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Photovoltaic Generator Market – India March 2014
Executive Summary Market
Solar PV market in India is expected to grow at a CAGR of ‘x’% between 2012 and 2018 to reach ‘v’ GW Although overall projects costs are rising, the market has continued to grow steadily State 1 and State 2 together account for ~’p’% of the total solar PV installations in India
Challenges
Drivers
Drivers & Challenges
Trends
Government
– Capital Intensive Nature – Competition from Chinese Firms – Lack of Awareness
– Feasible Geographic Location – Declining Capital costs for Solar PV – Dropping Solar Power Rates – Depleting Coal Reserves – India Remains Energy Deficient – Increasing Cost of Electricity from Conventional Sources – Time of Commissioning Production of Portable Solar PV Generators Investments in Domestic Solar PV Power Producing Industry Solar Hybrid Generators Rooftop Power Generation Major Government Bodies Research and Development Initiatives Jawaharlal Nehru National Solar Mission (JNNSM)
Subsidies and Incentives Rural Electrification Programme
Major Players
Competition
Company A
Company B
Company C
Company D
Company E
Company F
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•Macroeconomic Indicators •Introduction •Market Overview •Drivers & Challenges •Trends •Applications of Solar PV •Government Participation •Competitive Landscape •Strategic Recommendations •Appendix PHOTOVOLTAIC GENERATOR MARKET IN INDIA 2014.PPT
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Economic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 15
13
d1 c1 b1
12
a1
14
c4 b4 a4
c3 b3 a3
d2 c2 b2 a2
11
Q2 2010-11
Q1
2011-12
2012-13
Q3 2013-14
Q4
Inflation Rate: Monthly % 2 1
p
r q
s
0 -1 -2
t Jul 2013 - Aug 2013
Aug 2013 - Sep 2013
Sep 2013 - Oct 2013
Oct 2013 - Nov 2013
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There continues to be a major deficit between demand and supply of power within the country India Energy Demand – Supply Forecasts Energy Requirements (TWh)
Energy Availability (TWh)
Peak Load (GW)
Peak Served (GW) a3 b3
a2 b2 a1
b1
c1 2006-07
d1
c2
d2
2011-12
c3
d3
2016-17e
The only way to counter this ever increasing demand supply gap is to utilize the renewable forms of energy that are abundantly available in India
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Solar photovoltaic market in India is still at a nascent stage but has huge potential to grow Market Overview (1/2) • Solar PV market in India is mostly an organized market with an installed capacity of ‘q’ GW as of 2013 • Under the first phase of the Jawaharlal Nehru National Solar Mission (JNNSM), ‘y’ MW of grid-connected solar power was installed Under the Phase II Batch I of the project, ‘w’ MW of PV projects will be added and are expected to be commissioned by May 2015 The mission aims to add ‘z’ GW grid-connected solar power to India’s energy mix by 2022
• In 2013, the market saw overall project costs increasing This was a result of the high inflation, a ‘m’% rise in module prices and a ‘n’% rupee depreciation, experienced by the market
• Despite the rising costs, the market for solar PV exhibited tremendous growth in 2013, and is expected to grow steadily over the coming years
Market Size (2012 – 2018) GW 20 15
x%
10
s
5
p
q
2012
2013e
t
u
v
r
0 2014e
2015e
2016e
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2017e
2018e 6
Drivers & Challenges – Summary
Drivers Feasible Geographic Location
Challenges
Declining Capital Costs for Solar PV Dropping Solar Power Rates Depleting Coal Reserves India Remains Energy Deficient
Capital Intensive Nature Competition from Chinese Firms Lack of Awareness
Increasing Cost of Electricity from Conventional Sources Time of Commissioning
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Trends – Summary
Production of Portable Solar PV Generators
Investments in Domestic Solar PV Power Producing Industry
Key Trends Rooftop Power Generation
Solar Hybrid Generators
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Government Participation – Summary
Major Government Bodies
Research and Development Initiatives
Key ` Initiatives
Jawaharlal Nehru National Solar Mission (JNNSM)
Subsidies and Incentives
Rural Electrification Programme
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Market Competition – Porter’s Five Forces Analysis Threat of New Entrants
Impact X
Bargaining Power of Suppliers
Competitive Rivalry
Threat of Substitutes
Impact X
Impact X
Impact X
Bargaining Power of Buyers
Impact X
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Competitive Benchmarking (1/5) Public Trading Comparables Company A
Company B
Company C
Company D
Company E
Market Capitalization (INR mn)
Share Price (INR)
EV/EBITDA (x)
EV/Revenue (x)
PE Ratio
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Competitive Benchmarking (2/5) Key Ratios of Top 5 Companies – Operational Basis (FY 2013) (1/3) Gross Margin
% 100
a1
a2
0
Operating Margin
Net Margin
a3
c1 -c2
-b1
-100
-c3
-b2
-200
-b3
-300
Company A
Company B
Company C
• Company A recorded the highest gross margin of a1%, while Company B with –b1% recorded the lowest gross margin • Company A recorded operating margin of a2%, higher than that of both Company C and Company B which recorded operating margin of –c2% and –b2% respectively • Company C recorded net margin of –c3%, which was higher than that of Company B with net margin of –b3%, but lower than that of Company A which recorded net margin of a3%
