About Yash Highvoltage Limited

Yash Highvoltage Limited (“the Company”) is engaged in the manufacturing and distribution of wide range of transformer bushings – Oil Impregnated Paper [OIP] condenser bushing, Resin Impregnated Paper [RIP] / Resin Impregnated Synthetic [RIS] condenser bushing, High Voltage and High Current bushing, OIP Wall bushing and Oil to Oil bushing. The Company also undertakes repairing, retrofitting and replacement services of old bushings. Through their team of experienced engineers, they provide on-site/off-site bushings technical testing, analysis and repairing services. The Company was originally incorporated as “Yash Highvoltage Insulators Private Limited” in 2002 by a group of technocrats to manufacture Fiber Reinforced Polymer Cylinders and high-current bushing products. In 2008, Mr. Keyur Shah acquired the Company and transformed it into a successful and profitable organisation. The Company is on the approved vendor list of various Indian Government Enterprises and large private companies engaged in Power sector.

Yash Highvoltage had 157 full-time employees as of November 30, 2024. The Banker to the Company is Axis Bank Limited.

Indian Power Sector Overview
The Indian power sector is marked by a diverse mix of energy sources, with a total installed capacity of 441.97 GW in FY’24, comprising 57% from fossil fuels and 43% from non-fossil fuels. The electricity generation target for the year 2023-24 is set at 1,734.4 billion units (BU), representing a growth of around 7.2% in 2022-23.

The electricity generation target for FY’24 by different sources type includes 1,294.85 BU from Coal, 31.70 BU from Oil & Gas, 134.05 BU from Large Hydro, 47.94 BU from nuclear, and 225.83 BU from Total Renewable Energy Sources of which (83.39 BU from Wind, 115.98 BU from Solar and 26.47 BU from other RE sources).

The Plant Load Factor (PLF) for FY’24 is 66.3%, with sector-wise PLFs of 70.3% for the central sector, 77.1% for the state sector, and 67.6% for the private sector. The figure mentioned below highlight the sector's robust growth and increased contribution of renewable energy sources, reflecting India's commitment to a more sustainable and diversified energy mix.

The sector is steadily witnessing high demand for electricity, driven by rapid industrialization, with manufacturing and infrastructure projects requiring substantial power; urbanization, as cities expand and consume more energy for residential and commercial use; and an improving standard of living, leading to increase per capita electricity consumption and greater adoption of electrical appliances and technologies.

In summary, the Indian power sector is poised for significant growth and transformation, driven by increasing demand, government initiatives, and technological advancements. While challenges remain, the sector's robust investment landscape and policy support provide a strong foundation for future development and sustainability.

India Electricity Production & Consumption Gap
“India's electricity production and consumption gap has significantly narrowed over the years, reflecting the country's concerted efforts to enhance its power infrastructure.”
In FY’2023, the gap between energy requirement and energy supplied is a mere 0.3%, primarily due to system constraints or financial issues faced by some DISCOMs. The gap between peak demand and peak supply stands at 1.4%, a marked improvement from the 4.5% gap in FY’14 when the demand was 136 GW. This progress underscores India's commitment to ensuring a more reliable electricity supply to meet growing demand.

From FY’20 to FY’24, the electricity requirement has steadily increased from 1309 BU to 1627 BU, with the electricity supplied closely following, rising from 1305 BU to 1623 BU. This trend highlights the effective management and expansion of India's power sector, aligning supply closely with demand and ensuring a more stable and dependable electricity network.

Indian Power Transformer Industry Overview – Industry Size and Growth
The power transformer market in India has grown from INR 236.2 hundred crores in FY’19, reaching INR 334.0 hundred crores in FY’24. This growth is primarily fueled by the government's aggressive push towards electrification and renewable energy integration, alongside the modernization of aging power systems. Additionally, India's commitment to renewable energy necessitates a robust grid infrastructure capable of integrating intermittent sources like solar and wind, driving the demand for both traditional and smart transformers.

