@mukesh_gt
Dear Mukesh, nice to meet you.
Myself a Transformer Design Engineer.
You are correct that Transformer Industry is at cut-throat competition.
Especially distribution transformers are became like a commodity product. There is no rocket science involved in making distribution transformer. Hence there is no moat, There are hundreds of distribution transformer companies in India. Recently ABB shutdown its plant because of high supply and less demand.
Only power transformers business above 220kV can offer entry barriers in terms of Product approval from state board and Product technology. Power transformer business also suffering with surplus capacity and lower utilization levels. But there is hope in the industry that demand will pickup in near future. Recently announced reform UDAY is a boon to the industry if it could implemented by states.
Look at less stressed power transformer companies like TRIL. They will be the major beneficiaries of this reform. Read this article http://wap.business-standard.com/article/companies/power-equipment-manufacturers-expect-uday-to-boost-order-flow-115120300835_1.html
Disclosure :
Not invested in Voltamp
Little position in TRIL
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