1. SMART GRID- BUSINESS CASE
Sumit K Jha (MBA (Fin), LSSGB, PMP®)

2. Flow of the Presentation

Market Definition & Overview

Market Size

Market Trends

Market Ecosystem

Competitive Landscape

Commercial Analysis

3. Market Definition & Overview

4. Definition

A smart grid is a digitally enabled electrical grid that gathers,
distributes, and acts on information about the behaviour of all
participants (suppliers and consumers) in order to improve the
efficiency, importance, reliability, economics, and sustainability of
electricity services

A Smart Grid is the electricity delivery system (from point of
generation to point of consumption) integrated with communications
information technology

5. Comparison of smart grid with traditional grid
Traditional Grid
Smart Grid

6. Smart grid advantage
Summary of some of the differences in various areas of the power delivery infrastructure
Current Grid
Smart Grid
Communications
None or one way; typically not real
time
Two-way, real-time
Customer Interaction
Limited
Extensive
Metering
Electromechanical
Digital
Operation & Maintenance
Manual equipment checks, timebased maintenance
Remote monitoring, predictive,
condition-based maintenance
Generation
Centralized
Centralized and distributed
Power Flow Control
Limited
Comprehensive
Reliability
Prone to failures and cascading
outages
Pro-active, real-time protection
and islanding
Restoration
Manual
Self-healing
Topology
Radial
Network

7. The Ministry of Power has allocated INR 600
Cores for smart grid pilot projects in India

Smart Grid task Force set up in Sep 2010. Sam Pitroda is the head of the “India Smart Grid
Task Force

The inter-ministerial group focused on smart grid technologies for the power sector plans to
spend up to Rs 600 crore ($150M) for pilot projects in different parts of the country (Jun 2011)

Eight new pilot projects, including those on automated metering infrastructure, are being planned

A preliminary framework on smart grid is expected to be ready by Dec 2012

Five Working groups have been constituted to take up the different task related to SMART GRID
activities i.e.

WG1 -Trials/Pilot on new technologies.

WG2 - Loss reduction and theft, data gathering and analysis.

WG3 - Power to rural areas and reliability & quality of power to urban areas.

WG4 - Dist Generation & renewable.

WG5 - Physical cyber security, Standards and Spectrum

WG 6- Policy and Regulations (incl. Tariffs, Finance etc.)

WG7 - Architecture and Design

WG8 - Pilots and Business Models (incl. planning and implementation, incl. Capacity
Building)

8. Market Size

9. Global smart grid adoption indicators
Driver/metric
Value/Unit
Source
Global Smart Grid Projects underway (204 in the
US)
267
Smart Grid Information
clearinghouse, 2012
Number of countries who have initiated smart grid
projects
31 countries
Smart Grid Information
clearinghouse, 2012
World Government smart grid
investments/incentives, 2009-2020
USD 123 billion
Announced Government
Plans/Targets
World Government Plans for smart meter
deployments 2009-2020
685 million
Announced Government
Plans/Targets
Smart grid venture capital (2007-11, over 159
deals)
USD 2.2 billion
Mercom Capital, 2012
Smart Grid M&A value (2010 and 2011, over 70
deals)
USD 6 billion
Mercom Capital, 2012

10. Market Opportunity in India – By Components
India Electrical Infrastructure
(2015)
India Smart Grid Market Value by Technology Area
2011 and 2015 (in U.S. millions)
(figure 1, source: Zpryme )
$500
$5.9
In Billion
$446
$392
$400
$339
$300
$289
$287
$247
$236
$200
$234
$145
$137
$100
$0
Software &
Hardware


Smart Meters
Sensors
2011
2015
Comm. &
Wireless
Infrastructure
Smart T&D
Equipment
With India recently launching a Smart Grid Task Force
and Smart Grid Forum coupled with $900B in investment
planned for generation, transmission, distribution and
power quality, this nation is set for massive growth.
Conversely, several major hurdles remain before the
world’s second most populous nation achieves
widespread adoption of next generation electrical
technology.
India Smart Grid Market
(2015)
$1.9
In Billion

