Presentation to the Company’s Shareholders
Anil Sardana
Managing Director
August 16, 2013
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Flow of Presentation
•
Sector Opportunities and Outlook
•
About Your Company
•
Company Strategy and Priorities
•
Financials
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Sector Opportunities and
Outlook
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Power sector in India has been facing challenges across
the value chain (1/2)
Challenges in Indian Power Sector
Fuel
• Lack of sufficient growth in domestic coal
production
• Regulatory changes in markets such as
Indonesia
Generation
• Shortage of gas supply
• Lack of Uniformity in the Land Acquisition
Policy Framework
• Inordinate delays in environmental
clearances
• Tightening of norms from financial
institutions
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Power sector in India has been facing challenges across
the value chain (2/2)
Transmission
Challenges in Indian Power Sector
• Network not sufficient to meet growth
• Several Transmission projects
developing slowly
• Success of Southern Grid integration
and open access depends on
expansion of Transmission capacity
Distribution
• SEBs financial losses
• High AT&C losses
• Power tariffs artificially kept low
• SEBs resorting to load shedding in
peak hours
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About Your Company
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Tata Power is India’s largest Integrated Power Utility
• Founded in 1906 to supply power to Mumbai
– First hydro plant commissioned in 1915
– Set up thermal power plants in Mumbai in the 1950s
• Expanded in India after private sector reforms in 1990s
Fuel
Fuel Logistics
Generation
Transmission
Distribution
Power Trading
Presence across the entire value chain
• Thrust on renewable energy sources including hydro, wind, solar and geothermal
• Successful Public Private Partnerships in generation, transmission and distribution
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Integrated play in all key areas of the value chain
Play across the entire value chain
Fuel
 Stake in Indonesian
mines
 Two (2) Domestic
mines being
developed
 Fuel supply in place
for majority of
operational and underexecution projects
Generation
 8,521 MW
operational capacity –
7,646 MW of thermal
 1,151 MW under build
Transmission
 Mumbai:
Distribution &
Supply
 Mumbai
distribution network
 1,100 circuit km of
220KV/ 110 KV lines
– Over 4 lakh retail
and 19 receiving
consumers
stations
 Delhi distribution
 Powerlinks:
– Over 1.3 million
– 1,200 km of line
associated with Tala
hydro project
– Connects Bhutan
and Northern Region
customers
 Jamshedpur Distribution
Franchise
– Consumer base of over
3 lakh
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Continuously expanding Global Footprint
Tata Power – Global presence
Hydro Projects Georgia
Hydro Projects Bhutan
Comprehensive Electricity
Management, RAK, UAE
Logistics
Office Singapore
Distribution
Assignment Nigeria
Technology
Investments Australia
Hydro PowerZambia
JV for Power Projects
– South Africa
Coal Mines,
Geothermal Project –
Indonesia
Partnerships have been built with several major players worldwide
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Company’s Priorities
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CGPL, Mundra: CERC committee deliberation in
progress – awaiting an early resolution
Highlights
• Fifth 800 MW unit commissioned on 22 Mar 2013
• CGPL holds the record of commissioning
maximum capacity during a year (3,200 MW) by
any Indian utility
CGPL PPA Resolution
• CERC in its order dated 15 Apr 2013 has given a
directive to constitute a committee to recommend
a compensatory tariff
• Committee deliberating the possible options
• Tata Power hopeful of an early resolution
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MPL, Maithon: stable performance, strengthening fuel
logistics and power sale
About the Plant
• Unit 1 (525 MW) achieved commercial
operation on 1 Sep 2011 and Unit 2
(525 MW) on 24 Jul 2012
• 900 MW tied up through long term PPA
Priorities going forward
• Strengthening coal logistics by
completion of railway siding
• Pursuing PPA arrangements for
balance 150 MW
• Finalization of tariff with CERC
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Mumbai Operations – strong sustained performance
across Generation, Transmission & Distribution
• Availability levels higher than
previous year – powering
Mumbai with high quality
reliable supply
• Increased generation units
due owing to growing power
demand
• Grid availability at 99.56%
against MERC norm of 98%
• Retail consumer base of ~4
lakh
• Remote operation of receiving
stations from Power System
Control Centre
• Focus on low end consumers
(<300 unit consumption per
month)
• Network upgrade and
capacity expansion projects
are being carried out
• Continued support to
infrastructure in Mumbai
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Trombay: Unit 6 Coal Conversion
Uniqueness of Mumbai generation
• Full scale operation of Trombay Power
Station critical for Mumbai’s islanding
concept
• Trombay Thermal Power Station provides
power only to the city of Mumbai
(embedded generation)
• Mumbai power demand expected to grow
from ~3.5 GW today to over 6 GW by
2020
• Transmission System constraints pose
a challenge to import additional power in
Mumbai
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Benefits from Unit-6 Coal Conversion
Reduction in ground level concentration
4.58 4.43
3.91 3.85
• Coal conversion to result in lower cost
of power for consumers
2.24 1.94
SPM
SO2
Existing (ug/m3)
NOX
After Coal Conversion (ug/m3)
Ambient Air Quality at Trombay
• Coal Conversion of 500 MW Unit will
help to reduce ground level
concentration of pollutants in view of
significant investment in pollution
control equipment
100
80
80
57
17
2.24
SPM (PM 10)
AAQM Std.
