Indian Power Industry.pptx

7/30/2019 Indian Power Industry.pptx

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Indian PowerIndustry

Indian Power Industry

byKASHIF KALIMRACHIT DHALLTANUJ VIRMAYANK CHATURVEDINIRBHAY TANEJA


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5 th largest electricity generation capacity

6 th largest consumer accounting for 3.4% of global energy

consumption

Grown 3.6 % p.a over the past 30 years

Introduction


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Players in power sector

48%

21%

31%

State utility

Private utility

Central utility

Report of Central Electricity Authority31-03-2011


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Indian Power Sector

One of the most diversified in the word

55%

21%

10%

2%1%

11%

End of Aug 2011

Total 99503 MW

Coal

Hydro

Gas

Nuclear

DieselRenewable

2010-11 4.9 %2011-12 9.2 %2012-13 9.3 %


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Porters Five Forces Analysis

Industry Rivalry

(Medium)

Potential Entrants(Low)

Buyers

(Buyer Power )

(Medium)

Substitutes

(Medium)

Supplier

(supplier power )

(High)


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Potential Entrants(LOW)

Highly capital Intensive Behemoth like NTPC, SEBs contributing around 85% of total

power produced

Reliance power, Adani power, Lanco etc entrer sector aftermarket opened up for private sector through Electricity

Act 2003 However obtaining regulatory approvals, fuel linkages, land

etc still remain the major hindrance Hence the threat of new entrant appears to be low


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Threat of substitute products or services(Medium)

Power does not have substitute but it can be generated from

different sources of energy Currently thermal power is dominant in India, coal being the

major raw material Coal availability is limited & therefore power from nuclear,

hydro, and other renewable sources could be used assubstitute for thermal power in future

Although, demand for power exceeds its supply , thermalpower plant companies have threat from non thermal powergenerators

Hence the threat of substitute product s is medium


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Buyers Power (Medium)

Industrial consumers have huge demand for power Their bargaining power is Low in India as the number of

companies to buy from is limited in number. Hence powercompanies are in better position

Retail customers - Government regulates the power sector toensure supply of power at reasonable prices but thisregulation is limited

Peak shortage is much more in every region & it is about 12%

on all India basis which allows suppliers to dictate terms withbuyer

Overall, the bargaining power of buyers is Medium


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Power of supplier(High)

Coal is majorly used as a feed for generating powers

The supply of coal is limited in India & hence coal suppliers

are in dominant position

Import of coal is an expensive affair

Hence power of supplier is high


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Intensity of competitive rivalry with in Industry(Medium)

Power Producing companies No competitive rivalry asdemand for power is way above its supply

However, with government encouragement , private

participation is expected to increase in the coming years totake advantage of huge demand-supply gap Power equipment market- Market leaders like BHEL is facing

tough competition from L&T, Alstom, Doosan and mostimportantly chinese suppliers.

So overall the intensity of competitive rivalry is medium


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References

Planning commission report on power sector

http://planningcommission.nic.in/aboutus/committee/wrkgrp12/wg_power1904.pdf

Ministry of power, Government of India

http://www.powermin.nic.in
http://planningcommission.nic.in/aboutus/committee/wrkgrp12/wg_power1904.pdfhttp://planningcommission.nic.in/aboutus/committee/wrkgrp12/wg_power1904.pdfhttp://planningcommission.nic.in/aboutus/committee/wrkgrp12/wg_power1904.pdfhttp://planningcommission.nic.in/aboutus/committee/wrkgrp12/wg_power1904.pdf


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THANK YOU

Indian Power Industry.pptx

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