power generation in india july 2014

India - Power Generation 0102 - 2702 - 2013

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MarketLine Industry Profile

Power Generation in India July 2014

Reference Code: 0102-2702

Publication Date: July 2014

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EXECUTIVE SUMMARY

Market value The Indian power generation industry grew by 7.3% in 2013 to reach a value of $71.5 billion.

Market value forecast In 2018, the Indian power generation industry is forecast to have a value of $98.1 billion, an increase of 37.2% since

2013.

Market volume The Indian power generation industry grew by 3.7% in 2013 to reach a volume of 1,028 TWh.

Market volume forecast In 2018, the Indian power generation industry is forecast to have a volume of 1,209.3 TWh, an increase of 17.6% since

2013.

Category segmentation Conventional (fossil fuels) is the largest segment of the power generation industry in India, accounting for 80.6% of the

industry's total volume.

Geography segmentation India accounts for 9.4% of the Asia-Pacific power generation industry value.

Market rivalry Overall the degree of rivalry is assessed as strong. The Indian power generation industry declined noticeably in 2010,

but has since recovered well. It is expected to grow in the medium term, which may alleviate rivalry to some degree.



TABLE OF CONTENTS

Executive Summary..........................................................................................................................................................................2

Market value ..................................................................................................................................................................................2

Market value forecast...................................................................................................................................................................2

Market volume...............................................................................................................................................................................2

Market volume forecast ...............................................................................................................................................................2

Category segmentation................................................................................................................................................................2

Geography segmentation ............................................................................................................................................................2

Market rivalry .................................................................................................................................................................................2

Market Overview ...............................................................................................................................................................................7

Market definition............................................................................................................................................................................7

Market analysis .............................................................................................................................................................................7

Market Data........................................................................................................................................................................................8

Market value ..................................................................................................................................................................................8

Market volume...............................................................................................................................................................................9

Market Segmentation .....................................................................................................................................................................10

Category segmentation..............................................................................................................................................................10

Geography segmentation ..........................................................................................................................................................11

Market Outlook ................................................................................................................................................................................12

Market value forecast.................................................................................................................................................................12

Market volume forecast .............................................................................................................................................................13

Five Forces Analysis ......................................................................................................................................................................14

Summary ......................................................................................................................................................................................14

Buyer power.................................................................................................................................................................................15

Supplier power ............................................................................................................................................................................16

New entrants ...............................................................................................................................................................................17

Threat of substitutes...................................................................................................................................................................18

Degree of rivalry..........................................................................................................................................................................19

Leading Companies........................................................................................................................................................................20

NHPC Limited..............................................................................................................................................................................20

National Thermal Power Corporation Limited (NTPC) .........................................................................................................23

The Tata Power Company Limited ..........................................................................................................................................27

Macroeconomic Indicators.............................................................................................................................................................31



Country Data ...............................................................................................................................................................................31

Appendix...........................................................................................................................................................................................33

Methodology ................................................................................................................................................................................33

Industry associations..................................................................................................................................................................34

Related MarketLine research....................................................................................................................................................34



LIST OF TABLES

Table 1: India power generation industry value: $ billion, 200913..........................................................................................8

Table 2: India power generation industry volume: TWh, 200913 ...........................................................................................9

Table 3: India power generation industry category segmentation: TWh, 2013.....................................................................10

Table 4: India power generation industry geography segmentation: $ billion, 2013 ............................................................11

Table 5: India power generation industry value forecast: $ billion, 201318 ........................................................................12

Table 6: India power generation industry volume forecast: TWh, 201318 ..........................................................................13

Table 7: NHPC Limited: key facts ................................................................................................................................................20

Table 8: NHPC Limited: key financials ($) ..................................................................................................................................21

Table 9: NHPC Limited: key financials (Rs.) ..............................................................................................................................21

Table 10: NHPC Limited: key financial ratios .............................................................................................................................21

Table 11: National Thermal Power Corporation Limited (NTPC): key facts ..........................................................................23

Table 12: National Thermal Power Corporation Limited (NTPC): key financials ($)............................................................24

Table 13: National Thermal Power Corporation Limited (NTPC): key financials (Rs.) ........................................................24

Table 14: National Thermal Power Corporation Limited (NTPC): key financial ratios.........................................................25

Table 15: The Tata Power Company Limited: key facts ...........................................................................................................27

Table 16: The Tata Power Company Limited: key financials ($).............................................................................................28

Table 17: The Tata Power Company Limited: key financials (Rs.).........................................................................................28

Table 18: The Tata Power Company Limited: key financial ratios..........................................................................................29

Table 19: India size of population (million), 200913................................................................................................................31

Table 20: India gdp (constant 2005 prices, $ billion), 200913...............................................................................................31

