CHAPTER 1

INDUSTRY PROFILE

Global Market

In 2008, the cumulative SWH capacity was 15 GWth. Growth in recent years has been
15% per year. There are estimated 40 million households (2.5% of the total) which were using
SWH worldwide in 2004.

China is the leader; 10% of Chinese households use SWH; the target for 2020 being 30%.
In 2008, 65.6% of existing global SWH capacity was in China; followed by European Union
(12.3%), Turkey (5.8%), Japan (4.1%) and Israel (2.8%). The Indian share was 1.2%.

The residential sector is the mainstay of SWH in the two largest SWH markets; 98% of
annual sale in China and 90% of installed capacity in Europe is in the residential sector. The
market is urban-centric; 90% of installations in China are in urban areas.

Indian Market

The sale during 2009 is estimated at 0.55 million m2 . The CAGR of cumulative
installation during 1995-2000 was 8.23%. It spurted to 20.6% during 2000-04 and further to
24.6% during 2004-08, denoting overall CAGR of 16.8% over 1995-2008. The following
explains demand upsurge in recent years.

1. Growth in new urban housing; rising disposable income; increased propensity for
consumer durables
2. Arrival of ETC & improvements in supply chain
3. Energy price hike
4. Policy initiatives

In the residential sector, there are 0.7 million SWH user households; 65% of which are
concentrated in Karnataka and Maharasthra. There is overall satisfaction with product-
experience; some concern being voiced over after-sale support. The use of SWH-water is mainly
for bathing. The average size of the domestic installations that were surveyed is around 150 lpd.
Among non-users, in states other than Karnataka/Maharashtra, there is sketchy awareness of the
bare concept of SWH. The customers perceive it as a product suited for independent houses and
not so much for apartment buildings. Hot water demand expressed though months/year and
supply chains are important demand drivers. The high demand regions report hot water demand
for ≥ 9 months/year, while the lower end is 4 months/year.

In the hotel sector, SWH experience exists across regions and hotel/guest-house
standards. The provisioning recognizes year-round demand for hot water. The use of expensive
petroleum fuels and electricity support the case for SWH. Roof availability, for 15 room upward
capacity hotels, is not a significant barrier. However, capital cost is a major consideration.
Among hospitals and hostels, awareness/exposure levels are low; compared to hotels. Supply
hour management/regulation is a key advantage for both. Roof availability is not a noticeable
constraint.

The SWH experience among industries is limited and scattered. Heating of boiler feed
water is the major application. Some of the candidate industries –rice-mills, pulp and paper,
tea-gardens, leather, textile processing-utilize biomass and coal; lengthening the payback period.
It is industries utilizing oil-fired boilers-mainly dairy, fertilizer and sub-set of textile which are
the prime markets for SWH. In addition, there are industrial canteens. The report enumerates
geographical clusters, where SWH relevant industries are concentrated.

In the rural sector, the households, dhabas, primary health-centers, hostels and village-
industries (silk-reeling, textile-dyeing, puffed rice-making) are the main segments. The capital
cost, recourse to biomass, lack of piped water supply, roof design/strength and virtual absence of
supply chain are the roadblocks. The report highlights a low-cost innovative product introduced
in Ladakh and a community-level positive experience in Himachal Pradesh. The development of
rural market warrants large, fresh work in terms of product-development, demonstration, policy
and promotion of supply chain.
Industry Structure, Supply Conditions And Value Proposition

There are two technologies in vogue; flat plate collector and evacuated tube collector; the
later has flourished on the strength of import of glass tubes from China. There are 113 approved
Indian producers. The largest player market share is under 15%. The producers do not have
nation-wide, SWH- specific brand equity. The dealer network is limited. The manufacturing is
concentrated in southern India and Maharashtra. Barring ETC, there have not been any major
product/technology breakthrough in last two decades. The system cost for a household varies
from Rs. 20000 to Rs. 60000, depending on size and standard. It is positioned as an
electricity-saving consumer durable. ESCO or pay-per-use models have not been attempted in a
significant way.

Approach To Estimating Realizable Potential

The empirical data, over a period of time, in terms of SWH sale, its region-wise and
segment-wise breakup and behaviour of relevant variations is not available. The present
installations are concentrated in Karnataka and Maharashtra; compounding the inadequacy of
data required for all-India model-building.

