Power Generation in India July 2014

MarketLine Industry Profile
Power Generation in
India
July 2014
Reference Code: 0102-2702
Publication Date: July 2014
WWW.MARKETLINE.COM
MARKET LINE. T HIS PROFILE IS A LICENSED PRODUCT AND IS NOT T O BE PHOT OCOPIED
India - Power Generation

MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
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EXECUTIVE SUMMARY
Market value
The Indian power generation industry grew by 7.3% in 2013 to reach a value of $71.5 billion.
Market value forecast

In 2018, the Indian power generation industry is forecast to have a value of $98.1 billion, an increase of 37.2% since
2013.
Market volume
The Indian power generation industry grew by 3.7% in 2013 to reach a volume of 1,028 TWh.
Market volume forecast

In 2018, the Indian power generation industry is forecast to have a volume of 1,209.3 TWh, an increase of 17.6% since
2013.
Category segmentation
Conventional (fossil fuels) is the largest segment of the power generation industry in India, accounting for 80.6% of the
industry's total volume.
Geography segmentation
India accounts for 9.4% of the Asia-Pacific power generation industry value.
Market rivalry
Overall the degree of rivalry is assessed as strong. The Indian power generation industry declined noticeably in 2010,
but has since recovered well. It is expected to grow in the medium term, which may alleviate rivalry to some degree.

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TABLE OF CONTENTS
Executive Summary..........................................................................................................................................................................2
Market value ..................................................................................................................................................................................2
Market value forecast...................................................................................................................................................................2
Market volume...............................................................................................................................................................................2
Market volume forecast ...............................................................................................................................................................2
Category segmentation................................................................................................................................................................2
Geography segmentation ............................................................................................................................................................2
Market ri valry .................................................................................................................................................................................2
Market Overview ...............................................................................................................................................................................7
Market definition............................................................................................................................................................................7
Market analysis .............................................................................................................................................................................7
Market Data........................................................................................................................................................................................8
Market value ..................................................................................................................................................................................8
Market volume...............................................................................................................................................................................9
Market Segmentation .....................................................................................................................................................................10
Category segmentation..............................................................................................................................................................10
Geography segmentation ..........................................................................................................................................................11
Market Outlook ................................................................................................................................................................................12
Market value forecast.................................................................................................................................................................12
Market volume forecast .............................................................................................................................................................13
Five Forces Analysis ......................................................................................................................................................................14
Summary......................................................................................................................................................................................14
Buyer power.................................................................................................................................................................................15
Supplier power ............................................................................................................................................................................16
New entrants ...............................................................................................................................................................................17
Threat of substitutes...................................................................................................................................................................18
Degree of rivalry..........................................................................................................................................................................19
Leading Companies........................................................................................................................................................................20
NHPC Limited..............................................................................................................................................................................20
National Thermal Power Corporation Limited (NTPC) .........................................................................................................23
The Tata Power Company Limited ..........................................................................................................................................27
Macroeconomic Indicators.............................................................................................................................................................31

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Country Data ...............................................................................................................................................................................31

Appendix...........................................................................................................................................................................................33
Methodology................................................................................................................................................................................33
Industry associations..................................................................................................................................................................34
Related MarketLine research....................................................................................................................................................34

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LIST OF TABLES
Table 1: India power generation industry value: $ billion, 2009 13..........................................................................................8
Table 2: India power generation industry volume: TWh, 200913 ...........................................................................................9
Table 3: India power generation industry category segmentation: TWh, 2013.....................................................................10
Table 4: India power generation industry geography segmentation: $ billion, 2013 ............................................................11
Table 5: India power generation industry value forecast: $ billion, 2013 18 ........................................................................12
Table 6: India power generation industry volume forecast: TWh, 2013 18..........................................................................13
Table 7: NHPC Limited: key facts ................................................................................................................................................20
Table 8: NHPC Limited: key financials ($) ..................................................................................................................................21
Table 9: NHPC Limited: key financials (Rs.) ..............................................................................................................................21
Table 10: NHPC Limited: key financial ratios .............................................................................................................................21
Table 11: National Thermal Power Corporation Limited (NTPC): key facts ..........................................................................23
Table 12: National Thermal Power Corporation Limited (NTPC): key financials ($)............................................................24
Table 13: National Thermal Power Corporation Limited (NTPC): key financials (Rs.) ........................................................24
Table 14: National Thermal Power Corporation Limited (NTPC): key financial ratios.........................................................25
Table 15: The Tata Power Company Limited: key facts ...........................................................................................................27
Table 16: The Tata Power Company Limited: key financials ($).............................................................................................28
Table 17: The Tata Power Company Limited: key financials (Rs.).........................................................................................28
Table 18: The Tata Power Company Limited: key financial ratios..........................................................................................29
Table 19: India size of population (million), 200913................................................................................................................31
Table 20: India gdp (constant 2005 prices, $ billion), 200913...............................................................................................31
Table 21: India gdp (current prices, $ billion), 200913 ...........................................................................................................31
Table 22: India inflation, 200913................................................................................................................................................32
Table 23: India consumer price index (absolute), 200913.....................................................................................................32
Table 24: India exchange rate, 200913.....................................................................................................................................32