11. India’s Smart Grid market is expected to grow
with CAGR of 16.3% (2010 to 2015)
India Smart Grid Market Value Forecasts by Technology Type (In $ M)
Smart Grid Segment
2011
2012E
2013E
2014E
2015E
CAGR
Software & Hardware
197.9
246.9
269.0
292.6
317.7
339.4
11.4%
Smart Meters
178.3
286.6
333.3
372.3
412.1
445.5
20.1%
Sensors
150.5
136.5
166.5
191.5
216.4
235.9
9.4%
Comm. & wireless
infra
94.8
144.5
183.6
220.3
257.7
288.6
24.9%
Smart T&D Equipment
189.3
234.5
274.3
315.5
356.5
392.1
15.7%
Others

2010
102.8
56.9
83.7
125.3
175.4
243.8
18.9%
Communication and wireless infrastructure will be growing the fastest among the various components
within smart grid followed by smart meters

12. Players in various domains
Company Name
Vertical
Sales (Rs. cr)
NTPC
Reliance Infra
Power Grid Corp
Tata Power
Torrent Power
NHPC
CESC
Neyveli Lignite
Generation
Integrated*
Transmission
Integrated
Integrated
Generation
Integrated
Generation
54938.68
9217.59
8388.7
6901.45
6582.85
4225.25
3978.7
3945.94
JSW Energy
Generation, Transmission
3861.93
Adani Power
SJVN
Guj Ind Power
Jaiprakash Pow
Suryachakra Pow
KSK Energy Vent
Generation, Transmission
Generation
Generation
Generation, Transmission
Power Generation
Power Generation
2106.43
1744.1
1077.95
736.89
143.36
105.97
GVK Power
Generation
42.77

13. Market Trends

14. Government plans to ramp up its investment
into power sector
Reforms and Huge Investments

R-APDRP: Reform in the power sector has strong Govt focus with the continuation of the R-APDRP during the X1th
Plan with a focus on various areas including IT in the area of energy accounting and SCADA

Huge focus on power generation sector by the government with a target capacity increase of 1,00,000 MW in the
XIIth plan (2012-2017)

POWERGRID, responsible for inter-state transmission of electricity, has targeted investments of approx.
Rs.100,000 crore in the XII Plan (~$20 B), which is nearly twice of the targeted capital expenditure in XI Plan
Changing Industry Structure

Increasing number of private sector companies investing in power plants (Captive and Mega Power Plants) and
also supplying power to the electricity boards

Private Power Generation has doubled in the last five years from 11.6% in 2006 to 23% in 2011


Private players would add nearly 50 per cent of the total capacity addition in the XIIth Plan
Franchising mode for privatization of power distribution in Delhi and plans for a policy framework within which more
private sector investments will be forthcoming in the XIIth Plan
Focus on Efficiency:
Efficiency in generation, transmission and distribution are extremely important to the industry. This gives scope for
varied IT opportunities
– The approach to the XIIth Plan includes taking non‐price initiatives to push the economy towards greater
energy efficiency
– and improving the existing system of publicly owned distribution system by bringing in modern systems of
management, use of IT and enforcement of accountability

15. Recent activities suggests that Smart-Grid
is ready to take-off in India

Several Indian state governments reportedly laid plans for smart grid projects, ranging from smart
meter rollouts in the Indian territories of Puducherry and Bangalore, to a nationwide deployment
of phasor measurement devices across the nation’s five independent grid systems -- a first step in
synchronizing them to share power -- at an estimated cost of 239 rupees crore ($48 million)

