1. Team Stormtroopers
Disclaimer : Primary & Secondary research information has been used to validate the solutions in the case. All the recommendations related to the business
problems, as mentioned in the case, has been given by Team Stormtroopers research
IGL IDEATION WORKSHOP CASE STUDY COMPETITON
We propose a Network mapped strategy based on revenue cluster identification for IGL to foray into the
Small cities and town for its Gas Distribution Plan linking with GOI’s Policy framework for profit
maximization.
Formulating an Market Entrant Strategy
for IGL in Small City Cluster Gas
Distribution Using Integrated Network
Mapping
IIM RohtakNaveen | Saurav

2. Analysis of the GCD Dilemma of IGL Ltd.1
Domestic gas supply projections Sector wise natural gas demand in India
Existing power plants, which currently use naphtha,
diesel and other liquid fuels due to shortage of natural
gas, are likely to switch to gas to increase their
utilization rates at a lower cos
Gas consumption trend in India GCD network spread in the specific regions
Our targeted
area
Growth Drivers in IGL Business
• High pollution levels
• Stringent emission norms. SC suggestion
to ban Fuel Oil & Petcoke on pan India basis
• Favourable regulatory support for CGD
• Tax arbitrage between liquid fuel and Gas
• Energy security by Industrial automation
supports gas as fuel
• Domestic production of natural gas is rising
and expected to grow considerably
balances energy mix
ENVISAGE – the problem
VERY HIGH CAPEX on Low
Profitable areas with
regular business model
Investment of 500 Cr.
Seems NPV Negative.

3. 1 Revenue maximization – Guerilla plan – High funds
sourcing
Telecommunication backup
power generation
State Bus Transport –
Hydrogen-enriched CNG buses
Long-term NPV Positive
Increasing Domestic Usage
Scope
Business Parks
Partnership Plays
 Telecom Towers faces loss of upto 25% Overall
revenue due to the intermittent power supply.
 The Areas covered under the 10th Round
Bidding have around 200,000 towers facing
average outages of 8 hours a day
 Preliminary assessment by the company has
revealed that the cost escalation for shifting to
HCNG buses will be about 72 paise per
kilometre, which it hopes would break-even
once the technology is used on a large scale.
 Many people prefer a natural gas water
heater because it’s more economical to run.
AIR CONDITIONING USING 90
PERCENT LESS POWER
 Indian Business parks in the Areas outlined in
the 10th Bidding are expected to increase.
 Creating Exclusive townships powered by GAS
and offering overall Gas powered solutions
can open up new sources of revenue to tap

4. Business Entry Model Factoring - Analysis
Climate change
concerns
-
-
-
-
-
Uncertainty
government
policy
Worsening
fiscal terms
Access to reserves:
political constraints
& competition from
other bidders
Competition from
new technologies
Cost containment
Firm risks
Human
Capital
deficitNew
Operational
challenges
Price Volatility
Risk Based Cities Selection Framework
IGL main constraint is the risk-return tradeoff in venturing into the huge
investments into the smaller cities with virtually possible doubt of low CNG
adoption amongst high revenue drivers such as factories and low uptake of
small margin consumers such as household distribution
We have Identified Uttar Pradesh, Uttarakhand, Madhya Pradesh and
Rajasthan as suitable cities.
Primary Considerations For Launching Gas Distribution Projects In The
10th Round Bidding
Margin dominated considerations
Overhead cost increases with
subsequent reduction in profit
margin realization
Huge Investment CapEx
requirements for operations
Our B-Plan aims to integrate and establish a truck-based delivery chain with a
network of mother and daughter gas station hubs located close to end-users in
smaller cities and towns to extend network reach.
IGL Ltd.
Suppliers
Competitors Complementors
Customers
Value Proposition and Goals
PLAYERS: IGL, IGL’s existing client base, new clients,
other competitors, Co-opetitors (Potential Partners)
ADDED VALUE: Flawless project deliveries, state of
the art execution, top class safety, sharp focus on
quality, huge experience
RULES: Usually projects are EPC contract based, risk
is high
TACTICS: Excellent PTR, high available capacity,
integration
SCOPE: Huge scope in emerging cities
3

