Emerson Electric Company’s EMR global business, Emerson Process Management, concluded the automation of a new supercritical thermal power-generating unit in Andhra Pradesh, India. This 800-megawatt unit, owned by APPDCL, is the first state-owned supercritical power station constructed on Indian soil.
Tata Projects Ltd., which is the EPC contractor of the plant, selected Emerson as the main automation contractor. The first unit of the plant is ready for commercial use, while the second unit is currently automated by Emerson and is anticipated to complete by spring this year. Emerson has installed its Ovation distributed control system at the station to operate plant equipment and balance-of-plant processes. Also, the company’s Rosemount measurement and analytical technologies are used for monitoring plant’s section to enhance performance.
This abovementioned power station uses supercritical turbine technology, which operates at a higher temperature and enhances electricity efficiency along with carbon and other emissions reduction. Notably, Emerson’s automation technology has been chosen for over 300 such complex units, of which 10 are in India, across the globe.
Given the emergence of supercritical technology powering the Indian plants, we view the aforementioned transaction as a strategic fit for Emerson. Moreover, the company’s advanced technological aid will pave way for economic growth of the state of Andhra Pradesh in India.
As a matter of fact, we believe Emerson is well positioned to benefit from the long-term global trends of infrastructure spending and improved energy efficiency. This is because as the emerging economies grow, they increasingly invest in the infrastructure necessary to support a modern economy. Emerson is also expected to benefit from the steady adoption of central air conditioning in Asia, driven by the emerging middle class and broader energy efficiency initiatives.
Emerson currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the same sector include Dycom Industries Inc. DY, ESCO Technologies Inc. ESE and A.O. Smith Corp. AOS. While Dycom and ESCO Technologies carry a Zacks Rank #1 (Strong Buy) each, A.O. Smith sports a Zacks Rank #2 (Buy).
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