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LIST OF FIGURES
Figure 1: India power generation industry value: $ billion, 2009 13 ........................................................................................8
Figure 2: India power generation industry volume: TWh, 200913..........................................................................................9
Figure 3: India power generation industry category segmentation: % share, by volume, 2013 ........................................10
Figure 4: India power generation industry geography segmentation: % share, by value, 2013 ........................................11
Figure 5: India power generation industry value forecast: $ billion, 2013 18 .......................................................................12
Figure 6: India power generation industry volume forecast: TWh, 2013 18.........................................................................13
Figure 7: Forces driving competition in the power generation industry in India, 2013.........................................................14
Figure 8: Drivers of buyer power in the power generation industry in Indi a, 2013 ...............................................................15
Figure 9: Drivers of supplier power in the power generation industry in India, 2013 ...........................................................16
Figure 10: Factors influencing the likelihood of new entrants in the power generation industry in India, 2013 ..............17
Figure 11: Factors influencing the threat of substitutes in the power generation industry in India, 2013.........................18
Figure 12: Drivers of degree of rivalry in the power generation industry in India, 2013 ......................................................19
Figure 13: NHPC Limited: revenues & profitability ....................................................................................................................22
Figure 14: NHPC Limited: assets & liabilities .............................................................................................................................22
Figure 15: National Thermal Power Corporation Limited (NTPC): revenues & profitability ................................................25
Figure 16: National Thermal Power Corporation Limited (NTPC): assets & liabilities.........................................................26
Figure 17: The Tata Power Company Limited: revenues & profitability.................................................................................29
Figure 18: The Tata Power Company Limited: assets & liabilities..........................................................................................30

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MARKET OVERVIEW
Market definition
The power generation industry volume is defined as the total electrical energy (TWh) generated within a country over the
course of each calendar year. The value of the industry is given by multiplying volume by the annual average wholesale
power price, or equivalent. The power generation industry is segmented by volume into electricity produced from nuclear,
conventional (thermal generation from fossil fuels), and renewable (hydropower, wind, solar, and similar) sources. It
excludes energy sourced from hydroelectric pumped storage. All currency conversio ns were calculated using constant
average annual 2013 exchange rates.
For the purposes of this report, Global consists of North America, South America, Europe, Asia -Pacific, Middle East,
South Africa and Nigeria.
North America consists of Canada, Me xico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, Ukraine, and the United
Kingdom.
Asia-Pacific comprises Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines,
Singapore, South Korea, Taiwan, and Thailand.
Middle East comprises Egypt, Israel, Kuwait, Saudi Arabia, and United Arab Emirates.
Market analysis
Wholesale electricity prices in India increased between 2012 and 2013. This factor, combined with a 3.7% increase in
volume, accounted for an increase in market revenue. Going forward from 2014 to 2018, value is expected to show
strong growth.
The Indian power generation industry had total revenues of $71.5bn in 2013, representing a compound annual rate of
change (CARC) of -4.8% between 2009 and 2013. In comparison, the South Korean and Chinese industries grew with
compound annual growth rates (CAGRs) of 14.5% and 16.6% respectively, over the same period, to reach respective
values of $70.4bn and $375.1bn in 2013.
Industry production volume increased with a CAGR of 4.9% betwe en 2009 and 2013, to reach a total of 1,028.0 TWh in
2013. The industry's volume is expected to rise to 1,209.3 TWh by the end of 2018, representing a CAGR of 3.3% for the
2013-2018 period.
Conventional (fossil fuels) accounted for the highest volume of el ectricity in the Indian power generation industry in 2013,
with 828.2 TWh, equivalent to 80.6% of the industry's overall volume. In comparison, renewable energy accounted for
169.0 TWh in 2013, equating to 16.4% of the industry total.
The performance of the industry is forecast to accelerate, with an anticipated CAGR of 6.5% for the fi ve -year period 2013
- 2018, which is expected to drive the industry to a value of $98.1bn by the end of 2018. Comparatively, the South
Korean and Chinese industries will grow with CAGRs of 7.8% and 11.9% respectively, o ver the same period, to reach
respective values of $102.2bn and $658.4bn in 2018.

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MARKET DATA
Market value
The Indian power generation industry grew by 7.3% in 2013 to reach a value of $71.5 billion.
The compound annual rate of change of the industry in the period 200913 was -4.8%.
Table 1: India power generation industry value: $ billion, 200913

Year
$ billion
Rs. billion
billion
2009
87.1
5,092.0
65.5
2010
54.4
3,184.5
40.9
(37.5%)
2011
62.8
3,670.4
47.2
15.3%
2012
66.6
3,897.4
50.1
6.2%
2013
71.5
4,180.8
53.8
7.3%
CAGR: 200913
SOURCE: MARKETLINE
% Growth
(4.8%)
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Figure 1: India power generation industry value: $ billion, 200913
SOURCE: MARKETLINE

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Market volume
The Indian power generation industry grew by 3.7% in 2013 to reach a volume of 1,028 TWh.
The compound annual growth rate of the industry in the period 2009 13 was 4.9%.
Table 2: India power generation industry volume: TWh, 200913

Year
TWh
2009
847.4
2010
880.0
3.8%
2011
985.4
12.0%
2012
991.2
0.6%
2013
1,028.0
3.7%
CAGR: 200913
SOURCE: MARKETLINE
% Growth
4.9%
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Figure 2: India power generation industry volume: TWh, 200913
SOURCE: MARKETLINE

