investors' delight: bharat bijlee limited (bbl) july 15 , 2021

Research report written by - Akash Jain, MBA (Financial Markets), Vice – President Research ---------------------------

Background..

Bharat Bijlee Limited is a leading Electrical Engineering since 1946 engaged in

the business segments like Power Transformers, Projects, Electric Motors,

Magnet Technology Machines, Drives and Industrial Automation solutions.

The company caters to a spectrum of industries and the builders of the

nation’s infrastructure: power, refineries, steel, cement, railways, machinery,

construction and textiles. Headquartered in Mumbai, the company has an

extensive sales and service network across India for its Power Transformers,

Electric Motors, Elevator Systems and Drives & Industrial Automation

divisions. It also serves international markets.

The Company's manufacturing facilities are located in Airoli, Navi Mumbai on

a 1,93,000 square meters campus, with a working area of approximately

50,000 square meters. It has state-of-the -art plants for its Power Transformer

and Electric Motors Bharat Bijlee’s factory that are certified for ISO

9001:2008, ISO 14001:2004 and OHSAS 18001:2007.

Power systems segment (Transformers, Turnkey Projects for electrical sub

stations and Maintenance Products)

The Power Systems segment (40 percent of FY21 revenue) comprises of

Power Transformers up to 200 MVA, 220 KV voltage class and EPC projects for

electrical substations up to 400 KV. To maintain its flagship position as a

preferred transformer supplier, the transformer plant has been upgraded to

manufacture power transformers in a dust-free and humidity-controlled

environment by air-conditioning the winding shop and installing de-

humidifiers. The sector continues to suffer from over-capacity and almost

stagnant demand. Though the Company achieved near full capacity volumes,

intense competition kept prices lower and profits muted. Government

schemes like Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) for

strengthening and enhancement of sub-transmission distribution

infrastructure in rural areas, involve an increased demand for distribution

transformers in the future. In addition, the Integrated Power Development

Scheme (IPDS) for meeting the power requirements of urban areas will lead to

demand for the transformers.

Industrial Systems (Electric Motors, Drives & Automation systems and

Magnet Technology Machines) Industrial segment (60 percent of FY21 revenue) comprises of a full range of

low and medium voltage industrial motors, permanent magnet technology

machines (MTM) and AC variable drives and drive systems. The Motors

business, despite a moderate GDP growth with negative IIP – manufacture of

electrical equipment, continued its growth by enlarging product offerings,

focusing on value engineering, and deepening its geographical reach. In FY20,

the Company secured order for and successfully delivered a wide range of

motors to lift the dam gates for the Kaleshwaram Lift Irrigation Project,

currently the world’s largest multi-stage lift irrigation system. Further, The

Company's flameproof motors received the IECEx Certificate of Conformity

under the IEC Certification Scheme for Explosive Atmospheres from SGS

BASEEFA. The Drives and Automation business has been developing newer

applications with an eye on widening its sectoral reach. The MTM business

has been focusing on value engineering, and offers solutions for Indian and

export markets.

In spite of the entry of several international brands, the Company's gearless

elevator machines continue to hold a flagship position in the domestic market

and have made inroads into export markets through its overseas partner. This

vertical has also successfully developed and manufactured a range of servo

motors; these have been successfully tested at Electrical Research and

Development Association (ERDA).

Particulars

(Rs. crores)

FY21 FY20 FY19 FY18

Topline 731 929 932 774

EBITDA 37 70 61 37

EBITDA (%) 5.06 7.53 6.55 4.78

Profit after tax 26 46 42 61

PAT margin (%) 3.56 4.95 4.51 7.88

Equity share cap. 5.65 5.65 5.65 5.65

Networth 972 756 752 692

Total Debt 246 248 199 215

Debtor days 120 115 100 140

Debt/Equity (x) 0.25 0.33 0.26 0.31

EPS (Rs.) 46.09 80.69 73.49 108

P/E (x) 30 17 19 13

RoNW (%) 2.67 6.08 5.59 7.88

CMP Rs.1,391.70 (Face value: Rs. 10 )

Book value Rs. 1,721 per share

Recommendation "BUY"

Target price Rs. 1,975

Upside 41.9%

52 Week High/Low Rs. 1,514 /Rs. 650

Beta 0.58

Market Cap Rs. 786 crores

EPS (TTM)/P/E(x) Rs. 46.09/31x

NSE/BSE code BBL/503960

Bloomberg code BIJL:IN

Promoter holding 33.45%

3 year CAGR Revenue : (1.6) %, EBITDA: 3.1%, PAT :

(24.7)%

Price performance 1 month: 6.89%, 3 months: 27.14 %, YTD:

