing supply of CRGO electrical steel (historically substantially imported, though the parallel CRGO localisation project referenced in Case Study 9 progressively improves domestic sourcing), electrical-grade copper for HV and LV windings, high-dielectric-strength insulating materials, and HV bushings from established international specialists.
• Workforce build-up: Recruiting 520 personnel including HV transformer engineers, precision winding technicians, testing engineers, and quality specialists in the Bhiwadi labour market which hosts the broader Delhi-NCR industrial ecosystem and Havells' major manufacturing base.
• Utility customer qualification: Achieving each utility customer's supplier qualification framework, including PGCIL Approved Vendor listing, state utility empanelment processes, and the associated third-party inspection and factory acceptance test protocols.

What We Did

• Pre-Investment and Strategic Advisory

Our feasibility study evaluated four candidate Indian locations — Bhiwadi (Rajasthan), Nashik-Igatpuri corridor (Maharashtra), Vadodara-Ankleshwar belt (Gujarat), and Chittoor (AP) — with Bhiwadi selected on the strength of Delhi-NCR customer proximity for central utility engagement, proximity to the North India grid load centres, established RIICO industrial infrastructure with dedicated heavy-industry plots, the Rajasthan Industrial Development Policy 2019 incentive structure, and Delhi-NCR engineering talent access.

CapEx planning of INR 676 Crore covered the core and coil manufacturing halls, the tank fabrication area, the transformer assembly bay, the HV test hall, the shipping and outbound logistics area, and central utilities. Financial modelling demonstrated post-tax IRR of 19.8 percent at full ramp with a 6.2-year payback.

• Engineering and Design Services

IMARC designed a 46,000 sq.m built-up facility on a 24-acre plot comprising the core stacking and lamination hall for CRGO steel core assemblies, the winding hall for HV and LV coil manufacturing, the tank fabrication area for the mild-steel transformer tank assemblies, the main assembly bay accommodating up to 200 MVA single-phase and 500 MVA three-phase transformers, the vapour phase drying chamber and vacuum oil filtration systems, the dedicated HV test hall engineered for testing up to 400 kV class transformers with shielded enclosures and safety zoning, and the outbound heavy-haul logistics area.

Process utility design covered 12 MW grid demand supplemented by a 3 MW captive rooftop solar array, dedicated dry-air handling for the winding hall and core assembly areas, precision dew-point controlled HVAC for the winding and drying areas, high-purity nitrogen for the tank fabrication welding and transformer oil filling operations, and integrated MES for lot traceability across each HV transformer serial number.

• Procurement and Supply Chain Support

We executed a multi-geography procurement programme across 68 critical vendors. Core lamination and stacking equipment was sourced from European and Japanese specialists with documented HV transformer industry references. Winding machines including horizontal and vertical HV winding equipment were sourced from European specialists.

Vapour phase drying chambers and vacuum oil filtration systems were sourced from European specialists with proven references in HV transformer manufacturing. HV test hall infrastructure including impulse voltage generators, AC test transformers, and instrumentation was sourced from European and Indian test equipment specialists.

Material sourcing was structured to maximise Public Procurement (Preference to Make in India) local content: CRGO electrical steel from established international specialists supplemented by progressive qualification of the emerging Indian CRGO source, electrical-grade copper from Indian metal specialists, mild-steel tank fabrication materials from Indian steel suppliers, cellulose insulation materials from Indian and European specialists, and HV bushings and OLTCs from established international specialists. PPI-MII documented local content reached 62 percent in Year-1 operations and 68 percent in Year-2.

• Project Execution and Site Management

Our turnkey project management delivered 24 months from groundbreaking to first commercial dispatch, coordinating civil construction, mechanical and electrical erection, HV test infrastructure installation, and phased commissioning across the core, winding, tank, assembly, and test zones.

We managed construction of the main manufacturing halls (each engineered for the heavy dynamic loads of HV transformer production), the specialised HV test hall (engineered for the RF shielding, safety zoning, and dielectric test environment requirements), the tank fabrication yard, the outbound logistics area engineered for heavy-haul transformer despatch, and the central utility yard.

Phased commissioning ran the core and winding halls first, followed by the tank fabrication and main assembly bay, and finally the HV test hall with CPRI type test campaigns across the voltage class portfolio. Multi-vendor coordination across European, Japanese, and Indian contractors required a 20-strong owner's engineering team supplemented by 10 European resident engineers from the technology partner during the winding, assembly, and HV test commissioning phases.