5. 10 Year Road-Map for IGL Ltd.
1 In our analysis we have assumed that CGD business is for the 10th Round Bidding
Year 1 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Year 2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
A
B
Long Range
Planning
A BIdentification of
Corporate
Strategy and
initial project
capital allocation
C
D
Focus on intensive growth
Focus on integration of the functional areas
Focus on diversification
Use present
capabilities to gain a
competitive
advantage
C Integrate various areas
and create a design chain
where everything is
popularly communicated
New Services & Product Development
Market Penetration
Create Design Chain
Outsource Activities
Integrate Different Functions
After Construction Services
Township Businesses Strategy
Leveraging on
core
competency
Diversify in other
potential areas such
as renewable energy
sector
D
Integration &
creating
Design Chain
Diversify
across
Businesses

6. Strategy Identification and Innovation mapping
IGL corporate strategy has four key areas. IGL group subsidiaries should
contribute to IGL’s portfolio by focusing on these 4 areas…
Strengthening execution
and operational
efficiency
Business value unlocking Digitalization
Emphasis on improving
Working capital
level
IGL Group
IGL
Distribution Network
Through Aggregators based strategy , we are expecting
to play an increasing role in connecting and enabling
‘disaggregated’ investment opportunities, providing the
confidence to invest in new projects with the reassurance
that value will be maintained.
Improve gas distribution networks with innovative pipeline
monitoring and repair
Prominent challenges to innovation in the gas distribution sector include high operating costs due to
aging assets, customer dissatisfaction due to costly intrusive pipes, third-party damage to pipes and
faulty meters. Understanding the latest advances in pipeline leak detection using smart techniques,
robotic sensors, CNG dispensers, filling systems and other innovative equipment is paramount to
making progress in the CGD sector.
0
1000
2000
3000
4000
5000
ShipBuilding Industrial
Machinery
Realty MMH
Nylon polymer piping is being used to withstand high
operating temperatures. The use of ultrasonic
technology is also being employed to improve weld
quality in pipelines, while leak detection and
pipeline inspection and repair are being improved
with the help of robots, smart tools and innovations in
flowmeters. Advances in CNG filling systems and
dispensers are other recent developments.
4

7. Growth Case Strategy and Partnership Plays
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
2016 2020 2025 2028
Base Case Intensive Integrate Diversification
B
Intensive Growth Strategy
Integration
Diversification
D
B
C
Base CaseA
Strategy Planning Gap
Exhibit 1: Financial Projections for Various Strategies
IGL can use 3 growth strategies to achieve long-term goal
C
D
A
RevenueinRs.Thousands
Uttarakhand
In order to reduce strategic planning gap, IGL should focus on densed smaller city penetration with Industrial
Belt in the outskirts
Intensive Growth Strategy
Growth Drivers for increasing
revenue
• Selection of routes
• Optimum Route design
• System Basic
• Choosing of Smaller Cities and relevant
aggregators
Market
Penetration
Product
Development
Market
Development
Product
Proliferation
Products
Existing
MarketingSegments
New
NewExisting
Partnership Play
5
MP Punjab Uttar
Pradesh

8. Analysing risk in NCT & approach for mitigation6
Regulatory framework Pricing Mechanism
*Identifying Various risk to expand in NCT region
Business Risk
Assessment
• Gas pipeline connectivity
• Availability and Price of
gas
• Size of operations
• Scale-up in demand
• Consumer mix
• Statutory approvals and
support from State
administration
• Performance and
competitive risks involved
in recently bid projects
• Regulatory risk
Financial Risk
Assessment
• Operating profitability and
Return on capital employed
• Gearing
• Leveraging and Debt
service coverage ratios
• Working capital intensity
• Cash flows and Liquidity
• Foreign currency related
risks
• Tenure mismatches, and
risks relating to interest
rates and refinancing
• Accounting quality
How to mitigate the risk
Initial Data
Gathering &
Review
Threat
Identification
Whether
all threads
evaluated
Consequenc
es
Risk
Assessment
Integrity
Assessment Whether
all threads
evaluated
Mitigation &
Response
Data
Upgradation
Review
Yes
Yes
No
No