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MARKET SEGMENTATION
Category segmentation
Conventional (fossil fuels) is the largest segment of the power generation industry in India, accou nting for 80.6% of the
industry's total volume.
The Renewable energy segment accounts for a further 16.4% of the industry.
Table 3: India power generation industry category segmentation: TWh, 2013

Category
2013
Conventional (Foss il Fuels)
828.2
80.6%
Renewable Energy
169.0
16.4%
30.8
3.0%
1,028
100%
Nuclear Electric Power

Total
SOURCE: MARKETLINE
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Figure 3: India power generation industry category segmentation: % share, by volu me, 2013
SOURCE: MARKETLINE

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Geography segmentation
India accounts for 9.4% of the Asia-Pacific power generation industry value.
China accounts for a further 49.1% of the Asia-Pacific industry.
Table 4: India power generation industry geography segmentation: $ billion, 2013

Geography
2013
China
375.1
49.1
Japan
150.6
19.7
India
71.5
9.4
South Korea
70.4
9.2
Taiwan
24.1
3.2
Rest of Asia-Pacific
72.0
9.4
763.7
100%
Total
SOURCE: MARKETLINE
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Figure 4: India power generation industry geography segmentation: % share, by value, 2013
SOURCE: MARKETLINE

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MARKET OUTLOOK
Market value forecast
In 2018, the Indian power generation industry is forecast to have a value of $98.1 billion, an increase of 37.2% since
2013.
The compound annual growth rate of the industry in the period 2013 18 is predicted to be 6.5%.
Table 5: India power generation industry value forecast: $ billion, 201318

Year
$ billion
Rs. billion
billion
% Growth
2013
71.5
4,180.8
53.8
7.3%
2014
74.7
4,371.6
56.2
4.6%
2015
80.2
4,688.5
60.3
7.3%
2016
86.1
5,038.4
64.8
7.5%
2017
92.2
5,391.6
69.3
7.0%
2018
98.1
5,736.2
73.8
6.4%
CAGR: 201318
SOURCE: MARKETLINE
6.5%
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Figure 5: India power generation industry value forecast: $ billion, 2013 18
SOURCE: MARKETLINE

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Market volume forecast

In 2018, the Indian power generation industry is forecast to have a volume of 1,209.3 TWh, an increase of 17.6% since
2013.
The compound annual growth rate of the industry in the period 2013 18 is predicted to be 3.3%.
Table 6: India power generation industry volume forecast: TWh, 201318

Year
TWh
% Growth
2013
1,028.0
3.7%
2014
1,065.3
3.6%
2015
1,103.2
3.6%
2016
1,138.8
3.2%
2017
1,174.2
3.1%
2018
1,209.3
3.0%
CAGR: 201318
SOURCE: MARKETLINE
3.3%
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Figure 6: India power generation industry volume forecast: TWh, 201318
SOURCE: MARKETLINE

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FIVE FORCES ANALYSIS

The power generation market will be analyzed taking power generation companies, e.g. electricity utilities as players.
The key buyers will be taken as electricity retailers, and suppliers of raw materials, e.g. coal and oil extraction
companies, and manufacturers of power-generating equipment and other heavy electrical equipment, such as steam
turbines as the key suppliers.
Summary
Figure 7: Force s driving competition in the power generation industry in India, 2013
SOURCE: MARKETLINE
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Overall the degree of rivalry is assessed as strong. The Indian power generation industry decli ned noticeably in 2010,
but has since recovered well. It is expected to grow in the medium term, which may alleviate rivalry to some degree.
For most countries, fossil fuels or nuclear power dominates their power generation mix, however, in some countries a
resurgence of renewable electricity investment has occurred as governments start to "out-green" each other following
(relatively) productive climate change talks in Durban in late 2011. States such as China have seen increasing
investment in wind and photovoltaic capacity, and Brazil and Canada currently have larger proportions of hydroelectric
power than most other countries. In India, more than 80% of electricity is still generated from conventional sources (fossil
fuels). A problem specific to this industry is that electricity cannot be stored cost-effectively on a large scale, the national
and international grids must balance electricity generated with electricity used at every moment. Suppliers who use the
networks are obliged to input the same amount of electricity as their customers take out and are charged by the network
operator for any imbalances. The network operator also maintains some generating reserves with which to ensure that
the network can remain in balance. This creates inherent complexi ty and inter-dependencies across all users of the
networks and power usage within the network. The result of this is that the power generation companies have restrictions
on their productivity and have to comply with grid operator requests ultimately affec ting overall profitability whilst creating
a difficult trading environment.

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Buyer power
Figure 8: Drivers of buyer power in the power generation industry in India, 2013
SOURCE: MARKETLINE
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Depending on the regulatory regime, power generation companies may have the ability to move forward into their buyers'
industry through entry into the power retail industry, selling electricity to end -users. For instance the operator of the Drax
power plant in the UK recently bought Haven Power in an attempt to forwards integrate into that industry. While it is not
often possible for generation companies to literally sell their own power direct to end -users (this depends on issues such
as the electricity industry structure, which is also usually controlled by the regulatory system), presence in the retail
industry means that power generators have an additional revenue stream that can defend their margins against
pressures such as volatile prices for wholesale power and their own inputs, such as coal or gas. Some industries do
have large energy supply companies with strong buyer power over the power generation companies. The typical end
consumer in an electricity industry does not have a distinct differentiation between compani es. Instead - assuming that
the industry structure permits choice of supplier - end-users base their choice of supplier mainly on price. Where
differentiation does occur is in the provision of renewable energy sources and some customers may choose companies
with higher use of these resources over a normal price based decision. Overall buyer power is assessed as strong.