59.51%, I Year: 82.95%, 3 years: 19.13%

Source: Company

Investment recommendation and rationale

At CMP of Rs. 1,391.7, the stock is valued at P/BV of 0.81x and P/E of

30x at FY21 EPS. We recommend "BUY" with a target price of Rs. 1,975

(30x at FY22E EPS of Rs. 65.83 due to the following factors: a) likely

capex revival in power and capital goods sector with Government's

focus on investment led spending to drive growth; b) the Company is

one of the leading manufacturers of transformers in India for more

than five decades; b) BBL is the leader in 220 KV class Power

Transformers in India, c) the Company has installed 1,70,000 MVA of

Transformers and exporting to more than 26 countries, d) the

Company enjoys one of the highest rates of repeat orders in the

Transformers industry and the highest level of comfort of ownership

for its transformers; e) favourable government schemes like Deendayal

Upadhyaya Gram Jyoti Yojana (DDUGJY) and Integrated Power

Development Scheme" (IPDS) will augur well for the Company; f)

commissioned over 90 substations of 132 KV, g) 132/33KV substation

commissioned for one of the Asia's largest solar power plants, h) BBL is

domestic leader in Elevator Drive solutions, and also export its

Permanent Magnet Gearless Machines to Europe and South America

via its partner Permagsa, i) technology partnership with KEB Germany

in drives and automation segement, j) experienced promoters with

domain expertise in electrical engineering segment j) healthy balance

sheet with low debt/equity of 0.25x, k) positive operating cashflow in

last three years despite industry under pressure, l) operating

performance expected to improve going forward. We believe the

Company is poised to do well now after the sector was under pressure

due to slowdown in capex activity of Power and Capital goods sector.

Investors' Delight: Bharat Bijlee Limited (BBL) July 15, 2021

Research report written by - Akash Jain, MBA (F ---------------------------

Key segments Transformers

For more than five decades Bharat Bijlee has been one of the leading

to customers. The manufacturing and quality systems laid down when we began this business in 1955 have been consistently upgraded and augme

keeping customer needs in mind. The Company enjoys

ownership" for it transformers. BBL's design competence, manufacturing processes, testing facilities and quality assurance procedu

Bharat Bijlee to establish itself as a reputed manufacturer of 220KV class transformers upto 200 MVA range.

facilities of Routine, Heat Run and Impulse Test has reduced execution time and enabled

shortest delivery time for customized transformers. The Company has a

after-sales service. The Company has supplied transformers to all major electricity boards, power utilities, industries, business houses and EPC contractors.

It has alarge customer base both in India and abroad.

Types of Transformers

Liquid Filled Power Transformers upto 200MVA,220KV

For Power Transformers, the short circuit withstand capability is of prime importance. The Company ensures this through the adoption of a unique

clamping arrangement of the windings at accurately determined pre

withstand system transients and lightning surges are of vital importance. The insulation design and quality of materials used

withstands these stringent test requirements upto a BIL of 1050 KVP when tested in accordanc

200 MVA - 220KV class Transformer under Temperature Rise test

Source: Company

Sub-station Transformers

This type of transformer is used in sub stations to transfer the incoming voltage to the

two/three windings. In general it is equipped with On load tap changers and are connected to transmission grids by bushings a

transformer is built in core form. HV/LV windings are galvanically separated for system transformer while they are Auto connected for auto transformer.

Generator Transformers

This is a type of Power Transformer where the LV winding is connected to the generator through the bus duct and HV winding

In addition to the features of Power Transformer, our Generator Transformer is designed to withstand over voltage caused by s

the generator. It is built as a single or three phase unit and located in po

Unit Auxiliary Transformers (UAT)

The Unit Auxiliary Transformer is the Power Transformer that provides power to the auxiliary equipment of a power generating

operation. This transformer is connected directly to the generator out

of power to the generating station. It is generally a three-

UAT is equal to the main generator voltage rating. The secondary windings can have same or different voltages i.e. generally 11KV an

plant layout.

132/25 KV Single Phase Traction Transformer

This transformer is installed in a traction sub-stations along side the rail track and is used to feed 25KV AC power to railway electric locomotives.

KV winding is connected to two nominated phases of incoming three phase lines and on the secondary side, one terminal of 25 K

the traction overhead equipment while the other is solidly earthed to the running traction rails. This transformer is designed

200% for specified duration and dynamic/thermal short circuit of 0.5sec and 5 sec respectively.