We were required to devote considerable effort to the task of estimating present and
future stock of housing, hotel-rooms, hospital-beds, hostel-beds, etc. The establishment of hot
water- consumption norms involved a probe into the applications and working out weighted
average since norms vary across hotel/hospital categories.

We have identified the parameters driving demand and built three scenarios for demand
projection-realistic or most likely; optimistic and pessimistic which are, both, considered less
likely.

APPROCH TO DEMAND PROJECTION

Solar water heater, introduced in India in 1980‟s, is at the beginning of the growth phase
in terms of product lifecycle. The demand for solar water heaters depends mainly on irradiation
availability and hot water requirement. But in real life scenario demands for solar water heaters
depends on cost of the system, urbanization, hike in energy price, supply chain improvements,
services, demand for energy saving equipment, policy compulsion from the state and central
government and incentives for solar water heater installation. The proper data regarding sale of
solar water heater are not available over a period of time in region-wise and segment-wise. Uses
of solar water heaters are concentrated in South Indian states like Karnataka and Maharashtra

In view of this, they have adopted the following approach to demand projection

1. Utilizing learning from the primary survey and stakeholder interviews.

2. Putting together the present configuration of SWH market (2009). ​¬ Prioritizing
market-segment for SWH.
3. Estimating the present size of market-segments in terms of hot water requirement
and projecting future hot water requirement.
4. Estimating SWH-segment-wise and state-wise under each scenario.
5. Building alternative market scenarios in terms of performance of key parameters
which drive SWH growth.
6. Developing SWH growth-estimates, segment-wise, from 2010 to 2022.

The estimation of market-segment volume entailed determining the present stock of

customer-base under each segment, projecting growth in such base and establishing hot water
consumption norms

A scenario is envisaged to be a composite, encompassing demographic, economic,

demand-condition, supply-condition, product/technology, industry-structure, policy and
promotion parameters.

The objective of scenario building is two-fold. First, to project demand corresponding to

conditions described under a scenario. Second, highlight the action which the major stakeholders
need to organize to accomplish demand under a given scenario of realistic, Likely-optimistic and
pessimistic.Three alternative scenarios are realistic (most likely) and two less likely-optimistic
and pessimistic scenarios. The demand projection, thus, needs to be viewed in conjunction with a
scenario because it is linked to developments summarized under the scenario.

India Water Heaters Market Set to Cross USD330 Million in 2017

Increasing disposable income, growth in construction sector and increased adoption in

commercial and residential spaces to drive water heaters market in India

According to a recently published TechSci Research report “​India Water Heaters

Market Forecast and Opportunities, 2020​”, water heaters market in India is expected to cross
USD330 million in 2015. Major factors driving water heater sales in India include increase in
disposable income, improved standard of living and rising awareness among consumers
regarding benefits of branded water heaters.

Residential sector is currently the largest revenue contributor in India water heater
market. The high contribution of residential sector can be accredited to the increase in housing
projects in the country. However, water heater use in India is not limited to residential sector as
they are increasingly being adopted in industrial and commercial sector as well.

Water heaters in India are emerging as technologically upgraded and innovative products.
Electric water heaters are currently the most popular among consumers. Although electric water
heater market is moving towards maturity, continuous innovations on the part of manufacturers
are driving growth in the market. In addition, solar water heaters are anticipated to gain
prominence in India water heater market over the next five years.

Growth in solar water heater market is being propelled by government efforts and
demand among consumers for energy efficient and eco-friendly products. Gas water heater
market in the country is still at a nascent stage, but is expected to pick pace on the back of
government plans to extend piped gas network.

Major players in India water heaters market are Racold, Bajaj, Venus, V-Guard and AO
Smith among others. The market is currently dominated by Racold followed by Bajaj and Venus.
Moreover, foreign companies like Ferroli are entering the market with innovative products.
Ferroli started its operations in India in 2013 by bringing in a premium range of first of their kind
Wi-Fienabled water heaters in the country. Other small and medium sized companies also hold a
significant share of around 25% in the market.

