major strategies which is adopted by NTPC Ltd.

1. Strategic analysis of ……
ntpc
National thermal power corporation ltd.
A MAHARATNA COMPANY
PRESENTED BY- SAPNA
2016mcom014

2. NTPC: A BRIEF INTRODUCTION
• NTPC is India’s largest energy conglomerate with roots planted way back in 1975
to accelerate power development in India.
• From fossil fuels it has forayed into generating electricity via hydro, nuclear and
renewable energy sources.
• To strengthen its core business, the corporation has diversified into the fields of
consultancy, power trading, training of power professionals, rural electrification,
ash utilisation and coal mining as well.
• NTPC became a Maharatna company in May 2010, one of the only four
companies to be awarded this status. NTPC was ranked 400th in the ‘2016, Forbes
Global 2000’ ranking of the World’s biggest companies.
• The total installed capacity of the company is 52,191 MW (including JVs) with 20
coal based, 7 gas based stations, 1 Hydro based station and 1 Wind based
station.
• 9 Joint Venture stations are coal based and 11 Solar PV projects.
• NTPC has been operating its plants at high efficiency levels. Although the
company has 17.73% of the total national capacity, it contributes 24% of total
power generation due to its focus on high efficiency.

3. NTPC: A BRIEF INTRODUCTION
• NTPC thus became a listed company in November 2004 with the Government
holding 89.5% of the equity share capital.
• GOI's holding in NTPC has reduced from 89.5% to 75%. The rest is held by
Institutional Investors, banks and Public. Presently, Government of India is
holding in NTPC has reduced to 69.74%.
• The company is guided by the “People before Plant Load Factor” mantra
which is the template for all its human resource related policies
• NTPC has been ranked as “6th Best Company to work for in India” among
the Public Sector Undertakings and Large Enterprises for the year 2014, by
the Great Places to Work Institute, India Chapter in collaboration with The
Economic Times.

4. Strategic analysis of ntpcl vision statement
easy to communicate
focused
directional
feasible
desirable

5. MISSION PROVIDE RELIABLE POWER AND RELATED SOLUTIONS IN AN
ECONOMICAL, EFFICIENT AND ENVIRONMENT FRIENDLY MANNER, DRIVEN
BY INNOVATION AND AGILITY.

6. Core Values: b-COMIT
Business ethics
Customer Focus
Organizational Pride
Mutual Respect & Trust
Innovation & Learning
Total Quality & Safety

7. CORPORATE
OBJECTIVES
• Business portfolio growth
• customer focus
• performance leadership
• human resource development
• financial soundness
• research and developments

8. ENVIRONMENT ANALYSIS OF NTPC
OPPORTUNITIES AND THREATS BY PESTEL
FACTORS OPPORTNITIES THREATS
POLITICAL •Liberalization increase demand
of power
•Strong support of government
Increase of wages by govt.
ECONOMICAL Globalization help to enter new
market
Higher exchange rate
SOCIAL Higher demand of power from
local consumers
High cost in using better
pollution control methods
TECHNICAL Super technology increase
efficiency
Higher cost of technology
ENVIRONMENTAL Move towards clean form of
energy
Emission low forces better
control system

9. Conti….. PESTEL
LEGAL •Tariff policy force plant to
be more efficient
Tariff policy effect
operational profitability

10. STP
segment Agencies looking to buy
electricity
Target group state owned Electricity Boards
positioning The cheapest power supplier

11. SWOT ANALYSIS OF NTPC
STRENGTHS
• Employee friendly work culture and personnel
policies
• Efficient production process of plants & fully
integrated
•project management system
•decades of experience in the sector shows its
credibility
• Backing of Central government
• Efficient and timely completion of projects
WEAKNESSES
•Depleting input materials sources
•Govt. intervention can often cause Disruptions in
operations
•Prices are Determined by Indians Electricity Act

12. SWOT ANALYSIS
OPPORTUNITIES
•Huge Demand and supply gap
•Large opportunity in energy consultancy
service
•New sources of power generations
THREATS
Rising cost of production.
Huge competition from growing private sector
firms.
New and cleaner sources of power