9. Revenue Maximization Framework Analysis
GIS Mapping for Gas distribution planning and revenue maximization
DGHE Sub-StrategyCity Selection Network Optimization
GIS Enabled topology
identification
 Smart Cities are critical component of the
project selection criteria. With 100 Smart
cities identified by the GoI, these should
have a higher weightage in the Location
identification matrix.
 Developing selective gas pipelines with
viability gap funding (VGF) in some cases:
The government has already provided a
fillip to connect East India with the
national gas grid
 Simulation and analysis of interconnected
different pressure regimes is done in order to
predict the behavior of natural gas distribution
network systems in accordance with different
conditions. This may be used to help decisions
regarding operation of the real system.
 Location and load of customer should be
considered as an important factor in simulation.
 Use of GIS in mapping out the smaller cities can
be tremendously help in identified profit centres
to cater to while establishing local presence
7

10. Revenue projection & Distribution pattern9
Gas
Production
Facility
Large Scale
Liquefaction
Plant
Carrier
Storage & Re
gasification Terminal
Bulk End-use (Power,
fertilizer, Refinery,
Petrochemical, etc.) and
CGD for local distribution
Heavy CGD Vehicles/
Two wheeler usersSmall Scale
Liquefaction Plant
LNG Road
Tanker
LNG Storage &
Pumping Station
LNG Storage &
Pumping Station
Vaporization Unit
Industrial and
Commercial End-user
BULK
Distribution
*Trinity of Supplies, Infrastructure and
Prices to drive gas demand
*Cost effective way of distribution

11. Situation Analysis for NCT region8
Noida
Greater
Noida
Haryana
UP
Delhi
Gurugram
Key challenges anticipated in the future oil & coal supply in NCT region * Sources of energy resources in NCT region
Most of the small scale
industries depend on the
Coal & Oil in this region.
But as the cost &
distribution is very robust in
this area for this 2 material.
Our target is to convert
them into GCD
*How to enable GCD development in NCT region
Barriers to entry for the NCT region
• Low awareness
• Improvement needs in
distribution network
• Safety hazards
• Consumption from local people
is less
• Requires high fixed asset for
improvement
• Needs technological
improvement
• Initially high transport cost

12. Smart City & IGL Business Integration Scenarios
Smart City and Innovation in Gas Distribution
Gas modeling software. Gas distribution network modeling and
operational challenges are solved using specialized software.
Analysis is performed for a closed-conduit network of
pipes, regulators, valves, compressors, etc.
Hydraulic framework can be analyzed at various temperature
and pressure conditions, and can easily handle 1,000,000 or
more nodes.
The software can also add SCADA connectivity to network
analysis and transient modeling.
CGD companies across the world
are adapting GISs to
support their functions.
Available capacity, pressure and
inlet quantity of gas at a station
can be easily monitored by GIS.
With recent advances in web
applications and the adoption of
broadband networks, it is now
possible to integrate GISs with
other business processes.
GIS Enabled GAS
Distribution
Proposed
Piped
Installation
9

13. Future trends & our approach10
Key factors for future growth & trends
Factors Trends
Power
LPG
PNG
* Future smart consumer
of our model
Manufacturing sector’s share
set to increase from 16%
currently to 25% by 2022
1. Multifold increase in energy demand
2. Requirement for more base power,
and heat-cooling
Requirement for significant
increase in food supplies
and allied products to
support growing population
and changing food
consumption habits
1. Improvement in domestic fertilizer
production required to support
increased agricultural activities
2. Gas is the preferred feedstock for
production of nitrogenous fertilizers
A concept to support inter-
state movement of CNG
vehicles
Trend of commercial vehicles
(medium-to heavy duty) switching
over to CNG/LNG

14. “The best way
to predict the future
is to create it”
A b r a h a m L i n c o l n
Thank you for this wonderful opportunity