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Supplier power
Figure 9: Drivers of supplier power in the power generation industry in India, 2013
SOURCE: MARKETLINE
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Suppliers can encompass a wide range of companies depending on the type of power generation being used. For
instance in renewable energy production there are the electrical systems and building materials used in the initial
construction, but the number of regular suppliers reduces once the particular site (wind farm, solar power installation, or
hydroelectricity plant) is commissioned. However, in other methods of power generation, suppliers of fuel are crucial to
operations and their numbers are limited. For example a nuclear power plant is heavily reliant on the providers of its
nuclear fuels, so supplier power is greater, especially where there is the risk of oligopoly. Securing the supply of a
particular resource, such as natural gas, can become crucial. Supply from countries with large natural resources
increases their supplier power. These situations can also become politically problematic where the supplier is a state
owned facility. Supplier power is assessed as moderate in this industry.

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New entrants
Figure 10: Factors influencing the likelihood of new entrants in the power generation industry in
India, 2013
SOURCE: MARKETLINE
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The threat of new entrants in this industry is moderate. Key factors influencing this force are the high level of investment
required in technology and raw materials, requirements for expertise, the need to find suitable locations for power plants,
and the cost of regulatory compliance. The prevailing trends of government policy will need to be negotiated. For
instance, almost all new power generation plants of any type have potentially controversial public impacts, and despite
the necessity of power generation facilities, entry to this industry can be hampered by negative publicity focused around
location, type, and expense of new facilities. Vertical integration of generation, supply and network activities, which
reduces the incentives to trade and for new companies to enter the industry, has remained a dominant feature in the
electricity industry in many countries. The Indian power generation industry has declined in recent years but if forecast
growth does materialize, it may attract new entrants.

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Threat of substitutes
Figure 11: Factors influencing the threat of substitute s in the power generation industry in India,
2013
SOURCE: MARKETLINE
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For power generation companies with a heavy reliance on one form of fuel, substitutes in this industry are alternative
sources of power generation rather than an entirely new industry able to supersede the existing one. While new
technologies continue to enter the industry at regular intervals there are long periods of testing and large capital
investment needed to produce facilities with the capacity to compete with existing ones.
The power generation industry as a whole is also threatened by end -users opting for energy sources other than
electricity. Natural gas is one example: consumers can use gas instead of electricity for several purposes, such as
heating.
Finally, autogeneration by industrial users, and microgeneration by smaller end -users, in the form of solar panels or wind
turbines, may reduce demand for centrally-generated power, especially in countries with feed-in tariffs. The long process
of phasing in new technology, significant switching costs for end -users, and the attempts by the largest players to include
a varied range of power sources means that the threat from substitutes is weak.

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Degree of rivalry
Figure 12: Drivers of degree of rivalry in the power generation industry in India, 2013
SOURCE: MARKETLINE
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The degree of rivalry in this industry depends first of all on industry structure, which is usually d ecided at a national or
state level. Some countries' electricity industries are fully liberalized, with complete unbundling of generation,
transmission, distribution, and retail operations, the ability of all end -users to switch suppliers, and so on. Others have a
much less liberal structure, with features such as suppliers operating as monopolies within particular geographical
regions. Also, wholesale industries tend to operate nationally rather than transnationally, and concentration within the
generation sector is often high.
Differentiation is difficult in this industry. However, one possibility is for generation companies to offer 'green' energy.
GDF Suez, which is a global energy player, is moving toward minimizing the negative effects of coal combustion in the
generation of electricity by introducing technologies to reduce sulfur dioxide emissions. This trend has been followed by
other industry players in their regional industries to differentiate their products.
The degree of rivalry in this industry is strong.

