He explained that the backward integration would reduce dependency on external forces, while aiding the increase in revenue by bringing operational efficiency into the system.
The company is confident of securing total orders worth close to Rs 8,000 crore by the end of the current financial year. It has reported an order inflow of approximately Rs 650 crore in the first quarter, with one-third of this coming from exports. The company’s order book currently stands at Rs 5,400 crore.
For the last two years, the order mix has been balanced, with 50% from utilities and 50% from the industrial sector.
The company is investing close to Rs 500 crore in this financial year towards backward integration. It will also fund the organic expansion of 22,000 MVA in the extra-high voltage transformer segments. “All this capex is going to be completed in the next 12–13 months, so that’s why I’m telling you that by the next financial year, we will be 100% backward integrated,” the CFO added.
