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Power Systems<br />
Performance of the SBU for the year<br />
(Rs. Crores)<br />
<strong>2003</strong>-04 2002-03<br />
Sales 755.32 690.28<br />
Net Sales (excl Excise) 698.38 640.20<br />
Export Sales (CIF, incl deemed exports) 242.05 234.59<br />
PBIT 64.03 63.04<br />
Net Capital Employed 274.09 279.19<br />
Unexecuted Order Book 670.65 567.93<br />
ROCE 23.4% 22.6%<br />
PBIT to Net Sales 9.2% 9.8%<br />
This SBU is engaged in the business of Power and Distribution Transformers,<br />
Switchgear and Turnkey projects. This SBU is the largest contributor to the<br />
Company’s revenues.<br />
The Company maintained its market dominance in the domestic market in its main<br />
businesses of Transformers, HT Switchgear as well as Vacuum Interrupters through<br />
superior technology and higher market acceptability.<br />
(Rs. Crores)<br />
Year Sales PBIT<br />
<strong>2003</strong>-04 755.32 64.03<br />
2002-03 690.28 63.04<br />
2001-02 596.66 53.29<br />
2000-01 440.89 -44.04<br />
The Company is the only Indian Company to introduce the Polymer concrete product<br />
line in the areas of Outdoor and Indoor Polycrete encapsulated Vacuum Interrupters<br />
and various ratings of Outdoor Vacuum Circuit Breakers with Polycrete Vacuum<br />
Interrupter poles. This eliminates the use of porcelain insulators with consequent<br />
benefits for the Company’s Outdoor Breaker business. The first of its kind in India, 420<br />
kV Composite Insulator housed Current Transformer and Capacitor Voltage<br />
Transformer has also been developed. New technology for magnetic beam type yoke<br />
shunts for Transformers was developed, which will result in significant reduction of<br />
stray losses.<br />
The Company’s marketing efforts towards the private sector, moving away from the<br />
Electricity Boards gained further momentum during the year with a positive trend on<br />
revenues and profits.<br />
The Government’s Accelerated Power Development And Reform Programme (APDRP)<br />
has benefitted the Company’s Medium Voltage Switchgear business substantially. The<br />
Company bagged the prestigious order for renovation of Substations of the Madhya<br />
Pradesh State Electricity Board worth Rs. 27 crores under the APDRP Programme.<br />
Further to the initiatives taken last year, the Company has successfully established<br />
facilities for the manufacture of 145 kV Gas Insulated Switchgear which are being<br />
developed in collaboration with Hyundai, Korea. A proto-type of 145 kV, 40 kA,<br />
2000A double bus transmission line feeder bay developed at the Company’s Nasik<br />
Works is undergoing type tests at CPRI, Hyderabad.<br />
Another thrust area for this SBU, was the shift in focus from product revenues to<br />
revenues from spares, servicing and refurbishing business which returned higher<br />
profit margins.<br />
With firm price orders, this SBU witnessed considerable pressure on margins in view<br />
of the unexpected sharp increases in prices of copper and steel and also imported<br />
raw materials, due to the strengthening of the Euro. These however, were partially<br />
off-set through reduced material consumption by improved product design, increased<br />
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