ABB Receives Indian Order - Analyst Blog

Recently, ABB Ltd ABB received an order from India's central power generation utility company, NTPC, for the supply of ultrahigh voltage transformers and shunt reactors in order to ensure reliable and efficient power generation and grid integration. The order is valued at $26 million.

Transformers and Shunt reactors are vital components of an electrical grid. Shunt reactors are installed to make up for reactive power generation in long high-voltage power transmission lines and in cable systems, while generator transformers primarily increase voltages to the required level and enable efficient power transmission.

ABB will be required to install seven 315 megavolt ampere (MVA), 765 kilovolt (kV) single phase generator transformers, seven 85 MVA, 765 kV single phase ‘tie' transformers as well as four 110 MVAr, and ten 80 MVAr, 800 kV single phase reactors at NTPC's greenfield 2x800 megawatt thermal power plant that is under construction at Gadarwara in Madhya Pradesh, India. ABB will manufacture these transformers and reactors at its local manufacturing facility at Vadodara in Gujarat, India. 

This thermal plant at Gadarwara, when commissioned in 2017–2018 will primarily serve the central Indian states of Madhya Pradesh and Chhattisgarh and the western states of Maharashtra, Gujarat and Goa.  

NTPC is one of the largest power generation utilities globally and contributes to more than one-fourth of India's total power generation. The company has a total installed capacity of over 42,000 MW, comprising 17 coal-based and 7 gas-based stations across India.

Based in Zurich, Switzerland, ABB is a leader in power and automation technologies that enable utility and industry customers to improve performance, while lowering negative impacts on the environment.

ABB currently holds a Zacks Rank #4 (Sell). However, other stocks which are worth considering at the moment are Quanta Services, Inc. PWR, Enersys Inc. ENS and AECOM Technology Corp. ACM, all of which carry a Zacks Rank #2 (Buy).