, MBA (Financial Markets), Vice – President Research

For more than five decades Bharat Bijlee has been one of the leading manufacturers of transformers in India. BBL transformers offer outstanding benefits

The manufacturing and quality systems laid down when we began this business in 1955 have been consistently upgraded and augme

one of the highest rates of repeat orders in the industry and the highest level o

design competence, manufacturing processes, testing facilities and quality assurance procedu

as a reputed manufacturer of 220KV class transformers upto 200 MVA range. The effective use of SAP systems and in

facilities of Routine, Heat Run and Impulse Test has reduced execution time and enabled it to meet challenging delivery commitments.

The Company has a well established all-India marketing network that ensures responsive pre

mers to all major electricity boards, power utilities, industries, business houses and EPC contractors.

the short circuit withstand capability is of prime importance. The Company ensures this through the adoption of a unique

clamping arrangement of the windings at accurately determined pre-stress levels. For primary voltages of 132 kV and 220 kV, ability of

withstand system transients and lightning surges are of vital importance. The insulation design and quality of materials used

withstands these stringent test requirements upto a BIL of 1050 KVP when tested in accordance with national /international /client specific standards.

220KV class Transformer under Temperature Rise test

This type of transformer is used in sub stations to transfer the incoming voltage to the next voltage level. It can be system or auto transformer with

two/three windings. In general it is equipped with On load tap changers and are connected to transmission grids by bushings a

indings are galvanically separated for system transformer while they are Auto connected for auto transformer.

This is a type of Power Transformer where the LV winding is connected to the generator through the bus duct and HV winding

In addition to the features of Power Transformer, our Generator Transformer is designed to withstand over voltage caused by s

the generator. It is built as a single or three phase unit and located in power stations.

The Unit Auxiliary Transformer is the Power Transformer that provides power to the auxiliary equipment of a power generating

generator out-put by a tap-off of the isolated phase bus duct and thus becomes cheapest source

-winding transformer i.e. one primary and two separate secondary windings. Primary winding of

equal to the main generator voltage rating. The secondary windings can have same or different voltages i.e. generally 11KV an

ns along side the rail track and is used to feed 25KV AC power to railway electric locomotives.

KV winding is connected to two nominated phases of incoming three phase lines and on the secondary side, one terminal of 25 K

he traction overhead equipment while the other is solidly earthed to the running traction rails. This transformer is designed

200% for specified duration and dynamic/thermal short circuit of 0.5sec and 5 sec respectively.

manufacturers of transformers in India. BBL transformers offer outstanding benefits

The manufacturing and quality systems laid down when we began this business in 1955 have been consistently upgraded and augmented

one of the highest rates of repeat orders in the industry and the highest level of "comfort of

design competence, manufacturing processes, testing facilities and quality assurance procedures have enabled

The effective use of SAP systems and in-house

meet challenging delivery commitments. BBL maintains

India marketing network that ensures responsive pre- and

mers to all major electricity boards, power utilities, industries, business houses and EPC contractors.

the short circuit withstand capability is of prime importance. The Company ensures this through the adoption of a unique

stress levels. For primary voltages of 132 kV and 220 kV, ability of windings to

withstand system transients and lightning surges are of vital importance. The insulation design and quality of materials used, ensure that its product

e with national /international /client specific standards.

next voltage level. It can be system or auto transformer with

two/three windings. In general it is equipped with On load tap changers and are connected to transmission grids by bushings and cables. The system/auto

indings are galvanically separated for system transformer while they are Auto connected for auto transformer.

This is a type of Power Transformer where the LV winding is connected to the generator through the bus duct and HV winding to the transmission system.

In addition to the features of Power Transformer, our Generator Transformer is designed to withstand over voltage caused by sudden load throw off from

The Unit Auxiliary Transformer is the Power Transformer that provides power to the auxiliary equipment of a power generating station during its normal

off of the isolated phase bus duct and thus becomes cheapest source

winding transformer i.e. one primary and two separate secondary windings. Primary winding of

equal to the main generator voltage rating. The secondary windings can have same or different voltages i.e. generally 11KV and or 6.9KV as per

ns along side the rail track and is used to feed 25KV AC power to railway electric locomotives. The 132

KV winding is connected to two nominated phases of incoming three phase lines and on the secondary side, one terminal of 25 KV winding is connected to

he traction overhead equipment while the other is solidly earthed to the running traction rails. This transformer is designed to meet overloads up to


Projects

Bharat Bijlee has been a key player in the country's power sector, setting standards of excellence for over seven decades. Qu

managers with years of experience in the field of electrical project management work together seamlessly t

frames. Its association with clients is comprehensive and covers all aspects of work from start to finish.

through planning, design, supply, erection, testing and commissi

inter-related activities such as analysing load and system requirements, formulating technical specifications and design parameters

the Company continues its partnership by providing technical assistance and imparting training to customers in the operation and maintena

systems.

