India’s power sector is at a pivotal juncture: Reshu Madan

Home
Articles
India’s power sector is at a pivotal juncture: Reshu Madan

India’s power sector is at a pivotal juncture: Reshu Madan

Articles
Mar 25,25

In this interview with Rakesh Rao, Reshu Madan, Director & CEO - Global Products & Services, Sterlite Power Transmission Ltd, elaborates on key changes witnessed in the energy sector and the company's plans to tap these trends.

India’s power sector is at a pivotal juncture: Reshu Madan

Indian power equipment sector has seen good growth, driven by increasing investment in renewable energy. This surge in renewable energy projects has led to capacity expansion by players in this sector. In this interview with Rakesh Rao, Reshu Madan, Director & CEO - Global Products & Services, Sterlite Power Transmission Ltd, highlights on emerging opportunities for the company with energy sector undergoing transformation with increasing contribution of renewables, especially solar.

Can you provide an overview of the Global Products & Services business?

We are the leading provider of conductors and optical ground wire (OPGW) solutions. Our product portfolio covers a complete range of conductors — from conventional conductors to high-performance conductors — and, in both segments, we enjoy a leadership position in India with a market share of about 30-35 per cent.

Beyond our strong domestic presence, our products have a global footprint, having been exported to nearly 70 countries. This footprint has been built over time and continues to grow with consistent exports and worldwide partnerships.

The business has been growing well, driven by favourable tailwinds in the Indian market, particularly due to the strong push toward renewable energy. This surge in renewable energy projects has led to a significant increase in transmission projects under the tariff-based competitive bidding (TBCB) model. These projects primarily focus on evacuating renewable power from states like Gujarat, Rajasthan, and parts of southern India to major load centres across the country.

In the current fiscal year alone, India has seen transmission projects worth ?500-600 billion being auctioned, and this is expected to cross ?1 trillion due to the inclusion of two high-voltage direct current (HVDC) projects. Conductors typically account for about 15-20 per cent of this market, translating to a ?100-120 billion opportunity. Given our 30 per cent market share, our revenue from this segment alone stands at approximately ?40-50 billion, a significant portion of a rapidly expanding market.

What differentiates Sterlite Power’s products from competitors, and how have you maintained your market leadership?

Our success lies in our commitment to innovation and our ability to deliver differentiated products. From the early days of tariff-based competitive bidding (TBCB) projects, most players relied on conventional Aluminum Conductor Steel Reinforced (ACSR) conductors. In this space, there are around 20 players in India, ranging from small to large manufacturers, primarily because these conventional conductors require minimal technological advancement.

We identified a critical gap in the market by engaging with developers to understand their pain points. Land acquisition and right-of-way issues are among the biggest challenges in building transmission lines. Additionally, conventional conductors resulted in higher power losses and lower power evacuation efficiency.

To address these challenges without escalating costs, we introduced A159 alloy conductors, STER-AL59. This product provides nearly 20-25 per cent more power evacuation capacity compared to conventional conductors and is also lighter. This results in reduced structural requirements, allowing for narrower and less cumbersome transmission towers and simpler foundations. Ultimately, this speeds up the construction of transmission lines, reducing project timelines and costs.

We brought this innovation to the market three to four years ago, and competitors have yet to catch up. This early mover advantage has played a crucial role in strengthening our market share and maintaining our leadership position. We continue to prioritise innovation, constantly seeking new ways to improve efficiency and deliver differentiated products.

With India’s renewable energy push, how does this impact your business and product innovation strategy?

India’s renewable energy drive offers significant growth opportunities for our business. Of the total renewable energy capacity, around 60 per cent to 70 per cent is solar, 20 per cent to 25 per cent is wind and hydro combined, and the remaining share comes from biomass and other sources.

Recognising the rising demand for solar infrastructure, we are expanding our solar cable manufacturing capacity with new capital expenditure for this segment. The solar cable market in India is growing rapidly, and with only six to seven major players, there is substantial room for expansion. Leveraging our established brand and presence in the cable segment, we see strong potential to contribute significantly here.

In addition to solar cables, we have introduced high-performance conductors, specifically designed for microgrids and renewable energy installations. These conductors minimise power losses and increase transmission efficiency, aligning perfectly with the needs of distributed energy systems.

We also supply a wide range of medium-voltage cables and other cabling solutions to major solar developers in India and our own projects. This end-to-end capability positions us well to serve both the generation and transmission needs of India’s renewable energy ecosystem.

What steps are you taking to meet growing demand?

Given the increasing demand and pipeline of transmission and renewable energy projects, we recognised the need to expand our manufacturing capacity. Last year, we made the strategic decision to increase our conductor production capacity by 1.5x.

In the cable segment, we are making substantial investments in a greenfield plant in Vadodara. This facility will manufacture high-voltage alternating current (HVAC) cables up to 400kV and HVDC cables up to 550kV, which are essential for HVDC projects requiring long-distance, high-power transmission. This ?2 billion investment reflects our commitment to scaling up and staying ahead of market demand. Construction is already underway, and we expect the plant to be fully operational by the end of the 2025, with full-scale operations expected in early 2026.

How significant is India’s reliance on imports for power equipment, and what are the industry’s challenges in this regard?

India’s power equipment sector still relies heavily on imports, particularly for raw materials and certain components. Products like transformer enclosures, gas-insulated switchgear (GIS) components, and bushings are often sourced from China, Japan, and South Korea.

One of the major pain points for the transformer industry, for instance, is the lack of domestic production of cold-rolled grain-oriented (CRGO) steel, which is a critical material for transformer cores. Currently, 100 per cent of this material is imported, creating supply chain vulnerabilities and cost pressures.

This issue was a focal point during a recent industry dialogue at Elecrama 2025, where we had a detailed discussion with the Union Minister of Power and Power Secretary. Over 50 to 60 CEOs from leading companies came together to address supply chain challenges and the need for domestic manufacturing capabilities. The government has been receptive and is working toward aligning policies to support local industry and reduce dependency on imports.

What role does Sterlite Power play in promoting domestic manufacturing and reducing import dependence?

At Sterlite Power, we are committed to enhancing India’s self-reliance in the power equipment sector through innovation and capacity expansion. By investing in local manufacturing capabilities, such as our greenfield cable plant in Vadodara and the expansion of our conductor production, we aim to reduce dependence on imported materials and components.

Additionally, our focus on high-performance, domestically manufactured products like alloy conductors and solar cables supports the ‘Make in India’ initiative. We are actively collaborating with industry bodies and government agencies to address supply chain issues and advocate for policies that promote local manufacturing.

What is your vision for the future of India’s power sector, and how does Sterlite Power align with this vision?

India’s power sector is at a pivotal juncture, with ambitious targets for renewable energy capacity and infrastructure development. Our vision aligns with this growth trajectory by providing innovative, efficient, and cost-effective solutions that strengthen the country’s power transmission network.