market research report : wind power market in india 2014 - sample

Insert Cover Image using Slide Master View

Do not distort

Wind Power Market – India

May 2014

2WIND POWER MARKET IN INDIA 2014.PPT

Executive Summary

Market

Drivers & Challenges

Government

CompetitiveLandscape

Wind energy has emerged as the fastest growing renewable energy sector in the country With a cumulative installed capacity of over ‘m1’ GW as of FY 2013, wind power currently accounts for

almost 70 % of the total installed capacity in the renewable energy sector This sector is expected to grow at a CAGR of x2% to reach ‘h2’ GW by FY 2019e In recent years the market slumped due to the withdrawal of the AD & GBI schemes by the Government

Major Government Bodies

Policy and Regulatory Incentives

State wise Comparison Of Feed-in-tariff Policy For Wind Power (Top Five States)

Drivers– Huge Untapped Wind Power Potential

– India Remains Energy Deficient

– Global Drive towards Clean Energy

– Volatile Oil Prices

– Depleting Coal Reserves

Challenges– Withdrawal of Accelerated Depreciation

Scheme

– Issues of Grid Integration

– Land Acquisition Problems

Major Players

Company 1 Company 2 Company 3


Trends Potential of Off-Shore Capacity

Vertical Integration

Hybrid Generators

Major Investments in the Wind Sector

3

•Economic Indicators•Introduction•Market Overview•EXIM•Drivers & Challenges•Trends•Government Participation•State Specific Issues•Competitive Landscape•Strategic Recommendations•Appendix

WIND POWER MARKET IN INDIA 2014.PPT

4

Economic Indicators (1/3)

11

12

13

14

15

b2

a2

Q1

d1c1

b1

a1

Q4

c4

b4

a4

Q3

c3

b3

a3

Q2

d2c2

INR tn

2013-142012-132011-122010-11

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

-2

-1

0

1

2

q

Jul 2013 - Aug 2013

p

%

Nov 2013 - Dec 2013

t

Oct 2013 - Nov 2013

s

Sep 2013 - Oct 2013

r

Aug 2013 - Sep 2013


5

Renewable energy is gaining prominence within the power sector in India

• Principal sources of renewable energy are:

Segment 1

Segment 2

Segment 3

Segment 4

• Renewable energy capacity presently accounts for x% of the total installed power capacity in India

• India plans to more than double its renewable energy capacity by 2017

• The Government of India plans to generate an additional ‘y’ GW of renewable energy in the 12th

Plan Period, more than double the ‘z’ GW added during the 11th Five Year Plan

• The Ministry of New and Renewable Energy (MNRE) plans to take the total renewable energy capacity to more than ‘v’ GW during 2012-17

• Wind energy accounts for 70% of the total renewable energy capacity in India currently

Renewable Energy Market Segmentation

s%

r%

q%

p%

a%

d%

b%

c%

Renewable Energy Scenario Energy Market Segmentation

Jan, 2013

Jan, 2013

Segment 4

Segment 3

Segment 2

Segment 1

Segment A

Segment C

Segment D

Segment B

Total installed capacity of power is

‘m’ GW

Total installed capacity of

renewable energy is ‘n’ GW


6

Wind energy accounts for the largest share of India’s renewable energy capacity

Market Overview (1/2)

• Wind energy is one of the fastest growing renewable energy sectors in India and accounts for nearly p% of the installed grid-connected renewable capacity

• Cumulative wind power capacity of India stands at ‘u’ GW as on Oct 31, 2013

• More than ‘t’% of the nation’s wind installations till date are concentrated in just five states in southern and western India – Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, and Gujarat

• Growth slowed down in 2012-13, when the sector witnessed capacity expansion of only ‘y’ GW, way below the targeted ‘z’ GW for the year

This was primarily due to the withdrawal of two key policy initiatives, Accelerated Depreciation (AD) and Generation Based Incentive scheme (GBI)

• However, with the GBI scheme being reinstated in Aug 2013, growth in the sector is likely to pick up again

Market Size: Historical (FY 2003 – FY 2013)

4

3

2

1

0

2010

j1

2009

i1

2008

h1

2007

g1

2006

f1

Upto 2002

a1 m1

2012

l1

2011

k1

x1%

2003 2013

c1

2004

GW

d1

2005

b1


7

Wind power market is poised to grow with the revamp of the Generation Based Incentive scheme

Market Overview (2/2)

• Reinstating the GBI scheme will provide the sector the much needed boost for capacity addition in the latter half of the 12th Five Year Plan, for which a target of ‘q’ GW has been set