Source: Company Electric Motors

Bharat Bijlee is one of the leading Electrical Motor manufacturers in India.

of motors suitable even for the most severe of applications. We continue to be one of the most trusted electric motors manufa

following the developments in the global regulatory environments and developing products that comply with these requirements.

comprehensive range of highly reliable and energy efficient 3 Phase AC Electrical Rotating Machine from 0.12 kW to 1250 kW.

accounts for over half the total electricity consumption, of which 60 to 70% is utilized by electric motors. This indicates t

more energy than any other application. A typical electric motor’s average lifespan ranges anywhe

raw material and manufacturing process. The operational cost of a motor is around 95% of the total life cycle cost. Minimum E

Standards (MEPS) was voluntary in the past but as per the r

induction motors that can be manufactured and sold in the country needs to be IE2 efficiency level conforming to IS standards

Electric Motor manufacturing in India, BBL has always advocated the concept of energy saving for a sustainable future. It has been

persistent endeavor to develop a wide range of motors in premium efficiency series thus rendering choice to customers to sele

energy efficient motors. The Company' expertise lies in deep understanding of various industrial applications and offering the most optimized solution

with low life cycle ownership cost. The motors are suited

screen, vibrators, centrifuges, stone crusher and many more

Magnet technology machines

From 1973 upto 2004, Bharat Bijlee manufactured elevators under the brand name Olympus, which had

2004, the Company divested the Elevator division. By leveraging

manufacturers of Permanent Magnet Gearless Machines for Elevators in India. The construction industry’s growing awareness of

environment friendliness offered a latent opportunity for innovation in the overlapping dom

applications. Bharat Bijlee’s GreenStar range of Permanent Magnet Gearless Machines are suitable for machine

maintenance free. Additionally, they offer energy savings of up to 30%.

Magnet motor technology in applications beyond elevator machines, in order to address a larger market and increasing opportun

in the long-term.

The Company's new range of SynchroTorq™ high-torque machines is suitable for Direct Drive applications. It has higher efficiency, provides significant

power saving and has no oil spillage and cleaning issues. It is powered by KEB Drive

In May 2018, its new plant for Magnet Technology Machines at its

continued domestic and export growth in its GreenStar range of elevator machines, and

Machine manufacturers going forward. The 950 sqm plant has been certified as a Green Building (Gold Standard) by IGBC (Indian Green Building Council).

The plant has clean-area facilities, line, type and reliability testing capability, and is designed to optimize material flow and handling. The production

capacity is scalable for further expansion by the modular design and layout.


Bharat Bijlee has been a key player in the country's power sector, setting standards of excellence for over seven decades. Qu

managers with years of experience in the field of electrical project management work together seamlessly to execute projects within optimum time

Its association with clients is comprehensive and covers all aspects of work from start to finish. It begins at project inception, and continues

through planning, design, supply, erection, testing and commissioning. The Company works in close cooperation with consultants and clients in various

related activities such as analysing load and system requirements, formulating technical specifications and design parameters

continues its partnership by providing technical assistance and imparting training to customers in the operation and maintena

Bharat Bijlee is one of the leading Electrical Motor manufacturers in India. Established in 1946, BBL has evolved over the decades to provide a wide range

of motors suitable even for the most severe of applications. We continue to be one of the most trusted electric motors manufa

in the global regulatory environments and developing products that comply with these requirements.

comprehensive range of highly reliable and energy efficient 3 Phase AC Electrical Rotating Machine from 0.12 kW to 1250 kW.

accounts for over half the total electricity consumption, of which 60 to 70% is utilized by electric motors. This indicates t

A typical electric motor’s average lifespan ranges anywhere between 15 to 20 years depending on the quality of

raw material and manufacturing process. The operational cost of a motor is around 95% of the total life cycle cost. Minimum E

Standards (MEPS) was voluntary in the past but as per the recent mandate by the Indian government, the minimum efficiency of 3 phase squirrel cage

induction motors that can be manufactured and sold in the country needs to be IE2 efficiency level conforming to IS standards

always advocated the concept of energy saving for a sustainable future. It has been

persistent endeavor to develop a wide range of motors in premium efficiency series thus rendering choice to customers to sele

expertise lies in deep understanding of various industrial applications and offering the most optimized solution

The motors are suited Motors suited for all applications i.e. Pumps, compressors, fans & blowers, conveyors, lifts,

screen, vibrators, centrifuges, stone crusher and many more.

