About Vilas Transcore Limited

VILAS TRANSCORE LIMITED, incorporated in 2006, is engaged in the manufacturing and supply of components used in the power distribution and transmission sector, primarily to transformer and other power equipment manufacturer in India and abroad.

They manufacture and supply a different range of electrical lamination cold rolled grain oriented (C.R.G.O.) lamination core, CRGO slit coils, CRGO stacked (assembled cores), CRGO wound core and CRGO Toroidal core which are mainly used in power transformer, distribution transformer & dry type transformers, high voltage / medium voltage & low voltage current transformers.

With two manufacturing facilities located at Por near Vadodara, Gujarat, their products, CRGO laminated Core, CRGO core and slit coils are one of the most important parts of different kinds of power transformer, distribution transformer & other current transformers.

Company manufactures products keeping in mind the industry standards and specifications given by the customer, with the use of latest technology to manufacture products for their customers with the defined requirements.

Industry

India stands as the third-largest producer and consumer of electricity globally, with an installed power capacity of 423.35 GW as of July 31, 2023. The country experienced its highest power generation growth rate in over three decades during FY23, with an 8.87% increase to 1,624.15 billion kilowatt-hours (kWh). In FY24, until July 2023, power generation reached 585.47 billion units (BU). From FY10 to FY23, electricity generation in India grew at a compound annual growth rate (CAGR) of 4.75%.

The demand for electricity is projected to rise further, driven by expanding industrial activity, a growing population, increased electrification, and higher per-capita usage. Power consumption in FY23 saw a 9.5% growth to 1,503.65 BU, up from 1,374.02 BU in FY22. India's electricity generation from both renewable and non-renewable sources was 1,373.08 BU in FY21, 1,484.36 BU in FY22, and 1,617.72 BU in FY23, reflecting a consistent upward trend in power production.

Risk to the issue:

• Voltamp Transformers Limited is the key customer, providing approximately 41% of revenue to the company. Further the top 5 customers hold approximately 67% of revenue from operations. Any loss of such customers may affect the business.
• The company don’t enter into any firm supply agreements with customers. If our customers choose not to source their requirements from them, their business and results of operations may be materially adversely affected.
• The company is totally dependent on the power distribution sector, any economic cyclicality in the sector may affect the business of the company. The demand for power is sensitive to factors such as consumer demand, seasonal fluctuations, consumer confidence, disposable income levels and general economic conditions.
• CRGO Electrical lamination accounts for more than 75% of sales revenue. Such reliance on a single product for a major portion of revenue might harm the company if any disruption happens in the same.
• The company faces competition in Indian and overseas market, based on many factors, including product quality and reliability, product design and innovation, manufacturing capabilities and price.