Siemens announced an 18.5 million euro ($24.3 million) contract to provide SCADA and distribution
management systems for eight cities, including Mumbai, in the Indian state of Maharashtra. The
German smart grid giant will install more than 4,000 remote terminal units (RTUs) at substations and
along the medium-voltage grid, and link customer care and mapping systems to do things like detect
faults, direct outage repairs -- and spot power theft


Smart grid will take-off if the government’s 5-billion-rupee (nearly $100 million) proposal for eight smart
grid pilot projects comes through. The plan announced last month calls for about 500 million to 600
million rupees ($10 million to $11.5 million) apiece, and about 14 state utilities are expected to
bid projects
India has its share of tech giants to take part in the government’s big smart grid push, including the likes
of Infosys and Wipro. But it’s also a target of foreign competitors like Siemens, ABB, General Electric
and Schneider Electric, which bought Indian cabling company SmartLink Network Systems last year. On
the IT side, Cisco is doing a big “e-city” green-field development with Wipro called Lavasa City outside
Mumbai, and IBM launched a big smart grid planning analytics system for the government’s Bureau of
Energy Efficiency last year.
Source: http://www.greentechmedia.com/articles/read/indias-smart-grid-comes-alive/

16. Market Ecosystem

17. Global Smart Grid Solution Ecosystem

18. Smart Grid- Players, we can collaborate with
Focus Area
Smart Grid
Solution Area
ISV
ISV Solution
Status
Smart Metering
and Beyond
Kalkitech
SYNC
• Multiple solution workshops conducted to
identify GTM solution areas
• Meter vendor independent solution with
compliance to interoperability standards
• SAFE enablement in progress
Smart Metering
and Beyond
Itron
Saturne, IEE MDM
• Alliance in place
• Collaborating on opptys (NDPL, IGL)
Smart Metering
and Beyond
eMeter
energyIP MDM
• Alliance in place
• Opptys to be identified
Distribution Grid
Monitoring
Schneider
Electric
SCADA/DMS
• Solutions addresses automation
requirements of distribution and DFs
• Multiple solution engagements for RAPDRP
SCADA/DMS opptys
• Solution workshops can be conducted to
identify smart grid GTM solution areas
• We should create a solution template in
place for joint GTM for a typical smart grid
oppty

19. Competitive Landscape

20. Competitive Landscape

Consulting &
System
Integration

System
Integration
Source:
…1/6
CapGemini is one of the top 10 largest consulting services company in the world. With
revenue of $11.6 billion the company is present in almost all geography and employs
more than 90,000 people worldwide. The company provides consulting services that
contribute to the business transformation and economic performance of organizations,
based on in-depth knowledge of client industries and processes. It has strong
presences in energy and utility segment. The company is actively collaborating with
utilities in US and Europe for their Smart Grid projects to gain valuable knowledge and
experience. It has recently launched Smart Energy Services, a new global service line
that will provide full spectrum of smart metering, smart grid, smart home solutions, and
smart analytics to utilities across the globe.
HCL InfoSystems Ltd is one of the Top 5 IT company in India providing hardware,
software, and system integration services. It offers wide range of ICT products for the
computing, storage, networking, security, telecom, imaging, and retail. HCL has
partnered with Echelon (A Smart Grid product development company) for providing
smart metering and network infrastructure services. It has also roped in Oncor as a
client for its SmartGrid infrastructure services. Collaboration with these companies will
provide HCL a competitive edge against the competitors when the Smart Grid
development in India accelerates.

21. Competitive Landscape

Vertically
Integrated
Player

Software
Source:
…2/6
General Electric popularly known as GE is one of the world's leading MNCs operating
in diverse business verticals like Home Appliances, Engines, GeoSpatial, Power
Sector, Clean Energy, Nuclear Plants, Softwares, Finance, and many more. GE is one
of the major player in Smart Grid domain. Through its eco-imagination GE is focusing
its research efforts towards clean energy including Smart Grid. It has got US
government grant for building Smart Grid training and research infrastructure. GE will
leverage its years of vast domain experience to develop various innovative products
for the Smart Grid. It has started working with various utilities in US to roll out Smart
Meters and related products. In India, GE has collaborated with NDPL for improving
energy and transmission efficiency
Telvent (NASDAQ: TLVT) is a global IT solutions and business information services
provider dedicated to helping improve efficiency and reliability for the world’s leading
companies. Telvent serves markets that are critical to the sustainability of the planet,
including the energy, transportation, agricultural and environmental sectors. Telvent
recently announced that it is going to partner with Larsen and Toubro(L&T) for Smart
Grid Projects in Maharashtra State

