# Electrical equipment: Value chain, from upstream to the customer Makers of motors, transformers, switchgear, cables and inverters for power systems Source page: https://www.materialinsights.org/industries/electrical_equipment/value-chain/ #### Value chain, from upstream to the customer **Criticality to the chain:** 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 **MaterialsCopper and aluminium rod, conductor and winding-wire makers**3 · Important Cast 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 Copper](https://www.materialinsights.org/commodities/copper/)[Al Aluminium](https://www.materialinsights.org/commodities/aluminum/)[St Steel](https://www.materialinsights.org/commodities/steel/) Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[Gas Natural gas](https://www.materialinsights.org/energy/natural_gas/) Industries [Metal products](https://www.materialinsights.org/industries/metal_products/)**Examples:** Hindalco, Vedanta Aluminium, Aurubis, Apar Industries **Electrical steel (CRGO and CRNO) producers**5 · Chokepoint Roll silicon steel into thin grain-oriented sheet for transformer cores and non-oriented sheet for motors.^[4](https://fastmarkets.com/insights/geo-economic-tensions-fuel-electrical-steel-race-between-china-india) **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 Steel](https://www.materialinsights.org/commodities/steel/)[Si Silicon](https://www.materialinsights.org/commodities/silicon/)[Mg Magnesium](https://www.materialinsights.org/commodities/magnesium/) Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[Gas Natural gas](https://www.materialinsights.org/energy/natural_gas/) Industries [Metal products](https://www.materialinsights.org/industries/metal_products/)**Examples:** Nippon Steel, Baowu Steel, POSCO, JSW JFE Electrical Steel **Insulation, polymer and insulator suppliers**3 · Important Supply 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](https://www.materialinsights.org/commodities/clays/) Chemicals [LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/)[PVC PVC](https://www.materialinsights.org/chemicals/pvc/)[EPX Epoxy resins](https://www.materialinsights.org/chemicals/epoxy/)[Sil Silicones](https://www.materialinsights.org/chemicals/silicones/)[FR Flame retardants](https://www.materialinsights.org/chemicals/flame_retardants/) Energy [Oil Crude oil](https://www.materialinsights.org/energy/crude_oil/) Industries [Plastic and rubber products](https://www.materialinsights.org/industries/plastic_rubber/)**Examples:** Dow, Weidmann, Savita Oil Technologies, Aditya Birla Insulators **Power semiconductor and electronic component suppliers**4 · Critical Supply IGBTs, MOSFETs, silicon carbide modules, capacitors and chips for drives, inverters, smart meters and protection relays.^[1](https://www.mckinsey.com/industries/industrials/our-insights/wired-for-growth-indias-electrical-equipment-opportunity) **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 Silicon](https://www.materialinsights.org/commodities/silicon/)[Cu Copper](https://www.materialinsights.org/commodities/copper/) Chemicals [ESG Electronic specialty gases](https://www.materialinsights.org/chemicals/electronic_gases/) Industries [Semiconductors](https://www.materialinsights.org/industries/semiconductors/)**Examples:** Infineon, Mitsubishi Electric, STMicroelectronics, onsemi Stage 2 **Equipment manufacturingPower and distribution transformer makers**4 · Critical Design and build distribution, power and HVDC converter transformers for utilities, renewables developers and industry.^[2](https://www.iea.org/reports/building-the-future-transmission-grid/executive-summary) **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 Copper](https://www.materialinsights.org/commodities/copper/)[St Steel](https://www.materialinsights.org/commodities/steel/)[Al Aluminium](https://www.materialinsights.org/commodities/aluminum/) Chemicals [EPX Epoxy resins](https://www.materialinsights.org/chemicals/epoxy/) Energy [Oil Crude oil](https://www.materialinsights.org/energy/crude_oil/)[Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/) Industries [Metal products](https://www.materialinsights.org/industries/metal_products/)**Examples:** Hitachi Energy, Siemens Energy, GE Vernova, CG Power, Transformers and Rectifiers India **Power cable and wire makers**4 · Critical Make building wire, LV and HV power cables and submarine and HVDC cables for buildings, grids and offshore wind.^[2](https://www.iea.org/reports/building-the-future-transmission-grid/executive-summary) **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 Copper](https://www.materialinsights.org/commodities/copper/)[Al Aluminium](https://www.materialinsights.org/commodities/aluminum/)[Pb Lead](https://www.materialinsights.org/commodities/lead/) Chemicals [LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/)[PVC PVC](https://www.materialinsights.org/chemicals/pvc/)[DOP Plasticisers](https://www.materialinsights.org/chemicals/plasticisers/)[FR Flame retardants](https://www.materialinsights.org/chemicals/flame_retardants/) Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/) Industries [Plastic and rubber products](https://www.materialinsights.org/industries/plastic_rubber/)**Examples:** Prysmian, Nexans, NKT, Polycab, KEI Industries **Switchgear, motor and drive makers**3 · Important Make 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 Copper](https://www.materialinsights.org/commodities/copper/)[St