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LEADING COMPANIES
NHPC Limited
Table 7: NHPC Limited: key facts
Head office:
NHPC Office Complex, Sector 33, Faridabad, Haryana 121003, IND
Telephone:
91 129 2278 421
Fax:
91 129 2277 941
Website:
www.nhpcindia.com
Financial year-end:
March
Ticker:
NHPC, 533098
Stock exchange:
Bombay, India
SOURCE: COMPANY WEBSITE
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National Hydroelectric Power Corporation Limited (NHPC) is an Indian company engaged in the installation,
construction, development, and operation and maintenance of hydroelectric power projects. The company is a Mini
Ratna Category-I Enterprise of the Government of India. It primarily operates in India.
The company operates 15 hydropower stations with a total aggregate capacity of 5 ,702 megawatts (MW), which include
1,000 MW Indira Sagar Project and 520 MW Omkareshwar project through its joint ventures. NHPC's power stations are
situated in the Northern, Eastern and North-Eastern regions of India.
NHPC is currently engaged in the construction of seven projects aggregating to a total installed capacity of 4,095 MW.
These projects include Parbati - II in Himachal Pradesh; Subansiri (Lower) in Assam; Uri-II, Kishenganga, and NimmoBazgo in Jammu and Kashmir; and Teesta Low Dam - IV, in West Bengal. The company also operates joint venture
projects with a total installed capacity of 5,206 MW, which include Pakal Dul, Kiru, and Kwar, in Jammu and Kashmir;
Loktak Downstream and Tipaimukh in Manipur; and Indira Sagar and Omkareshwar in Madhya Pradesh.
The company offers consultancy services in a range of fields of hydro power, including river basin studies, survey works,
design and engineering, geological studies, geotechnical studies, hydraulic transient studies, hydrological studies,
contract management, construction management, equipment planning, underground construction, testing
commissioning, and operation and maintenance.
NHPC's subsidiaries include NHDC, which is a joint venture of NHPC and the Government of Madhya Pradesh with an
equity shareholding of 51% and 49% respectively; Loktak Downstream Hydroelectric Corporation (LDHCL), which is a
joint venture between NHPC and the Government of Manipur with an equity shareholding of 74% and 26% respectively;
and Chenab Valley Power Projects, which is a joint venture of NHPC, JKSPDC, and PTC India, where NHPC holds a
49% equity.
The company's joint venture companies include National High Power Test Laboratory (NHPTLPL), a joint venture
company of NHPC, NTPC, Power Grid Corporation of India, and Damodar Valley Corporation (DVC) and CPRI each
holding 20% equity; National Power Exchange (NPEX), a joint venture company of NHPC, NTPC, Power Finance
Corporation, Tata Consultancy Services, and BSE where NHPC has 16.67% of equity participation; and Chena b Valley
Power Projects, a joint venture of NHPC, JKSPDC, and PTC India, where NHPC holds 49% equity.
Key Metrics
The company recorded revenues of $1,095 million in the fiscal year ending March 2013, a decrease of 11.3% compared
to fiscal 2012. Its net income was $448 million in fiscal 2013, compared to a net income of $528 million in the preceding
year.

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Table 8: NHPC Limited: key financials ($)

$ million
2009
2010
2011
2012
2013
Revenues
604.2
882.5
879.5
1,234.2
1,094.6
Net income (loss)
505.5
372.0
396.0
527.6
447.5
Total assets
6,431.9
8,974.2
9,262.6
10,308.2
10,658.3
Total liabilities
3,052.0
4,409.6
4,430.2
5,062.8
5,069.8
Employees
12,295
11,618
11,342
11,036
10,418
SOURCE: COMPANY FILINGS
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Table 9: NHPC Limited: key financials (Rs.)

Rs. million
2009
2010
2011
2012
2013
Revenues
35,334.9
51,616.3
51,436.5
72,180.9
64,020.8
Net income (loss)
29,563.1
21,755.6
23,161.3
30,855.8
26,174.1
Total assets
376,176.8
524,864.3
541,732.0
602,886.6
623,361.0
Total liabilities
178,499.3
257,896.7
259,104.1
296,100.2
296,509.1
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Table 10: NHPC Limited: key financial ratios

Ratio
2009
2010
2011
2012
2013
Profit margin
83.7%
42.1%
45.0%
42.7%
40.9%
Revenue growth
(9.1%)
46.1%
(0.3%)
40.3%
(11.3%)
9.1%
39.5%
3.2%
11.3%
3.4%
Liabilities growth
14.8%
44.5%
0.5%
14.3%
0.1%
Debt/asset ratio
47.5%
49.1%
47.8%
49.1%
47.6%
Return on assets
8.2%
4.8%
4.3%
5.4%
4.3%
Revenue per employee
$49,139
$75,963
$77,541
$111,830
$105,072
Profit per employee
$41,112
$32,018
$34,916
$47,805
$42,957
Asset growth

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Figure 13: NHPC Limited: revenues & profitability
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Figure 14: NHPC Limited: asse ts & liabilities

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National Thermal Power Corporation Limited (NTPC)

Table 11: National Thermal Power Corporation Limited (NTPC): key facts
Telephone:
NTPC Bhawan, SCOPE Complex, 7 Institutional Area, Lodhi Road, New

Delhi 110003, IND
91 11 2436 0100
Fax:
91 11 2436 1018
Website:
www.ntpc.co.in
Financial year-end:
March
Ticker:
NTPC, 532555
Stock exchange:
National Exchange, Bombay
Head office:
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NTPC is the largest thermal power generating company in India. NTPC's core business is power generation. It is also
involved in the engineering, construction, and operation of power generating plants. In addition, the company is engaged
in consultancy, power trading, ash utilization, and coal mining operations. The Government of India holds 84.5% of the
total equity shares of the company, with the balance held by institutional investors and the public. The company primarily
operates in India.
NTPC operates through two segments: generation and other operations.
At the end of FY2013, the generation segment of NTPC had an installed capacity of 41,184 megawatts (MW), through its
16 coal-based power plants (31,855 MW), seven gas -based power plants (3,955 MW), renewable energy projects (10
MW), and seven joint venture and subsidiary projects (5,364 MW).
Coal and natural gas are the primary fuels for power generation for NTPC. The company also uses oil as a secondary
fuel for its coal-fired plants and naphtha as an alternate fuel in its gas -fired plants. It has diversified into hydro power,
coal mining, power equipment manufacturing, oil and gas exploration, power trading, and distribution.
The other operations segment of NTPC provides consultancy services in engineering, project management, and
supervision. It is also engaged in oil and gas exploration and coal mining activities. The segment undertakes consultancy
and turnkey project contracts for domestic and international clients in various phases of power plants; namely,
engineering, construction, operation and maintenance, and the management of power projects. NTPC is registered as a
consultant with several leading international development and financial institutions such as The World Bank, The Asian
Development Bank, the African Development Bank, and the United Nations Development Program (UNDP).
NTPC has five subsidiaries. These include: NTPC Electric Suppl y Company (NESCL); NTPC Vidyut Vyapar Nigam;
NTPC Hydro; Kanti Bijlee Utpadan Nigam; and Bharatiya Rail Bijlee Company.
NESCL is involved in the execution of work on a turnkey basis under the Indian government's rural electrification
program in 29 districts and five states, namely, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, and West Bengal.
NESCL has set up KINESCO Power and Utilities, a fifty-fifty joint venture with Kerala Industrial Infrastructure
Development Corporation (KINFRA), to take up the retail distribution of power in various industrial parks developed by
KINFRA in Kerala and other special economic zones (SEZs) and industrial areas.
NTPC Vidyut Vyapar Nigam (NVVN) was formed with an objective to undertake the sale and purchase of electricit y.
During FY2013, the company transacted business with various state electricity boards nationwide.
NTPC Hydro (NHL) develops small and medium hydroelectric power projects up to 250 MW. Presently the company is
implementing the following projects: Lata Tapovan Hydro Electric Project (171 MW) in the state of Uttarakhand; and
Rammam-III Hydro Electric Project Stage - III (120 MW) in the states of West Bengal and Sikkim.