Table 21: India gdp (current prices, $ billion), 200913 ...........................................................................................................31

Table 22: India inflation, 200913 ................................................................................................................................................32

Table 23: India consumer price index (absolute), 200913 .....................................................................................................32

Table 24: India exchange rate, 200913.....................................................................................................................................32



LIST OF FIGURES

Figure 1: India power generation industry value: $ billion, 200913 ........................................................................................8

Figure 2: India power generation industry volume: TWh, 200913 ..........................................................................................9

Figure 3: India power generation industry category segmentation: % share, by volume, 2013 ........................................10

Figure 4: India power generation industry geography segmentation: % share, by value, 2013 ........................................11

Figure 5: India power generation industry value forecast: $ billion, 201318 .......................................................................12

Figure 6: India power generation industry volume forecast: TWh, 201318.........................................................................13

Figure 7: Forces driving competition in the power generation industry in India, 2013.........................................................14

Figure 8: Drivers of buyer power in the power generation industry in India, 2013 ...............................................................15

Figure 9: Drivers of supplier power in the power generation industry in India, 2013 ...........................................................16

Figure 10: Factors influencing the likelihood of new entrants in the power generation industry in India, 2013 ..............17

Figure 11: Factors influencing the threat of substitutes in the power generation industry in India, 2013.........................18

Figure 12: Drivers of degree of rivalry in the power generation industry in India, 2013 ......................................................19

Figure 13: NHPC Limited: revenues & profitability ....................................................................................................................22

Figure 14: NHPC Limited: assets & liabilities .............................................................................................................................22

Figure 15: National Thermal Power Corporation Limited (NTPC): revenues & profitability ................................................25

Figure 16: National Thermal Power Corporation Limited (NTPC): assets & liabilities.........................................................26

Figure 17: The Tata Power Company Limited: revenues & profitability.................................................................................29

Figure 18: The Tata Power Company Limited: assets & liabilities..........................................................................................30



MARKET OVERVIEW

Market definition The power generation industry volume is defined as the total electrical energy (TWh) generated within a country over the

course of each calendar year. The value of the industry is given by multiplying volume by the annual average wholesale

power price, or equivalent. The power generation industry is segmented by volume into electricity produced from nuclear,

conventional (thermal generation from fossil fuels), and renewable (hydropower, wind, solar, and similar) sources. It

excludes energy sourced from hydroelectric pumped storage. All currency conversions were calculated using constant

average annual 2013 exchange rates.

For the purposes of this report, Global consists of North America, South America, Europe, Asia -Pacific, Middle East,

South Africa and Nigeria.

North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.

Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,

Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, Ukraine, and the United

Kingdom.

Asia-Pacific comprises Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines,

Singapore, South Korea, Taiwan, and Thailand.

Middle East comprises Egypt, Israel, Kuwait, Saudi Arabia, and United Arab Emirates.

Market analysis Wholesale electricity prices in India increased between 2012 and 2013. This factor, combined with a 3.7% increase in

volume, accounted for an increase in market revenue. Going forward from 2014 to 2018, value is expected to show

strong growth.

The Indian power generation industry had total revenues of $71.5bn in 2013, representing a compound annual rate of

change (CARC) of -4.8% between 2009 and 2013. In comparison, the South Korean and Chinese industries grew with

compound annual growth rates (CAGRs) of 14.5% and 16.6% respectively, over the same period, to reach respective

values of $70.4bn and $375.1bn in 2013.

Industry production volume increased with a CAGR of 4.9% between 2009 and 2013, to reach a total of 1,028.0 TWh in

2013. The industry's volume is expected to rise to 1,209.3 TWh by the end of 2018, representing a CAGR of 3.3% for the

2013-2018 period.

Conventional (fossil fuels) accounted for the highest volume of electricity in the Indian power generation industry in 2013,

with 828.2 TWh, equivalent to 80.6% of the industry's overall volume. In comparison, renewable energy accounted for

169.0 TWh in 2013, equating to 16.4% of the industry total.

The performance of the industry is forecast to accelerate, with an anticipated CAGR of 6.5% for the five-year period 2013

- 2018, which is expected to drive the industry to a value of $98.1bn by the end of 2018. Comparatively, the South

Korean and Chinese industries will grow with CAGRs of 7.8% and 11.9% respectively, over the same period, to reach

respective values of $102.2bn and $658.4bn in 2018.



MARKET DATA

Market value The Indian power generation industry grew by 7.3% in 2013 to reach a value of $71.5 billion.

The compound annual rate of change of the industry in the period 200913 was -4.8%.

