“WIND ENERGY AS A SUSTAINABLE RENEWABLE ENERGY AND PROFITABLE INVESTMENT”

Presented by- Richa Alchiya

OBJECTIVES OF THE REPORT

To conduct a market research to identify and target potential investor segment of wind energy in order to study the clientele of Suzlon energy and contact with such potential investors.

To meet the existing customers of wind energy to know their willingness of investing in wind energy.

To understand the government policies benefitting investors to invest in wind energy.

To understand the scope of wind energy as renewable sustainable resource

To study the profitability of investor To identify the potential segment of investors in pune region.

WIND ENERGY AS A RENEWABLE ENERGY

Renewable Energy Sources are those energy sources which are not destroyed when their energy is harnessed. Human use of renewable energy requires technologies that harness natural phenomena, such as sunlight, wind, waves, water flow in order to generate energy.

Renewable energy sources:-1. Biomass2.  Wind3.  Hydro-power4.  Geothermal5. Solar 

COMPANY PROFILEThe Suzlon Energy Limited started in 1995 by founder Mr. Tulsi Tanti after providing power for his textile company, he moved into wind energy production as a way to secure the textile company’s energy needs, and founded Suzlon energy Ltd. In 2001, Mr. Tanti sold off the textile business and moved to Renewable wind energy. Now Suzlon is a market leader in India with a global footprint across Asia, Australia, Europe, Africa, north and South America. Suzlon takes pride in creating enduring value through sustainable development. The group is long driven by the Concept of sustainable development, its wind turbines with a total installed capacity of 15 GW spread across six continents. It has a wide range of wind turbines. Suzlon group pioneered the concept to commissioning model in the wind energy industry, opening the market to new customer segments. Also it offers and executes best in class operations, maintenance and service (OMS) across the globe.With powering a greener tomorrow as its vision, Suzlon Group has mandated Suzlon Foundation, to ensure sustainability across all its business operations. Suzlon is guided by its philosophy of pursuing social, economic, ecological and sustainable development for the planet.

SWOT ANALYSIS OF WIND ENERGY STRENGTH

STRENGTH

1. No Pollution2. Clean Electricity3. No fuel needed4. Inexhaustible5. Shortest Payback time6. O&M cost is low

THREAT

1. Rising competition from solar energy 2. Hard to estimate wind power 3. Highly capital intensive 4. Changing government policies

WEAKNESS

1. High initial investment2. Unpredictable power generation3. Safety issues4. Infirm power

OPPORTUNITY

1. Favorable government policies2. Increasing requirement of renewable energy3. Clean air Act4. To increase the scope of IPP and captive5. Dedicated power ministry.

Project Keyword “Segmentation”Market segmentation is a marketing strategy which involves dividing a broad target market into subsets of consumers, businesses, or countries that have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them.

Research methodology • Primary Data-• Interview• Questionnaire• Observation• Secondary Data- • Newspaper• Internet• Journals

Customer segmentation in suzlon – It comprises of Existing potential investors of suzlon energy who have opted for Captive, third party or sale to EB.Sample size- 40

CUSTOMER SEGMENTS IN SUZLON ENERGY LTD

INVESTMENT

SALE TO EB

WITHOUT DEPRICIATIO

N

WITH DEPRICIATIO

N

OPEN ACCESS

CAPTIVE THIRD PARTY

WITHOUT DEPRICIATION(IPP)

• POWER TARRIF• GBI

WITH DEPRICIATION

• POWER TARRIF• DEPRICIATION

CAPTIVE

• DEPRICIATION• POWER TARRIF• REC

DATA PROCESSING AND ANALYSIS

INVESTORS AWARENESS ABOUT RENEWABLE

ENERGY SOURCES:.Interpretation- Sample size is

of existing 40 customers, all of them are aware about renewable energy sources. As they have invested earlier in renewable sources such as wind and solar. Therefore 100% of the existing customers are aware about renewable sources. 

INVESTORS EARLIER INVESTMENT IN WIND ENERGY COMPANIES :

Interpretation- Therefore out of 40 sample size all of them have invested in suzlon energy but Navalakha translines, Serum

Institute and Ghodawat Energy have also invested in other competitors of wind energy like PPM, Vestas, Gamesa, Enercon,

Regen, kenersys.

INVESTOR SEGMENTATION BASED ON POWER CONSUMPTION:

Interpretation- Out of sample size of 40,

all have opted for any one of the mode of

investment while, 3 Investor opted for

both captive and third party, 1 investor

opted for captive and sale to EB

Therefore, the most potential customer

segment that should be targeted by suzlon

energy in pune region is Sale to EB

customer (59%). It can further capture

open access customer, Captive (20.45%)

and third party (20.45%).

