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Business opportunities for indian electrical companies in latin america

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TULS Management is a project management and advisory company in India with base in Mumbai. The presentation will include an update and outlook of top 5 countries in Latin America.

TULS Management is a project management and advisory company in India with base in Mumbai. The presentation will include an update and outlook of top 5 countries in Latin America.

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    Business opportunities for indian electrical companies in latin america Business opportunities for indian electrical companies in latin america Presentation Transcript

    • TULS ManagementBusiness Opportunities in Latin America
    • Our Values To promoteVision wealth sharing culture among stakeholders in a Challenging, Rewarding & Sustainable work environment.Values Leverage Sustain U TrustPhilosoph Bonding with every stakeholder to achieve goals, y based on Win-Win relationship.
    • We are for yoU Power Sector
    • Our Competency in Construction Sector Project Schedule Project Project Analysis & Management Control Monitoring Management Budget Construction Quality Planning Analysis & Management Control Control JV partner Feasibility search & agreement Strategic Analysis & Advisory Business Plan Power Sector Due Diligence Risk Advisory Assessment Technical Location /Equity Identification Partner and Planning search
    • Latin AmericaThose countries in the Americas and the Carribean which speak Latin-derivedlanguages, mostly Spanish and Portuguese; Mexico, Central America ... Countries in Latin America Chile Mexico Argentina Venezuela Uruguay Panama Costa Rica Brazil Peru Dominican Republic Colombia Ecuador El Salvador Gautemala Paraguay Bolivia Honduras Nicargua Haiti Cuba
    • Korea/Japan 12.0% US EU 28.0% 30.3% Emerging Asia 9.1% China Latin am 5.0% 4.7%Latin America’s share of the world output is small when compared to Asia
    • Brazil, Mexico, Argentina, Venezuela and Chile Lead the Growth
    • Projected growth in electricity demand of 4.8% p.a. •100,000 MW needed in next ten years (current capacity: 250,000 MW) •Annual investment of about US$20 billion required for related to generation, transmission and distribution •Investment requirements still large under lower demand scenarios Concern over supply gap •Load shedding in some countries •Other countries face prospect of future supply deficit Concern over increasing cost of power supply •Capital costs (hydro, wind, etc.) •Fuel costs (thermal, etc.)Source - World Bank Presentation Dec 2008
    • Initial Screeningbased on Power Sector Demand Indicators Comparing GDP - Economic Growth with Electricity Consumption
    • (Based on GDP and Economic Growth) Countries GDP Per Capita Annual Economic 2008 (USD ) Growth 2007 (%)Chile 14,688 5.1Mexico 14,581 3.2Argentina 14,354 8.7Venezuela 12,933 8.4Uruguay 12,707 7.4Panama 11,255 11.5Costa Rica 10,832 7.3Brazil 10,298 5.4Peru 8,584 8.9Dominican Republic 8,558 8.5Colombia 8,336 7.7Ecuador 7,518 2.5
    • Top 12 Countries (Based on Electricity Consumption) Rank Country Electricity Consumption (GWh) 1 Brazil 368500 2 Mexico 183300 3 Argentina 88980 4 Venezuela 73360 5 Chile 48310 6 Colombia 38910 7 Puerto Rico 23210 8 Peru 22590 9 Ecuador 8855 10 Dominican Republic 8791 11 Costa Rica 7776 12 Uruguay 7030Source :- US Department of Commerce
    • Top 9 Countries(Initial Screening Based on Common in both parameters) Rank Country 1 Brazil 2 Mexico 3 Argentina 4 Venezuela 5 Chile 6 Colombia 7 Peru 8 Ecuador 9 Dominican Republic Now, we shall analyze above Short listed countries ……
    • BrazilPopulation 190 MillionPower SectorGen. Installed capacity (2006) 96,294 MWCountry is interconnected by 80,000 km of HV lines 40,000 km of HV circuits until 2012Distribution losses (2005)14% Key indicators 08 09 10 11 12 13Real GDP growth (%) 5.3 2.7 3.9 4.1 4.0 4.1Consumer price inflation 5.8 6.3 4.2 3.7 3.7 3.7 (av; %)