Table 1: India power generation industry value: $ billion, 200913

Year $ billion Rs. billion % Growth

2009 87.1 5,092.0 65.5

2010 54.4 3,184.5 40.9 (37.5%)

2011 62.8 3,670.4 47.2 15.3%

2012 66.6 3,897.4 50.1 6.2%

2013 71.5 4,180.8 53.8 7.3%

CAGR: 200913 (4.8%)

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: India power generation industry value: $ billion, 200913




Market volume The Indian power generation industry grew by 3.7% in 2013 to reach a volume of 1,028 TWh.

The compound annual growth rate of the industry in the period 200913 was 4.9%.

Table 2: India power generation industry volume: TWh, 200913

Year TWh % Growth

2009 847.4

2010 880.0 3.8%

2011 985.4 12.0%

2012 991.2 0.6%

2013 1,028.0 3.7%

CAGR: 200913 4.9%


Figure 2: India power generation industry volume: TWh, 200913




MARKET SEGMENTATION

Category segmentation Conventional (fossil fuels) is the largest segment of the power generation industry in India, accou nting for 80.6% of the

industry's total volume.

The Renewable energy segment accounts for a further 16.4% of the industry.

Table 3: India power generation industry category segmentation: TWh, 2013

Category 2013 %

Conventional (Fossil Fuels) 828.2 80.6%

Renewable Energy 169.0 16.4%

Nuclear Electric Power 30.8 3.0%

Total 1,028 100%


Figure 3: India power generation industry category segmentation: % share, by volume, 2013




Geography segmentation India accounts for 9.4% of the Asia-Pacific power generation industry value.

China accounts for a further 49.1% of the Asia-Pacific industry.

Table 4: India power generation industry geography segmentation: $ billion, 2013

Geography 2013 %

China 375.1 49.1

Japan 150.6 19.7

India 71.5 9.4

South Korea 70.4 9.2

Taiwan 24.1 3.2

Rest of Asia-Pacific 72.0 9.4

Total 763.7 100%


Figure 4: India power generation industry geography segmentation: % share, by value, 2013




MARKET OUTLOOK

Market value forecast In 2018, the Indian power generation industry is forecast to have a value of $98.1 billion, an increase of 37.2% since

2013.

The compound annual growth rate of the industry in the period 201318 is predicted to be 6.5%.

Table 5: India power generation industry value forecast: $ billion, 201318

Year $ billion Rs. billion % Growth

2013 71.5 4,180.8 53.8 7.3%

2014 74.7 4,371.6 56.2 4.6%

2015 80.2 4,688.5 60.3 7.3%

2016 86.1 5,038.4 64.8 7.5%

2017 92.2 5,391.6 69.3 7.0%

2018 98.1 5,736.2 73.8 6.4%

CAGR: 201318 6.5%


Figure 5: India power generation industry value forecast: $ billion, 201318




Market volume forecast In 2018, the Indian power generation industry is forecast to have a volume of 1,209.3 TWh, an increase of 17.6% since

2013.

The compound annual growth rate of the industry in the period 201318 is predicted to be 3.3%.

Table 6: India power generation industry volume forecast: TWh, 201318

Year TWh % Growth

2013 1,028.0 3.7%

2014 1,065.3 3.6%

2015 1,103.2 3.6%

2016 1,138.8 3.2%

2017 1,174.2 3.1%

2018 1,209.3 3.0%

CAGR: 201318 3.3%


Figure 6: India power generation industry volume forecast: TWh, 201318




FIVE FORCES ANALYSIS

The power generation market will be analyzed taking power generation companies, e.g. electricity utilities as players.

The key buyers will be taken as electricity retailers, and suppliers of raw materials, e.g. coal and oil extraction

companies, and manufacturers of power-generating equipment and other heavy electrical equipment, such as steam

turbines as the key suppliers.

Summary

Figure 7: Forces driving competition in the power generation industry in India, 2013


Overall the degree of rivalry is assessed as strong. The Indian power generation industry decli ned noticeably in 2010,

but has since recovered well. It is expected to grow in the medium term, which may alleviate rivalry to some degree.

For most countries, fossil fuels or nuclear power dominates their power generation mix, however, in some countries a

resurgence of renewable electricity investment has occurred as governments start to "out-green" each other following

(relatively) productive climate change talks in Durban in late 2011. States such as China have seen increasing

investment in wind and photovoltaic capacity, and Brazil and Canada currently have larger proportions of hydroelectric

power than most other countries. In India, more than 80% of electricity is still generated from conventional sources (fossil

fuels). A problem specific to this industry is that electricity cannot be stored cost-effectively on a large scale, the national

and international grids must balance electricity generated with electricity used at every moment. Suppliers who use the

networks are obliged to input the same amount of electricity as their customers take out and are charged by the network

operator for any imbalances. The network operator also maintains some generating reserves with which to ensure that

the network can remain in balance. This creates inherent complexi ty and inter-dependencies across all users of the

networks and power usage within the network. The result of this is that the power generation companies have restrictions

on their productivity and have to comply with grid operator requests ultimately affecting overall profitability whilst creating

a difficult trading environment.



