Transformer maker plans Gangol capacity addition of 18,000 MVA

Transformer maker plans to add 18,000 megavolt-amperes (MVA) of annual transformer capacity at its Gangol facility in Meerut, Uttar Pradesh. The Gangol capacity expansion would increase Transformer maker’s aggregate installed capacity from 19,200 MVA as of September 30, 2025 to 37,200 MVA if implemented as planned.

How large is Transformer maker’s planned Gangol capacity expansion?

Transformer maker’s planned Gangol capacity expansion is equal to 18,000 MVA annually, or 93.75% of its aggregate installed transformer capacity of 19,200 MVA as of September 30, 2025. Transformer maker operated two manufacturing facilities at that date, while the Gangol facility itself had installed capacity of 18,000 MVA.

The 18,000 MVA addition would bring Transformer maker’s aggregate capacity to 37,200 MVA, assuming the machinery is procured, installed and stabilised as planned. The company describes the proposal as a brownfield expansion, meaning an addition at an existing operating facility rather than a new manufacturing site, and says Gangol already has civil infrastructure and utilities.

Transformer maker says no additional land or factory premises are required for the new machinery at Gangol. The existing-site configuration is relevant because the company cites the availability of infrastructure and utilities as factors that could make implementation faster and more cost-efficient than a new facility, although procurement, installation and stabilisation of transformer machinery involve long lead times.

Why is Transformer maker expanding Gangol capacity now?

Transformer maker is expanding Gangol capacity to scale production of 500 MVA, 400 kilovolt (kV) power transformers, traction transformers and Scott transformers used in rail-network electrification. The Gangol facility has operated since 1997 and can manufacture transformers of up to 500 MVA and 400 kV, suitable for applications up to 765 kV.

The product focus follows Transformer maker’s Fiscal 2024 short-circuit test certifications for 500 MVA, 400 kV power transformers and Scott-connected transformers. A Scott transformer is a specialised transformer used in railway applications. According to the CARE Report cited in the offer document, Transformer maker is one of five Indian companies with short-circuit test certification for 500 MVA, 400 kV transformers, one of four certified to manufacture 100 MVA, 132 kV Scott transformers, and one of two certified for 100 MVA, 220 kV Scott transformers.

Transformer maker says sales of 500 MVA, 400 kV power transformers increased in Fiscal 2025. The company also cites a Rs 568.669 crore order received in June 2025 from Power Grid Corporation of India Limited for 500 MVA, 400 kV power transformers, demonstrating the type of large order for which it intends to increase production capacity.

The market projections supplied in the offer document show India’s transformer market rising from USD 4,621.4 million in calendar year 2024 to USD 6,822.9 million in calendar year 2030, representing a compound annual growth rate (CAGR) of 6.7%. The CARE Report projects faster CY24-to-CY30 growth in ultra-high-voltage transformers at 9.0%, extra-high-voltage transformers at 9.3%, high-voltage transformers at 9.2%, and medium-voltage transformers at 6.6%.

What will Transformer maker spend on Gangol equipment and facilities?

Transformer maker proposes Rs 66.741 crore of capital expenditure from net proceeds for machinery, a Gangol office building, rooftop solar plants and electric vehicles. The plan allocates Rs 38.123 crore to machinery and equipment at Gangol, Rs 12.040 crore to the office building and Rs 16.578 crore to the solar and electric-vehicle initiatives.

The Rs 38.123 crore machinery allocation comprises Rs 24.934 crore for equipment to increase transformer manufacturing capacity, Rs 6.106 crore for backward integration equipment and Rs 7.083 crore for operational-efficiency equipment. Proposed capacity equipment includes a 150-ton core-stacking tilting table, a vertical winding machine, transformer-testing equipment, a testing van and an oil-filtration plant. The machinery quotations were certified by an independent chartered engineer on January 23, 2026.

Backward integration means producing components internally rather than buying completed components from third parties. Transformer maker currently converts steel plates into transformer tanks and manufactures pressed-steel radiators, which cool transformers. The proposed Gangol investment includes an automated radiator manufacturing line and insulation-processing machines, intended to meet increased in-house radiator needs and process insulation used in transformer windings.

Transformer maker also proposes a four-storey office building on a 600-square-metre company-owned parcel at Gangol. The Rs 12.040 crore building is intended to accommodate up to 200 employees in marketing, purchasing, design, production and information technology who are currently split between the Rithani and Gangol facilities. Construction had not started, and the company had not applied for building-plan, fire no-objection certificate or occupancy approvals at the time of the disclosure.

How will Transformer maker fund and schedule the expansion?

Transformer maker expects to deploy Rs 26.741 crore of the capital-expenditure programme in Fiscal 2027 and Rs 40 crore in Fiscal 2028. The deployment schedule covers the Rs 66.741 crore programme, while the company also proposes Rs 130 crore from net proceeds for incremental working-capital requirements in Fiscal 2027.

Transformer maker’s board approved the proposed objects and allocations on January 23, 2026. The company says its fund requirement and deployment estimates reflect management estimates, prevailing conditions, third-party vendor quotations and a January 23, 2026 certificate from the independent chartered engineer; the deployment has not been appraised by a bank, financial institution or other independent agency.

The proposal includes cost contingencies. Transformer maker says taxes, duties, foreign-exchange movements, changes in equipment prices and additional implementation or maintenance charges may require funding from internal accruals and other borrowings. It has not entered definitive agreements with machinery, construction, solar or electric-vehicle vendors, so the quoted vendors and costs are not assured.

The working-capital allocation accompanies growth in reported operations. Revenue from operations rose to Rs 450.612 crore in Fiscal 2025 from Rs 276.690 crore in Fiscal 2024, compared with Rs 303.768 crore in Fiscal 2023; revenue for the six months ended September 30, 2025 was Rs 165.578 crore. Transformer maker reported a 21.80% revenue CAGR from Fiscal 2023 through Fiscal 2025, but the expansion’s outcome depends on order conversion, equipment commissioning, production ramp-up and working-capital availability.

Conclusion

Transformer maker’s Gangol proposal would nearly double aggregate installed transformer capacity to 37,200 MVA, with Rs 38.123 crore of the Rs 66.741 crore capital-expenditure programme assigned to Gangol machinery and equipment. The plan is linked to large 500 MVA, 400 kV power transformers and rail-oriented Scott transformers for which Transformer maker holds the disclosed certifications.

The next developments to watch are deployment in Fiscal 2027 and Fiscal 2028, execution of vendor contracts and the required approvals for the 600-square-metre office project. Transformer maker has disclosed that vendors are not under definitive agreements and that higher costs, foreign-exchange changes, approvals or delays in operationalising assets could alter timing and require internal accruals or borrowings.