THE POLICIES BENEFITTING INVESTOR THE MOST FOR INVESTING IN WIND ENERGY

Interpretation- 62.5% are attracted by AD (Accelerated Depreciation) benefit that is received by Investors, that is 80% tax free on the investment made by them and no tax on power revenue for 10 years.

WILLINGNESS OF INVESTOR TO INVEST IN WIND ENERGY IN FUTURE:

Interpretation- Out of sample size

of 40 existing investors, 30 of them

that is 75% of them are willing to

invest in wind energy in future. As

they are having future power

requirement and are also willing to

invest due to favoring government

policies as they are having increased

benefits for the investors. But 10 of

the existing investors are not willing

to invest that is 25% of them.

INVESTORS PROFITABILITY SATISFACTION IN SUZLON ENERGY:

100%

Investors Satisfaction of Investment in Suzlon En-ergy Ltd

Yes

No

Interpretation- Out of the sample

size of 40 existing customer, all of

them had a good experience with

Suzlon Energy Company. They are

satisfied with the companies’

services. And their investment in

wind energy has proved to be

profitable. Therefore 100% existing

customers are satisfied with Suzlon

Energy Company and their

investment in WTG.

FINDINGS:

100% of the existing Investors of suzlon energy are aware about wind energy and renewable energy investment benefits.

95% of existing investors have invested into wind energy for getting Accelerated depreciation benefit. 75% of existing investors see positive future of investing in wind energy and they would prefer

investing in Suzlon’s wind power project. Suzlon is now offering to most of its investors 2.1mw wind turbine whose price are high and the

company is not manufacturing now any other lower MW turbines hence the Investors are the major corporates that have huge sales turnover. Also price of WTG per MW is 7.5 crore.

Scope of IPP and open access customers is increasing for wind energy. Most potential customer segment identified in pune region consist of Sale to EB customers as 59% of

Existing investors belong to sale to EB that is (21 existing investors out of 40) There is positive growth in renewable energy especially, Wind energy if government policies are

stabilized in future as the government is encouraging installation of 175 GW coming from wind and solar till 2022.

 

Feedback was provided to company regarding their shift of choice now company can take further steps. They can improve on following aspects: Improvement is needed in regular and accurate machine system (projection & monitoring of machine. Improving wind location assessment Reducing grid losses. Company can take steps to motivate 25% of investors to invest in wind energy. They were not willing due to

lack of funds and changes in renewable policies hence they can be further motivated by supporting them to fund it though debt capital, also further the policies that benefit renewable energy can be stabilized by taking steps consulting government. Company can send proposal to the 30 existing investors that are willing to invest in suzlon energy and see positive profitability on their investment.Company can positively retain existing customer by taking CRM departments help as existing investors are the future investors too.

RECOMMENDATIONS-

COMPANY CAN TARGET FOLLOWING CAPTIVE CUSTOMERS

Note- Monthly power consumption units are specified for only Captive Users

• Sale to EB and Third party it is not Applicable.

• For 30 Investors which consist of third party and sale to EB users its

Not Applicable.

SR.no company namecompany's monthly power consumption

1 Pudumjee Paper products Ltd 75 lakh MW

2 Persistent System Limited 5 lakh MW

3 Navalakha Translines 18 lakh units

4 Serum Institute of india Ltd 70 lakh units

5 RENOM (Ghodawat energy) 30 lakh units6 Bajaj Finserv Ltd. 60 lakh7 ITC Limited, Ranjangaon 10 lakh units8 fabtech projects and engineers ltd 8 lakh units9 Cooper foundry pvt ltd 6 lakh units

10 Badawe Engineering ltd 5 lakh units

AFTER MEETING THE EXISTING CUSTOMERS FEEDBACK WAS COLLECTED WHICH WAS SUBMITTED TO THE MANAGEMENT WHICH CAN HELP THE COMPANY TO IMPROVE ON SOME ASPECTS SUCH AS :TO STABILIZE THE GOVERNMENT POLICIESTO IMPROVE ON REGULAR AND ACCURATE MACHINE SYSTEM ( PROJECTION & MONITORING OF MACHINE)TO WORK ON PERCEPTION OF INVESTORS ON WIND ENERGY SCOPE

ALL THE EXISTING CUSTOMERS ARE SATISFIED WITH SERVICES AND TURBINES MANUFACTURED BY SUZLON ENERGY, IN THE COMING YEARS RENEWABLE ENERGY IS GROWING MARKET AS THE GOVERNMENT IS SUPPORTING RENEWABLE ENERGY SOURCES.

CONCLUSION-