Buyer power

Figure 8: Drivers of buyer power in the power generation industry in India, 2013


Depending on the regulatory regime, power generation companies may have the ability to move forward into their buyers'

industry through entry into the power retail industry, selling electricity to end-users. For instance the operator of the Drax

power plant in the UK recently bought Haven Power in an attempt to forwards integrate into that industry. While it is not

often possible for generation companies to literally sell their own power direct to end -users (this depends on issues such

as the electricity industry structure, which is also usually controlled by the regulatory system), presence in the retail

industry means that power generators have an additional revenue stream that can defend their margins against

pressures such as volatile prices for wholesale power and their own inputs, such as coal or gas. Some industries do

have large energy supply companies with strong buyer power over the power generation companies. The typical end

consumer in an electricity industry does not have a distinct differentiation between compani es. Instead - assuming that

the industry structure permits choice of supplier - end-users base their choice of supplier mainly on price. Where

differentiation does occur is in the provision of renewable energy sources and some customers may choose companies

with higher use of these resources over a normal price based decision. Overall buyer power is assessed as strong.



Supplier power

Figure 9: Drivers of supplier power in the power generation industry in India, 2013


Suppliers can encompass a wide range of companies depending on the type of power generation being used. For

instance in renewable energy production there are the electrical systems and building materials used in the initial

construction, but the number of regular suppliers reduces once the particular site (wind farm, solar power installation, or

hydroelectricity plant) is commissioned. However, in other methods of power generation, suppliers of fuel are crucial to

operations and their numbers are limited. For example a nuclear power plant is heavily reliant on the providers of its

nuclear fuels, so supplier power is greater, especially where there is the risk of oligopoly. Securing the supply of a

particular resource, such as natural gas, can become crucial. Supply from countries with large natural resources

increases their supplier power. These situations can also become politically problematic where the supplier is a state

owned facility. Supplier power is assessed as moderate in this industry.



New entrants

Figure 10: Factors influencing the likelihood of new entrants in the power generation industry in India, 2013


The threat of new entrants in this industry is moderate. Key factors influencing this force are the high level of investment

required in technology and raw materials, requirements for expertise, the need to find suitable locations for power plants,

and the cost of regulatory compliance. The prevailing trends of government policy will need to be negotiated. For

instance, almost all new power generation plants of any type have potentially controversial public impacts, and despite

the necessity of power generation facilities, entry to this industry can be hampered by negative publicity focused around

location, type, and expense of new facilities. Vertical integration of generation, supply and network activities, which

reduces the incentives to trade and for new companies to enter the industry, has remained a dominant feature in the

electricity industry in many countries. The Indian power generation industry has declined in recent years but if forecast

growth does materialize, it may attract new entrants.



Threat of substitutes

Figure 11: Factors influencing the threat of substitutes in the power generation industry in India, 2013


For power generation companies with a heavy reliance on one form of fuel, substitutes in this industry are alternative

sources of power generation rather than an entirely new industry able to supersede the existing one. While new

technologies continue to enter the industry at regular intervals there are long periods of testing and large capital

investment needed to produce facilities with the capacity to compete with existing ones.

The power generation industry as a whole is also threatened by end-users opting for energy sources other than

electricity. Natural gas is one example: consumers can use gas instead of electric ity for several purposes, such as

heating.

Finally, autogeneration by industrial users, and microgeneration by smaller end-users, in the form of solar panels or wind

turbines, may reduce demand for centrally-generated power, especially in countries with feed-in tariffs. The long process

of phasing in new technology, significant switching costs for end-users, and the attempts by the largest players to include

a varied range of power sources means that the threat from substitutes is weak.



Degree of rivalry

Figure 12: Drivers of degree of rivalry in the power generation industry in India, 2013


The degree of rivalry in this industry depends first of all on industry structure, which is usually d ecided at a national or

state level. Some countries' electricity industries are fully liberalized, with complete unbundling of generation,

transmission, distribution, and retail operations, the ability of all end-users to switch suppliers, and so on. Others have a

much less liberal structure, with features such as suppliers operating as monopolies within particular geographical

regions. Also, wholesale industries tend to operate nationally rather than transnationally, and concentration within the

generation sector is often high.

Differentiation is difficult in this industry. However, one possibility is for generation companies to offer 'green' energy.

GDF Suez, which is a global energy player, is moving toward minimizing the negative effects of coal combustion in the

generation of electricity by introducing technologies to reduce sulfur dioxide emissions. This trend has been followed by

other industry players in their regional industries to differentiate their products.

