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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

PHOTOVOLTAIC GENERATOR MARKET IN INDIA 2014.PPT

Nov 2013 - Dec 2013 4


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

PHOTOVOLTAIC GENERATOR MARKET IN INDIA 2014.PPT

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

PHOTOVOLTAIC GENERATOR MARKET IN INDIA 2014.PPT

Decline

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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

PHOTOVOLTAIC GENERATOR MARKET IN INDIA 2014.PPT

Decline

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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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