22. Competitive Landscape

IP based
products

System
Integration
Source:
…3/6
CISCO is the largest supplier of communications products in the world. With annual
revenue of $36.11(2009) billion, it is one of the largest technological company that was
born out of the Computer/Internet revolution. Cisco considers Smart Grid as the next
big thing and visualizes smart grid emergence similar to the emergence of Internet.
With its strong networking products portfolio and its deep expertise in IP based
products, the company's smart grid vision is to be provider of intelligent, transparent
communication between the power producers, the transmission substation, the
distribution substation, the residential complex, and the commercial buildings. Through
its Smart Grid ecosystem it plans to develop smart grid technologies and standards by
collaborating with the smart grid stakeholders. It recently launched Smart Grid
products Connected Grid Router (CGR 2010) and Connected Grid Switch (CGS
2520). It has strong presence in emerging country like India, China, and Brazil.
Infosys, the third largest Indian IT services company is globally engaged with utility
companies to meet their IT needs. It has partnered with Itron to provide Itron
customers Advance Metering Infrastructure (AMI) and Meter Data Management
Services. The company is also part of the Cisco Smart Grid ecosystems and will gain
valuable knowledge and experience about Cisco Smart Grid products and related
technology. Infosys , along with C-STEP co-developed report "Technology : Enabling
Transformation of Power Distribution" for Ministry of Power, India and is associated
with India's Smart Grid Development Program.

23. Competitive Landscape

Software,
Consulting,
System
Integration

Consulting,
System
Integration
Source:
…4/6
IBM nicknamed as the Big Blue is one of the largest technology company in the world.
With almost 400,000 employees worldwide, it has revenue of $100 billion and
operating presence in 200 countries. IBM through its "Smarter Planet" initiative is
developing various innovative products and services to transform the important entities
like transportation systems, water systems, cities, rail, traffic, food, buildings,
computing, banking, education, and energy systems. Smart Grid is one of the major
component of its Smart Planet initiative. IBM is one of the top 10 Smart Grid
companies leading the charge for advancement of this technology. It has setup Global
Intelligent Utility Network Coalition (GIUNC) organization to collaborate with utilities of
the world. IBM is implementing smart grid project for Oncor, CenterPoint Energy,
American Electric Power and Consumers, EDF of France and for Malta
Accenture : As One of the world's top 10 IT consulting firm, Accenture is at the forefront of the Smart Grid transformation. In a consultative capacity it is collaborating with
organization like World Economic Forum (WEF), Governments, and utility companies
to develop road map for Smart Grid evolution. With more than 30 years experience of
enabling utilities become higher performing businesses and with 7,500 utility industry
professionals serving 300 clients in 43 countries, the company offers products and
consulting and technology services in AMI, Intelligent Network Data Management,
Home Area Network, Distributed Energy Integration, Demand Response, and network
application and architecture for technologies like plug-in Electric Vehicle.