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Kanti Bijlee Utpadan Nigam (formerly known as Vaishali Power Generating Company) has been incorporated with Bihar
State Electricity Board as per the decision of the Government of India to take over Mu zaffarpur Thermal Power. NTPC
has contributed 65% of equity, with the balance equity contributed by Bihar State Electricity Board (BSEB) and its
nominees.
Bharatiya Rail Bijlee Company was incorporated in November 2007 with 74:26 equity contributions from NTPC and the
Ministry of Railways, Government of India, respectively, to establish a coal -based power plant at Nabinagar, Bihar.
NTPC also has several joint ventures with a number of companies. These include: Utility Powertech; NTPC -SAIL Power
Company; NTPC-ALSTOM Power Services; NTPC Tamil Nadu Energy Company; Ratnagiri Gas and Power; Aravali
Power Company; NTPC-SCCL Global Venture; Meja Urja Nigam; NTPC BHEL Power Projects; BF-NTPC Energy
Systems; Nabinagar Power Generating Company; National Power Exchange; International Coal Ventures; National High
Power Test Laboratory; Energy Efficiency Services; Transformers and Electricals Kerala; CIL NTPC Ur ja; Anushakti
Vidhyut Nigam; Trincomalee Power Company; and Pan-Asian Renewables.
Key Metrics
The company recorded revenues of $11,862 million in the fiscal year ending March 2013, an increase of 7.0% compared
to fiscal 2012. Its net income was $2,153 million in fiscal 2013, compared to a net income of $1,556 million in the
preceding year.
Table 12: National Thermal Power Corporation Limited (NTPC): key financials ($)
$ million
2009
2010
2011
2012
2013
Revenues
8,146.8
8,420.3
10,110.8
11,084.8
11,862.1
Net income (loss)
1,383.7
1,492.4
1,599.3
1,556.4
2,152.8
14,759.9
16,701.7
19,258.4
24,080.6
30,556.1
5,550.6
10,128.5
7,650.1
11,549.2
16,555.2
Total assets
Total liabilities
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Table 13: National Thermal Power Corporation Limited (NTPC): key financials (Rs. )
Rs. million
Revenues
Net income (loss)
2009
2010
2011
2012
2013
476,472.0
492,467.0
591,341.2
648,306.5
693,768.2
80,925.0
87,282.0
93,534.0
91,025.9
125,907.8
Total assets
863,247.0
976,813.0
1,126,344.6
1,408,378.0
1,787,102.8
Total liabilities
324,633.0
592,373.0
447,422.1
675,466.3
968,248.2

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Table 14: National Thermal Power Corpora tion Limited (NTPC): key financial ratios
Ratio
2009
2010
2011
2012
2013
Profit margin
17.0%
17.7%
15.8%
14.0%
18.1%
Revenue growth
19.1%
3.4%
20.1%
9.6%
7.0%
6.0%
13.2%
15.3%
25.0%
26.9%
Liabilities growth
12.6%
82.5%
(24.5%)
51.0%
43.3%
Debt/asset ratio
37.6%
60.6%
39.7%
48.0%
54.2%
Return on assets
9.6%
9.5%
8.9%
7.2%
7.9%
Asset growth
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Figure 15: National Thermal Power Corporation Limited (NTPC): revenues & profitability

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Figure 16: National Thermal Power Corporation Limited (NTPC): asse ts & liabilities

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The Tata Power Company Limited