From 1973 upto 2004, Bharat Bijlee manufactured elevators under the brand name Olympus, which had over 15,000 installations

By leveraging its deep understanding of elevator applications, in 20

manufacturers of Permanent Magnet Gearless Machines for Elevators in India. The construction industry’s growing awareness of

environment friendliness offered a latent opportunity for innovation in the overlapping domain of rotating machines and elevator drive engineering

of Permanent Magnet Gearless Machines are suitable for machine-room less applications and are relatively

savings of up to 30%. In 2016, the Company had decided to leverage its competencies in Permanent

Magnet motor technology in applications beyond elevator machines, in order to address a larger market and increasing opportun

torque machines is suitable for Direct Drive applications. It has higher efficiency, provides significant

power saving and has no oil spillage and cleaning issues. It is powered by KEB Drive-SCL technology without encoder.

agnet Technology Machines at its Airoli campus commenced operations. This in line with the company’s strategy for

continued domestic and export growth in its GreenStar range of elevator machines, and also to cater to new applications as Permanent Magnet Gearless

The 950 sqm plant has been certified as a Green Building (Gold Standard) by IGBC (Indian Green Building Council).

type and reliability testing capability, and is designed to optimize material flow and handling. The production

capacity is scalable for further expansion by the modular design and layout. The Company offers three product variants are offered to its

Bharat Bijlee has been a key player in the country's power sector, setting standards of excellence for over seven decades. Qualified engineers and

o execute projects within optimum time

It begins at project inception, and continues

oning. The Company works in close cooperation with consultants and clients in various

related activities such as analysing load and system requirements, formulating technical specifications and design parameters. After commissioning,

continues its partnership by providing technical assistance and imparting training to customers in the operation and maintenance of

Established in 1946, BBL has evolved over the decades to provide a wide range

of motors suitable even for the most severe of applications. We continue to be one of the most trusted electric motors manufacturers in India, closely

in the global regulatory environments and developing products that comply with these requirements. It offers a

comprehensive range of highly reliable and energy efficient 3 Phase AC Electrical Rotating Machine from 0.12 kW to 1250 kW. The industrial sector

accounts for over half the total electricity consumption, of which 60 to 70% is utilized by electric motors. This indicates that the electric motors consume

re between 15 to 20 years depending on the quality of

raw material and manufacturing process. The operational cost of a motor is around 95% of the total life cycle cost. Minimum Energy Performance

ecent mandate by the Indian government, the minimum efficiency of 3 phase squirrel cage

induction motors that can be manufactured and sold in the country needs to be IE2 efficiency level conforming to IS standards. Being a forerunner of

always advocated the concept of energy saving for a sustainable future. It has been the Company's

persistent endeavor to develop a wide range of motors in premium efficiency series thus rendering choice to customers to select from the wide range of

expertise lies in deep understanding of various industrial applications and offering the most optimized solution

ications i.e. Pumps, compressors, fans & blowers, conveyors, lifts,

over 15,000 installations across the country. In

deep understanding of elevator applications, in 2007, BBL became the first

manufacturers of Permanent Magnet Gearless Machines for Elevators in India. The construction industry’s growing awareness of energy efficiency and

ain of rotating machines and elevator drive engineering

room less applications and are relatively

In 2016, the Company had decided to leverage its competencies in Permanent

Magnet motor technology in applications beyond elevator machines, in order to address a larger market and increasing opportunities for this technology

torque machines is suitable for Direct Drive applications. It has higher efficiency, provides significant

Airoli campus commenced operations. This in line with the company’s strategy for

also to cater to new applications as Permanent Magnet Gearless

The 950 sqm plant has been certified as a Green Building (Gold Standard) by IGBC (Indian Green Building Council).

type and reliability testing capability, and is designed to optimize material flow and handling. The production

duct variants are offered to its customers:


GreenStar: For multi-storied buildings: GreenStar from Bharat Bijlee is a new

synchronous motor. Compact modular design, light weight and low operating noise levels make it

GreenStar has outstanding torque and cogging characteristics and no oil spillage problems. Real savings in energy consumption

maintenance, contribute to a significant reduction in cost of ownership

GreenStar Mini: Home lift for bungalows: GreenStar Mini is a gearless Permanent Magnet Gearless Machine ideal for home elevators i.e. bungalows and

penthouses. It is compact and facilitates elevators with a minimum of space and civil work

a) Lifts loads up to 300 kg and travels up to 15 meters

b) Operates on single-phase 230V Drive domestic power supply

c) Manual release for brake provided

d) Insulation class F with thermistor for thermal protection

e) GreenStar Max: For high capacity loads up to 5000

carrying capacities of up to 5000 kg: the right machine for your Goods, Stretcher and Car elevators.

Drives and automation

Leveraging its expertise of over 70 years in the design, manufacture and application of motors, Bharat Bijlee offers Variable Speed Drives, and Industrial

Automation solutions. For over a decade now, Bharat Bijlee’s products and solutions pervade across the industrial automation

Industrial Drives are offered in an exclusive partnership with Karl E Brinkmann (KEB) of Germany, a world

Controllers, Servo Drives and Industrial Automation solutions. KEB drives are designed for applications

speed and response time.

