Electrical equipment: Value chain, from upstream to the customer
Makers of motors, transformers, switchgear, cables and inverters for power systems
Value chain, from upstream to the customer
Criticality to the chain: 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 MaterialsCast and draw copper and aluminium into rod, overhead conductors and enamelled winding wire for cable, motor and transformer makers.
Why important: Several large producers exist in each region, but metal is priced off exchanges and copper supply shocks pass straight through. Technologies Continuous casting and rolling Wire drawing and annealing Enamelled magnet wire High-temperature low-sag conductors Depends on Commodities Cu CopperAl AluminiumSt Steel Energy Dist Distribution grids, mini-grids and interconnectorsGas Natural gas Industries Metal productsExamples: Hindalco, Vedanta Aluminium, Aurubis, Apar IndustriesRoll silicon steel into thin grain-oriented sheet for transformer cores and non-oriented sheet for motors.4
Why chokepoint: Transformer cores have no near-term substitute for grain-oriented steel, yet India's only plant at Nashik (JSW JFE) makes about 50,000 tonnes a year while India imported more than 771,000 tonnes of electrical steel in 2023, about a quarter of it from China (Fastmarkets, share calculated). Technologies Grain-oriented cold rolling Laser domain refinement Insulating coatings Amorphous metal ribbon Depends on Commodities St SteelSi SiliconMg Magnesium Energy Dist Distribution grids, mini-grids and interconnectorsGas Natural gas Industries Metal productsExamples: Nippon Steel, Baowu Steel, POSCO, JSW JFE Electrical SteelSupply cable compounds, transformer oil, pressboard, epoxy cast parts and porcelain or composite insulators.
Why important: Several chemical and insulator firms compete, but HV cable compounds and pressboard need long qualification by equipment makers. Technologies XLPE cable compounds Mineral and ester transformer oils Epoxy vacuum casting Silicone composite insulators Depends on Commodities Kao Kaolin & clays Chemicals LLDPE Polyethylene (LDPE, LLDPE)PVC PVCEPX Epoxy resinsSil SiliconesFR Flame retardants Energy Oil Crude oil Industries Plastic and rubber productsExamples: Dow, Weidmann, Savita Oil Technologies, Aditya Birla InsulatorsSupply IGBTs, MOSFETs, silicon carbide modules, capacitors and chips for drives, inverters, smart meters and protection relays.1
Why critical: India is more than 90% import-dependent for power electronics, importing US$ 4.7 billion in 2024, and a few European, Japanese and US firms dominate power modules (McKinsey). Technologies IGBT and silicon carbide modules Gate drivers Film capacitors Metering chipsets Depends on Commodities Si SiliconCu Copper Chemicals ESG Electronic specialty gases Industries SemiconductorsExamples: Infineon, Mitsubishi Electric, STMicroelectronics, onsemiDesign and build distribution, power and HVDC converter transformers for utilities, renewables developers and industry.2
Why critical: Large power transformers can take up to four years to deliver and prices rose about 75% from 2019 as a few top-tier makers ran full (IEA). Technologies Core cutting and step-lap stacking Vacuum drying and oil impregnation On-load tap changers Dry-type and ester-filled designs Depends on Commodities Cu CopperSt SteelAl Aluminium Chemicals EPX Epoxy resins Energy Oil Crude oilDist Distribution grids, mini-grids and interconnectors Industries Metal productsExamples: Hitachi Energy, Siemens Energy, GE Vernova, CG Power, Transformers and Rectifiers IndiaMake building wire, LV and HV power cables and submarine and HVDC cables for buildings, grids and offshore wind.2
Why critical: Cable prices nearly doubled from 2019 and lead times are two to three years, over five for HVDC, which only a few firms make (IEA). Technologies Triple-extrusion XLPE lines Vertical continuous vulcanisation towers HVDC mass-impregnated and extruded cables Cable-laying vessels Depends on Commodities Cu CopperAl AluminiumPb Lead Chemicals LLDPE Polyethylene (LDPE, LLDPE)PVC PVCDOP PlasticisersFR Flame retardants Energy Dist Distribution grids, mini-grids and interconnectors Industries Plastic and rubber productsExamples: Prysmian, Nexans, NKT, Polycab, KEI IndustriesMake circuit breakers, gas-insulated switchgear, relays, motors and variable-speed drives for grids, factories and buildings.
