Voltamp Transformers

Hi All,

I just came across this thread.

I am actively involved in manufacturing of small industrial transformers since last 18 years & also am a retail value investor.

Recently, I had set up a manufacturing unit of Oil cooled Distribution transformers, normally used in Residential, Industrial & for power utilities.

The rules of the game here are totally different. The sector is marred by cut-throat competition, unethical de-rating of transformers, red-tapism by state owned public utilities, & very low customer bargaining power with the manufacturer. ( there is no moat, unless one gets into very huge transformers, where the competition is less severe ).

The margins have been on a considerable downfall since 2008-09 & dont have a chance to pick-up either in the near future.
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I was invested in Voltamp a few years ago. Although the company has an excellent management, respectful brand in the market, debt-free financial books, yet the sectorial problems will not allow them to show sustainable positive growth.

All in all., I would suggest everyone to completely stay out from this sector & look for better profitable avenues.

Regards,

Mukesh Tolani