• Compliance, Quality and Sustainability

IMARC led certification readiness across CPRI (Central Power Research Institute) type testing under IS 2026 (Power Transformers), IS 1180 (Distribution Transformers), and IEC 60076 protocols, completed across the 66 kV, 132 kV, 220 kV, and 400 kV voltage classes over Year-1 of operations, Public Procurement (Preference to Make in India) Order Class-I local supplier certification through documented achievement of the DPIIT-notified local content threshold, BIS product certification, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 50001:2018 (energy management) certifications, and PGCIL and state utility Approved Vendor listing. Environmental compliance covered Rajasthan State Pollution Control Board Consent to Establish and Operate, Hazardous Waste Authorisation for transformer oil residues and Extended Producer Responsibility commitments for end-of-life transformer material recovery. The facility achieved IGBC Gold certification through 3 MW captive rooftop solar covering approximately 20 percent of facility daytime energy demand, 74 percent process water reclamation through closed-loop cooling and testing operations, heat recovery from vapour phase drying operations, and 20 percent lower facility energy intensity versus the ASEAN HV transformer industry benchmark.

Final Results

Operational Performance

The facility achieved mechanical completion in 24 months with first commercial dispatch in month 25. Full 12,000 MVA per annum nameplate capacity was reached at 78 percent utilisation by month 20 of operations, with sustained first-pass yield of 98.4 percent across the voltage class portfolio and CPRI type test certifications completed across the 66 kV through 400 kV classes by Year-1. PPI-MII Class-I local supplier certification was completed by month 14, PGCIL Approved Vendor listing secured by month 18, and successful supplier qualification audits were passed with three state transmission utilities by month 22.

Financial Outcomes

Final CapEx of INR 640 Crore delivered 5.3 percent savings against the INR 676 Crore budget through optimised civil packaging, disciplined Indian-fabrication leverage across the tank and structural scope, and multi-vendor procurement under the Public Procurement (Preference to Make in India) local content framework.

Year-2 revenue of INR 940 Crore was generated at an EBITDA margin of 14 percent, consistent with established Indian HV transformer manufacturer reporting and supported by the strong central and state utility order book alongside the emerging private transmission developer segment tied to renewable evacuation infrastructure.

Market Access

Long-term supply contracts were signed with the Central Transmission Utility (Power Grid Corporation), three state transmission utilities under respective empanelment frameworks, and two private transmission developers building renewable energy evacuation infrastructure. The facility became a preferred supplier for the 220 kV and 400 kV renewable evacuation corridor development pipeline associated with India's utility-scale solar and wind expansion.

Export share reached 24 percent of revenue by Year-2 through entries into Middle East, ASEAN, and African transmission utility markets, with the facility's PPI-MII Class-I local supplier certification providing additional credentials for regulated export tender participation.

Sustainability Impact

Our integrated design — combining 3 MW captive rooftop solar covering approximately 20 percent of facility daytime energy demand, heat recovery from the vapour phase drying operations and HV test hall thermal loads, variable-frequency drives across HVAC and process systems, and LED lighting throughout — achieves 20 percent lower facility energy intensity versus the ASEAN HV transformer industry benchmark.

Process water reclamation reaches 74 percent through closed-loop cooling and test operation recycling. The facility holds IGBC Gold certification and operates end-of-life transformer material recovery partnerships with the supplied utility customer base, aligning with the emerging Indian circular economy framework for grid equipment.

Strategic Impact

The project established a meaningful greenfield HV power transformer manufacturing capability under the Public Procurement (Preference to Make in India) framework and positions the client across the two major structural demand drivers in Indian grid equipment: the ongoing central and state utility grid expansion, and the rapid renewable evacuation infrastructure pipeline driven by India's 500 GW non-fossil capacity target by 2030.

Year-2 revenue of INR 940 Crore, PPI-MII Class-I local supplier certification, PGCIL Approved Vendor listing, and the secured utility customer contracts led the client to approve Phase 2 expansion comprising EHV 765 kV transformer manufacturing and gas-insulated switchgear (GIS) lines aligned with the ongoing 765 kV interstate transmission network build-out.

IMARC Engineering's end-to-end EPCM advisory, combining HV transformer core and coil engineering, HV test hall design, PPI-MII local content framework navigation, CPRI type testing pathway support, and disciplined multi-vendor execution, enabled the client to anchor a strategically important Indian industrial asset in a component category central to India's grid modernisation and renewable evacuation infrastructure trajectory.