Marsons touches roof on pioneering franchise model in transformer manufacturing sector

Marsons is locked at upper circuit limit at Rs. 10.58, up by 0.96 points or 9.98% from its previous closing of Rs. 9.62 on the BSE.

The scrip opened at Rs. 9.75 and has touched a high and low of Rs. 10.58 and Rs. 9.62 respectively. So far 42,000 shares were traded on the counter.

The BSE group 'XD' stock of face value Rs. 10 has touched a 52 week high of Rs. 11.88 on 11-Mar-2016 and a 52 week low of Rs. 3.25 on 02-Sep-2015.

Last one week high and low of the scrip stood at Rs. 10.59 and Rs. 9.55 respectively. The current market cap of the company is Rs. 26.45 crore.

The promoters holding in the company stood at 39.69% while Non-Institutions held 60.31% respectively.

Marsons has developed an innovative solution to cater to the entire country’s rising demand for distribution transformers. Marsons has introduced the franchise model wherein the company has already operationalised two units, one in Pune and the other in Kolkata through different franchise partners.

The underlying principle is in line with Marsons’ vision to develop the brand into the largest name in the transformer industry. The company, which is primarily engaged in power transformers upto 160 MVA 220 kV Class, is now planning to expand its presence in the distribution transformer segment with equal vigour. This unprecedented move is well timed to capitalise on the humungous demand for distribution transformers that has arisen following the government relentless efforts to provide 'power for all'.

Essentially the concept follows the simple 'hub and spoke' model wherein Marsons (the hub) will act as the strategic centre of the network providing technological and marketing support to all its franchisees; the franchise partners (the spokes) will help the company reach out to different local and regional markets, which are often out of reach due to the logistical difficulties and capital constraints. The company has already signed 2 more franchisees in Alwar (Rajasthan), and Dumka (Jharkhand) respectively and plans to have at least 10 operational units by the end of this fiscal year.

Marsons is one of the oldest and most reputed manufacturers of transformers in India with an infrastructure to supply transformers up to 160 MVA/220 kV class. Having supplied over 200,000 power transformers over the last six decades, Marsons is the largest transformer manufacturer in Eastern and North Eastern India.