SERVED CUSTOMERS
The Power transmission sector mainly caters to power projects and electricity distribution companies. The work involves bulk transmission of electrical energy to electricity distribution stations. The key customers are state electricity boards and few other private companies in India. Their products are an integral part of a nation's infrastructure. The companies in the power transmission industry provide turnkey solutions to the customers who seek electricity distribution solutions.
The industry also gains a major chunk of its revenue …show more content…
To maintain a GDP growth rate of 8-9 %, it is important that the growth of the power and transmission sector is coherent with this rate. This sector facilitates development across various other sects in the Indian economy such that agriculture, infrastructure, manufacturing etc. The industries in this sector carry about 50% of power generated across the country with a transmission system of 95846 Ckt. Kms transmission lines . At present, India has the fifth largest Electricity generation and transmission capacity in the world pegged at 1, 92,792 MW. Government targets capacity addition of 89 GW under the 12th Five-Year Plan (2012– 17) and around 100 GW under the 13th Five-Year Plan (2017–22). With the population increasing, the capacity in this sector is expected to increase from 821.2 TWh in 2013 to an estimated 1,433.2 TWh in 2022. Investments of approximately 223.9 billion US dollars are planned for the power and transmission sector during the 12th Plan Five-Year Plan. The total FDI in the power and transmission sector touched 7.8 billion US dollars in April 2000–March 2013, which was 4% of total FDI inflow in India. Some of the valuable characteristics of this sector are in terms of extremely efficient distribution networks and superior equipment. To succeed in this industry a company should be technologically efficient efficiency and should constantly seek to optimise the …show more content…
Since metals are bought in bulk, direct dealing with the manufacturers of the metals happens without any intermediaries. Mainly two kinds of metals are bought: ferrous and non- ferrous.
The Ferrous metals are metals or alloys, which contain iron in significant quantities (e.g. steel, stainless steel etc.) .The manufacturers of steel, hold immense power due to the powerful nature of the steel industry. They have the power to set prices and the power transmission sector is not their largest customer (automobile industry is their largest customer). Thus, they enjoy influence over the equipment makers.
Non- ferrous metals are metals that do not have iron content in them such as aluminium, copper etc. Copper is mostly imported in India. Copper suppliers have lesser power as compared to the steel industry suppliers.
There are also some other component suppliers that are mostly scattered or are a part of a huge conglomerate. These suppliers do not have much influence over the prices in the industry. They rely upon orders from manufacturers.
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