PNN
Chennai (Tamil Nadu) [India], March 3: Supreme Power Equipment Limited(SPEL) (NSE: SUPREMEPWR), one of India's leading manufacturers of power and distribution transformers, has successfully commenced commercial production at its new manufacturing unit located at Kannur Village, Thiruvallur District, near Chennai, Tamil Nadu.
The newly commissioned facility is designed for the manufacture of power transformers up to 200 MVA and 220 kV, with an annual production capacity of 6,000-6,500 MVA. With the commencement of operations at this unit, the company's total installed manufacturing capacity now stands at approximately 9,000 MVA per annum, significantly enhancing its production capabilities.
Prior to this expansion, the company operated with an installed capacity of 2,500 MVA for transformers up to 110 kV, with capacity utilisation levels ranging between 70% and 80%. The new facility substantially increases Supreme Power Equipment Limited's manufacturing bandwidth by enabling the production of higher voltage and larger MVA-rated transformers, positioning the company to cater to more complex and large-scale power infrastructure projects.
The expansion involves an investment of approximately ₹100 Crand above, covering the establishment of infrastructure, advanced manufacturing capabilities, and supporting facilities for high-capacity transformer production. The project is funded through a combination of IPO proceeds, internal accruals, debt, and proceeds from a preferential issue, ensuring a balanced and diversified financing structure.
The capacity augmentation is strategically aligned with growing demand in the power transmission and distribution sector. The expansion is expected to enable execution of larger MVA contracts, strengthen revenue visibility over the medium term, and support sustained business growth by addressing increasing requirements from utilities, industrial customers, and infrastructure projects.
With the commissioning of this new manufacturing unit, Supreme Power Equipment Limited reinforces its operational scale, technological capability, and market readiness to serve evolving power sector requirements, while supporting long-term growth and improved competitiveness in the transformer manufacturing segment.
Commenting on the commencement of operations at the new facility, Mr. Vee Rajmohan, Chairman and Managing Director of Supreme Power Equipment Limited, said "The commencement of commercial operations at our new manufacturing facility marks an important milestone in Supreme Power Equipment Limited's growth journey. This expansion has been undertaken with a clear strategic focus on strengthening our capabilities in manufacturing higher-capacity and higher-voltage power transformers. The new unit significantly enhances our manufacturing bandwidth, enabling us to address larger MVA requirements and participate in more complex power transmission and infrastructure projects.
The investment reflects our long-term commitment to meeting the evolving needs of the power sector and supporting growing demand from utilities and industrial customers. By expanding into transformers up to 200 MVA and 220 kV, we are positioning the company for sustained growth, improved revenue visibility, and enhanced operational scalability. This facility reinforces our focus on future-ready manufacturing and aligns with our objective of building a stronger, more resilient business platform over the medium to long term."
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