Transformers and Rectifiers (India) Ltd. (TARIL) has announced a strategic investment in Posco Poggenamp Electrical Steel, acquiring a controlling stake, according to a stock exchange filing.
Posco Poggenamp manufactures CRGO laminations for transformers and reactors up to 765 kV/500 MVA, with the capability to process up to 1200 kV/1000 MVA. The plant has an installed capacity of 24,000 tons per year. CRGO electrical steel, which makes up 33-35pct of the raw material cost for transformers and reactors, is a critical input, accounting for nearly 50pct of the MVA capacity.
This acquisition aims to optimize supply chain management, boost operational efficiency, and expand TARIL’s market presence, especially in the growing energy and infrastructure sectors. Additionally, TARIL has signed a long-term supply agreement with the electrical steel mills to ensure a stable supply of mother coils, further securing its supply chain.
TARIL is the second-largest transformer manufacturer in India by capacity. Posco Poggenamp Electrical Steel, a joint venture between Poggenamp and South Korea’s Posco, primarily manufactures CRGO coils in various grades.