• Launch of the INR ‘z’ bn Green Energy Corridors project, which involves the development of dedicated transmission infrastructure for renewable energy integration, is another positive development

The Green Energy Corridors project will address the issues related to grid integration due to growth in installed capacity and infirm nature of the resource which the sector is currently facing

• Several states have also increased wind power tariffs by ‘m’% - ‘n’% to attract investments

This has led to a shift in new wind power development from resource-rich states such as Tamil Nadu and Gujarat to low-wind density states such as Rajasthan. Madhya Pradesh and Maharashtra

• In future, the Renewable Purchase Obligations (RPOs) and the Renewable Energy Certificate (REC) mechanism will be the key growth drivers for the sector

Market Size: Forecasted (FY 2013 – FY 2014)

0

2

4

6

GW

x2%

2019e

h2

2018e

g2

2017e

f2

2016e

d2

2015e

c2

2014e

b2

2013

a2


8

Exports have declined steadily over the past four accounting years

Export of Wind Mills and Turbines (Value-Wise)

Exports (Country-Wise: 2012-13)

0

500

1,000

1,500

q s

u%

2009-10 2011-12

r

2012-132010-11

p

INR mn

Exports (Country-Wise: 2011-12)

g1%

d1%f1%

h1%

a1%

b1%

c1%

Country 6

Others

Country 5

Country 2

Country 3

Country 1

Country 4

c2%

g2%

h2%

d2%f2%

a2%

b2% Country 10

Country 11

Others

Country 12

Country 7

Country 9

Country 8

Domestic consumption accounts for almost the

entire production of

the Indian wind energy

sector


9

Drivers & Challenges – Summary

Drivers

Huge Untapped Wind Power Potential

India Remains Energy Deficient

Global Drive towards Clean Energy

Volatile Oil Prices

Depleting Coal Reserves

Challenges

Withdrawal of Accelerated Depreciation Scheme

Issues of Grid Integration

Land Acquisition Problems


10

Trends – Summary

Potential of Off-Shore Capacity Vertical Integration

Major Investments in the Wind Sector Hybrid Generators

KeyTrends


11

Government Participation – Summary

GovernmentParticipation

Major Government Bodies and Associations

State-Wise Wind Power Tariff

Policy and Regulatory Incentives


12

State Specific Issues – Top Five States (1/5)

GUJARAT

Achievements and Targets

Tariff Control

Identification of Land

Power Evacuation

Purchase of Land


13

Market Competition – Porter’s Five Forces Analysis

• x• x • x

• x

• x

Bargaining Power of Suppliers

Threat of New Entrants

Competitive Rivalry Bargaining Power of Buyers

Threat of Substitutes

ImpactX

ImpactX

ImpactXImpact

X

ImpactX


14

Competitive Benchmarking (1/5)

Public Trading Comparables


Market Capitalization (INR bn)

Share Price (INR)

EV/EBITDA (x)

EV/Revenue (x)

PE Ratio


15

• Company 4 recorded operating margin of a4%, higher than that of Company 1, Company 2 and Company 3 which recorded operating margin of negative a1%, negative a2% and negative a3% respectively

• Net margin for Company 4 stood at b4% while the other three companies Company 1, Company 2 and Company 3 recorded net margin of negative b1%, negative b2% and negative b3%

Key Ratios of Top 4 Companies – Operational Basis (FY 2013) (1/3)

Competitive Benchmarking (2/5)

-40

-20

0

20

40

Company 4Company 3

%

a4

b4

-b2-a2

Company 1

-b1

-a1-b3-a3

Company 2

Net MarginOperating Margin


16

Public: Domestic Company – Company 1(1/4)

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

Category Products/Services

Wind Sector

Project Services

Others

Name Designation

Person 1 Chairman

Person 2 Director

Person 3 Director

Person 4 Director

Mumbai

Head Office


17

Financial Snapshot Key Ratios

Financial Summary

• Company earned a net profit of INR XX mn in FY 2013, as compared to net profit of INR Y mn in FY 2012

• It reported total Income of INR XX mn in FY 2013, registering an increase of X per cent over FY 2012

• It earned an operating margin of X.X per cent in FY 2013 an increase of X.X percentage points over FY 2012

• The company reported debt to equity ratio of X.XX in FY 2013, an increase of X.X per cent over FY 2012

Key Financial Performance Indicators

Indicators Value (19/03/2014)Market Capitalization (INR bn)

Total Enterprise Value (INR bn)

EPS (INR)

PE Ratio (Absolute)

Particulars y-o-y change

(2013-12)2013 2012 2011 2010

Profitability RatiosOperating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost RatiosOperating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity RatiosCurrent Ratio