Table 15: The Tata Power Company Limited: key facts
Telephone:
Bombay House 24, Homi Mody Street, Mumbai 400 001, Maharashtra,
IND
91 22 6665 8282
Fax:
91 22 6665 8801
Website:
www.tatapower.com
Financial year-end:
March
Ticker:
500400, TATAP OWER
Stock exchange:
Bombay, India
Head office:
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Tata Power is India's largest private sector power utility. The company has a presence across the entire value chain in
power generation (thermal, hydro, solar, wind, and geothermal), transmission, trading, and distribution. It has operations
in the states of Maharashtra, New Delhi, Jharkhand, West Bengal, Odisha, Rajasthan, Himachal Pradesh, Tamil Nadu,
Gujarat, and Karnataka, in India. The company also operates in the ove rseas markets like South Africa, Indonesia,
Bhutan, Singapore, Cyprus, and Mauritius.
Tata Power operates through three business segments: power; coal; and others.
The power segment is engaged in the generation, transmission, distribution, and sale of elec tricity. It has an installed
generation capacity of 8,521 megawatts (MW) of power from energy sources such as thermal (coal, gas, and oil),
hydroelectric, solar photovoltaic, wind, and geothermal energy. Tata Power operates the following: thermal power
generation units located at Mundra in Gujarat, which has a capacity of 4,000 MW; Trombay in Maharashtra, which has a
capacity of 1,580 MW; Maithon, with a capacity of 1,050 MW, Jojobera, with a capacity of 428 MW, and IEL - Jojobera,
with a capacity of 120 MW, in Jharkhand; Rithala in New Delhi, which has a capacity of 108 MW; Belgaum in Karnataka,
which has a capacity of 81 MW; and Lodhivali in Maharashtra, which has a capacity of 40 MW.
The company owns two thermal-waste heat recovery plants: IEL - Jojobera in Jharkhand, which has a capacity of 120
MW; and Haldia in West Bengal, which has a capacity of 120 MW. The company also owns three hydroelectric (hydel)
power generating stations at Khopoli (72 MW), Bhira (300 MW), and Bhivpuri (75 MW) with a capacity of 447 MW, all
located in the Raigad district of Maharashtra, India. Tata Power also operates several units of wind power generation
stations at Maharashtra, Gujarat, Tamil Nadu, Rajasthan and Karnataka, of India. It also has 29 MW of solar photo
voltaic (PV) power generation capacity at Maharashtra, Gujarat, and New Delhi.
The company's transmission business owns and operates over 1,110 circuit kilometers (km) of transmission network,
which connects Trombay and the hydro generating stations to 19 receiving s tations spread across Mumbai. The
company's joint venture company, Powerlinks Transmission (PTL), formed with Power Grid Corporation of India,
transmits power from the 1,020 MW Tala Hydro Electric Power Project in Bhutan and surplus power from the
Eastern/North-Eastern region of India through its transmission lines between Siliguri (West Bengal) and Mandaula (Uttar
Pradesh), spanning a distance of 1,166 km.

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Its distribution business has over 2,500 circuit km of distribution network in Mumbai and over 10,500 circuit km of
distribution network in Delhi. Tata Power's subsidiary, North Delhi Power (NDPL), distributes and supplies power to the
North-North West areas of Delhi. It supplies power directly to bulk consumers such as Central and Western Railways,
Mumbai Port, refineries, textile mills, fertilizer factories, BARC, municipal corporation water pumping plants, and other
major continuous process industries requiring uninterrupted power supply. In FY2013, the company served about
380,000 customers in Mumbai with sales of over 6,500 MUs and 1.3 million customers in New Delhi with sales of over
7,760 MUs.
The company's coal segment focuses on mining and trading of coal through its subsidiary, Trust Energy Resources.
Trust Energy Resources is also engaged in the shipping of coal for Tata Power's thermal power generation operations.
The others segment is engaged in designing and developing defense electronic products, and solar photovoltaic systems
and its components. It is also involved in modernizing the airfield infrastructure for the Indian Air Force, project
contracts/project management services, coal bed methane, and property development business.
Tata Power has carried out several overseas projects and completed erection, testing, and commissioning of major
power projects in the UAE, Malaysia, Saudi Arabia, Kuwait, and Algeria. The company has also undertaken projects
pertaining to power plant/utility operations management and plant operations training in Saudi Arabia, Liberia, Iran,
Sierra Leone, and Algeria.
Some of Tata Power's subsidiaries include Coastal Gujarat Power, Maithon Power, Industrial Energy, Powerlinks
Transmission, Tata Power Renewable Energy, and Tata Power Trading, among others.
Key Metrics
The company recorded revenues of $6,064 million in the fiscal year ending March 2014, an increase of 7.4% compared
to fiscal 2013. Its net loss was $44 million in fiscal 2014, compared to a net loss of $15 million in the preceding year.
Table 16: The Tata Power Company Limited: key financials ($)
$ million
2010
2011
2012
2013
2014
3,346.9
3,325.7
4,445.8
5,646.7
6,064.7
336.3
352.2
(186.0)
(14.6)
(44.5)
Total assets
5,556.4
8,607.8
10,557.8
11,503.9
12,207.8
Total liabilities
1,914.2
6,125.6
8,250.0
9,211.5
9,882.9
Revenues
Net income (loss)
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Table 17: The Tata Power Company Limited: key financials (Rs. )
Rs. million
2010
2011
2012
2013
2014
195,747.2
194,507.6
260,014.0
330,254.3
354,701.8
19,668.4
20,596.0
(10,876.8)
(854.3)
(2,599.7)
Total assets
324,969.8
503,437.0
617,485.0
672,814.1
713,982.6
Total liabilities
111,954.1
358,258.9
482,507.6
538,741.0
578,011.4
Revenues
Net income (loss)