13. FIVE FORCE MODEL FOR NTPC
COMPTITIVE
RIVALRY
(LOW)
THREATS OF NEW
ENTRENTS
(LOW)
BARGAINING POWER
OF SUPPLIER
(MODERATELY HIGH)
THREATS OF
SUBSTITITES
(MODERATELY HIGH)
BARGAINING
POWER OF BUYERS
(LOW)

14. Industry competitive FORCEs
COMPETITION RIVALRY (LOW)
• the major part of the pie is occupied by govt. organization.
• NTPC contributes alone 28% of power generation,
• it opens for the privet sectors in domestic and foreign investors.
• Large private organization like Tata power, Reliance energy, Adani Power and
Jindal power are also finding fortunes very rare, these organizations need
support from areas such as transportation and distribution.
THREATS OF ENTRY (LOW)
• The major challenge for the entrants is resources are scarce and requires good
network for distribution which demands collaboration with the distribution
channel members
• The other options available for a potential entrant are hydro, solar, wind and
tidal which are very costly and entry barriers are also high..

15. industry competitive FORCEs
THREAT OF SUBSTITUTES (MODERATELY HIGH)
• The substitutes of thermal power are hydro, nuclear, solar, wind and tidal
power.
• In case of hydro, wind and tidal power maintenance and installation cost
id very high so these are not cost effective for buyers
• For generating nuclear power both installation costs and maintenance
costs are low when compared to thermal power. However, the major
challenge is resources, technology and dumping the waste.
SUPPLIERS BARGAINING POWER (MODERATELY HIGH)
• The major suppliers of NTPC are raw material providers of coal and
machinery providers such as boilers and cooling tanks.
• For machinery purpose it is heavily depending on BHEL which is sole
provider of power plant equipment suppliers, engineering products &
services for all power plants. so this increases the bargaining power of
suppliers

16. industry competitive FORCEs
BUYERS BARGAINING POWER (LOW)
• The buyers of power from NTPC are power grids and industries. Power
grids in turn supply power to end customer via state electricity boards and
purchasing cost are directly regulated by the government.
• The major buyers of power are industries pertaining to the infrastructure
• these buyers require consistent and continuous supply of power which can
be provided only through thermal power and nuclear power hence the
buyer bargaining power is weak.

17. COMPETITORS OF NTPC

18. NTPC TATA POWER ADANI POWER
NTPC is India's largest
power generating
company with an
installed capacity of
around 37,000 MW (over
one-fifth of India's total
installed capacity). NTPC
contributes to around
30% of the country's
annual power generation
and has an outstanding
track record in terms of
efficiency.
Tata Power is the private
player in the power sector
with a generation
capacity of over 4,600
MW, which is around
20% of the total power
generation capacity of the
private sector in India but
a mere 2% of the
country's total capacity.
Adani is the largest
private thermal power
producer in India with an
installed capacity of
10,480 MW

19. CORPORATE LeVEL STRATEGIES OF NTPC

20. DIVERSIFCATION
•NTPC to be a 130 GW company by 2032 with diversified fuel mix
and a 600 BU company in terms of generation.
•Coal would continue as predominant fuel with 65% share of coal
based capacity in the portfolio.
•Non-fossil fuel based capacity would achieve a share of 30% and
Thermal based generating capacity share would be 70%.
•Share of RE (including hydro) would be 28%
•NTPC targets a market share of 25% in ancillary services and
storage
•NTPC aims to achieve 10% of the estimated market share for
supply of electricity in E-mobility business

21. JOINT VENTURE
PARTICULARS JOINT VENTURES
JVs FOR POWER
GENERATION
•A Joint Venture Company of NTPC and SAIL (50: 50
equity)
•BESCL (Bhilai Electric Supply Co. Pvt Ltd), another JV
Co. of NTPC and SAIL with 50:50 equity participation),
has merged with NSPCL
JOINT VENTURE FOR
FERTILIZERS
•This JV was incorporated on 15.06.2016 with the
NTPC - HINDUSTAN URVARAK & RASAYAN LIMITED
(HURL)