24. Competitive Landscape

Vertically
Integrated
Player

Vertically
Integrated
Player
Source:
…5/6
Larsen & Toubro is a USD 9.8 billion technology, engineering and construction group,
with global operations. It is one of the largest and most respected companies in India's
private sector. A strong, customer –focused approach and the constant quest for topclass quality have enabled L&T to attain and sustain leadership in its major lines of
business over seven decades. The company operates in various infrastructure
domains and is major player in power infrastructure. It has recently collaborated with
Telvent for Smart Grid projects in India
ABB is one of the leading power and automation technology company in the world.
The global conglomerate operates in more than 100 countries focusing on power
transmission, distribution, and power plant automation that serves electric, gas, and
water utilities as well as commercial customers. Its core business lines includes power
products, power systems, discrete automation and motion, low voltage products, and
process automation. As a leading power sector company, ABB has strong Smart Grid
focus and has been actively collaborating with utilities from US, UK, Europe, China,
and India. The capacity, reliability, efficiency, and sustainability are the four key
aspects of its smart grid vision.

25. Competitive Landscape

Vertically
Integrated
Player

Vertically
Integrated
Player
Source:
…6/6
SIEMENS is one of the few companies in the world that provides integrated energy
solutions to the entire energy value chain starting from generation and transmission to
distribution. With 88,000 employees and € 25.5 billion revenue, Siemens Energy is
planning to get engaged in almost all aspect of smart grid businesses. It plans to
provides products and services in Smart Distribution, Smart Consumption, Smart
Metering, Efficient Network, and e-mobility segment. By 2014, the company plans to
have order worth €6 billion from its present €1 billion from Smart Grid segment.
Siemens has partnered with emerging startups e-meter, BPL Global, and Viridity for its
Smart Grid offerings and is engaged in various Smart Grid pilots across the world.
Kalkitech is a technology based company, which provides products, solutions, and
services in the integrated domains of control, communication, and computing of
energy industry. The company enables seamless integration of their customer's field,
automation, and enterprise systems on standard based protocols & interfaces to
optimized their operational systems. Kalkitech's optimization solutions are build around
its own products and third party products, which when combined with its
communication solutions compliment with each other in building a smart grid. The
company's main products are SYNC and ELTRIX; Sync consists of suite of products
that enables filed-to-enterprise communication for energy sector whereas ELTRIX is
energy optimization solution and is one of the core offering of its optimization verticals.
ELTRIX provides overall sustenance of energy eco systems through optimal decision
within regulatory, environmental, and reliability constraints.

26. Entry Points

27. Entry point (1/3)- Smart meters
Reason
1.
Most of the smart grid projects in India are focused on smart metering at
this point of time
Entry Options
1.
Collaboration
with Smart
Meter
manufacturers
Reseller of meters- Only GE and Itron are prominently mentioned in India
leaving aside 4 large global vendors looking for a formal operational set-up in
India
2.
System integration- Enter into smart meter installation after forming a
collaboration with one of the big names in the industry
3.
Manufacturing- It is established that India needs 100 million meters*, which are
still not being manufactured by any of the global giants
Scope
1.
Develop expertise in the industry vertical by getting into software for data
extraction
2.
Go into joint bids with partner/s leveraging their years of experience in smart
grid
Prospective partners
*The government reckons that India needs 100 million meters and towards this end, the Smart Meter Task Force will be entrusted the task of
introducing Rs 1,000 – 1,500 Low Cost Meters. “According to Shri Sam Pitroda We need a 2-chip Meter that can be connected through GSM
technology. Basically a dumb meter that is smart enough. These Low Cost Meters will feed critical data into the Smart Grids that are considered to
be the panacea for our primitive Power Sector.”

28. Entry point (2/3)- Sensors
Reason
1.
All the smart industry frameworks created by the large companies like IBM,
Siemens, GE etc. have one common ingredient- Instrumentation. This
instrumentation refers to ‘sensors’ that collect data.
Entry Options
1.
Collaboration /
manufacturing
for Sensors
Reseller of Sensors- Of the six large global vendors in India; ABB, GE, Siemens
and Schneider Electric are prominently mentioned in India leaving 2 large
vendors looking for a substantive entry route
2.
Manufacturing Sensors- Sensors have wide ranging use and developing a
manufacturing base can help in the long run to enter into various industries like
water management, gas distribution or other utilities. Setting up a manufacturing
unit in joint venture with one of the global giants will help immensely
Scope
1.
Develop expertise in the industry vertical by getting into software for data
extraction
2.
Go into joint bids with partner/s leveraging their years of experience in smart
grid
Prospective partners