Bharat Bijlee, provides a comprehensive range of KEB drives as standalone modules, or as integrated engineering systems with

(415V/ 690Volts). BBL offers KEB drives and industrial automation solutions for a variety of applications in industries such as Plastic, Textile, Machine

Tools and others. Variable speed AC drives are offered in an exclusive partnership with Karl E Brinkmann (KEB) of Germany, a world cla

AC drives, Motion controllers and Servo Drives.These drives are designed for applications demanding the best performance in accuracy, speed and

response time. Bharat Bijlee provides a comprehensive range of KEB Drives as standalone

up to 900kW (415V/ 690Volts).

KEB Servo Drive Solutions for Energy Saving in Plastic IMM, BMM & Hydraulic Press

Source: Company

DC drives continue to be used in applications where AC industr

Bharat Bijlee engineers and supplies DC drives in partnership with Sprint Electric, UK. It supplies a comprehensive range of

for the most challenging applications where DC machines are a better option.

Source: Company


GreenStar from Bharat Bijlee is a new-generation Permanent Magnet Gearless Machine for elevators powered by a

synchronous motor. Compact modular design, light weight and low operating noise levels make it especially suitable for machine room

GreenStar has outstanding torque and cogging characteristics and no oil spillage problems. Real savings in energy consumption

ost of ownership.

GreenStar Mini is a gearless Permanent Magnet Gearless Machine ideal for home elevators i.e. bungalows and

penthouses. It is compact and facilitates elevators with a minimum of space and civil work.

Lifts loads up to 300 kg and travels up to 15 meters

phase 230V Drive domestic power supply

Insulation class F with thermistor for thermal protection

ty loads up to 5000 kg capacity: Green Star Max extends its range of Permanent Magnet Gearless Machines to

carrying capacities of up to 5000 kg: the right machine for your Goods, Stretcher and Car elevators.

the design, manufacture and application of motors, Bharat Bijlee offers Variable Speed Drives, and Industrial

Automation solutions. For over a decade now, Bharat Bijlee’s products and solutions pervade across the industrial automation

Industrial Drives are offered in an exclusive partnership with Karl E Brinkmann (KEB) of Germany, a world-class manufacturer of AC Drives, Motion

Controllers, Servo Drives and Industrial Automation solutions. KEB drives are designed for applications demanding the best performance in accuracy,

Bharat Bijlee, provides a comprehensive range of KEB drives as standalone modules, or as integrated engineering systems with

rives and industrial automation solutions for a variety of applications in industries such as Plastic, Textile, Machine

Variable speed AC drives are offered in an exclusive partnership with Karl E Brinkmann (KEB) of Germany, a world cla

.These drives are designed for applications demanding the best performance in accuracy, speed and

response time. Bharat Bijlee provides a comprehensive range of KEB Drives as standalone modules or as integrated engineering systems with automation

KEB Servo Drive Solutions for Energy Saving in Plastic IMM, BMM & Hydraulic Press

DC drives continue to be used in applications where AC industrial drives are not economical or convenient. To complete its industrial drives offering,

Bharat Bijlee engineers and supplies DC drives in partnership with Sprint Electric, UK. It supplies a comprehensive range of

most challenging applications where DC machines are a better option.

generation Permanent Magnet Gearless Machine for elevators powered by a

especially suitable for machine room-less applications.

GreenStar has outstanding torque and cogging characteristics and no oil spillage problems. Real savings in energy consumption, space and routine

GreenStar Mini is a gearless Permanent Magnet Gearless Machine ideal for home elevators i.e. bungalows and

range of Permanent Magnet Gearless Machines to

the design, manufacture and application of motors, Bharat Bijlee offers Variable Speed Drives, and Industrial

Automation solutions. For over a decade now, Bharat Bijlee’s products and solutions pervade across the industrial automation pyramid. Variable speed AC

class manufacturer of AC Drives, Motion

demanding the best performance in accuracy,

Bharat Bijlee, provides a comprehensive range of KEB drives as standalone modules, or as integrated engineering systems with automation up to 900kW

rives and industrial automation solutions for a variety of applications in industries such as Plastic, Textile, Machine

Variable speed AC drives are offered in an exclusive partnership with Karl E Brinkmann (KEB) of Germany, a world class manufacturer of

.These drives are designed for applications demanding the best performance in accuracy, speed and

modules or as integrated engineering systems with automation

ial drives are not economical or convenient. To complete its industrial drives offering,

Bharat Bijlee engineers and supplies DC drives in partnership with Sprint Electric, UK. It supplies a comprehensive range of fully digital DC drives worldwide