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Table 18: The Tata Power Company Limited: key financial ratios
Ratio
2010
2011
2012
2013
2014
Profit margin
10.0%
10.6%
(4.2%)
(0.3%)
(0.7%)
Revenue growth
11.3%
(0.6%)
33.7%
27.0%
7.4%
Asset growth
44.2%
54.9%
22.7%
9.0%
6.1%
Liabilities growth
38.3%
220.0%
34.7%
11.7%
7.3%
Debt/asset ratio
34.5%
71.2%
78.1%
80.1%
81.0%
Return on assets
7.1%
5.0%
(1.9%)
(0.1%)
(0.4%)
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Figure 17: The Tata Power Company Limited: revenues & profi ta bility

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Figure 18: The Tata Power Company Limited: assets & liabilities

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MACROECONOMIC INDICATORS
Country Data
Table 19: India size of population (million), 200913
Year
Population (million)
% Growth
2009
1,171.5
1.6%
2010
1,190.7
1.6%
2011
1,210.2
1.6%
2012
1,226.4
1.3%
2013
1,241.7
1.2%
SOURCE: MARKETLINE
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Table 20: India gdp (constant 2005 price s, $ billion), 2009 13

Year
Constant 2005 Prices, $ billion
% Growth
2009
1,157.2
8.3%
2010
1,266.7
9.5%
2011
1,351.1
6.7%
2012
1,415.1
4.7%
2013
1,476.7
4.4%
SOURCE: MARKETLINE
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Table 21: India gdp (current price s, $ billion), 2009 13

Year
Current Prices, $ billion
% Growth
2009
1,339.4
10.0%
2010
1,672.3
24.9%
2011
1,829.6
9.4%
2012
1,825.4
(0.2%)
2013
1,875.7
2.8%
SOURCE: MARKETLINE

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Table 22: India inflation, 200913

Year
Inflation Rate (%)
2009
10.9%
2010
12.0%
2011
9.2%
2012
10.2%
2013
9.5%
SOURCE: MARKETLINE
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Table 23: India consumer price index (absolute), 200913

Year
Consumer Price Index (2005 = 100)
2009
135.7
2010
152.0
2011
166.0
2012
182.9
2013
200.4
SOURCE: MARKETLINE
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Table 24: India exchange rate, 200913

Year
Exchange rate ($/Rs.)
Exchange rate (/Rs.)
2009
48.8500
67.9264
2010
45.9361
60.9708
2011
46.8466
65.1733
2012
53.6119
68.6802
2013
58.4859
77.7676
SOURCE: MARKETLINE

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APPENDIX
Methodology
MarketLine Industry Profiles draw on extensive primary and se condary research, all aggregated, analyzed, cross checked and presented in a consistent and accessible style.
Review of in-house databases Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLines in -house databases
provide the foundation for all related industry profiles
Preparatory research We also maintain extensive in-house databases of news, analyst commentary, company
profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market
overview
Definitions Market definitions are standardized to allow comparison from country to country. The parameters of each
definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the
market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and
trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
-
National/Governmental statistics
International data (official international sources)
National and International trade associations
Broker and analyst reports
Company Annual Reports
Business information libraries and databases
Modeling & forecasting tools MarketLine has developed powerful tools that allow quantitative and qualitative data to
be combined with related macroeconomic and demographic drivers to create market models a nd forecasts, which can
then be refined according to specific competitive, regulatory and demand -related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up -to-date

0102 - 2702 - 2013

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Industry associations
The International Association for Energy Economics
28790 Chargrin Blvd., Suite 350, Cleveland, Ohio, 44122-4630, USA
Tel.: 1 216 464 5365
Fax: 1 216 464 2737
www.iaee.org
Related MarketLine research

Industry Profile
Global Power Generation
Power Generation in Europe
Power Generation in Asia-Pacific
Power Generation in the United States

0102 - 2702 - 2013

Page | 34
MARKETLINE
UNITED
119 FARRINGDON ROAD | LONDON,

KINGDOM,
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T: +44 161 238 4040 | F: +44 870 134 4371

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MarketLine Industry Profile

Publication Date: July 2014

India - Power Generation

0102 - 2702 - 2013

Market value forecast

Market volume forecast

India - Power Generation

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India - Power Generation

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Country Data ...............................................................................................................................................................................31

India - Power Generation

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India - Power Generation

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India - Power Generation

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India - Power Generation

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Table 1: India power generation industry value: $ billion, 200913

Figure 1: India power generation industry value: $ billion, 200913

India - Power Generation

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Table 2: India power generation industry volume: TWh, 200913

Figure 2: India power generation industry volume: TWh, 200913

India - Power Generation

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Table 3: India power generation industry category segmentation: TWh, 2013

Conventional (Foss il Fuels)

Nuclear Electric Power

India - Power Generation

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Table 4: India power generation industry geography segmentation: $ billion, 2013

India - Power Generation

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Table 5: India power generation industry value forecast: $ billion, 201318

Figure 5: India power generation industry value forecast: $ billion, 2013 18

India - Power Generation

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Market volume forecast

Table 6: India power generation industry volume forecast: TWh, 201318

Figure 6: India power generation industry volume forecast: TWh, 201318

India - Power Generation

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FIVE FORCES ANALYSIS

India - Power Generation

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India - Power Generation

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India - Power Generation

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India - Power Generation

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India - Power Generation

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India - Power Generation

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NHPC Office Complex, Sector 33, Faridabad, Haryana 121003, IND

91 129 2278 421

91 129 2277 941

SOURCE: COMPANY WEBSITE

India - Power Generation

0102 - 2702 - 2013

Table 8: NHPC Limited: key financials ($)