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Public: Domestic Company – Company A (1/4) Company Information
Offices and Centres – India
Corporate Address Tel No. Fax No. New Delhi
Website Year of Incorporation Ticker Symbol Stock Exchange
Head Office
Products and Services Category Solar PV
Products/Services
Key People Name
Designation
Person 1
Chairman and MD
Person 2
Director of Finance
Person 3
Director of Power
Person 4
Director of H.R
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Public: Domestic Company – Company A (2/4) Financial Snapshot Total Income
INR bn 600 400 200
b2
Key Ratios Net Profit/Loss c2
INR bn d2
60
a2 a1
80
b1
c1
d1
40 20
0
0 2010
2011
2012
2013
Financial Summary • The company earned a net profit of INR ‘d2’ bn in FY 20--, as compared to net profit of INR ‘c2’ bn in FY 20-• The company reported total income of INR ‘d1’ bn in FY 20--, registering an increase of ‘p’% over FY 20-• It earned an operating margin of ‘x.x’ per cent in FY 20--, an increase of ‘y.y’ percentage points over FY 20-• The company reported debt to equity ratio of ‘w.w’ in FY 20--, an increase of ‘z.z’ per cent over FY 20--
Key Financial Performance Indicators Indicators Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)
Value (dd/mm/yyyy)
Particulars
y-o-y change (20-- – -- )
20--
20--
20--
20--
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
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Public: Domestic Company – Company A (3/4) Key Business Segments Segment 1
Key Geographic Segments Segment 2
Region 1
100% 50% 0%
a1%
a2%
a3%
a4%
b1%
b2%
b3%
b4%
2010
2011
2012
2013
100% 80% 60% 40% 20% 0%
Region 2
c1%
c2%
c3%
c4%
d1%
d2%
d3%
d4%
2010
2011
2012
2013
Business Highlights Description
News
Overview
• Company A operates as an engineering and manufacturing enterprise in the energy and infrastructure related sector in India and abroad • It provides industrial systems and products as well as offers products for the transportation sector • It also provides renewable energy based products
Expansion Plans
• Company A made investments of INR ~200 mn for the expansion of its PV module manufacturing division, • This investments expanded the unit’s capacity from ‘m’ MW to ‘n’ MW PHOTOVOLTAIC GENERATOR MARKET IN INDIA 2014.PPT
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Public: Domestic Company – Company A – SWOT Analysis (4/4)
S
W
O
T
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Private: Domestic Company – Company B (1/5) Company Information
Offices and Centres – India
Corporate Address
Tel No.
New Delhi
Fax No. Website Year of Incorporation Head Office Regional Office
Products and Services Category Solar PV Strategic Electronics Others
Bangalore
Products/Services
Key People Name
Designation
Person 1
Chairman
Person 2
Director
Person 3
Director
Person 4
Director
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Private: Domestic Company – Company B (2/5) Shareholders of the Company as on dd.mm.yyyy Name
No. of Shares held
Shareholder 1
x
Shareholder 2
y Total
Ownership Structure Shareholder 1 Shareholder 2 b%
z
a%
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Private: Domestic Company – Company B (3/5) Financial Snapshot Total Income
Key Ratios Net Profit/Loss
INR mn 2,000
Particulars
INR mn a2
b2
50
c2
0
1,500 1,000 500
-50 a1
b1
c1
d1 -d2
0 2008
2009
2010
-100 -150 -200
2011
Financial Summary
20--
20--
20--
Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios
• The company reported total income of INR 1,529.9 mn in FY 20--, registering an increase of 0.34% over FY 20--
Leverage Ratios
• The company reported debt to equity ratio of ‘w.w’ in FY 20--, a decrease of ‘z.z’% over FY 20--
20--
Profitability Ratios
• The company incurred a net loss of INR –’d2’ mn in FY 20--, as compared to net profit of INR ‘c2’ mn in FY 20--
• The company earned an operating margin of ‘x.x’% in FY 20--, a decrease of ‘y.y’ percentage points over FY 20--
y-o-y change (20– – --)
Current Ratio Cash Ratio Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
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Private: Domestic Company – Company B (4/5) Business Highlights Description
News • Company B engages in the production of photovoltaic cells, modules, systems, solar electric power systems ,solar outdoor lighting systems, telecom power systems, solar powered railway signaling systems, navigational aids, and solar power plants
Overview
• It is one of the first companies in India to undertake turnkey village electrification projects • It has supplied more than ‘z’ solar PV systems in India and abroad, covering both rural and industrial applications
Manufacturing Capacity
• Company B has an integrated production facility to manufacture mono-crystalline silicon solar cells and modules with screen-printing technology • It is in process of enhancing its modules manufacturing capacity to ‘y’ MWp and the production is expected to start by Aug 2014
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Private: Domestic Company – Company B – SWOT Analysis (5/5)
S
W
O
T
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