22. SRI LANKA •This JV was incorporated on 26.09.2011
with the Ceylon Electricity Board, Sri Lanka
( CEB).
BANGLADESH Bangladesh-India Friendship Power
Company (Pvt.) Limited (BIFPCL). This JV was
incorporated on 31.10.2012 with the
Bangladesh Power Development Board,
Bangladesh (BPDB).
INTERNATIONALISATION

23. Integration

24. BUSINESS LEVEL STRATEGIES IN NTPC
MAINTAINITS POSITIONAS THE LEADER : cost efficiency improvement
Their ultimate aim is to reduce the cost because without being t cost
leader they can’t dominate the market. Providing power at reasonable
price so that they could provide power to all in need.
ADOPTTHE NEWTECHNOLOGY: technology enhancement
To stay in competition they have to continuesly enhance their technology.
It is a part of cost efficiency and differentiation.
ECO- FRIENDLY SYSTEM: NTPC has adopt a well defined environment
management policy and sound environment practices for minimizing
environmental impact on ecology.

25. FUNCTIONAL LEVEL STRATEGY OF NTPC

26. HUMAN RESOURCES MANAGEMENT
At NTPC, it begins and ends with people.
HR Vision
"To enable our people to be a family of committed world class professionals,
making NTPC a learning organization.“
Competence building, Commitment building, Culture building and
Systems building are the four pillars on which HR systems are based.
Recruitment: believe in the philosophy of 'Grow your own timber'.
• Executive Trainee programe
• Engineers are hired through open competitive examinations and campus
recruitments.
• on job training, personality development & management modules.

27. Human resources management
• Career Advancement & Opportunities
• Rewards & Recognitions
• Innovate, Create, Compete
• Quality of Work-Life
• Knowledge Management in NTPC
• Training & Development
• Education Up-gradation Schemes
• Seeking Feedback
• Awards
• Website for NTPC Ex-employees
www.ntpcexemployees.co.in

28. MARKETING MIX OF NTPC
PRODUCT MIX
• NTPC has diversified its business interests and ventured in gas and oil exploration
along with coal-mining activities.
• It involved in turnkey contracts and consultancy works i.g., project management,
engineering, construction operation and management and management of power
plants.
PRICE MIX
• It has adopted cost-effective ways so as to enhance power supply.
• It has adopted a reasonable and economic pricing policy as it is a government
undertaking and works for the welfare of its country and its people.
PLACE MIX
• its operations spread over fifty-five locations in the country and overseas operations in
Sri Lanka and Bangladesh.
• Its headquarters base is in New Delhi.
• It has eighteen power stations that are coal-based

29. MARKETING MIX OF NTPC
PROMOTION MIX
• It has launched ad campaigns via television, newspapers
and Youtube to increase its brand visibility.

30. R&D PRODUCTION
R&D Production NTPC research wing NTPC Energy Technology and Research Alliance
is working on climate change, waste management and reliability supports for its
station. NTPC is also working with eminent scientists and academic institutions
and now is planning to establish a solar and PV research facility in collaboration
with KFW Germany.
FINANCE
Company’s strategy is to give its share holder higher amount of returns for that
company always strive to reduce plant setup cost and maintenance expenses.
NTPC has around 550 institutional investor and 8 lakh retail investor. Company
provides the capital market with shareholder relevant information.
marketing
Customer relationship management is concerned with customer requirement and
asses the asses customer satisfaction index.

31. OTHER STRATEGY AND POLICIES
• To contribute to sustainable development by discharging
corporate social responsibilities.
• To lead the sector in the areas of resettlement & rehabilitation,
environment protection including effective ash utilization and
energy conservation practices.
• To lead development efforts in the Indian power sector through
efforts at policy advocacy, assisting customers in reforms, best
practices in operation and management of power plants.
• Conserve resources by reduction, reuse and recycling
• Generate awareness, share knowledge and support training
programmes on sustainable development among the employees,
neighbouring communities and public at large