Technologically Ahead

A power-generation-equipment manufacturer that commands 40 per cent return on capital is a rarity. That is Alstom India's average ROCE in the last ten years. Power-generation-equipment manufacturers like Alstom have, in the past couple of years, been hit by the double whammy of investment slowdown in the power sector and the attractive option to buy equipment from Korean and Chinese manufacturers - many of whom even provide financing for the equipment sold. This influx of foreign sellers has been the bane for power-equipment manufacturers in the country for some time now. Even the big daddy BHEL has suffered on this account. A change in the government's focus to make in India brightens the prospects of increased local buying. Companies hoping for a change in fortunes following the Make-in-India campaign may have to

This article was originally published on July 08, 2015.