market research report : smart grid market in india 2013

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Smart Grid Market – India

August 2013

2 SMART GRID MARKET IN INDIA 2013.PPT

Executive Summary

Market

The market is at a nascent stage of development with huge potential for growth

Domestic market for Smart Grid is slated to reach ~INR x bn by the end of 20--

This sector is expected to grow at a CAGR of z% to reach INR y bn by 20--

Drivers and Challenges

Competitive Landscape

Drivers – Rise in Demand for Power – Increasing Demand for Renewable Energy – Black out Risk on the Increase – Environmental Issue – High Power Transmission and Distribution

Losses

Challenges – Security Threats

– High Cost of Implementation

– Lack of Awareness

Trends

Major Players

Company A Company B Company C

Company D Company E Company F

Increasing International Participation

Adoption of Smart Grid Maturity Model (SGMM)

Adoption of Smart Meter

3

•Macro-Economic Indicators

•Introduction

•Market Overview

•Smart Grid Technologies

•Pilot Projects

•Drivers and Challenges

•Government Participation

•Trends

•Recent Developments

•Competitive Landscape

•Strategic Recommendations

•Appendix

SMART GRID MARKET IN INDIA 2013.PPT

4

SAMPLE Economic Indicators (1/3)

600

500

400

300

200

INR bn

100

0 Month --

x6

Month --

x5

Month --

x4

Month --

x3

Month --

x2

Month --

x1

53.5

54.0

54.5

55.0

Month 20--

x3

Month 20--

x6

Month 20--

x2

USD/INR

Month 20-- Month 20--

x5

Month 20--

x4

x1

MOTORS MARKET IN INDIA 2013.PPT

Gross Domestic Product At Factor Cost (At Constant Prices): Quarterly

Inflation Rate: Monthly

5

SAMPLE Smart Grids can be considered as a better replacement of Traditional Grids as they are no longer in demand

•Point 1 •Point 2 •Point 3

D C

B A

D C

B A

Traditional Grid Functionality Smart Grid Functionality

X


Traditional Grid vs. Modernized Grid (Smart Grid)

6

SAMPLE Market Segments - Overview

A

B

C

•Point 1

•Point 2

•Point 3

x3

x2

x1

C

B

A


Note: As of June 2013

Smart Grid Market – Segments

7

SAMPLE Smart Grid provides combination of technologies that will revolutionize the overall electricity framework

Technology Generation Transmission Distribution Industrial Service Residential

Technology A --- --- --- --- --- ---

Technology B --- --- --- --- --- ---

Technology C --- --- --- --- --- ---

Technology D --- --- --- --- --- ---

Technology E --- --- --- --- --- ---

Technology F --- --- --- --- --- ---

Technology G --- --- --- --- --- ---

Technology H --- --- --- --- --- ---


Smart Grid Technologies-Overview

8

Renewable and Distributed Generation Integration plays an important role in the electricity system functionality

•Point 1 •Point 2 •Point 3 •Point 4

E F B

A

C

D

X


Renewable and Distributed Generation Integration

9

AMI needs to be implemented to mitigate a number of strains placed on the grid due to increasing demand

Key features of Indian Grid system will be improved by implementing AMI


Various communication firms providing products for

Advanced Metering Infrastructure

Company B

Company C

Company A

Company E

Company D

Note: The list is not exhaustive


Advanced Metering Infrastructure (3/3)

10

SAMPLE •Point 1 •Point 2 •Point 3

Electric vehicle charging infrastructure handles various operations of smart charging

X

A B



X offering for EV charging infrastructure includes A and B, C and many components for charging infrastructure


Electric Vehicle Charging Infrastructure

11

SAMPLE … to improve overall power delivery system, including generation, transmission and distribution

Pilot Projects X B C D E F

A --- --- --- --- --- ---

B --- --- --- --- --- ---

C --- --- --- --- --- ---

D --- --- --- --- --- ---

E --- --- --- --- --- ---

F --- --- --- --- --- ---

G --- --- --- --- --- ---


Smart Grid Projects-Functional Areas (2/2)

12

Drivers and Challenges – Summary

Drivers

Rise in Demand for Power

Increasing Demand for Renewable Energy

Black out Risk on the Increase

Environmental Issues

High Power Transmission and Distribution Losses

Challenges

Security Threats

High Cost of Implementation

Lack of Awareness


SAMPLE

13

SAMPLE

Increasing peak demand and power needs will boost the Smart Grid market in India

Region Demand

(MW)

