About Mangal Electrical Industries Limited

BUSINESS OVERVIEW

Mangal Electrical Industries specializes in processing transformer components, including transformer laminations, CRGO slit coils, amorphous cores, coil and core assemblies, wound and toroidal cores, and oil-immersed circuit breakers. The company also trades CRGO and CRNO coils and amorphous ribbons, manufactures transformers ranging from single-phase 5 KVA to three-phase 10 MVA, and provides EPC services for electrical substations.

Operations span five production facilities in Rajasthan with annual capacities of 16,200 MT for CRGO, 10,22,500 KVA for transformers, 75,000 units for ICB, and 2,400 MT for amorphous units. The company holds NABL and PGCIL laboratory approvals, ISO 9001:2015 and ISO 14001:2015 certifications, along with PGCIL approval for transformer/reactor processing up to 400 kV and NTPC approval for CRGO processing. Use of Brockhaus Messtechnik (Germany) equipment ensures high-efficiency quality control.

The customer base includes major government utilities such as Ajmer Vidyut Vitran Nigam Limited and Jaipur Vidyut Vitran Nigam Limited, as well as private sector producers like Voltamp Transformers Limited and Western Electrotrans Private Limited. Products are exported to Netherlands, UAE, Oman, USA, Italy, and Nepal.

As of June 30, 2025, the order book across all segments stood at ₹29,419.78 lakhs, comprising ongoing contracts reduced by work executed, primarily from government and public sector EPC projects. The company has successfully delivered four major turnkey EPC projects to Indian utilities.

In Fiscal 2024, the business secured significant orders for 10 MVA power transformers (10,000 kVA each), with production cycles of 10–15 days compared to 3–5 days for 10 KVA units. This shift toward higher-capacity transformers increased overall production value and drove revenue growth during the period. 

As of June 30, 2025, the comapny had 761 permanent employees. The Banker to the company is HDFC Bank.

INDUSTRY ANALYSIS

India’s Electricity Landscape

India’s electricity sector has been undergoing a significant transformation, marked by steady growth in per capita consumption, rapid capacity additions, and improving reliability in supply. This shift is being fuelled by industrial expansion, urbanization, and rural electrification initiatives. While the nation’s consumption has been rising year after year, it still remains below the global average, reflecting the scale of its population and the continuing challenge of universal energy access.

Per Capita Electricity Consumption

Over the past five years, India has seen a CAGR of 4.9% in per capita electricity consumption. From 1,208 kWh in FY 2020, consumption briefly dipped to 1,161 kWh in FY 2021 due to pandemic disruptions, before rebounding sharply—reaching 1,538 kWh by FY 2025. This upward trend underscores the combined impact of Saubhagya and Deen Dayal Upadhyaya Gram Jyoti Yojana rural electrification programs, rising appliance ownership, and growing industrial activity in manufacturing, cement, steel, and textiles.

Despite this sustained growth, India’s per capita consumption remains far below developed nations, pointing to significant untapped potential as living standards improve and electricity access deepens.

Installed and Generating Capacity

India’s installed electricity generation capacity expanded from 370 GW in FY 2020 to 475 GW in FY 2025, registering a 5.1% CAGR. This growth has been evenly spread across thermal, renewable, hydro, and nuclear sources, reflecting a deliberate strategy to balance energy security, affordability, and sustainability.

As of FY 2025:

• Thermal power remains dominant at 52% of total capacity (246.93 GW), providing crucial base-load stability.

• Renewable energy sources account for 36% (172.36 GW), driven by solar and wind adoption under ambitious national missions.

• Hydropower contributes 10% (47.72 GW), aiding in grid balancing.

• Nuclear energy makes up 2% (8.18 GW), offering stable, low-emission base-load support.

Electricity generation followed a similar growth path, rising from 1,389 BU in FY 2020 to 1,830 BU in FY 2025, a CAGR of 5.7%. After a pandemic-related dip, generation bounced back, supported by strong industrial demand, metro expansions, data center growth, electric mobility, and improved plant load factors for thermal units. The FY 2026 target is 2,000 BU, with early trends suggesting the country is on track.

Electricity Demand and Supply Balance

Between FY 2020 and FY 2025, India’s energy requirement rose from 1,291 BU to 1,694 BU, growing at 5.6% CAGR. Supply growth matched this pace, with the deficit narrowing sharply—from 6.6 BU in FY 2020 to just 1.6 BU in FY 2025. By early FY 2026, the deficit had fallen to only 0.1 BU, signalling near energy adequacy.

Peak demand also surged—from 183.8 GW in FY 2020 to 249.9 GW in FY 2025 (6.3% CAGR)—with FY 2025 marking the first time supply fully met peak demand. This milestone reflects better grid resilience, improved coordination between generation and transmission, and reduced seasonal shortages.

