The document provides an overview of the power industry in India. It notes that as of 2014, India had an installed power capacity of 237.742 GW, with non-renewable sources making up 87.55% and renewable 12.45%. In 2012-2013, India generated around 911 billion units of electricity. Key sources of power discussed include thermal, nuclear, wind, solar, and coal. The largest players in the Indian power market by market capitalization are listed and described briefly.

1. INDUSTRY ANALYSIS
ON
POWER
By
SIVA KUMAR(31)

2. INDIAN INDUSTRY
• The electricity sector in India had an installed capacity of
237.742 GW as of February 2014
• the world's fourth largest Captive power plants generate
an additional 39.375 GW.
• Non Renewable Power Plants constitute 87.55% and
Renewable Power Plants constitute 12.45% of total
installed Capacity.

3. Indian Industry
• India generated around 911 BU (911,652 MU i.e.
911 TWH) of electricity during the 2012–13.
• The total annual generation of electricity from all types of
sources was 1053.9 Terawatt-hours(TWH) in 2012.
• The total All India Installed Capacity of electric
generating stations as on 31st March, 2013 was
2,23,343.60 MW

4. TRENDS IN POWER INDUSTRY
• The heart of the power plant - combustion gas reaches
1,500 degrees C hot enough to melt some metals.
• This hot gas races through the turbine, setting the
special alloy turbine blades in rotation at speeds of over
3,000 rpm.
• This rotational energy is converted to electricity by the
power generator fixed on the end of the turbine shaft.
MHI's benchmark G-Series gas turbine generates around
330MW of power, sufficient to provide electricity to
40,000 homes

5. WAYS OF POWER
POWER
THERMAL
POWER
NUCLEAR
POWER
WIND
SOLAR POWER
POWER

7. SOLAR POWER
• Solar power is the conversion of sunlight into electricity,
either directly using photovoltaics (PV), or indirectly
using concentrated solar power (CSP).
• The 354 MW SEGS CSP installations is the largest solar
power plant in the world and is located in the Mojave
Desert of California

8. Advantages
• Solar power is pollution-free during use.
• PV installations can operate for many years
with little maintenance or intervention after their
initial set-up
• Solar electric generation is economically
superior where grid connection or fuel transport
is difficult, costly or impossible
• Compared to fossil and nuclear energy sources,
very little research money has been invested in
the development of solar cells, so there is
considerable room for improvement

9. Disadvantages
• Solar electricity is more expensive than most
other forms of small-scale alternative energy
production
• Solar electricity is not produced at night and is
greatly reduced in cloudy conditions.
• Solar cells produce DC which must be
converted to AC. This incurs 4-12% losses
• The efficiency of conversion of solar energy to
useful energy is low

10. Wind power

11. Wind power
• The development of wind power in
India began in the 1990
• India has the fifth largest installed wind
power capacity in the world.
• The total estimated capacity is 45000
GW
• As of 31 Dec 2013 the installed capacity
of wind power in India was 20000 MW

12. State Capacity as on 31.03.2013(MW)
Tamil Nadu 7162.18
Gujarat 3174.58
Maharashtra 3021.85
Rajasthan 2684.65
Karnataka 2135.50
Andhra Pradesh 447.65
Madhya Pradesh 386.00
Kerala 35.10
Others 4.30
Total 19051.46

14. NUCLEAR POWER IN INDIA
• Fourth-largest source of electricity in India after thermal,
hydroelectric and renewable sources.
• India has 20 nuclear reactors in operation in 6 nuclear power
plants, generating 4,780 MW.
• 5 plants are under construction and are expected to generate
an additional 2,720 MW.
• Plans to increase nuclear power output to 64,000 MW by
2032
• Current electricity generation capacity from nuclear energy is
approximately 4.2%.

15. NUCLEAR FUELS
• The most common fissile nuclear fuel is
Uranium 235.
• Thorium can also be used as nuclear
fuel.
• Although not fissile itself, Th-232 will
absorb slow neutrons to produce
uranium-233 (U-233), which is fissile.