Met

(MW)

Surplus/Deficit

(MW)

Surplus/Deficit

(%)

Northern --- --- --- ---

Western --- --- --- ---

Southern --- --- --- ---

Eastern --- --- --- ---

North Eastern

--- --- --- ---

•Finding 1

150

100

50

0

GW

20--

y6 x6

20--

y5 x5

20--

y4 x4

20--

y3 x3

20--

y2 x2

20--

y1 x1

Availability Requirement

• Finding 1 • Finding 2 • Finding 3 • Finding 4 • Finding 5

Note: 2011-12 period is from April to December


Rise in Demand for Power (Indian Scenario) Impact

Peak Demand/Supply Position Region Wise Power Supply Position (2012-13)

14

SAMPLE

Electric grid needs to be modernized in order to minimize the power blackout risk

0

200

400

600

800

Country 3

x3

Country 2

x2

Country 1

x1

mn

Country 6

x6

Country 5

x5

Country 4

x4

People affected •Finding 1

Name of Black out Location Year

A --- ---

B --- ---

C --- ---

D --- ---

E --- ---

•Point 1 •Point 2 •Point 3 •Point 4


Blackout Risk on the Increase Impact

Blackout Risk (Global Scenario)

15

SAMPLE

Increasing demand for energy savings and CO2 emission reduction requires Smart Grid implementation

0

500

1,000

1,500

2,000

20--

x2

20--

x1

mn MT

X

20--

x5

20--

x4

20--

x3

0.0

0.5

1.0

1.5

MT/person Y

20--

y5

20--

y4

20--

y3

20--

y2

20--

y1

• Finding 1 • Finding 2 • Finding 3 • Finding 4


Environmental Issue(1/3) Impact

Total CO2 Emission from Consumption of Energy Per Capita CO2 Emission from the Consumption of Energy

16

SAMPLE Trends – Summary

Key Trends

Increasing International Participation

Adoption of Smart Grid Maturity Model (SGMM)



17

SAMPLE Indian players are entering into the Smart Meter market that are projected as replacements for conventional meters


Various Initiatives Taken in India



Initiative 1 Company A

Initiative 2 Company B

Initiative 3 Company C

18

SAMPLE

•Point 1 •Point 2 •Point 3 •Point 4 •Point 5

A clean energy initiative was undertaken to minimize the environmental issues

A

B

Joint initiative X

To provide Y


Clean Energy Initiative

19

SAMPLE IT majors are forming partnerships to provide Smart Grid solutions in India

A

B

Partnership Point 1

C

D

Partnership Point 2


Partnerships to Offer Smart Grid Solutions

20

SAMPLE Industry Players – Operational Segments

Company A B C D E F

Company 1 --- --- --- --- --- ---

Company 2 --- --- --- --- --- ---

Company 3 --- --- --- --- --- ---

Company 4 --- --- --- --- --- ---

Company 5 --- --- --- --- --- ---

Company 6 --- --- --- --- --- ---

Company 7 --- --- --- --- --- ---

Company 8 --- --- --- --- --- ---

Company 9 --- --- --- --- --- ---

Company 10 --- --- --- --- --- ---

Company 11 --- --- --- --- --- ---

Company 12 --- --- --- --- --- ---


21

SAMPLE Key Ratios of Top 3 Companies – Operational Basis (FY 2011) (3/3)

Competitive Benchmarking (3/4)

0.0

0.5

1.0

1.5

Company 3

x3

Company 2

x2

Company 1

x1

Asset Turnover Ratio

0

1

2

3

4

5

Company 3

z3 y3 x3

Company 2

z2 y2 x2

Company 1

z1 y1 x1 20-- 20-- 20--

Debtors Turnover Ratio

• Company 1 has shown significant fall in debtors turnover ratio between 20-- and 20--

• In 20--, Company 1 recorded debtors turnover ratio of x1, while Company 2 recorded debtors turnover ratio of y1 and Company 3 recorded debtors turnover ratio of z1 respectively implying inefficient management of debtors in comparison to Updater Services

• Company 3 recorded asset turnover ratio of x3, higher than both Company 1 and Company 2 , which recorded asset turnover ratio of x1 and x2 respectively


22

SAMPLE Public: Domestic Company – Company A. (1/4)

Key People

Company Information Offices and Centres – India

Corporate Address Address

Tel No. 91 -----------------

Fax No. 91 -----------------

Website website

Year of Incorporation 19--

Ticker Symbol ------

Stock Exchange ---

Name Designation

Person 1 Designation




Note: The list of products and services is not exhaustive

Head Office

Products and Services

Category Products/Services

Segment 1 Product 1, Product 2,…………………….