The Indian transformer industry is also witnessing significant technological advancements. The integration of digital solutions enables enhanced monitoring and maintenance capabilities, improving the reliability and efficiency of power distribution.

Indian Transformers Bushing Market Size, FY’19-FY’24
The Indian transformer bushing market has witnessed steady growth, with the market size increasing from INR 1020.4 crore in FY’19 to INR 1,528.2 crore by FY’24. This growth is driven by several key factors. Firstly, the government's aggressive push towards electrification and renewable energy integration has significantly boosted demand. Initiatives like the Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and the Integrated Power Development Scheme (IPDS) have enhanced the transmission and distribution network, necessitating more transformer bushings. Additionally, the modernization of aging power systems and the increasing demand for electricity due to urbanization and industrialization have contributed to market growth. The market also benefits from technological advancements, with smart transformers and advanced monitoring systems becoming more prevalent.

Conclusion – Way Forward
The transformer bushing market in India is poised for significant growth, with projections indicating a market size of INR 2,993 crore by FY'34, achieving a CAGR of 7.0% from FY'24 to FY'34. This growth is driven by the rapid expansion of India's power infrastructure and the adoption of renewable energy. As the country integrates solar and wind energy, the need for advanced bushings capable of handling variable loads and harsh conditions will become essential. Government initiatives focused on grid modernization and the commissioning of new transformers to reduce transmission and distribution losses will also generate fresh demand for bushings.

The bushing market would benefit from vertical players that could offer integrated solutions. Such players would gain from cost efficiencies, streamlined production processes, and the ability to quickly adapt to new technologies, making them well-positioned to meet the increasing demands and advancements in the transformer bushing sector. 

For Yash Highvoltage Ltd., the voltage ranges up to 245 kV serves as a suitable target segment matching its product offerings. In 2024, the global market for transformer bushings under 245 kV range was 15,638 crores (SAM for 2024). As the company aims to tap into market upto 440 kV range in future, the global serviceable addressable Market (SAM for 2029F) for Yash Highvoltage Ltd. will expand to 27,121 Crore (Global Transformer Bushings Market up to 440 kV). Currently, the company occupies ~1% share of SAM.

Yash Highvoltage is poised to expand and indigenously develop the core for RIP technology in India that will enable it to export and meet demand internationally with lean supply chain management and power voltage expansion to upto 440 KV in next 5 years. We believe as the niche vertical portfolio players expands into higher voltage transformer bushings, there is an opportunity to obtain 5% of global SAM by 2029, offering an opportunity to expand its business to 1,356 crore.

Within the targeted voltage range, RIP bushings will serve as a sweet-spot for the company as global market is rapidly transitioning from OIP to RIP bushings, leading to global shortages of RIP bushings. This demand-supply gap can be addressed by Yash Highvoltage Ltd. by scaling-up its RIP production to meet domestic and international demand.

YASH HIGHVOLTAGE LIMITED COMPETITIVE STRENGTHS
1. Unique positioning in the Indian Transformer Bushing Market
2. Strong industry tailwinds will augment demand for bushings product
3. Strong track record of supply and installation creates entry barriers for new players
4. Long standing and deep relationships with distinguished clientele leading to recurring business
5. Advanced infrastructure, manufacturing facility and R&D capabilities
6. Stringent quality measures and adherence to quality standards
7. Experienced and strong management team and trained workforce

YASH HIGHVOLTAGE LIMITED GROWTH STRATEGIES
1. Indigenous manufacturing of RIP /RIS bushings
2. Expanding their global footprint
3. Focus on retrofit and replacement market

YASH HIGHVOLTAGE LIMITED RISK FACTORS & CONCERNS
1. Their raw material cost constitutes a significant percentage of their total expenses.
2. Majority of the revenue is dependent on single business segment i.e. transformer bushings.
3. All their existing manufacturing facilities and Proposed Manufacturing Facility are situated at Vadodara, Gujarat resulting in concentration in a single region.
4. The business is dependent upon the demand for transformers.