Industry overview

The Global Transformer Market is estimated to reach US$80.1billion by 2025, growing at a CAGR of 6.7% from 2020 to 2025.The transformers are

electrical machines designed to transfer electricity from one circuit to another with varying voltage level. Increase in current brings increase in voltage

levels therefore transformers are designed to bring the required voltage level by setting or stepping the voltages as per the requirement. The transformers

are designed so that they can be used in the wider range and wider applications for various industrial purposes with a broader market prospects. In power

systems the transformer brings safety and efficiency by raising and lowering voltage levels as per the requirements. The use of transformers in various

industrial applications, surge in adoption of different ratings of transformer in different regions globally, rise in R&D activities and rise in industrialization

are driving the growth of the market.

Key Takeaways

1) Rise in industrialization and centralization along with surge in adoption of new flexible transformers for different industrial uses are driving the

growth of the market.

2) Electrical Transformers have wide applications like use in emergency mobile substations, prefabricated substations and others for power

generation, power transmission, power distribution in Energy and Power Utilities due to their flexible, voltage regularization and cost

effectiveness.

3) APAC is expected to dominate the global Transformer Market in the forecast period 2020-2025 owing to the rise in transmission and distribution

networks along with surge in adoption of electrical transformers for various applications.

(Source: https://www.industryarc.com/Report/18180/transformer-market.html)

The Indian transformer industry continued to witness overcapacity and fierce competition amongst market players. The industry has been stagnant over

the past several years due to the slowdown in private investment and the manufacturing sector. UDAY (Ujwal DISCOM Assurance Yojana), a Scheme for

the financial turnaround of power distribution companies (DISCOMs), was approved by the Government of India with the objective to improve operational

and financial efficiency of State DISCOMs. Many DISCOMs have not been able to adhere to the reform paths envisaged under UDAY for a variety of

reasons: tariffs not being reflective of costs; inadequate budgeting of subsidies; high aggregate technical and commercial (AT&C) losses etc. This has kept

investment in the power sector muted. The Indian electrical motors industry also showed no growth, but the Company’s initiatives to broaden its market

reach has shown results. Energy efficient motors, transportation, railways and water are sectors driving demand for electric motors.

The Indian Power & Distribution Transformers Market was valued at USD 2065.4 million in FY2020 and is anticipated to grow at a CAGR of over 6.89% in

the next six years, owing to the growing demand for power due to rapid increase in population, industrialization, and urbanization. India being the 5th

largest power producer in the world, in terms of installed capacity, is calling for an increase in the market of power & distribution transformer market.

According to the Ministry of Power, the total installed capacity of the country was 375.323 GW by the end of 2020.

Government schemes like Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) for strengthening and enhancement of sub-transmission distribution

infrastructure in rural areas, involve an increased demand for distribution transformers in the future. Also, the Integrated Power Development Scheme

(IPDS) for fulfilling the power demand of urban areas add to the demand for the transformers.

The power transformers market has been segmented based on power output (5.1 to 50.0 MVA, 50.1 to 160 MVA, 160.1 to 350 MVA, Above 350 MVA) and

region wise (East, West, North, South). The distribution transformers market has been segmented based on power output (up to 100 KVA, 100.1 to 315

KVA, 315.1 to 5000 KVA) and region wise (East, West, North, South).

Major players dominating the Indian Power & Distribution Transformers Market are Toshiba Transmissions & Distribution Systems, Bharat Heavy

Electricals Limited, Crompton & Greaves Power & Industrial Solutions, ABB Hitachi India Ltd, General Electric, Transformers & Rectifiers India Ltd., Bharat

Bijlee, Voltamp Transformers.

(Source: https://www.prnewswire.com/news-releases/india-power--distribution-transformer-market-report-2021-2027-market-was-valued-at-2065-4-

million-in-fy2020-and-is-anticipated-to-grow-at-a-cagr-of-over-6-89-301258775.html)


Shareholding pattern

One year price movement chart

Source: Tradingview

51%


33.45%

15.56%

51%

Promoters DII Public


Disclosure under SEBI Research Analyst Regulations 2014: Sr.no. Particulars Yes/No

1) Research Analyst or his/her relative's or Ajcon Global Services Limited financial interest in the subject

company(ies):

No

2) Research Analyst or his/her relative or Ajcon Global Services Limited actual/beneficial ownership of 1%

or more securities of the subject company (ies) at the end of the month immediately preceding the date

of publication of the Research report

No

3) Research Analyst or his/her relative or Ajcon Global Services Limited has any other material conflict of

interest at the time of publication of the Research Report

No

4) Research Analyst has served as an officer, director or employee of the subject company(ies) No