Segment 2 Product 1, Product 2, Product 3,……………………




23


Financial Snapshot Key Ratios

Financial Summary

• The company earned a net profit of INR x mn in FY 20--, as compared to net profit of INR y mn in FY 20--

• The company reported total income of INR y mn in FY 20--, registering an increase of z% over FY 20--

• The company earned an operating margin of y1 % in FY 20--, an increase of x2 percentage points over FY 20--

• The company reported debt to equity ratio of z1 in FY 20--

Key Financial Performance Indicators

Indicators Value (dd/mm/yyyy) Market Capitalization (INR mn) - Total Enterprise Value (INR mn) - EPS (INR) - PE Ratio (Absolute) -

Particulars y-o-y change

(20--) 20-- 20-- 20-- 20--

Profitability Ratios Operating Margin 3.28 18.48% 15.20% 12.56% 12.43%

Net Margin 3.15 14.68% 11.53% 10.29% 10.26%

Profit Before Tax Margin 3.89 19.15% 15.26% 13.34% 12.00%

Return on Equity 3.03 27.65% 24.62% 21.50% 20.01%

Return on Capital Employed 2.11 29.02% 26.90% 20.43% 18.07%

Return on Working Capital -49.86 71.76% 121.62% 77.52% 59.37%

Return on Assets 4.38 21.84% 17.45% 14.46% 12.11%

Return on Fixed Assets 45.47 173.35% 127.87% 97.31% 86.11%

Cost Ratios Operating costs (% of Sales) -15.79 68.88% 84.67% 87.22% 87.42%

Administration costs (% of Sales)

-0.07 9.35% 9.43% 11.87% 13.40%

Interest costs (% of Sales) -1.04 -0.48% 0.56% 0.90% 1.33%

Liquidity Ratios Current Ratio 58.29% 2.23 1.41 1.64 1.62

Cash Ratio 70.07% 0.72 0.43 0.61 0.58

Leverage Ratios Debt to Equity Ratio -52.04% 0.11 0.22 0.30 0.43

Debt to Capital Ratio -47.03% 0.10 0.18 0.23 0.30

Interest Coverage Ratio -243.53% -39.30 27.38 14.23 9.44

Efficiency Ratios Fixed Asset Turnover 11.12% 9.27 8.34 7.62 6.85

Asset Turnover 2.56% 1.17 1.14 1.13 0.96

Current Asset Turnover -8.04% 2.12 2.30 2.36 1.80

Working Capital Turnover -51.63% 3.84 7.94 6.07 4.72

Capital Employed Turnover -2.87% 1.68 1.73 1.59 1.35

Improved Decline

Net Profit/Loss

Total Income

0

100,000

200,000

300,000

0

10000

20000

30000

40000

20--

INR mn INR mn

x4

x2

20--

x3

20--

x1

20--


24


Key Business Segments Key Geographic Segments

Key Recent Developments

Description News

Overview • Company A is one of the leading domestic x vendors in the country and has managed to garner a strong

foothold in the market

• It serves x1, x2,x3,…………………………

Initiatives for Smart Grid implementation

• In 20--, Company A expansion of its smart grid partner ecosystem by entering into a partnership with two leading data management software firms which are focused on the smart grid market: A and B

• Company A follows the A1 approach for successful Smart Grid implementations

Smart Grid Agenda • B Agenda of the company includes B1 , B2 and Benefit all C Financially

0%

50%

100%

20--

c4 b4

a4

20--

c3 b3

a3

c2

8% b2

a2

20--

c1 b1

a1

C B A

0%

50%

100%

20--

d4 c4

b4

a4

20--

d3 c3 b3

a3

20--

d2 c2 b2

a2

20--

d1 c1 b1

a1

D C B A


25

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market research report : smart grid market in india 2013

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