Why important: Several global groups and strong Indian makers compete, but HV switchgear needs utility type-approval that takes months. Technologies Vacuum interrupters SF6-free gas-insulated switchgear IE3 and IE4 efficiency motors Variable-frequency drives and digital relays Depends on Commodities Cu CopperSt SteelAg SilverW TungstenREE Rare earths Chemicals HFC Fluorochemicals and refrigerantsPC PolycarbonateEPX Epoxy resins Energy Mot Electric motors and drivesPE Transformers and power electronics Industries Metal productsPlastic and rubber productsSemiconductorsExamples: Siemens, ABB, Schneider Electric, Havells, Bharat BijleeBuild inverters, battery energy storage systems and smart meters that connect solar, storage and consumers to the grid.1
Why important: Chinese makers lead inverters and batteries, and over 20% of a smart meter's bill of materials is electronics more than 80% imported into India (McKinsey). Technologies String and central inverters LFP battery containers Battery management systems Smart meters with communication modules Depends on Commodities Li LithiumPb LeadCu Copper Chemicals CAM Battery cathode materialsLiPF6 Battery electrolytes Energy LFP Lithium iron phosphate batteriesPbA Lead-acid batteriesPV Solar photovoltaics Industries SemiconductorsExamples: Sungrow, Huawei, Exide Industries, Amara Raja, Genus PowerType-test transformers, switchgear and cables for short-circuit and impulse withstand and certify them to IEC and national standards.
Why important: Utilities require type tests and only a few high-power labs exist worldwide, so test slots can delay new designs by months. Technologies Short-circuit generators Impulse voltage generators IEC and BIS type testing Digital test reporting Depends on Energy Gen Generators and alternatorsExamples: KEMA Labs (CESI), Central Power Research Institute, UL Solutions, TÜV SÜDDesign, buy and build transmission lines and substations for utilities and renewable developers, integrating equipment from many makers.3
Why important: A handful of large Indian and global EPC firms bid for most big projects, and India built only 8,830 km of the 15,253 circuit-km of lines targeted in FY25, or 58% (IEEMA). Technologies Tower design and galvanising Gas-insulated substation erection HVDC converter stations Drone line surveys Depends on Commodities St SteelZn ZincCem CementAl Aluminium Energy HVAC AC transmissionHVDC HVDC links Industries Construction and infrastructureTransport and logisticsExamples: Larsen and Toubro, KEC International, Kalpataru Projects International, Sterlite Power TransmissionStock and sell wires, switchgear and motors to contractors and factories, and assemble control panels to order.
Why supporting: Many distributors and panel shops compete, so buyers switch within weeks. Technologies Branch and e-commerce inventory Panel design software Configure-to-order assembly After-sales service Depends on Energy ICV Combustion road vehicles Industries Wholesale and retail tradeTransport and logisticsExamples: Rexel, Sonepar, GraybarPlan and pay for grid and generation equipment, set technical specifications and run tenders that shape demand.3
Why important: Demand rests on a few large public buyers; India added 86,433 MVA of substation capacity in FY25 against a target of 112,435 MVA, or 77% (IEEMA). Technologies Grid planning software Tender and vendor qualification Asset monitoring and SCADA Long-term maintenance contracts Depends on Energy HVAC AC transmissionDist Distribution grids, mini-grids and interconnectors Industries Finance: banking, insurance, marketsExamples: Power Grid Corporation of India, NTPC, National Grid, State Grid Corporation of China