RTS Power Corporation began in 1947 as a small transformer shop in Kolkata and has since grown into a multi-location manufacturer of the electrical equipment that moves electricity from power plants to wall sockets - transformers, cables, and conductors - while quietly building a parallel business in galvanised steel wire for industrial customers. The recurring pattern is deliberate self-sufficiency: it makes its own transformer oil, keeps government utility work below 10% of sales to avoid payment risk, and uses the cash from its older businesses to fund newer ones like its steel-wire subsidiary. That approach - own the inputs, pick the customers, and grow from within - explains how a 47-employee company has stayed relevant for over seven decades. # Business segments Three engines at different stages - a transformer business that is the group's foundation, a steel-wire subsidiary that has scaled to material size in five years, and a tiny renewable-energy unit that generates power for sale - each built with the cash flows of the one before. ## 1. Power and distribution transformers: the core engine and the reason the company exists **Transformers are the backbone of the business, manufactured across six plants and sold to customers who value payment certainty over volume - a conscious strategy that keeps the company insulated from the worst of the power sector's payment problems.** - **Sells the equipment that steps voltage up and down** - the company makes power transformers (up to 132 KV class, 3.15 MVA to 50 MVA) and distribution transformers (5 kVA to 3,150 kVA, including dry-type) that sit between power generators, transmission lines, and end users. Most products are in the 11 kV and 33 kV class, which means they serve the last-mile distribution network rather than long-distance transmission. - **Avoids the government customer that everyone else chases** - State Electricity Boards and government utilities are the obvious buyers, but the company deliberately keeps direct government business below 10% of turnover because those contracts come with delayed payments and pricing constraints. Instead, it targets EPC contractors, industrial buyers, and other transformer manufacturers who pay reliably and accept better margins. - **Makes its own intermediate goods** - the company manufactures semi-finished components in-house rather than buying them, which gives it cost flexibility and operational control that pure assemblers lack. It also runs its own transformer oil unit, so a critical raw material is captive. - **Exports from East India, but the volumes swing wildly** - the Kolkata unit holds Star Export House status and has traditionally sold into East Africa, with a breakthrough into West Africa in FY24. But export revenue is lumpy: in FY23 a single Ethiopian telecom customer accounted for over 43% of standalone revenue, and the following year standalone export turnover collapsed to near zero. ## 2. Galvanised iron wires and strips: the diversification that became material **A wholly owned subsidiary built from scratch in 2019 now supplies the wire that goes into cables, conductors, and fencing - a steel-processing business that has nothing to do with electricity but everything to do with the same industrial customer base.** - **A greenfield plant in Rajasthan** - Reengus Wires Private Limited was incorporated in October 2019 and began commercial production in September 2020 at its plant in Reengus, Sikar district. The plant was running at 70% capacity within two years and was fully stabilised by FY23. - **Sells to cable makers and fence manufacturers** - the primary customers are companies that make cables and conductors (the same industry the parent already knows) and manufacturers of barbed wire and fencing. Most business comes from repeat orders, which signals that the product quality is accepted in the market. - **Rides government infrastructure spending without touching government customers** - demand is driven by the government's Revamped Distribution Sector Scheme (RDSS), because the subsidiary's customers supply cables and conductors to those projects. Reengus Wires itself deals with private manufacturers, not government utilities, so it captures the spending wave without the payment risk. - **Profitable at the operating level, still absorbing start-up costs** - the subsidiary was EBITDA-positive and cash-profit-making by FY23, though high depreciation from its initial capex pushed it to a small net loss that year. The parent has been investing further to expand downstream capacity, suggesting it sees room to grow beyond the current plant. ## 3. Wind energy: a tiny renewable power generator **A small wind-energy division with turbines in Maharashtra and Rajasthan generates power for sale - a separate business in accounting terms, but a rounding error in the context of the group.** - **Two wind farms, one small solar addition** - the company operates wind energy units in Dhule, Maharashtra and Barmer, Rajasthan, and is adding a 70 KW solar installation at its Dhulagarh factory. The power generated is sold externally, making it a standalone revenue stream rather than captive consumption. - **Very small in the overall mix** - the company itself describes wind energy sales as a very small fraction of overall sales, and the segment exists as a separate reporting line largely because it is a distinct activity from manufacturing. # Group structure and partners **A single-family flagship with one material subsidiary, no joint ventures, and a licensing arrangement with Siemens - simple, concentrated, and deliberately uncomplicated.** - **The Bhutoria Group's listed vehicle** - RTS Power Corporation is the flagship, headquartered at 56 Netaji Subhas Road in Kolkata, and operates several of its transformer units under the brand name "Rajasthan Transformers & Switchgears". - **One subsidiary that matters** - Reengus Wires Private Limited is the only subsidiary and is classified as material because its income or net worth exceeds 10% of the consolidated total. The company has no associates and no joint ventures. - **Compact substations under a Siemens licence** - the company introduced modular plug-and-play substations (units that combine a transformer and switchgear in one enclosure) as a licensee of Siemens Ltd., which gives it a product it did not develop internally but can sell under a recognised name. - **Banking relationships with public and private lenders** - the company's bankers include State Bank of India, ICICI Bank, Bank of Baroda, Canara Bank, and the former Oriental Bank of Commerce, giving it access to both government and private-sector credit.