GE Electric Vehicle Case Competition

Business Strategy Proposal

Aditya Bhaisora, Ankur Bhageria, Sonali Saxena

Team Profile
Hospitality Sonali Saxena Manager (Food & Beverage Service), Taj Hotels Experience: 3 years Managed a high-end restaurant ranked among the top 5 restaurants in India by the Miele Guide, Singapore and awarded Best Restaurant in 2010. Worked in luxury hotels across three cities in India. Finance Ankur Bhageria Analyst, J.P.Morgan (Investment Banking division) Experience: 3 years Proficient in research and analysis for potential M&A or capital raising opportunities, company valuation. Worked with clients across continents based out of Mumbai and New York IT Consulting Aditya Bhaisora Business Analyst/Project Manager, UBS (Infosys) Experience: 3 years Proficient in designing & overseeing the development of L&D systems in the banking sector. He has lived in 7 countries, worked across 3 continents and knows 3 languages.

Extra-Curricular Activities @ ISB

Founder, iAsha, Women in Business Club Initiative to financially empower underprivileged women. ELP Project: Potential of electric vehicles for transport fleets for a consortium of European automobile and electric utility companies Founder, Perspectives@ISB, ISB s first peer knowledgesharing community. Venture: Developing a business plan for a first-ofits-kind product in India that prevents loss of personal belongings on-the-move President, Emerging Markets Club ELP Project: Developing a turnaround strategy for PXIL to grow its market share and the Indian power trading market.

The Need
Reliable Supply of Electricity

The Market India

Capital Resources Human Resources

Electrical Storage Charging Facilities

FDI Allowed up to 100%

Supporting Industries:

Vast talent pool in India Material Resources

Supporting ecosystem
Variable Demand Management

Electric Cars

Regulation

GE Smart Grids GE Wattstation Chargers GE Fleet Services

Electric Vehicle Support System Market

Available in House and from vendors

Variable Transmission Management

Control Systems

Customers

Competition: ABB, Schneider Regulatory Barriers Medium

Barriers to Entry Medium

Electric vehicles need support infrastructure before mass adoption

Regulatory/Political Scenario
Regulatory Political
State Electricity Boards are bankrupt & heavily politicised Cities have little autonomy National Urban Renewal Mission hopes to fix this Increased spending on renewable energy like solar , wind & nuclear Enron Fiasco always remains in the background

Perform, Achieve and Trade Initiative will be launched soon

Proposed Strategy A Smart Integrated EV Infrastructure Solution

Be the systems Integrator Create the demonstrator effect Provide cluster of services & products in an integrated form that cater to Indias unique local, market, regulatory and political conditions Form alliances and partnerships wherever necessary

Targeted at energy intensive industries to set targets for energy consumption and reduction in emissions.

Service Package
Products
Electrical Distribution Equipment Charging Stations Phasor Measurement Smart Meters
Energy Production Management

Capability
Control Systems GE already provides most of these products. This integrated service will combine the majority of them GE has experience in selling integrated services. Eg: GE Healthcare Certain services such as two way transfer systems are feasible but economically costly They can be introduced in a phased manner

Demand Management

Charging Infrastructure

Two Way Transfer Systems Energy Production

Integrated EV InfraSystem

Transmission Management

Services
Backup & Recovery Demand Optimisation Power Sensing Systems Energy Management

Alliances/Partnerships
Measurement & Control Services
Automotive Firms Governments Energy Missions Electricity Firms

Monitoring Services

Energy Consulting

Jawaharlal Nehru Solar Mission

Business Model
City Flavour Public Systems Flavour Organizational Flavour

Nehru Urban Renewal Mission Nuclear Power Mission

Alliances & Partnerships need to formed with automotive firms, governments (Central, State & Municipal), energy missions and electricity firms Example: Building EV Infrastructure across a metropolitan city Package Offering Demand Management Energy Production  Charging Stations Transmission Mgmt Example: Supporting an electric bus fleet Package Offering Charging Systems Control Systems Measurement & Control Services Example: Corporate System Rollout Package Offering Charging Systems Smart Meters  Control Systems Measurement & Control Services

Revenue Generation
Revenues can be generated through different forms:  Public Private Partnership (PPP)  Build Operate Transfer Schemes  Pay as you go schemes  One off Contracts

Flavours are highlighted as an example and are fully customisable. Products & Services will be picked and chosen as part of the relevant package

Rollout Phases
Public Systems Requirements Government/Corporate Requirements City Wide Requirements

Constraints & Risks

Constraints
Rising input & human capital costs in India Public sector deficits could draw down demand Corporate downturn risk given worsening economic climate

Risks
Regulatory Risks Technological Risk Transmission Risk Dampened electricity supply or diverted electricity supply

Charter Agreement

Tender Agreement

PPP Agreement

Pilot Seeding

Phase Seeding

Phase Seeding

Options: Stand alone, Integrated

Options: Stand alone, Hybrid, Integrated

Options: Stand alone, Hybrid, Integrated, Future Proofing System Integration Arrangement

Supplier Arrangements

System Integration Arrangements

6 months 1 year projects

1-2 year projects

2-4 year projects

Future Opportunities

Benefits
GE
Foothold in the new Indian EV Market Position as a systems integrator for corporate & government institutions Future positioning to retail markets R&D Outsourcing to India

Partners
Foothold in the new Indian EV Market Component or product provider role in the EV market Tied revenues & R&D development with GE

Customers
A one stop solution for rolling out Electric Vehicle support systems Such systems are scalable Future options to build city & state wide EV support networks

Battery Standardisation Electric Car Trading Systems Auto rickshaw electrification Introduction of Elevator Buses China Solar, Thermal & Wind Charging for Vehicles Electric Transfers From a car to another vehicle or building