Crompton, Alliedsignal In Transformer Deal

Crompton Greaves, the Thapar group unit, has signed a MoU with Fortune 500 major AlliedSignal for developing high rating amorphous metal transformers.

Allied Signal Amorphous Metals is a business unit of Allied Signal Inc, a $14 billion company with operations in three areas - aerospace, automotive and engineering materials. The company makes ribbons for electrical transformers.

R Dasgupta, president of Crompton Greaves power systems group, said Crompton will import the alloy in the first stage to make electrical transformers.

These will later be sold in the Indian market. In the second stage, Crompton and AlliedSignal will undertake joint development of the alloy in India.

 

It will be tailored to suit Indian conditions and capacity requirements. Crompton will use the alloy for making the amorphous metal transformer at its Malanpur plant in Gwalior.

The transformer will be marketed in urban and semi-urban areas.

The agreement does not envisage setting up of alloy manufacturing facilities in India.

Even in the second stage, Allied will continue to make the alloy for India and sell it to Crompton for marketing the transformers in the country. Talks are also on between the two parties for giving exclusive rights to Crompton for use in the export market. Details of the exclusivity arrangement will be finalised by December.

Crompton Greaves is already thinking of a manufacturing unit in Malaysia, Dasgupta said. We are seriously considering the possibility of entering into a joint venture with a local company, he added.

It is already in talks with two Malaysian companies for a joint venture, which includes Cromptons Malaysian licensee, Naga Lektrik. Fred Pereira, regional director, South Asia AlliedSignal Amorphous Metals, said despite costing 20 to 50 per cent more than the conventional transformer, the amorphous metal transformers will cut energy costs by 80 per cent.

We will make medium sized transformers, of 500 to 5000 kva, for the Indian and export markets. The range will be later expanded to cover transformers up to 10 to 15 mva, said Dasgupta. Malaysia, Thailand, Indonesia are some of the overseas markets being targeted by the company.

In the domestic market, of around Rs 100-200 crore, Crompton Greaves already has customers lined up in utilities and the hospitals sector.

We have made transformer prototypes and given it to some utilities. We will supply to BEST and other utilities supplying electricity in urban and semi-urban areas like Calcutta, Delhi, Bangalore, Ahmedabad and Chennai.The transformers will be marketed in urban and semi-urban areas. The pact does not envisage setting up of alloy manufacturing facilities in India