In a strategic move to bolster its growth and capitalize on the expanding demand in the power transmission sector, Sterlite Power announced a significant fundraising of Rs 725 crore for its recently hived-off Global Products and Services (GPS) business. The funds, secured from GEF Capital Partners and ENAM Holdings, will fuel the company’s ambitious expansion plans and is the first major capital raise for the new GPS business unit.
A Strategic Move in the Power Transmission Industry
Sterlite Power, a leading player in the power transmission sector, made headlines earlier this year when it decided to spin off its GPS business. The move was aimed at enabling more focused growth, and it appears to be paying off. The GPS business currently boasts an impressive order book worth Rs 6,612 crore. During the first half of the financial year 2025, it secured fresh orders amounting to Rs 2,715 crore, signaling a promising future for the unit.
According to Pratik Agarwal, Managing Director of Sterlite Power Transmission Limited, the raised funds will serve as a catalyst for the planned Rs 400 crore expansion of the GPS business. A portion of this capital will also be allocated to working capital needs. Agarwal emphasized that the company intends to leverage this funding to scale up operations and meet the surging demand in the global power equipment sector.
Seizing Opportunities in a Growing Market
The expansion of Sterlite’s GPS business is driven by the booming global demand for power equipment, fueled by global decarbonization trends, rapid electrification, and the increasing shift towards green energy. As the world moves towards a more sustainable energy future, the need for high-quality power transmission products, such as cables and conductors, is on the rise. However, the supply of these critical components is struggling to keep pace with demand.
Sterlite Power, with over 40 years of experience in the industry, has positioned itself as a leader in the supply of conductors and cables.
The company’s reach spans more than 40 countries globally, and it is well-placed to meet the growing needs of the power sector. Agarwal believes that the power transmission market is expected to grow at a steady pace of 6-8% annually, but Sterlite Power aims to outpace the market, targeting a growth rate of 15-20% over the next two to five years.
Powering the Future with Innovation and Capability
Under its GPS business, Sterlite Power offers a broad spectrum of products tailored to the evolving demands of the power sector. The portfolio includes high-performance conductors, optical ground wire, and high-voltage/extra-high-voltage (HV/EHV) power cables, all designed to support the integration of renewable energy into the grid, enhance grid resilience, and minimize transmission losses.
Agarwal highlighted that while the GPS business will continue to serve all three major power sector verticals—generation, transmission, and distribution—the company is particularly focusing on meeting the increasing demand for power in India’s growing urban centers. The country’s major cities are expected to experience disproportionately high power consumption growth, outpacing the national average. According to Agarwal, while India’s overall power consumption may grow at a rate of 6%, power usage in the top 40-50 cities is projected to increase by 10-11% annually.
To meet this demand, cities like Mumbai are already opting for extra high-voltage cables, which offer a more efficient means of transmitting power in areas where space for traditional transmission towers is limited. Sterlite Power is gearing up to meet this demand by developing new capabilities, particularly in the 400kV cable range, with the construction of a new factory in Baroda aimed at manufacturing these advanced cables.
Global and Regional Growth Prospects
While India remains a key market for Sterlite Power, Agarwal pointed out that the company is also witnessing strong demand internationally. The United States, in particular, is expected to become the company’s largest non-Indian customer, driving nearly 30% of its global sales. In addition, regions such as West Asia and South Asia will also contribute significantly to the company’s growth.
By focusing on key markets and leveraging its vast experience in the power transmission industry, Sterlite Power is positioning itself for long-term success. The infusion of Rs 725 crore will play a crucial role in accelerating the company’s expansion, helping it to meet the growing demand for high-performance power transmission solutions and contribute to the global shift towards cleaner, more sustainable energy sources.
Conclusion
Sterlite Power’s Rs 725 crore fundraising marks a pivotal moment in the company’s journey as it seeks to scale its GPS business and capitalize on the global power sector’s growth. With a strong order book, an expanding product portfolio, and a clear focus on innovation and urban power solutions, Sterlite Power is poised to lead the charge in the power transmission industry both in India and internationally.
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