The degree of rivalry in this industry is strong.



LEADING COMPANIES

NHPC Limited

Table 7: NHPC Limited: key facts

Head office: NHPC Office Complex, Sector 33, Faridabad, Haryana 121003, IND

Telephone: 91 129 2278 421

Fax: 91 129 2277 941

Website: www.nhpcindia.com

Financial year-end: March

Ticker: NHPC, 533098

Stock exchange: Bombay, India

SOURCE: COMPANY WEBSITE M A R K E T L I N E

National Hydroelectric Power Corporation Limited (NHPC) is an Indian company engaged in the installation,

construction, development, and operation and maintenance of hydroelectric power projects. The company is a Mini

Ratna Category-I Enterprise of the Government of India. It primarily operates in India.

The company operates 15 hydropower stations with a total aggregate capacity of 5 ,702 megawatts (MW), which include

1,000 MW Indira Sagar Project and 520 MW Omkareshwar project through its joint ventures. NHPC's power stations are

situated in the Northern, Eastern and North-Eastern regions of India.

NHPC is currently engaged in the construction of seven projects aggregating to a total installed capacity of 4,095 MW.

These projects include Parbati - II in Himachal Pradesh; Subansiri (Lower) in Assam; Uri-II, Kishenganga, and Nimmo-

Bazgo in Jammu and Kashmir; and Teesta Low Dam - IV, in West Bengal. The company also operates joint venture

projects with a total installed capacity of 5,206 MW, which include Pakal Dul, Kiru, and Kwar, in Jammu and Kashmir;

Loktak Downstream and Tipaimukh in Manipur; and Indira Sagar and Omkareshwar in Madhya Pradesh.

The company offers consultancy services in a range of fields of hydro power, including river basin studies, survey works,

design and engineering, geological studies, geotechnical studies, hydraulic transient studies, hydrological studies,

contract management, construction management, equipment planning, underground construction, testing

commissioning, and operation and maintenance.

NHPC's subsidiaries include NHDC, which is a joint venture of NHPC and the Government of Madhya Pradesh with an

equity shareholding of 51% and 49% respectively; Loktak Downstream Hydroelectric Corporation (LDHCL), which is a

joint venture between NHPC and the Government of Manipur with an equity shareholding of 74% and 26% respectively;

and Chenab Valley Power Projects, which is a joint venture of NHPC, JKSPDC, and PTC India, where NHPC holds a

49% equity.

The company's joint venture companies include National High Power Test Laboratory (NHPTLPL), a joint venture

company of NHPC, NTPC, Power Grid Corporation of India, and Damodar Valley Corporation (DVC) and CPRI each

holding 20% equity; National Power Exchange (NPEX), a joint venture company of NHPC, NTPC, Power Finance

Corporation, Tata Consultancy Services, and BSE where NHPC has 16.67% of equity participation; and Chena b Valley

Power Projects, a joint venture of NHPC, JKSPDC, and PTC India, where NHPC holds 49% equity.

Key Metrics

The company recorded revenues of $1,095 million in the fiscal year ending March 2013, a decrease of 11.3% compared

to fiscal 2012. Its net income was $448 million in fiscal 2013, compared to a net income of $528 million in the preceding

year.



Table 8: NHPC Limited: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 604.2 882.5 879.5 1,234.2 1,094.6

Net income (loss) 505.5 372.0 396.0 527.6 447.5

Total assets 6,431.9 8,974.2 9,262.6 10,308.2 10,658.3

Total liabilities 3,052.0 4,409.6 4,430.2 5,062.8 5,069.8

Employees 12,295 11,618 11,342 11,036 10,418

SOURCE: COMPANY FILINGS M A R K E T L I N E

Table 9: NHPC Limited: key financials (Rs.)

Rs. million 2009 2010 2011 2012 2013

Revenues 35,334.9 51,616.3 51,436.5 72,180.9 64,020.8

Net income (loss) 29,563.1 21,755.6 23,161.3 30,855.8 26,174.1

Total assets 376,176.8 524,864.3 541,732.0 602,886.6 623,361.0



Table 10: NHPC Limited: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 83.7% 42.1% 45.0% 42.7% 40.9%

Revenue growth (9.1%) 46.1% (0.3%) 40.3% (11.3%)

Asset growth 9.1% 39.5% 3.2% 11.3% 3.4%

Liabilities growth 14.8% 44.5% 0.5% 14.3% 0.1%

Debt/asset ratio 47.5% 49.1% 47.8% 49.1% 47.6%

Return on assets 8.2% 4.8% 4.3% 5.4% 4.3%

Revenue per employee $49,139 $75,963 $77,541 $111,830 $105,072

Profit per employee $41,112 $32,018 $34,916 $47,805 $42,957




Figure 13: NHPC Limited: revenues & profitability


Figure 14: NHPC Limited: asse ts & liabilities




National Thermal Power Corporation Limited (NTPC)