5) Ajcon Global Services Limited has received any compensation from the subject company in the past

twelve months

No

6) Ajcon Global Services Limited has received any compensation for investment banking, or merchant

banking, or brokerage services from the subject company in the past twelve months

No

7) Ajcon Global Services Limited has received any compensation for products or services other than

investment banking, or merchant banking, or brokerage services from the subject company in the past

twelve months

No

8) Ajcon Global Services Limited has received any compensation or other benefits from the subject

company or third party in connection with the research report

No

9) Ajcon Global Services Limited has managed or co-managed public offering of securities for the subject

company in the past twelve months

No

10) Research Analyst or Ajcon Global Services Limited has been engaged in market making activity for the

subject company(ies)

No

Disclaimer

Ajcon Global Services Limited is a fully integrated investment banking, merchant banking, corporate advisory, stock

broking, commodity and currency broking. Ajcon Global Services Limited research analysts responsible for the preparation

of the research report may interact with trading desk personnel, sales personnel and other parties for gathering, applying and interpreting information.

Ajcon Global Services Limited is a SEBI registered Research Analyst entity bearing registration Number INH000001170 under SEBI (Research Analysts) Regulations, 2014.

Individuals employed as research analyst by Ajcon Global Services Limited or their associates are not allowed to deal or

trade in securities that the research analyst recommends within thirty days before and within five days after the publication of a research report as prescribed under SEBI Research Analyst Regulations.

Subject to the restrictions mentioned in above paragraph, We and our affliates, officers, directors, employees and their

relative may: (a) from time to time, have long or short positions acting as a principal in, and buy or sell the securities or

derivatives thereof, of Company mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage.

Ajcon Global Services Limited or its associates may have commercial transactions with the Company mentioned in the

research report with respect to advisory services.

The information and opinions in this report have been prepared by Ajcon Global Services Limited and are subject to change

without any notice. The report and information contained herein is strictly confidential and meant solely for the selected

recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person

or to the media or reproduced in any form, without prior written consent of Ajcon Global Services Limited While we would

endeavour to update the information herein on a reasonable basis, Ajcon Global Services Limited is under no obligation to

update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent Ajcon

Global Services Limited from doing so. This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This


report and information herein is solely for informational purpose and shall not be used or considered as an offer document

or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the

customers simultaneously, not all customers may receive this report at the same time. Ajcon Global Services Limited will

not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal,

accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific

circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who

must make their own investment decisions, based on their own investment objectives, financial positions and needs of

specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The

recipient should independently evaluate the investment risks. The value and return on investment may vary because of

changes in interest rates, foreign exchange rates or any other reason. Ajcon Global Services Limited accepts no liabilities

whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a

guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated

before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-

looking statements are not predictions and may be subject to change without notice. Ajcon Global Services Limited or its

associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months.

Ajcon Global Services Limited encourages independence in research report preparation and strives to minimize conflict in

preparation of research report. Ajcon Global Services Limited or its analysts did not receive any compensation or other

benefits from the companies mentioned in the report or third party in connection with preparation of the research report.

Accordingly, neither Ajcon Global Services Limited nor Research Analysts have any material conflict of interest at the time of

publication of this report.

It is confirmed that Akash Jain – MBA (Financial Markets) or any other Research Analysts of this report has not received any

compensation from the company mentioned in the report in the preceding twelve months. Compensation of our Research

Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.

Ajcon Global Services Limited or its subsidiaries collectively or Directors including their relatives, Research Analysts, do not

own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding

the publication of the research report.

Ajcon Global Services Limited may have issued other reports that are inconsistent with and reach different conclusion from

the information presented in this report. Neither the Research Analysts nor Ajcon Global Services Limited have been

engaged in market making activity for the companies mentioned in the report.

We submit that no material disciplinary action has been taken on Ajcon Global Services Limited by any Regulatory Authority

impacting Equity Research Analysis activities.

Analyst Certification

I, Akash Jain MBA (Financial Markets), research analyst, author and the names subscribed to this report, hereby certify that

all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. I also

certify that no part of compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view (s) in this report.

For research related queries contact:

Mr. Akash Jain – Vice President (Research) at [email protected],

CIN: L74140MH1986PLC041941

SEBI registration Number: INH000001170 as per SEBI (Research Analysts) Regulations, 2014.

Website: www.ajcononline.com

Registered and Corporate office

408 - (4th Floor), Express Zone, “A” Wing, Cello – Sonal Realty, Near Oberoi Mall and Patel’s, Western Express Highway, Goregaon (East), Mumbai – 400063. Tel: 91-22-67160400, Fax: 022-28722062

investors' delight: bharat bijlee limited (bbl) july 15 , 2021

Documents