North India’s Power Dynamics

North India, encompassing Uttar Pradesh, Rajasthan, Punjab, Haryana, Delhi, Himachal Pradesh, Uttarakhand, Jammu & Kashmir & Ladakh, and Chandigarh, is a critical energy hub due to its population density, industrial base, agricultural demand, and climatic diversity.

From 395 BU in FY 2020 to 510 BU in FY 2025 (5.3% CAGR), regional demand grew steadily. Supply rose even faster—from 389 BU to 550 BU—helped by capacity additions, stronger transmission networks, and better inter-state exchanges. While annual energy deficits have largely been eliminated, peak shortages remain a challenge, with FY 2025 seeing a shortfall of 6.6 GW during high-load periods, especially in summer.

Uttar Pradesh remains the largest consumer, while Himachal Pradesh and Uttarakhand contribute significant hydro generation. Delhi and Chandigarh, being highly urbanized, register some of the highest per capita consumptions in the country.

Future Growth Outlook

India’s electricity requirement is projected to grow from 1,694 BU in FY 2025 to 1,907 BU by FY 2027 and further to 2,473 BU by FY 2032 (5.6% CAGR). Peak demand is expected to rise in parallel—from 250 GW to 277 GW by FY 2027, and 366 GW by FY 2032.

Meeting this surge will require 63 GW of new capacity between FY 2022–2027, and a much larger 233 GW between FY 2027–2032. Alongside generation growth, grid modernization, flexible energy systems, storage solutions, and demand-side management will be critical to sustaining reliability.

Transformer Components Industry – India Overview

Transformers are a cornerstone of modern electrical power systems, enabling efficient voltage transformation for applications ranging from long-distance transmission to local distribution and industrial operations. By stepping voltages up or down, they optimise transmission efficiency, improve safety, and ensure reliability. The performance of a transformer depends on the quality and precision of its components, each of which plays a vital role in ensuring smooth, safe, and long-lasting operation.

CRGO Steel – The Supply Challenge

India is currently facing a severe shortage of Cold Rolled Grain Oriented (CRGO) steel, the most critical raw material for manufacturing distribution and power transformers. This scarcity is rooted in the Bureau of Indian Standards (BIS) certification requirements combined with the absence of domestic manufacturing capacity, which is unlikely to be operational until 2027. The situation worsened when export licences for leading Chinese suppliers expired or were not renewed, prompting several key mills to halt shipments to India.

Traditionally, India has depended on imports from China, South Korea, Japan, and Europe, all of which must comply with IS 3024 (2006) standards. With annual demand estimated at 325,000 tonnes, the shortage is particularly acute for Hi-B grade CRGO steel, essential for high-efficiency transformers. On a global scale, CRGO production is around 3 million tonnes, with China supplying nearly 45% of it.

While limited volumes continue to arrive from Japanese and European suppliers, these sources cannot fully meet India’s needs. Industry stakeholders are pressing for policy relaxation on Chinese imports from mills such as Bao, Wisco, and Shougang to stabilise the supply chain. Without intervention, transformer manufacturers, government agencies, and DISCOMs risk higher costs, production delays, and slower infrastructure rollouts.

Import and Export Trends

India’s CRGO steel imports have been on a steady upward trajectory, reflecting rising domestic demand. After a pandemic-related dip to 164.2 thousand tonnes in FY 2021, imports recovered to 195.0 thousand tonnes in FY 2022, then slightly fell to 191.4 thousand tonnes in FY 2023. From there, the trend accelerated — reaching 236.5 thousand tonnes in FY 2024 and 286.5 thousand tonnes in FY 2025, the highest level in recent history.

Exports, by contrast, are minimal and declining. From 11.1 thousand tonnes in FY 2023, volumes dropped sharply to 4.88 thousand tonnes in FY 2024 and a mere 0.74 thousand tonnes in FY 2025, underlining the fact that nearly all CRGO steel is consumed domestically.

Key Import Sources

India’s transformer component imports are dominated by a few countries. China alone accounts for 71% of imports in FY 2025, leveraging its scale, cost efficiency, and broad component range. Germany contributes 6%, supplying high-precision, premium-grade parts. Hong Kong follows at 4%, acting as a re-export hub, while France (3%) and Japan (2%) cater to niche and high-technology requirements. This heavy concentration of supply sources underscores the sector’s vulnerability to external disruptions despite ongoing domestic manufacturing expansion.

Market Outlook

The CRGO transformer component market in India is projected to grow from INR 70.8 billion in FY 2025 to INR 104.6 billion by FY 2030, at a robust CAGR of ~8.1%. This growth will be driven by infrastructure expansion, renewable energy integration, smart grid deployment, and industrialisation. The push for electric mobility and energy efficiency will further intensify demand for high-performance transformers.

