5. Executive Summary Our services offered Industrial Electrical EPC Electrical EPC for power distribution and transmission companies and Indian Railways Implementation of Grid- interactive solar projects for power distribution companies/ Private sector Providing solar solutions for telecom and oil companies Need for the service: a) Indian railway/Metro rail expansion requires experienced turnkey electrical implementors . b) Power distribution companies for forrenovation, modernization and strengthening of distribution sector under restructured Accelerated Power Development Reform Project Scheme of Ministry of Power for reducing AT & C Losses to level of 15% in Power distribution sector c) Electrical EPC of industrial consumers.and Power Plant EPC d) Electrical EPC OF PowerPlants. e) Remote village electrification using both solar and extension of existing grid as per requirement. f) Turnkey erection of transmission 400/220/132 KV Substations. . Justification for launch at this time Govt. has already sanctioned 51,000 crores under Accelerated Power Development Reform Programme. Further, the Govt. has planned to set up a Rs. 90,000 crore National Electricity Fund (NEF) to reduce T & D Losses which are 38 % (approx 40,000 crore per annum) to 15%. The Government of India`s Eleventh Five Year Plan commenced on April 1, 2007. This plan includes the goal of achieving a national power grid with inter-regional power transfer capacity of more than 37,000 MW. POWERGRID plans to invest Rs100000crore on transmission infrastructure during this five-year period, subject to government approvals Telecom companies facing financial hardshps on account of high opex costs of Base transciever stations. Our solar solution shall help Telecom companies for replacing the traditional Diesel generators with efficient and cost effective solar power (reducing their Base-transciever Station operating cost by 40%). Huge Pvt Sector investment in Power Generation 50000 cr Huge govt/private investment in transmission stations.
6. Executive Summary : The Solution The company will provide services to following consumers as stated below: a) Telecom companies for replacing the traditional Diesel generators with efficient and cost effective solar power (reducing their Base-transciever Station operating cost by 40%) b) Power distribution companies for implementation of grid interactive solar projects and for renovation, modernization and strengthening of distribution sector under restructured Accelerated Power Development Reform Project Scheme of Ministry of Power for reducing AT & C Losses to level of 15% in Power distribution sector (approx saving 40,000 cr.) c) Energy Auditing to ascertain actual AT &C Losses, a precondition for distribution reforms. c) Power transmission companies for implementation of Transmission network expansion and Grid strengthening for interconnecting new generating projects (capacity addition opprox 70,000 MW) and developing inter-regional transmission links. (75,000 cr. Investment) d) Electrical EPC of industrial consumers e) Solar solutions for cathodic protection of pipelines for oil companies. f) Remote village electrification using both solar and extension of existing grid as per requirement. B Barriers to Entry : 1) Consortium with NINGBOVILLE ENTERPRISE CO LTD . This will minimize the initial capital cost and help jointventure tomeet the technical pre-qualifications and credentials reqd. for participating in high value tenders from the start. 2) It shall give us a direct access to proven technology and researched products which other start-ups shall lack.
8. Executive Summary – The Solution SERVICE STRATEGY 1) Applying and working for award of Govt. tenders in the state electricity boards/transmission companies/industrial consumers across the country for Solar and Electrical EPC. 2) The company shall rope in architects and builders for marketing/referencing. 3) Opening of site offices for marketing, liasioning, project execution functions. 4) Deployment of project monitoring team for project engineering, supply chain engg., quality assurance, industrial safety and accounts team for each project. 5) A strong Central management team to coordinate with all the projects for timely execution and reliable and cost effective supply chain management and logistics. 6) Each project to be treated as a profit centre unit with emphasis on cost effectiveness. 7) Motivated HRD team to look after employees interest and motivation to achieve best of results. 8) A strong and motivated network of personals and equipments to provide after sales service to consumers to seek repeat orders. 9) Direct Access 24/7 of our clientele to our company’s top management for quick redressal of their difficulties to provide the best possible implementation experience to our valued Clients on Quality of workmanship, Contractual Performance and timely completion of Projects every time. 10) Timely billing and constant pursuance with high level of perseverance by a constantly motivated team to increase revenue and achieve targets.
9. The Market Total market size Approx. 2,00,000 crore. Govt. has already sanctioned 51,000 crores under Accelerated Power Development Reform Programme. Further, the Govt. has planned to set up a Rs. 90,000 crore National Electricity Fund (NEF) to plug T & D Losses which are approx 40,000 crore per annum. Another 75,000 crore has been planned to be spent for developing new transmission networks and substations (50,000 cr. By PGCIL and 25,000 cr. by private consumers) Clean-tech Energy Solar Photo Voltaic market size above 1000 crore. (contd) Industrial EPC market size above 1000 crore. Rural Electrification market size above 28000 crore. Power Plant electrical EPC above 50000 crore. Growth rate is approx 15% . Trend is Positive and the market maturity shall take two decade. Market Challenges: 1) Meeting the pre-qualification (technical and commercial) of high value tenders. 2) Cost Analysis of tenders, keeping the market fluctuations, time period and competitors in mind. 3) Establishing an experienced, reliable and creditable team having an insight of the market. 4) Establishing credit-worthiness with suppliers and consumers. 5) Arranging low-cost capital for implementing high value tenders.
11. Indian Market with key segmentsThe total investment proposed for the following states under the APDRP scheme is Rs. 51, 000 crore. The focus states shall be as stated below, which will get the maximum share from the fund.
