Tell us more about HPS and how do you see the market for your business?
F. Michael Frayne: Hammond Power Solutions (HPS) has been in operation for over 100 years and is one of the largest manufacturers of dry-type transformers in North America. HPS expanded into India in 2012 through the acquisition of an established 30-plus years old transformer manufacturer (PETE Transformers Pvt. Ltd.). Our continued focus on product innovation, consistent quality and competitive pricing is what has made us a successful company.
If we talk about your group’s turnover, how significant is the Indian market?
Frayne: Roughly 6-7 per cent of our business is in India. If we compare that with other similar businesses, as well as the size of the market opportunity, it is disproportionate. In recent months we have seen a general decline in the Indian market, however it appears to be slowly improving. We do expect to see modest sales growth within India in 2020.
M. Rajendra Prasad: HPS India manufactures a wide range of dry-type and liquid filled transformers. Our extensive product range, with both standard and engineered-to-order capabilities, has made us an emerging competitor in the Indian market. We expect to see sales growth in the coming months, particularly in the domestic market.
Do you consider India as the manufacturing hub for HPS? What kind of growth strategies do you have?
Frayne: We see India as a key regional centre of operations in terms of servicing India and export markets. For us, the Middle-East, Africa, and selected countries in South-East Asia, are target markets and our focus right now is to build relations and expand the business.
What is your objective of being at ELECRAMA? What are the solutions showcased?
Prasad: ELECRAMA is key platform that HPS uses to highlight our capabilities and new technologies. One of the technologies we are showcasing is our solar duty inverter transformers for the renewable energy sector which is a key market in India.
We have manufactured over 1,200 transformers which very few companies can do. With the market being very competitive in India, there are only 5-6 transformer manufacturers that can produce this range and number of transformers.
We have participated at ELECRAMA for the past 15 years and it will continue to be a key marketing resource for us in the future.
The Indian power sector is in a transition mode. So, is this the right time to expand by investing more?
Prasad: We are noticing that people are interested in the renewable sector so we are strengthening our focus in this area. Currently we are not looking to invest more, but we are looking to change our range of products to hopefully increase sales.
The government is now focusing on 450 GW of renewable energy by 2030. Do you have enough capacity to meet the increasing demand?
Prasad: Yes, we have enough capacity to meet that demand as we are operating at approximately 60 per cent capacity. As an industry leader we have to meet these demands and, if we are required to increase it, we will do so quickly with minimal investment.
How is HPS committed to maintaining reliability and power quality? And what kind of service-related solutions are you bringing to the market?
Prasad: This is where HPS scores better than any other manufacturers in India. As far as reliability and quality is concerned, we have an edge over others. That is the reason we are a strong competitor in India.
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