Alageum production of transformers




A unique position of a major company in the industry imposes additional obligation on any company worldwide. Alageum Electric Group of Companies has been setting only ambitious tasks and has successfully implemented them for 20 years.  Its significant victories include Kentau Tramsformer Works JSC and Uralsky Transformer Works LLP that dominate Kazakhstan market of 6-10-35 kW distribution transformers. Going an extra mile Alageum Electric sets a new goal to expand production of high capacity transformers of 110 kW and above.

Imported products, primarily from Russia, had the biggest market share in the high voltage segment. Technology potential, fine-tuned production processes and a repute in the market may suggest the company’s outstanding potential both on the local and foreign markets.  However, the situation was difficult for the following reasons:

  • annual demand in this equipment is very few (measured in units as opposed to thousands and ten thousand transformers with a capacity up to 35kW);
  • it is not a serial production, therefore, each customer is sold a tailor-made transformer sometimes within a limited time period and the market tendency is to service turn-key projects;
  • considerable project investments are required and the company planned to attract an investor, thus it is critical to understand the market boundaries and sales potential

Putting this into a nut shell the Agency has been set an “easy” task to calculate 110-220 kW transformers planned to be installed in Kazakhstan, Russia, Uzbekistan and Iran until 2023 and assess Alageum Electric’s opportunities.

It is difficult to find any public information on such special markets. Usually development programs are general and all details are available in the Scientific Research Institutions and ministries reluctant to share them.  We were lucky to meet experts who worry about the sector and help to obtain necessary data.  We collected a huge information base from various sources that allowed us to cover the following key topics of the study:

  1. market volume and structure with a breakdown by product groups, locations and customer segments;
  2. competitive environment (with a breakdown by product groups, locations, work conditions, development plans, load, export activities):
  3. 7 year forecast of the market scope (affecting factors, growth rate/falls),
  4. assessment of Alageum’s market share (open market, sales forecast, entry barriers)




The data in the final report is broken down by countries which reflects current situation in the market and development thereof in each specific country. This drove making the conclusions regarding the work perspective.  The information received within the studies was sufficient for a foreign investor to make a positive decision on the project.


  1. briefings with the client and review of the Client’s internal information (excessive technical details sometimes caused caisson disease);
  2. secondary public information (customs statistics, industry review, producers’ reports, reference lists, etc.);
  3. market experts interview (competent state authorities, scientific research institutions, research companies that previously studied the relevant market). More than 20 experts from 4 countries were interviewed;
  4. poll of more than 70 companies consuming transformers and representing key segments/industries (electric power transfer, production, construction, chemical processing as well as mining and processing plants) and tender purchases analysis;
  5. interview of importers, transformers producers;


Kazakhstan, Russian Federation, Uzbekistan, Iran


May-July 2016

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