Table 11: National Thermal Power Corporation Limited (NTPC): key facts

Head office: NTPC Bhawan, SCOPE Complex, 7 Institutional Area, Lodhi Road, New Delhi 110003, IND

Telephone: 91 11 2436 0100

Fax: 91 11 2436 1018

Website: www.ntpc.co.in


Ticker: NTPC, 532555

Stock exchange: National Exchange, Bombay


NTPC is the largest thermal power generating company in India. NTPC's core business is power generation. It is also

involved in the engineering, construction, and operation of power generating plants. In addition, the company is engaged

in consultancy, power trading, ash utilization, and coal mining operations. The Government of India holds 84.5% of the

total equity shares of the company, with the balance held by institutional investors and the public. The company primarily

operates in India.

NTPC operates through two segments: generation and other operations.

At the end of FY2013, the generation segment of NTPC had an installed capacity of 41,184 megawatts (MW), through its

16 coal-based power plants (31,855 MW), seven gas -based power plants (3,955 MW), renewable energy projects (10

MW), and seven joint venture and subsidiary projects (5,364 MW).

Coal and natural gas are the primary fuels for power generation for NTPC. The company also uses oil as a secondary

fuel for its coal-fired plants and naphtha as an alternate fuel in its gas -fired plants. It has diversified into hydro power,

coal mining, power equipment manufacturing, oil and gas exploration, power trading, and distribution.

The other operations segment of NTPC provides consultancy services in engineering, project management, and

supervision. It is also engaged in oil and gas exploration and coal mining activities. The segment undertakes consultancy

and turnkey project contracts for domestic and international clients in various phases of power plants; namely,

engineering, construction, operation and maintenance, and the management of power projects. NTPC is registered as a

consultant with several leading international development and financial institutions such as The World Bank, The Asian

Development Bank, the African Development Bank, and the United Nations Development Program (UNDP).

NTPC has five subsidiaries. These include: NTPC Electric Supply Company (NESCL); NTPC Vidyut Vyapar Nigam;

NTPC Hydro; Kanti Bijlee Utpadan Nigam; and Bharatiya Rail Bijlee Company.

NESCL is involved in the execution of work on a turnkey basis under the Indian government's rural electrification

program in 29 districts and five states, namely, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, and West Bengal.

NESCL has set up KINESCO Power and Utilities, a fifty-fifty joint venture with Kerala Industrial Infrastructure

Development Corporation (KINFRA), to take up the retail distribution of power in various industrial parks developed by

KINFRA in Kerala and other special economic zones (SEZs) and industrial areas.

NTPC Vidyut Vyapar Nigam (NVVN) was formed with an objective to undertake the sale and purchase of electricity.

During FY2013, the company transacted business with various state electricity boards nationwide.

NTPC Hydro (NHL) develops small and medium hydroelectric power projects up to 250 MW. Presently the company is

implementing the following projects: Lata Tapovan Hydro Electric Project (171 MW) in the state of Uttarakhand; and

Rammam-III Hydro Electric Project Stage - III (120 MW) in the states of West Bengal and Sikkim.



Kanti Bijlee Utpadan Nigam (formerly known as Vaishali Power Generating Company) has been incorporated with Bihar

State Electricity Board as per the decision of the Government of India to take over Muzaffarpur Thermal Power. NTPC

has contributed 65% of equity, with the balance equity contributed by Bihar State Electricity Board (BSEB) and its

nominees.

Bharatiya Rail Bijlee Company was incorporated in November 2007 with 74:26 equity contributions from NTPC and the

Ministry of Railways, Government of India, respectively, to establish a coal -based power plant at Nabinagar, Bihar.

NTPC also has several joint ventures with a number of companies. These include: Utility Powertech; NTPC-SAIL Power

Company; NTPC-ALSTOM Power Services; NTPC Tamil Nadu Energy Company; Ratnagiri Gas and Power; Aravali

Power Company; NTPC-SCCL Global Venture; Meja Urja Nigam; NTPC BHEL Power Projects; BF-NTPC Energy

Systems; Nabinagar Power Generating Company; National Power Exchange; International Coal Ventures; National High

Power Test Laboratory; Energy Efficiency Services; Transformers and Electricals Kerala; CIL NTPC Ur ja; Anushakti

Vidhyut Nigam; Trincomalee Power Company; and Pan-Asian Renewables.

Key Metrics

The company recorded revenues of $11,862 million in the fiscal year ending March 2013, an increase of 7.0% compared

to fiscal 2012. Its net income was $2,153 million in fiscal 2013, compared to a net income of $1,556 million in the

preceding year.