12. Indian Market with key segments For transmission EPC, the focus will be to bag projects from POWERGRID CORPORATION OF INDIA Ltd., DELHI TRANSCO , UP TRANSCO and other states by participating in tenders. For electrical EPC, the focus will be on high energy intensive industries which are converting their power system from 11kV to 33kV and other higher voltage levels and on electrification of new energy intensive industries by offering them efficient turnkey solutions. For Clean-tech solar EPC the target consumers shall be the same as the GRID INTERACTIVE SOLAR power stations are developed by various state electricity boards, which we shall also be tapping for APDRP scheme tenders. Telecom companies for offering them solar based solutions for their base transciever stations. Power Plant EPC to tap pvt consumers. Remote village electrification using both solar and extension of existing grid as per requirement. Huge scope for sale of transformers(power & distribution) , LV & HV Cables etc
13. Customers The company’s current customers are industrial units, hotels, malls for 33kV substations, cabling (33/11kV) and external electrification. Besides above, Potential customers shall be: 1) State Electricity Boards 2) Transmission Companies 3) Railway electrification 4) Telecom Companies 5) Oil companies Value Proposition to customer: 1) Energy and cost efficient solutions to consumers 2) Timely completion of projects 3) Projects so designed so that the ROI is maximum of two years.
16. Business Model and Marketing Plan MARKETING STRATEGY We shall be forming a Joint venture with Major electrification companies LIKE NINGBOVALLE ENTERPRISE CO LTD currently operating internationally to execute the projects . The large international companies are themselves in search for reliable and experienced partners who are well versed with the working of INDIAN government. For solar project, we have done a memorandum of understanding with an Indian Government company to execute solar power projects jointly. The company shall rope in architects and builders for marketing/referencing. Shall do professional customer centric marketing of services offered. Will offer energy efficient solutions at high competitive rates and still make profits due to its focussed approach. Due to the huge demand potential in this sector plus a deeper understanding of the consumer needs and the kink points of the Power distribution/generation system by first hand experience promoters shall give us an edge over competitors in implementation of projects. SERVICE STRATEGY 1) Applying and working for award of Govt. tenders in the state electricity boards across the country. 2) Opening of site offices for marketing, liasioning, project execution functions. 3) Deployment of project monitoring team for project engineering, supply chain engg., quality assurance, industrial safety and accounts team for each project. 4) A strong Central management team to coordinate with all the projects for timely execution and reliable and cost effective supply chain management and logistics. 5) Each project to be treated as a profit centre unit with emphasis on cost effectiveness. 6) Motivated HRD team to look after employees interest and motivation to achieve best of results. 7) A strong and motivated network of personals and equipments to provide after sales service to consumers to seek repeat orders. 8) Direct Access 24/7 of our clientele to our company’s top management for quick redressal of their difficulties to provide the best possible implementation experience to our valued Clients on Quality of workmanship, Contractual Performance and timely completion of Projects every time. Office to be located at NOIDA due to its proximity to the national capital. Target to cross turnover of 28 crore by the year 2012.
17. Regulatory Issues Adept Power Pvt. Ltd. is already a running organization. The company already has: TIN Number from Govt. of U.P. Service Tax Number PAN Number Applied for A-Class Electrical Safety License from Govt. of U.P. 5. EPF, ESI, Labor License to be applied
18. Financial Projections The Power sector is one of the highest sunrise-growth potential sector in our country at present awaiting huge Govt. investments in distribution reforms and Development of transmission sector and emphasis on Solar Clean-tech. The companies who have previously worked upon a similar idea have grown with leaps and bounds, we can substantiate this by examples of the two fast growing private sector companies data records, which were a similar start-up company like ours: 1. In its 3rd financial year of operation, A2Z maintenance and engineering services an electrical EPC company received undisclosed investment from Rakesh Jhunjhunwala, following which A2Z earned PBT of 26.70 cr with Net sales of 180 cr and turnover in 6th year of operation to cross 1200 cr after investment of 75 crores from Beacon India Pvt. Ltd. 2. ICSA India Ltd: Was initially started in 2000 as software company and was in losses till 2004 , when it was transformed into Electrical EPC Company which led to steep rise in Revenues of 678.55 crore, due to Bank of Singapore initial investment.
19. Management Team Mr. Sanjay Kapoor – A mechanical engineering graduate has 21 years of hands-on experience of Power Generation and distribution sector by service to Uttar Pradesh Power Corporation Pvt. Ltd. as a Subdivisional Officer. He is a certified Energy auditor by the Bureau of Energy Efficiency, Ministry of Power. MrRajnishGiri - MBA who will look after international/ national liasions and corporate affairs. He is also Country head and represents India for EASTCOMPEACE INDIA PVT LTD based at ZUHAI CHINA. RaginiKapoor – A post Graduate in Chemistry, is actively involved in the administration and marketing functions of the company. Our team has experienced promoters, who have clear vision of the roadmap towards achieving the defined targets. We have an in depth understanding of the consumer needs and an assertive and open strategy for forming Joint-Ventures/Associates which shall help us forming strong fundamentals to head-start from our predefined high datum levels, with an eagle eye on the revenue and profits, and the growth of our company. Moreover, our team is highly receptive of the new technological developments and is in a continuous learning process to finally have an edge over the top players of this industry.
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