Smart Grid Market in India Overview

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Smart Grid Market – India
August 2013

2SMART 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
BA
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 FB
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
•Point 1
•Point 2
•Point 3
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
•Point 1
•Point 2
•Point 3
•Point 1
•Point 2
•Point 3
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/D
eficit
(%)
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
AvailabilityRequirement
•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)
Adoption of Smart Meter

17
SAMPLE
Indian players are entering into the Smart Meter market that
are projected as replacements for conventional meters
•Point 1
•Point 2
•Point 3
Various Initiatives Taken in India
Adoption of Smart Meter
Initiative 1Company A
Initiative 2Company B
Initiative 3Company 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
SAMPLEIndustry 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
SAMPLEKey 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
z3y3x3
Company 2
z2y2x2
Company 1
z1y1x1
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
SAMPLE
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
SAMPLE
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
CBA
0%
50%
100%
20--
d4
c4
b4
a4
20--
d3
c3
b3
a3
20--
d2 c2
b2
a2
20--
d1
c1
b1
a1
DCBA

25
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