29. Entry point (3/3)- Cloud for Smart Grid
Reason
1.
Smart Grid is expected to be one of the key contributors to the ‘Big Data’ .
Most of the applications developed for smart grid can be ported to the cloud
Entry Options
1.
Cloud Smart
Grid
Software as a Service (SaaS)- There are multitude of applications being
developed for smart grid. Collaborating with the leading players will allow us to
build an ecosystem
2.
Storage as a service- With the explosion of data, storage as a service can see a
big off-take in India
Scope
1.
Cross sell our datacenter capabilities
Prospective partners

30. Commercial Analysis

31. Cost components of a smart Grid
…1/2
Technology area
Hardware
Systems & software
Wide area monitoring
& control
Phasor management units
(PMU) and other sensor
equipment
Supervisory control and data acquisition (SCADA),
wide-area monitoring systems (WAMS), wide-area
adaptive protection, control and automation
(WAAPCA), wide-area situational awareness (WASA)
Information and
communication
technology
integration
Communication equipment
(powerline carrier, WIMAX, LTE,
RF mesh network, cellular),
routers, relays, switches,
gateway, computers (servers)
Enterprise resource planning software (ERP), customer
information system (CIS)
Renewable and
distributed integration
Power conditioning equipment
for bulk power and grid support,
communication and control
hardware for generation
Energy management system (EMS), distribution
management system (DMS), SCADA, geographic
information system (GIS)
Transmission
enhancement
Superconductors, FACTS, HVDC
Network stability analysis, automatic recovery systems
Distribution grid
management
Automated re-closures, switches
and capacitors, remote
controlled distributed generation
and storage, transformer
sensors, wire and cable sensors
Geographic information system (GIS), distribution
management system (DMS), outage management
system (OMS), workforce management system (WMS)

32. Cost components of a smart Grid
…1/2
Technology area
Hardware
Systems & software
Advanced metering
infrastructure
Smart meter, in-home displays,
servers, relays
Meter data management systems (MDMS)
Electric vehicle
charging
infrastructure
Charging infrastructure,
batteries, inverters
Energy billing, smart grid-to-vehicle charging (G2V)
and discharging vehicle-to-grid (V2G) methodologies
Customer-side
systems
Smart appliances, routers, inhome display, building
automation systems, thermal
accumulators, smart thermostat
Energy dashboards, energy management systems,
energy applications for smart phones and tablets

33. Case Study 1- First smart grid at Puducherry
with a focus on smart meters


A Memorandum of Understanding to introduce the innovative project here was inked in the
presence of Chief Minister N Rangasamy here today between the Department of
Electricity and Power Grid Corporation of India Limited (PGCIL).

This project would primarily involve the installation of advance metering
infrastructure in sync with the Central Data Control Centre. This would enable the
customers to ascertain the exact billing amount at any point of time and accordingly
manage their power usage. The electricity board would be able to monitor the customers’
energy usage pattern and detect malpractice or power theft, online

Organizations
involved
A smart grid project recommended by the Power Ministry's India Smart Grid Task force will
come up on a pilot basis in the union territory, reportedly the first in the country
Number of houses to be covered- 87,000

Total cost of the project- INR 77 crores

Cost borne by- INR 25 crore would be borne by the Centre and the rest by the state

Outcomes- The efficiency in tariff collection (90 per cent at present) could also be
improved to 98 per cent. Through this scheme, the EB is expected to generate an inflow
to the tune of around INR 12.24 crore per annum, without any investment.