Table 12: National Thermal Power Corporation Limited (NTPC): key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 8,146.8 8,420.3 10,110.8 11,084.8 11,862.1

Net income (loss) 1,383.7 1,492.4 1,599.3 1,556.4 2,152.8

Total assets 14,759.9 16,701.7 19,258.4 24,080.6 30,556.1



Table 13: National Thermal Power Corporation Limited (NTPC): key financials (Rs.)

Rs. million 2009 2010 2011 2012 2013

Revenues 476,472.0 492,467.0 591,341.2 648,306.5 693,768.2

Net income (loss) 80,925.0 87,282.0 93,534.0 91,025.9 125,907.8

Total assets 863,247.0 976,813.0 1,126,344.6 1,408,378.0 1,787,102.8





Table 14: National Thermal Power Corporation Limited (NTPC): key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 17.0% 17.7% 15.8% 14.0% 18.1%

Revenue growth 19.1% 3.4% 20.1% 9.6% 7.0%

Asset growth 6.0% 13.2% 15.3% 25.0% 26.9%

Liabilities growth 12.6% 82.5% (24.5%) 51.0% 43.3%

Debt/asset ratio 37.6% 60.6% 39.7% 48.0% 54.2%

Return on assets 9.6% 9.5% 8.9% 7.2% 7.9%


Figure 15: National Thermal Power Corporation Limited (NTPC): revenues & profitability




Figure 16: National Thermal Power Corporation Limited (NTPC): asse ts & liabilities




The Tata Power Company Limited

Table 15: The Tata Power Company Limited: key facts

Head office: Bombay House 24, Homi Mody Street, Mumbai 400 001, Maharashtra, IND

Telephone: 91 22 6665 8282

Fax: 91 22 6665 8801

Website: www.tatapower.com


Ticker: 500400, TATAPOWER

Stock exchange: Bombay, India


Tata Power is India's largest private sector power utility. The company has a presence across the entire value chain in

power generation (thermal, hydro, solar, wind, and geothermal), transmission, trading, and distribution. It has operations

in the states of Maharashtra, New Delhi, Jharkhand, West Bengal, Odisha, Rajasthan, Himachal Pradesh, Tamil Nadu,

Gujarat, and Karnataka, in India. The company also operates in the overseas markets like South Africa, Indonesia,

Bhutan, Singapore, Cyprus, and Mauritius.

Tata Power operates through three business segments: power; coal; and others.

The power segment is engaged in the generation, transmission, distribution, and sale of elec tricity. It has an installed

generation capacity of 8,521 megawatts (MW) of power from energy sources such as thermal (coal, gas, and oil),

hydroelectric, solar photovoltaic, wind, and geothermal energy. Tata Power operates the following: thermal power

generation units located at Mundra in Gujarat, which has a capacity of 4,000 MW; Trombay in Maharashtra, which has a

capacity of 1,580 MW; Maithon, with a capacity of 1,050 MW, Jojobera, with a capacity of 428 MW, and IEL - Jojobera,

with a capacity of 120 MW, in Jharkhand; Rithala in New Delhi, which has a capacity of 108 MW; Belgaum in Karnataka,

which has a capacity of 81 MW; and Lodhivali in Maharashtra, which has a capacity of 40 MW.

The company owns two thermal-waste heat recovery plants: IEL - Jojobera in Jharkhand, which has a capacity of 120

MW; and Haldia in West Bengal, which has a capacity of 120 MW. The company also owns three hydroelectric (hydel)

power generating stations at Khopoli (72 MW), Bhira (300 MW), and Bhivpuri (75 MW) with a capacity of 447 MW, all

located in the Raigad district of Maharashtra, India. Tata Power also operates several units of wind power generation

stations at Maharashtra, Gujarat, Tamil Nadu, Rajasthan and Karnataka, of India. It also has 29 MW of solar photo

voltaic (PV) power generation capacity at Maharashtra, Gujarat, and New Delhi.

The company's transmission business owns and operates over 1,110 circuit kilometers (km) of transmission network,

which connects Trombay and the hydro generating stations to 19 receiving s tations spread across Mumbai. The

company's joint venture company, Powerlinks Transmission (PTL), formed with Power Grid Corporation of India,

transmits power from the 1,020 MW Tala Hydro Electric Power Project in Bhutan and surplus power from the

Eastern/North-Eastern region of India through its transmission lines between Siliguri (West Bengal) and Mandaula (Uttar

Pradesh), spanning a distance of 1,166 km.