Steel](https://www.materialinsights.org/commodities/steel/)[Ag Silver](https://www.materialinsights.org/commodities/silver/)[W Tungsten](https://www.materialinsights.org/commodities/tungsten/)[REE Rare earths](https://www.materialinsights.org/commodities/rare_earths/) Chemicals [HFC Fluorochemicals and refrigerants](https://www.materialinsights.org/chemicals/fluoro_intermediates/)[PC Polycarbonate](https://www.materialinsights.org/chemicals/polycarbonate/)[EPX Epoxy resins](https://www.materialinsights.org/chemicals/epoxy/) Energy [Mot Electric motors and drives](https://www.materialinsights.org/energy/e_motors/)[PE Transformers and power electronics](https://www.materialinsights.org/energy/e_power_electronics/) Industries [Metal products](https://www.materialinsights.org/industries/metal_products/)[Plastic and rubber products](https://www.materialinsights.org/industries/plastic_rubber/)[Semiconductors](https://www.materialinsights.org/industries/semiconductors/)**Examples:** Siemens, ABB, Schneider Electric, Havells, Bharat Bijlee **Solar inverter, battery system and smart meter makers**3 · Important Build inverters, battery energy storage systems and smart meters that connect solar, storage and consumers to the grid.^[1](https://www.mckinsey.com/industries/industrials/our-insights/wired-for-growth-indias-electrical-equipment-opportunity) **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 Lithium](https://www.materialinsights.org/commodities/lithium/)[Pb Lead](https://www.materialinsights.org/commodities/lead/)[Cu Copper](https://www.materialinsights.org/commodities/copper/) Chemicals [CAM Battery cathode materials](https://www.materialinsights.org/chemicals/cathode_materials/)[LiPF6 Battery electrolytes](https://www.materialinsights.org/chemicals/electrolytes/) Energy [LFP Lithium iron phosphate batteries](https://www.materialinsights.org/energy/e_li_lfp/)[PbA Lead-acid batteries](https://www.materialinsights.org/energy/e_lead_acid/)[PV Solar photovoltaics](https://www.materialinsights.org/energy/e_pv/) Industries [Semiconductors](https://www.materialinsights.org/industries/semiconductors/)**Examples:** Sungrow, Huawei, Exide Industries, Amara Raja, Genus Power Stage 3 **Testing and certificationHigh-power testing labs and standards bodies**3 · Important Type-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 alternators](https://www.materialinsights.org/energy/e_generators/)**Examples:** KEMA Labs (CESI), Central Power Research Institute, UL Solutions, TÜV SÜD Stage 4 **Project deliverySubstation and transmission EPC contractors**3 · Important Design, buy and build transmission lines and substations for utilities and renewable developers, integrating equipment from many makers.^[3](https://ieema.org/wp-content/uploads/2020/07/Indian-Electrical-Equip-Ind-Overview_Apr-Mar-25.pdf) **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 Steel](https://www.materialinsights.org/commodities/steel/)[Zn Zinc](https://www.materialinsights.org/commodities/zinc/)[Cem Cement](https://www.materialinsights.org/commodities/cement/)[Al Aluminium](https://www.materialinsights.org/commodities/aluminum/) Energy [HVAC AC transmission](https://www.materialinsights.org/energy/e_hvac/)[HVDC HVDC links](https://www.materialinsights.org/energy/e_hvdc/) Industries [Construction and infrastructure](https://www.materialinsights.org/industries/construction/)[Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)**Examples:** Larsen and Toubro, KEC International, Kalpataru Projects International, Sterlite Power Transmission Stage 5 **Customers and channelsElectrical distributors and panel builders**2 · Supporting Stock 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](https://www.materialinsights.org/energy/e_road_ice/) Industries [Wholesale and retail trade](https://www.materialinsights.org/industries/wholesale_retail/)[Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)**Examples:** Rexel, Sonepar, Graybar **Utilities, transmission companies and renewables developers**3 · Important Plan and pay for grid and generation equipment, set technical specifications and run tenders that shape demand.^[3](https://ieema.org/wp-content/uploads/2020/07/Indian-Electrical-Equip-Ind-Overview_Apr-Mar-25.pdf) **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 transmission](https://www.materialinsights.org/energy/e_hvac/)[Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/) Industries [Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/)**Examples:** Power Grid Corporation of India, NTPC, National Grid, State Grid Corporation of China ## Other sections - [Overview](https://www.materialinsights.org/industries/electrical_equipment/index.md) - [Where ₹100 goes](https://www.materialinsights.org/industries/electrical_equipment/cost-mix/index.md) - [Price links with suppliers](https://www.materialinsights.org/industries/electrical_equipment/price-links/index.md) - [Example story](https://www.materialinsights.org/industries/electrical_equipment/story/index.md) - [Linked industries](https://www.materialinsights.org/industries/electrical_equipment/linked-industries/index.md) - [Materials drawn on](https://www.materialinsights.org/industries/electrical_equipment/materials/index.md) - [Chokepoints and risks](https://www.materialinsights.org/industries/electrical_equipment/risks/index.md) - [Sources](https://www.materialinsights.org/industries/electrical_equipment/sources/index.md)