SO2
Existing Level
• The modified Unit-6 will use imported
coal which has significantly less
amount of Ash and Sulphur, which are
the main cause of air pollution, as
compared to Indian coal
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4.58
3.91
NOX
Contribution by Trombay Plant
• Company responsible to handle 100%
of Ash being generated in benign
applications
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Key Subsidiaries
Tata Power
Delhi
Distribution
Ltd.
• High degree of reliability (ASAI > 99%)
• Consistently over-achieved AT&C Loss Reduction Targets
• TPDDL Call Centers are global benchmark
Powerlinks
• India’s first private sector inter-state transmission project on a
BOOT basis
• Grid availability maintained at 98.49% (Eastern Region) and
99.95% (Northern Region) against stipulated norm of 98%
Wind
• Assets across Maharashtra, Gujarat, Tamil Nadu, Rajasthan
and Karnataka
Tata Power
Renewable
Energy Ltd.
• Wind based projects of over 160 MW currently being
developed across the country (Aggregated Tata Power
operational wind power is now about 400 MW)
Solar
• Installed capacities: 29 MW
• Land acquisition for new projects in progress
• New projects being developed in Maharashtra, Gujarat and
Rajasthan
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Kalinganagar, Odisha CPP-1: 202.5 MW (3 X 67.5 MW)
Highlights
• Project being executed through IEL, a
JV of Tata Power (74%) and Tata Steel
(26%)
• Power supply to Tata Steel plant in
Kalinganagar, Odisha
Project Status
• EPC contract awarded
• All clearances for the project in place
• On-ground execution in advanced
stages
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Domestic Captive Coal Block Projects
Mandakini Captive Coal Block
• Being developed through JV of Tata Power,
Monnet Ispat and Jindal Photo Film
• Expected yield of 7.5 MTPA
• Land acquisition completed
• Vendor for mine development and operation
under finalization
Tubed Captive Coal Block
• Coal block being developed through JV of
Tata Power (40%) and Hindalco (60%)
• Expected annual yield of 6.0 MTPA
• Tata Power’s share of coal to be used for
Tiruldih project
• Land acquisition currently in progress
Representative picture
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Tata Power Jamshedpur Distribution Limited
Highlights
• Distribution Franchisee agreement signed with JSEB on 5 Dec 2012 for a period of 15
years for power distribution in the Jamshedpur Circle in Jharkhand
• Coverage area of approximately 3,600 sq. km
• Consumer base of approximately 3 lakh
• Expected date of takeover is around Oct 2013
With takeover of power supply for Jamshedpur, distribution retail consumer
base of Tata Power will cross 2 million
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Dagacchu Hydroelectric Power Project, Bhutan: 126 MW
Highlights
• Project being implemented in Bhutan
• Project being executed through JV of
Tata Power (26%), Druk Green Power
(59%) and NPPF, Bhutan (15%)
• Civil works progressing as planned
• 87% concreting completed
• 98% manufacturing of electro
mechanical equipment completed
• Erection of various electro mechanical
components at the dam site and in the
Power House under progress
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Cennergi: 234 MW
Highlights
• Cennergi formed through 50:50 JV
between Tata Power and Exxaro
Resources Limited, the second largest
coal producer in South Africa
• Cennergi will focus on development of
power generation projects in South
Africa, Botswana, Namibia and other
African countries
• Steady progress towards financial
closure for two wind projects (234
MW) for which it was declared
successful by Dept. of Energy, Govt.
of South Africa
Representative picture
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Georgia Hydro: 400 MW
Highlights
• Tata Power in an agreement with
Clean Energy Invest AS and IFC
InfraVentures for development of
hydro power projects in Georgia
• 40% stake in the venture
implementing three hydro projects
aggregating to 400 MW
• Power sale primarily to Turkey (85%)
and the rest within Georgia (15%)
• This project provides Tata Power with
a window into the region and leverage
Turkish connectivity to European
power markets
Source: lemill.net
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Domestic Projects
New projects being developed
Dugar Hydro: 380 MW
Maithon Expansion: 1,320 MW
Mundra Expansion: 1,600 MW
400 kV Vikhroli Transmission
Coastal Maharashtra, Dehrand: 1,600 MW
Begunia: 1,320 MW
Tiruldih: 1,980 MW
Kalinganagar CPP2: 450 MW
Palaswadi, Solar, 28.8 MW
Visapur, Wind, 28.8 MW
Pethshivapur, Wind, 49.5 MW
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International Projects
Ras Al-Khaimah (RAK)
Sorik Marapi Geothermal, Indonesia
Representative picture only
• Memorandum of Agreement executed with
Govt. of RAK for implementing comprehensive
electricity management in the Emirate
• Opportunity for Tata Power to associate with
Generation, Transmission and Distribution
systems of the Emirate
• Project being executed by a consortium of Tata
Power, Origin Energy and PT Supraco Indo.