Cash Ratio

Leverage RatiosDebt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency RatiosFixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Improved Decline

Net Profit/LossTotal Income

0

-20

-40

-60

300

200

100

0

INR bn

2013

-d2

d1

2012

INR bn

-a2

a1

-c2

c1

2011

-b2

b1

2010



18

Key Business Segments Key Geographic Segments

Business Highlights

Description News

Overview • Company 1 has operations across Asia, Australia, Europe, Africa and North and South America• It is the largest wind turbine manufacturer in India

Expansion

• It added ‘m’ MW in FY 2011-12 that ensured the company’s leadership in India for the 14th time• Suzlon powered ‘XY Wind Plant’ resulted in crossing of 1000 MW (1 GW) of installation capacity in 2011-

12• In 2012-13, the company crossed ‘n’ GW in global installations

Achievements

• It was awarded "6th Integrated Marketing Effectiveness Awards (UA&P Tambuli Awards)" award for “Best Insights and Strategic Thinking” and “Best Innovative and Integrated Media Campaign” in 2012-13

• Ranked 6th in ‘Global Transnational companies Survey’ by the Indian School of Business, Hyderabad and Brazil's Fundacao Dom Cabrall

0%

50%

100%

2010

a4%

a1%

a2%c3%

2011

b1%

a3% c2%b3%

d2%

2012

c1%

b2%

d1%

d3%

2013

Segment 4Segment 2

Segment 3Segment 1

0%

50%

100%

2013

s4%s5%s3%

s2%

2012

s1%

r5%r6%

r4%

r3%

r1%

r2%

q6%q5%

2011

s6%

p1%

p6%p3%

q1%

q4%p4%

2010

p5%

q2%p2%

q3%

OthersRegion 4

Region 5

Region 2

Region 3Region 1



19

TO

WS

Public: Domestic Company – Company 1 – SWOT Analysis(4/4)


20

Private: Foreign Company – Company 2(1/5)

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Products/Services

Name Designation

Person 1 Director

Person 2 Director

Person 3 Director

Mumbai

Head Office


21

Name No. of Shares held

100.00%

Segment 1

Shareholders of the Company as on 30/09/2013 Ownership Structure



22

Financial Snapshot Key Ratios

Financial Summary

• Company earned a net profit of INR XX mn in FY 2013, as compared to net profit of INR Y mn in FY 2012

• It reported total Income of INR XX mn in FY 2013, registering an increase of X per cent over FY 2012

• It earned an operating margin of X.X per cent in FY 2013 an increase of X.X percentage points over FY 2012

• The company reported debt to equity ratio of X.XX in FY 2013, an increase of X.X per cent over FY 2012

Improved Decline

Net Profit / LossTotal Income

5

0

-5

-10

-15

-20

-25

30

25

20

15

10

5

0

INR bn INR bn

2013

d2

d1

2012

c2

c1

2011

b2

b1

2010

a2

a1

Particulars y-o-y change

(2013-12)2013 2012 2011 2010

Profitability RatiosOperating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost RatiosOperating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity RatiosCurrent Ratio

Cash Ratio

Leverage RatiosDebt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency RatiosFixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover



23

Business Highlights

Description News

Overview

• Company 1 is a wholly-owned subsidiary of the ‘A’ group based in Country 1

• It is a world leader in the design, manufacture, installation and maintenance of wind turbines, having

installed more than ‘p’ MW in over 20 countries

Expansion Plans

• It will invest INR ‘q’ mn to set up a wind turbine factory in Chennai, with an annual production capacity of

‘r’ MW

• With this, it would have invested around INR ‘s’ mn in India to set up wind turbine manufacturing

facilities

Recent Contracts

• It recently bagged an order from Company B, a subsidiary of Company C for commissioning ‘t’ MW of

wind turbines

• It has signed an Engineering, Procurement and Construction (EPC) contract to build the project and

supply ‘u’ MW to a wind farm from Company D, in District 1, State 1



24

TO

WS

Private: Foreign Company – Company 2 – SWOT Analysis (5/5)


25

Thank you for the attention

About Netscribes, Inc.Netscribes, Inc. is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes, Inc. is a one-stop shop designed to fulfil clients’ profitability and growth objectives.

Wind Power Market – India report is part of Netscribes’ Energy and Utilities Series.For any queries or customized research requirements, contact us at:

Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction.

Phone: +91 22 4098 7600E-Mail: [email protected]


http://www.netscribes.com/

http://www.netscribes.com/

mailto:[email protected]