Months for completion- 4 months
Project Scope
Numbers
involved

34. Case Study 2- Siemens wins smart grid
contract in Maharashtra

The utility company of the Indian state of Maharashtra, the State Electricity Distribution
Company Ltd., Mumbai, placed an order with Siemens

Siemens will provide SCADA and distribution management systems for eight cities,
including Mumbai, Maharashtra.

The German smart grid giant will install more than 4,000 remote terminal units (RTUs)
at substations and along the medium-voltage grid, and link customer care and mapping
systems.

Number of cities to be covered- 8

Contract size- 18.5 million euro ($24.3 million)

Remote terminal units (RTUs) - The order includes the installation of remote terminal
units (RTU) in 66, 33, and 22 kV substations in addition to the installation of more than
4,000 compact RTU in the 11 kV distribution substations.

Cost borne by- N.A.

Outcomes- Improve the availability and transparency of the distribution networks and
cut the related power losses by as much as 15 percent

Months for completion- 15 months (Started in march 2012 and will end by June 2013)
Organizations
involved
Project Scope
Numbers
involved

35. Overall cost structure

It is difficult to provide a more specific sense of costs because most of the utilities in the US and Europe
are still in the initial stages of implementing smart metering, so the actual costs of deployment are not
available. However, from the estimated cost proposals submitted by various US utilities (such as PG&E
and Allegheny Power), the total capital invested tends to vary from $250 to $600 per meter installed. It
is notable that the range provided by utilities is wide and hence estimating a reasonable cost based on
this range is not prudent

36. Revenue aspirations
Entry Points
Mode of entry
Smart Meters
Reselling
99
5% of the total smart meter market
System integration
10
5% of the estimated system integration market
Manufacturing*
99
5% of the total smart meter market
Sensors
Revenue aspiration in
INR crores (2013-14)
Reasons
5% of the total sensors market
57.4
5% of the market share
Software as a
Service (SaaS)
2.7
5% of the estimated SaaS
Storage as a
Service

57.4
Manufacturing*
Cloud
Reselling
3.6
5% of the estimated Storage as a Service
*Manufacturing opens up other industries as well such as water management and gas distribution with an
added advantage of intellectual property rights

37. Tentative P&L for reselling
Particulars
Expected revenue in 2012-13 (5% of entire market)
Cost at which a smart meter can be sold (Bescom average)
Total number of smart meters sold at this price
Cost at which a smart meter can be procured (US$ 30) (Glen Canyon)
Cost of transportation (5% of the cost of each meter)
Cost of quality testing, white labelling, firmware (3% of the cost of each meter)
Cost of SG&A (10% of sales, assumption- Mostly sold through bids)
Per meter SG&A cost
Inventory carrying cost per unit
Total cost per unit
EBITDA (Per unit)
Interest
EBIT
Tax (assumed to be 30%)
PAT
Net profit margin
We need to explore a bit more about the product functionalities and comparisons.
Numbers in Rs.
(except %)
99,00,00,000
4,500
2,20,000
1,650
83
50
9,90,00,000
450
43
2,275
2,225
4,50,51,188
44,43,80,063
13,33,14,019
31,10,66,044
31%

38. Smart meters- Manufacturing commercials for
ICSA- India
Total Capital Cost
Peak Capacity (Per month)
Peak Capacity Sales
Expected Net Margin

Numbers (In Rs.
Except %)
ICSA has set-up SMART meters
manufacturing facility in Andhra Pradesh
with a total capacity of 150,000
meters/month at a cost of Rs.260mn.
SMART meter is a combination of energy
meter and a communication device, which
would form a part of smart grids network in
the country

The company is expecting margins of
~10–12% for energy meters and ~20%+
for SMART meters.

Particulars
ICSA is bullish on the demand potential of
the SMART meters facility with peak
revenue potential of Rs.1000–1500mn in
the next 3-4 years
26,00,00,000
1,50,000
1,50,00,00,000
20%
I would suggest that we get into a JV with low cost smart meter manufacturer and enter this market through manufacturing

39. Thank You