    • Major exports 2007 % of total Major imports 2007 % of totalTransport equip. & Part 12.5 Machinery & elec. equip. 26.1Metallurgical products 11.6 Chemical products 15.4Soybeans, meal &oils 8.2 Oil & derivatives 16.6Chemical products 1.9 Transport equip. & parts 12.0Leading markets 2007 % of total Leading suppliers 2007 % of totalUS 15.8 US 15.7Argentina 9.0 China 10.5China 6.7 Argentina 8.6Germany 4.5 Netherlands 0.0
    • Mexico Population – 109 Million Power Sector Gen. Installed capacity(2006) – 49, 000 MW Transmission -43,000 km high voltage lines 45,000 km medium voltage lines and 600,000 km Low voltage distribution lines Distribution losses (2005)14%Key indicators 2007 2008 2009 2010 2011 2012Real GDP growth 3.3 2.3 1.6 3.4 3.8 3.6 (%)Consumer price 4 5.2 5.2 3.6 3.4 3.3 inflation (%)
    • Major exports 2007 % of total Major imports 2007 % of totalManufactures 80.7 Intermediate goods 72.9Maquiladora 44.7 Maquiladora 34.2Oil 15.8 Consumer goods 14.8Agricultural products 2.8 Capital goods 12.3 Leading markets % of total Leading suppliers % of total 2007 2007US 82.1 US 49.6Canada 2.4 South Korea 10.5Spain 1.5 China 5.8Germany 1.3 Japan 4.5
    • Argentina Population – 40 Million Power Sector Gen. Installed capacity(2006) – 24,000 MW Transmission Lines 500 kV 9,100 km 220/132 kV 12,000 km Distribution losses (2005)13.6%Key indicators 2007 2008 2009 2010 2011 2012Real GDP growth 8.7 6 3.5 3.8 4.7 4.5 (%)Consumer price 8.8 9.3 10.4 8.7 7.7 7.4 inflation (av; %)
    • Major exports 2007 % of total Major imports 2007 % of totalProcessed 34.4 Intermediate goods 34.7 agricultural productsManufactures 31.1 Capital goods 24.2Primary 22.3 Consumer goods 11.6Fuels&energy 12.2 Fuels 6.3Leading markets % of total Leading suppliers % of total 2007 2007Brazil 17.4 Brazil 31.7China 9.6 US 14.4US 7.8 China 8.7
    • VenezuelaPopulation – 26 MillionPower SectorGen. Installed capacity(2005) – 22,100 MWDistribution losses (2005)13.6%Key indicators 2008 2009 2010 2011 2012 2013Real GDP 5.4 2.7 1.9 2.7 3.3 1.8 growth (%)Consumer price 31 35.7 33.3 28.8 27.9 25 inflation (av; %)
    • Major exports 2007 % of total Major imports 2007 % of totalOil & gas 90.4 Raw materials 44.5 &intermediate goodsOther 9.6 Consumer goods 24.5 Capital goods 31.0 Leading markets % of total Leading suppliers % of total 2006 2006US 53.5 US 29.2Netherlands Antilles 8.8 Colombia 9.6China 3.7 Brazil 7.9
    • ChilePopulation – 16.76 MillionPower SectorGen. Installed capacity(2005) – 11,980 MWDistribution losses (2005)6.52%Key indicators 08 09 10 11 12 13Real GDP 3.9 2.8 3.8 5.1 5.4 5.5 growth (%)Consumer price 8.8 6.4 3.6 3.1 3 3 inflation(a%)
    • Major exports 2007 % of total Major imports 2007 % of totalCopper 55.5 Intermediate goods 57.4Cellulose 4.5 Capital goods 15.3Fresh fruit 4.1 Consumer goods 19.2 Leading markets % of total Leading suppliers % of total 2007 2007China 14.8 US 15.5US 12.4 China 10.4Japan 10.5 Brazil 9.6Netherlands 5.8 Argentina 9.2
    • Colombia Population – 44 Million Power Sector Gen. Installed capacity(2005) – 13,400 MW Distribution losses (2005)16.00%Key indicators 2008 2009 2010 2011 2012 2013Real GDP 2.8 1.8 2.6 3.6 4 3.9 growth (%)Consumer price 7.1 6.1 4.6 4.4 4.1 4 inflation (av; %)
    • Major exports 2007 % of total Major imports 2007 % of totalPetroleum & products 24.4 Intermediate goods 43.1Coal 11.7 Capital goods 36.3Coffee 5.7 Consumer goods 20.7 Leading markets % of total Leading suppliers % of total2007 2007US 30.4 US 28.6Venezuela 12.3 Brazil 8.6Ecuador 5.4 Mexico 8.5
    • Peru Population –29 Million Power Sector Gen. Installed capacity(2006) – 6,400 MW Distribution losses (2005)11.00%Key indicators 2007 2008 2009 2010 2011 2012Real GDP growth 9 7.9 6.6 5.8 5.3 5 (%)Consumer price 1.8 5.1 4 3.5 3.2 2.9 inflation (av; %)
    • Major exports 2007 US$ m Major imports 2007 US$ mCopper 7,241 Intermediate goods 10,416Gold 4,157 Capital goods 5,885Fishmeal 1,456 Consumer goods 3,191 Leading markets % of total Leading suppliers % of total 2007 2007US 18.4 US 21.7China 11.5 China 11.5Switzerland 7.9 Brazil 10.4Canada 6.8 Ecuador 6.3
