About Danish Power Limited

Danish Power is engaged in the business of manufacturing of different types of transformers including inverter duty transformers used in renewable power projects like solar power plant or wind farms, oil and dry type power and distribution transformers, control relay panel along with substation automation services. These transformers and panels are used across various sectors and industries to facilitate the efficient transmission and distribution of electrical power such as renewable power EPC projects like solar power plant, wind power farms, other power generation plants, power transmission, electricity sub-stations, power utilities etc. Their customers include companies like Tata Power Solar System Ltd, Waaree Renewable Technologies Limited, Jakson Green Private Limited, ABB India Limited & Torrent Power Limited.

The manufacturing facilities of the Company is equipped with Foil winding machine, Oil storage tanks, Bus bar processing machine, Lath machine, CNC plasma machine, Transformer oil filter machine, Sheet rolling machine, Powder coating plant, Motorized sheet cutter machine, Power press, HV/LV coil winding machine, Vacuum drying oven with trolly, Pipe & bolt threading machine, Roller bending machine, Vacuum pump, Shearing machine insulated motorized. The manufacturing facility is staffed with a workforce of approximately 346 employees as of June 30, 2024. 

The major raw material required by the company are Cold Rolled Grain Oriented (CRGO) Electrical Steel, Copper Wire, Copper Strip, Copper sheet and Aluminium Wire, Strip, Sheet, Mild Steel, Transformer Oil and Relays. The company has also been awarded with one star export house status from Government of India and also a winner of EEPC National award for three years in a row from FY 2013- 14 to FY 2015-16 of export excellence in product group of Transformers.

POWER SECTOR IN INDIA
Power is among the most critical components of infrastructure, crucial for the economic growth and welfare of nations. The existence and development of adequate power infrastructure is essential for sustained growth of the Indian economy. The fundamental principle of India’s power industry has been to provide universal access to affordable power in a sustainable way. The Ministry of Power has made significant efforts over the past few years to turn the country from one with a power shortage to one with a surplus by establishing a single national grid, fortifying the distribution network, and achieving universal household electrification. 

India’s power sector is one of the most diversified in the world. Sources of power generation range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power, to viable non-conventional sources such as wind, solar, agricultural, and domestic waste. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. In order to meet the increasing demand for electricity in the country, massive addition to the installed generating capacity is required. 

India was ranked fourth in wind power capacity and solar power capacity and fourth in renewable power installed capacity, as of 2021. India is the only country among the G20 nations that is on track to achieve the targets under the Paris Agreement.

ELECTRICITY DEMAND AROUND THE WORLD.
By 2025, for the first time in history, Asia will account for half of the world’s electricity consumption and one-third of global electricity will be consumed in China. Over the outlook period, global electricity demand is set to grow at an accelerated pace, by an annualised 3%, as electricity consumption increases in emerging markets and developing economies (EMDEs), led by the People’s Republic of China (hereafter “China”), India and Southeast Asia.

As the energy crisis abates, global electricity demand growth is set to rise from 2.6% in 2023 to an average 3.2% in 2024-2025. This stronger growth is well above the pre-pandemic rate of 2.4% observed in the 2015-2019 period. Indeed, by 2025 demand will increase by 2 500 TWh from 2022 levels, which means that over the next three years the electricity consumption added each year is roughly equivalent to that of the United Kingdom and Germany combined. More than half of the increase will come from China. The remaining growth will largely take place in India and Southeast Asia. 

In China, electricity demand growth was subdued on weaker economic activity in 2022, rising at an estimated 2.6%, and significantly below its trend of 5.4% in 2015-2019. China is by far the world’s largest electricity consumer at 31% of global demand in 2022. For 2023-2025 we expect an average annual growth of 5.2%. 

In India, the robust post-pandemic recovery continued to support strong electricity demand of over 8.4% in 2022, which was substantially higher than the average annual growth rate of 5.3% seen in the 2015-2019 period. The peak summer season also arrived early in 2022, resulting in the hottest March in over a century. Electricity demand from March to July was 12% higher than the same period in 2021. For the 2023-2025 period, we expect slightly slower growth, averaging 5.6% per year. 

Electricity demand in the European Union (EU) fell 3.5% in 2022, with spiking electricity prices, demand destruction in electricity intensive industries, energy saving measures and a mild winter all contributing to the decline. We expect EU demand to grow by around 1.4% on average in 2023-2025. 

In the United States, electricity demand rose by 2.6% in 2022, surpassing pre-Covid levels. But an expected economic slowdown in 2023 is expected to lead to a decline of about 0.6%, before returning to growth of 1.2% in 2024 and 1.3% in 2025. 

In Africa, electricity demand rose by 1.5% in 2022, with growth tempered by both lofty energy prices and high inflation rates. Our 2023- 2025 outlook for the region shows much stronger growth of an average 4.1%, led by a post-crisis economic recovery.

DANISH POWER LIMITED COMPETITIVE STRENGTHS
1. Established Manufacturing facility
2. Existing relationship with the clients.
3. Diversified Product Base
4. Experienced Promotors & Management team
5. Quality assurance

DANISH POWER LIMITED STRATEGIES
1. Expand their manufacturing facility
2. Expand geographical reach
3. Maintaining cordial relationship with their Suppliers, Customer and employees
4. Identify new opportunities by keeping an eye on latest developments in Transformer Industry

DANISH POWER LIMITED RISK FACTORS & CONCERNS
1. They deploy advanced technologies in the manufacturing, designing and installation of transformers.
2. They depend on the large industries, EPC service providers, public utilities for selling of their products which may effects their revenue from operation and profits.
3. They may be subject to surveillance measures, such as the Additional Surveillance Measures (ASM) and the Graded Surveillance Measures (GSM) by the Stock Exchanges which may adversely affect trading price of their Equity Shares.
4. Significant differences exist between Indian GAAP and other accounting principles, such as Ind AS, IFRS and U.S. GAAP, which may be material to investors’ assessments of their financial condition, result of operations and cash flows.