17. Coal Reserves in India
• India has World’s Third Largest Coal Reserves
• India has a hard coal reserves around 255 billion tons,
of which 92 billion tons are proven
• Hard coal deposit spread over 27 major coalfields,
located mainly in Eastern and South- Central parts
• The lignite reserves stand at a level around 36 billion
tons, concentrated mainly in Tamil Nadu

18. Wide Range Technologies
• Steam cycle facilities (most commonly
used for large utilities)
• Gas turbines (commonly used for
moderate sized peaking facilities)
• Cogeneration and combined cycle
facility (the combination of gas turbines
or internal combustion engines with heat
recovery systems)

19. KEY PLAYERS IN POWER MARKET

20. MARKET CAPITAL OF 5 COMPANIES
COMPANY MARKET CAP (NSE/Rs . Cr)
Tata power company 23,333.23
Reliance Infrastructure 13,274.42
CESC 6,593.58
Torrent Power 5,007.95
BF Utilities 2,461.58

21. BHARAT FORGE LIMITED(BFL)
• The Company was incorporated on
September 15, 2000 under the Companies
Act, 1956
• IT is a part of USD 2.4
billion Kalyani Group
• BFUL earlier operated in two
Business segments
Infrastructure Business and Investment
Business

22. Calcutta Electric Supply Corporation
• On 17 April 1899, the first thermal power plant of The
Calcutta Electric Supply Corporation Limited was
commissioned at Emambagh Lane near prince Ghat
• The company was shifted to the Victoria House in
Dharmatala, Kolkata in 1933, and still
operates from this address.

23. Reliance infrastructure
• Reliance Energy came into existence when it took over
BSES in 2002. In April 2008, Reliance Energy changed its
name to Reliance Infrastructure
• The company is headed by Anil Ambani, The corporate
headquarters is in Mumbai
• The company is the sole distributor of electricity to
consumers in the suburbs of Mumbai. It also runs power
generation, transmission and distribution
businesses in other parts of
Maharastra Goa and Andhra pradesh

24. Torrent Power
• Torrent Power is one of the leading brands in the Indian
power sector, promoted by torrent group.
• Torrent Power commences distribution operations in
Agra, Uttar Pradesh effective from 1st April, 2010
• First wind power project
commissioned at Jamnagar.

25. Tata power
• Tata Power is India’s largest integrated power company
with a significant international presence.
• Computerized Grid Control and Energy Management
Systems.
• Tata Power commissioned India’s first power plant- the
hydro-electric station- in Khopoli (72 MW) in 1915, the
second hydro station one in Bhivpuri
(78 MW) in 1919 and the 3rd one in
Bhira (300 MW) in 1922.

26. Porter’s Five Forces Analysis of
POWER Industry

27. • Threat of New Entrants(Low )
 High capital requirement
 Difficult access to distribution
 Highly to manage
 Threat of substitute products or services(low)
 Power does not have substitute
 It can be generated from different sources of energy
 coal availability is limited and therefore power from nuclear,
hydro and other renewable sources could be used as
substitute for thermal power in future.

28.  Bargaining power of customers (buyers )
 Industrial consumers have huge demand for power power
 Bargaining power is low
 Government regulates the power sector to ensure supply
of power
 Bargaining power of suppliers(high)
 Coal is majorly used for generation of power
 Coal players are in dominant position.
 However in present situation, the powerof suppliers is high

29.  Competitive rivalry within the Industry(medium)
 No competitive rivalry as demand for power.
 Cultural With government encouragement , private
participation take advantage of huge demand of market

30. TOTAL ASSET TURNOVER
Definition :
Asset turnover is a financial ratio that measures the
efficiency of a company's use of its assets in generating
sales revenue or sales income to the company.
Asset Turnover = Net Sales / Total Assets
The lower the total asset turnover ratio , the more
sluggish the firm's sales.

32. OPERATING PROFIT MARGIN
Definition :
Operating profit margin is a measurement of what
proportion of a company's revenue is left over after
paying for variable costs of production such as wages, raw
materials, etc.
Operating profit margin = EBIT/sales *100

34. DEBT EQUITY RATIO
Definition:
A measure of a company's financial leverage
calculated by dividing its total liabilities by
stockholders' equity.
Debt equity ratio = Total Debt/ Equity Share Capital

36. PRICE-EARNINGS RATIO
Definition :
A valuation ratio of a company's current share price
compared to its per-share earnings.
Calculated as
P/E Ratio = Market Value per Share
Earnings per Share (EPS)
Generally a high P/E ratio means that investors are
anticipating higher growth in the future.