• Project in exploration phase
• PPA negotiation in progress with Indonesia’s
State Power Off-taker
• Exploratory drilling to commence in FY14
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Value Added Businesses
Tata Power Solar Systems
Tata Power Trading
• Focused on manufacturing and sale of solar
cells & modules, EPC and O&M services
• Ranked 2nd largest power trader
Tata Power SED
Tata Power Services
• Revenue of Rs. 293 Cr in FY13
• Leverages company’s capability in power plant
O&M, project management, testing etc.
• SED’s Software Unit successfully appraised at
CMMI Level 5
• Consistent growth (~40% CAGR in 5 years)
• Offers customized solutions to Greenfield and
existing power plants
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Financials
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Standalone Financials
Figures in ` Crore
FY13
FY12
Revenue from Operations (Net)
9,567.28
8495.84
Operating Expenditure
7,543.22
6,711.21
Operating Profit
2,024.06
1,784.63
Add: Other Income
721.67
983.46
Less: Finance Costs
678.25
514.87
2,067.48
2,253.22
364.10
570.35
1,703.38
1,682.87
678.69
513.14
1,024.69
1,169.73
Profit Before Depreciation and Tax
Less: Depreciation/Amortization/Impairment
Profit Before Tax
Less: Tax Expenses
Net Profit/(Loss) After Tax
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Consolidated Financials
Figures in ` Crore
FY13
FY12
Revenue from Operations (Net)
33,025.43
26,001.40
Operating Expenditure
26,580.73
21,101.18
6,444.70
4,900.22
369.20
268.76
Less: Finance Costs
2,635.53
1,527.09
Profit Before Depreciation and Tax
4,178.37
3,641.89
Less: Depreciation/Amortization/Impairment
2,901.69
3,134.64
Profit Before Tax
1,276.68
507.25
Less: Tax Expenses
1,177.96
1,475.54
98.72
(968.29)
Operating Profit
Add: Other Income
Net Profit/(Loss) After Tax
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Q1 FY14 Performance - Standalone
Figures in ` Crore
Q1FY14
Q1FY13
Revenue from Operations (Net)
2,607.51
2,284.10
Expenses
2,001.53
2,061.74
Profit from operations before other income, finance
costs and tax
605.98
222.36
Other Income
179.88
345.59
Profit before finance costs and tax
785.86
567.95
Finance costs
236.27
139.81
Profit before tax
549.59
428.14
Tax expense
192.59
115.84
Net profit after tax
357.00
312.30
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Q1 FY14 Performance – Consolidated (Unaudited)
Figures in ` Crore
Q1FY14
Q1FY13
Revenue from Operations (Net)
9,339.49
7,253.89
Expenses
7,923.45
6,345.73
Profit from operations before other income, finance
costs, exceptional item and tax
1,416.04
908.16
Other Income
(227.92)
62.58
Profit before finance costs, exceptional item and tax
1,188.12
970.74
Finance costs
902.46
549.32
Profit before exceptional item and tax
285.66
421.42
-
-
Profit/(Loss) before tax
285.66
421.42
Tax expense
334.64
226.29
Net profit after tax
(48.98)
195.13
(114.70)
146.93
Exceptional Item – Provision for impairment
Net profit/(loss) after tax, minority interest and share
of profit of associates
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Tata Power Stock Performance
April 2011 – till date: normalized chart
Apr 2012 value
BSE Sensex
Power Index
Tata Power
17,319
2,012
106
120
110
100
90
80
70
60
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Tata Power has undertaken a number of initiatives on
Sustainability as a part of ‘Leadership with Care’
Sustainability initiatives
Care for Environment
Care for Community
 Renewables, clean/ green  Community engagement
energy
 Livelihood, infrastructure
and natural resources
 Efficient technologies
 Carbon footprint reduction
Initiatives
 Bio-Diversity conservation
 Fly ash brick
manufacturing unit at
Jojobera
 Solar lights – Mundra,
Tiruldih, Maval, Mulshi and
Maithon
 Eco-restoration and Ecodevelopment in Western
Ghats
 Support for Uttarakhand –
cash donation, solar lanterns,
deputation of engineers to
rebuild power supply
Care for Customers
Care for People
 Energy clubs
 Safety and health
 Customer care centers
 Employee learning &
development
 Demand side
management, energy
audits
 25 customer care centres
 Continued energy
conservation efforts
through Club Enerji
 Developing managers
centric, across domains/
functions
 Association with DuPont
for benchmarked safety
management practices
 Special initiatives to
address safety and
special needs of women
employees
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Uttrakhand – Immediate Support, in areas impacted
Tata Power teams mobilized immediate support for impacted areas & residents along with other Tata Cos.
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Awards and Recognition
CII ITC Sustainability Award 2012 for strong
commitment to environment
Power Line award for ‘Best Performing
Renewable IPP’
Power Line ‘Best Performing
Private Discom’ award for TPDDL
Winner – ‘Infrastructure Excellence Awards 2012 for
the project – Ultra Mega Power Project, Mundra’
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Website: www.tatapower.com
Email ID: md@tatapower.com
Contact No: +91 22 6665 8888
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