    • Ecuador Population –14 Million Power Sector Gen. Installed capacity(2006) – 12,000 MW Distribution losses (2005)13.6%Key indicators 2008 2009 2010 2011 2012 2013Real GDP growth 4.2 1.6 1.8 2.2 2.6 3 (%)Consumer price 8.4 5.6 4.5 4.4 3.4 3.4 inflation (av; %)
    • Major exports 2007 % of total Major imports 2007 % of totalOil&oil products 57.8 Raw materials 29.0Banana&plantain 9.1 Capital goods 22.8Shrimp 4.2 Consumer goods 20.1Canned fish 4.2 Fuel & lubricants 18.8 Leading markets % of total Leading suppliers % of total 2006 2006US 53.6 US 21.4Peru 8.2 Colombia 12.3Colombia 5.6 Brazil 6.8Chile 4.4 China 0.0
    • Dominican Republic Population – 9 Million Power Sector Gen. Installed capacity(2006) – 3,394 MW Distribution losses (2005) 42.5%Key indicators 2008 2009 2010 2011 2012 2013Real GDP growth 5.5 3 4.5 4.8 4.8 4.8 (%)Consumer price 12.2 9.6 7.2 5.6 5.5 5.5 inflation (av; %)
    • Major exports 2007 % of total Major imports 2007 % of totalFree-trade zones 63.0 Fuels 23.6Ferro nickel 15.7 Free-trade zones 20.0Sugar&derivatives 1.8 Consumer goods 25.9Cocoa&derivatives 1.3 Raw materials 17.9 Leading markets % of total Leading suppliers % of total2007 2007US 67.2 US 45.1Belgium 3.8 Venezuela 8.1Finland 3.4 Colombia 6.4UK 2.7 Mexico 5.7
    • Screening of Top 5 Countries based onPower Equipment Demand Drivers & Business Factors  Economic Factors of the Country  Countries Investment in Power Sector  Imports Potential for Targeted Product Group  Distribution Losses (replacement demand of Old equipment)  Ease of Doing Business
    • Economy Ease of Doing Business RankChile 40Mexico 56Peru 62Dominican Republic 97Argentina 113Brazil 125Ecuador 136Venezuela 174Source - The World Bank Group
    • Brazil Electric Power SectorElectric Power Equipment and Services: Brazil plans to invest over $67billion over the next 10 years.The Brazilian Development Bank (BNDES) should invest at least 10 billionBrazilian reals (US$ 4.3 billion) in the electric sector this year, althoughthe disbursements may rise as high as 12 billion (US$ 5.2 billion). (News20th Jan 2009) Other Key Figures Worlds 7th largest consumer market 50% of South American territory World’s 5th largest population (180 million) 50% of South America’s effective consumption Gateway to Latin America
    • (In US$ Million) 2005 2006 2007 Total Market Size 1,610 1,878 2,554 Total Local Production 1,000 1,100 1,300 Total Exports 38 52 86 Total Imports 648 830 1,340Argentina has the third-largest power market in Latin AmericaOne of the most competitive, deregulated power sectors in Latin AmericaUnveiled 21 billion USD in infrastructure megaplan (Nov 2008)
    • Mexico Electric Power Sector (In US$ Million)CFE will add 14.0GW new capacity in 2008-17LyFc will add 761MW bew capacity in 2008-17Cogeneration and self-supply projects will add another 2.49GW
    • Venezuelas national power company, Corpolec, plans to invest$13.8 billionUSD up to and including 2014Generate Additional 8,635 MW
    • (In US$ Million)Between 2008 and 2012, there will be a surge in power generationand transmission investment that will require foreign directinvestment and supplies up to an estimated $17 billion.
    • Mercosur or Mercosul is a Regional Trade Agreement (RTA) amongArgentina, Brazil, Paraguay and Uruguay founded in 1991 by theTreaty of Asunción. Its purpose is to promote free trade and the fluidmovement of goods, people, and currency. Full members Associate members Argentina Bolivia Brazil Chile Paraguay Colombia Uruguay Ecuador Becoming full members Peru Venezuela Observers Mexico
    • Based on above the top 5 Countries in Latin America forEMCO are 1. BRAZIL 2. ARGENTINA 3. MEXICO 4. VENEZUALA 5. CHILE
    • TULS AdvantageOur differentiating factors are highlighted as follows Young, dynamic, experienced and multidisciplinary team Strategic, systematic , cost saving & result oriented approach. Customized and continued Support Technical, financial and international expertise. Abiding standards of trust, ethics & sustainable growth.
    • TULS MANAGEMENTG-14, Vijay Apartment III, Opp Bank of Baroda,Waghbil, GB Road, Thane (W) 400607.Phone : +91 22 2597 1089, +91 9004016785Email : info@tulsgroup.com