Its distribution business has over 2,500 circuit km of distribution network in Mumbai and over 10,500 circuit km of

distribution network in Delhi. Tata Power's subsidiary, North Delhi Power (NDPL), distributes and supplies power to the

North-North West areas of Delhi. It supplies power directly to bulk consumers such as Central and Western Railways,

Mumbai Port, refineries, textile mills, fertilizer factories, BARC, municipal corporation water pumping plants, and other

major continuous process industries requiring uninterrupted power supply. In FY2013, the company served about

380,000 customers in Mumbai with sales of over 6,500 MUs and 1.3 million customers in New Delhi with sales of over

7,760 MUs.

The company's coal segment focuses on mining and trading of coal through its subsidiary, Trust Energy Resources.

Trust Energy Resources is also engaged in the shipping of coal for Tata Power's thermal power generation operations.

The others segment is engaged in designing and developing defense electronic products, and solar photovoltaic systems

and its components. It is also involved in modernizing the airfield infrastructure for the Indian Air Force, project

contracts/project management services, coal bed methane, and property development business.

Tata Power has carried out several overseas projects and completed erection, testing, and commissioning of major

power projects in the UAE, Malaysia, Saudi Arabia, Kuwait, and Algeria. The company has also undertaken projects

pertaining to power plant/utility operations management and plant operations training in Saudi Arabia, Liberia, Iran,

Sierra Leone, and Algeria.

Some of Tata Power's subsidiaries include Coastal Gujarat Power, Maithon Power, Industrial Energy, Powerlinks

Transmission, Tata Power Renewable Energy, and Tata Power Trading, among others.

Key Metrics

The company recorded revenues of $6,064 million in the fiscal year ending March 2014, an increase of 7.4% compared

to fiscal 2013. Its net loss was $44 million in fiscal 2014, compared to a net loss of $15 million in the preceding year.

Table 16: The Tata Power Company Limited: key financials ($)

$ million 2010 2011 2012 2013 2014

Revenues 3,346.9 3,325.7 4,445.8 5,646.7 6,064.7

Net income (loss) 336.3 352.2 (186.0) (14.6) (44.5)

Total assets 5,556.4 8,607.8 10,557.8 11,503.9 12,207.8



Table 17: The Tata Power Company Limited: key financials (Rs.)

Rs. million 2010 2011 2012 2013 2014

Revenues 195,747.2 194,507.6 260,014.0 330,254.3 354,701.8

Net income (loss) 19,668.4 20,596.0 (10,876.8) (854.3) (2,599.7)

Total assets 324,969.8 503,437.0 617,485.0 672,814.1 713,982.6





Table 18: The Tata Power Company Limited: key financial ratios

Ratio 2010 2011 2012 2013 2014

Profit margin 10.0% 10.6% (4.2%) (0.3%) (0.7%)

Revenue growth 11.3% (0.6%) 33.7% 27.0% 7.4%

Asset growth 44.2% 54.9% 22.7% 9.0% 6.1%

Liabilities growth 38.3% 220.0% 34.7% 11.7% 7.3%

Debt/asset ratio 34.5% 71.2% 78.1% 80.1% 81.0%

Return on assets 7.1% 5.0% (1.9%) (0.1%) (0.4%)


Figure 17: The Tata Power Company Limited: revenues & profi tability




Figure 18: The Tata Power Company Limited: assets & liabilities




MACROECONOMIC INDICATORS

Country Data

Table 19: India size of population (million), 200913

Year Population (million) % Growth

2009 1,171.5 1.6%

2010 1,190.7 1.6%

2011 1,210.2 1.6%

2012 1,226.4 1.3%

2013 1,241.7 1.2%


Table 20: India gdp (constant 2005 prices, $ billion), 200913

Year Constant 2005 Prices, $ billion % Growth

2009 1,157.2 8.3%

2010 1,266.7 9.5%

2011 1,351.1 6.7%

2012 1,415.1 4.7%

2013 1,476.7 4.4%


Table 21: India gdp (current prices, $ billion), 200913

Year Current Prices, $ billion % Growth

2009 1,339.4 10.0%

2010 1,672.3 24.9%

2011 1,829.6 9.4%

2012 1,825.4 (0.2%)

2013 1,875.7 2.8%




Table 22: India inflation, 200913

Year Inflation Rate (%)

2009 10.9%

2010 12.0%

2011 9.2%

2012 10.2%

2013 9.5%


Table 23: India consumer price index (absolute), 200913

Year Consumer Price Index (2005 = 100)

2009 135.7

2010 152.0

2011 166.0

2012 182.9

2013 200.4


Table 24: India exchange rate, 200913

Year Exchange rate ($/Rs.) Exchan

2009 48.8500 67.9264

2010 45.9361 60.9708

2011 46.8466 65.1733

2012 53.6119 68.6802

2013 58.4859 77.7676




APPENDIX

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be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can

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