Technological progress in transformer design and manufacturing is enabling more efficient, compact, and reliable components, which will further accelerate adoption. Indian manufacturers are already investing in R&D, capacity upgrades, and quality enhancements to meet the evolving market demands and reduce dependency on imports over the long term.

BUSINESS STRENGTHS

1. Experienced Leadership & Skilled Management
Promoters bring over 35 years of experience in the power infrastructure industry. Rahul Mangal, with a bachelor’s degree in science from University of Rajasthan, has led the company since inception. Aniketa Mangal, holding a postgraduate degree in Family Managed Business from S.P. Jain Institute of Management & Research, has been instrumental in expanding operations from transformer manufacturing to transformer component processing and business process optimisation. The company is further supported by a technically proficient and experienced workforce.

2. Selective Industry Approvals
Possession of key licenses and certifications enables servicing of customers in a sector witnessing strong substation capacity growth and sustained transformer demand in India (Source: D&B Report).

3. Diversified Customer Base
Clients span power utilities, industrial conglomerates, infrastructure developers, and public sector enterprises across India and international markets. This broad base reduces sector-specific risks, enhances market resilience, and ensures stable revenue visibility with scalability potential.

4. Strong Backward & Forward Integration
In-house processing of critical raw materials such as CRGO, Amorphous, and ICB ensures consistent quality, cost control, and supply chain stability. Forward integration is achieved by utilising manufactured transformers and components in the EPC vertical, optimising operational efficiency.

5. Proven Growth Track Record
A consistent growth history reflects strong market presence and adaptability, supported by expansion into diverse sectors including power, industrial, infrastructure, and renewable energy, and the ability to leverage both domestic and global opportunities.

BUSINESS STRATEGIES

1. Capacity Expansion at Existing Facilities
Planned expansion of manufacturing capacity at current sites through targeted investments in advanced technology, infrastructure upgrades, plant layout optimisation, and additional production lines to meet rising demand for transformer components across energy, industrial, and infrastructure sectors.

2. PGCIL 765 kV Class Approval
Strategic initiative to qualify for 765 kV class approval from PGCIL, enabling execution of high-capacity transmission projects, expanding technical capabilities, and enhancing market competitiveness while reinforcing reputation for quality and reliability.

3. Collaboration with CRGO Mill Suppliers
Focus on forming strategic partnerships with CRGO mill suppliers to secure a stable supply of high-performance electrical steel, enhancing product efficiency and supply chain resilience. As of the RHP date, raw materials, including CRGO, are procured solely via purchase orders with no long-term agreements in place.

4. Product Portfolio Diversification
Expansion into a broader range of transformer solutions tailored for renewable energy, infrastructure, and industrial applications, positioning the company as a comprehensive solutions provider for high-efficiency transformer needs.

5. Geographical Expansion & Customer Relationship Strengthening
Growth strategy focused on entering new geographies, including recent penetration into the U.S. market, while maintaining strong relationships with key customers and stakeholders through engagement, feedback, and personalised support. Strategic partnerships with local firms will support market entry, regulatory compliance, and operational integration.

BUSINESS RISK FACTORS & CONCERNS

1. Raw Material Price Volatility
Costs of key raw materials—such as steel, aluminium, copper, CRGO/CRNO coils, insulation materials, and packaging—are subject to fluctuations due to commodity market trends, currency changes, and government policies. Absence of long-term supplier contracts increases exposure to price volatility, potentially impacting operating margins.

2. Dependence on CRGO Products & Transformer Components
A substantial portion of revenue is derived from processing transformer components and manufacturing transformers, making financial performance heavily dependent on CRGO products and transformer market conditions in India and globally.

3. Operational Disruption Risks
Manufacturing operations are concentrated in Rajasthan. Any disruption, breakdown, or shutdown of facilities—or those of OEM suppliers—may materially affect production, revenue, and cash flows.

4. Lack of Hedging Policy
No direct hedging policy exists for mitigating raw material price volatility, particularly for CRGO and CRNO coils, leaving operations exposed to sudden cost increases.

5. Geographical Revenue Concentration
A significant share of revenue is concentrated in Rajasthan, Gujarat, and Uttar Pradesh, increasing vulnerability to region-specific risks that could adversely affect financial performance.

Summary:
Mangal Electrical Industries faces risks from raw material price volatility, heavy dependence on CRGO products and transformer demand, operational concentration in Rajasthan, absence of hedging mechanisms, and reliance on a few key states for revenue. These factors could impact margins, cash flows, and overall financial stability.