“Water heater manufacturers in the country are facing stiff competition from unorganized
sector and Chinese imports, which provide cheaper products. Indian consumers have limited
awareness of technology and consider water heater an ordinary electrical appliance, giving not
much importance to its specifications.

However, this trend is changing with increasing awareness regarding safety risks that
these cheap alternatives pose. Over the next five years, changing consumer preference, along
with energy efficiency and quality standards, is expected to increase opportunities for market
players in the organized sector.” said Mr. Karan Chechi, Research Director with TechSci
Research, a research based global management consulting firm.

“​India Water Heaters Market Forecast and Opportunities, 2020​” has evaluated the
future growth potential of water heaters market in India and provides statistics and information
on the market structure, size, share and future growth. The report is intended to provide
cutting-edge market intelligence and help decision makers to take sound investment evaluation.
Besides, the report also identifies and analyzes the emerging trends along with the essential
drivers, challenges and opportunities present in India water heater market
 CHAPTER 2

ORGANISATION PROFILE

The brainchild of Mr T. J. Joseph, Anu Solar Powertraces its founding spirit back to the
early eighties,when the nationalistic, selfless entrepreneurial spiritwas at its shining best.

The abiding force behind Anu Solar Power is the desire for India to be energy sufficient,
and to harness a clean, renewable energy for economic growth. Thismotto has led to the
development of a host of indigenous renewable energy products like solar water heaters, LED
lights and solar inverters.

If you are looking for a renewable energy company with as illustrious a past as Anu Solar
Power, you will find none. With roots that hark back to the entrepreneurial, yet nationalistic
idealism of the early eighties, Anu Solar Power was set up with a vision to make India an energy
sufficient country. The founding fathers of this growing organization had a dream to see India’s
economy built on environmentally friendly and sustainable renewable energy, and it is this
dream that propels Anu Solar on.

Anu Solar Power is a pioneer on numerous fronts and has a blazing trail of first’s to its
credit. Our founders pioneered the introduction of bio-mass gasifiers for the first time in India,
we launched ‘Swosthe’ – smokeless chula for household cooking, introduced the first of its kind
solar water heaters with mild steel collectors, developed the first indigenous fully automatic LPG
baking oven- a leader in its space even today, and established the first and only dedicated NBFC,
Nagarjuna Credits and Capital Ltd in the country to finance renewable energy products.

With a strong and sturdy stamp of domain expertise and associations at multiple –
government and industrial – levels, we have shaped the direction of the solar energy sector in
India. Today, Anu Solar Power stands head and shoulders above competition for world class
products that are indigenously developed for the Indian masses.
 Headquartered in Bangalore, few companies engaged in the solar energy sector can boast
of our size, spread of products and services or delivery of support. Our seamlessly integrated
products are backed by extensive and intensive research, and perfected on par with international
standards.

Our large and constantly growing R&D team is driven by a deep commitment to
innovation, and our products are developed keeping in mind niche needs of both domestic and
commercial customers.

We constantly raise the bar on performance, and thus, are early adopters of evacuated
tube collector systems in the country. We are also one of the first to offer modular systems to
commercial and industrial users. We now aggressively move towards adopting GRP tanks, which
ensure high product durability to our customers. The hallmark of Anu Solar Power products is
quality and perfection, it’s what leads us to assemble our LED lights in-house rather than have
them imported, and distributed. Our high quality inverters are developed in-house too.

Our full-fledged solar water heating system and solar photovoltaic system manufacturing
unit conforms to BIS & ISO standards. Our factory manufactures and sells over 25,000 solar
units a year and has thus far facilitated installation of over 2 lakh units. A significant move
towards reducing green house gas and carbon emissions, most would agree.

Anu Solar’s installation and post sale support is managed by trained personnel, who
spend time understanding customer needs and deliver highly customized solutions cost
effectively. With wide industry knowledge and exposure, our support personnel are trained to
anticipate customer needs and deliver services surpassing their expectation.

Our motto is not just to develop exceptional solar energy products and deliver them with
a smile, but to ensure happy customers. These core values suffuse all our activities and propel us
as one of the most respected solar energy product company’s in the country.

Vision
 ➢ To pioneer the renewable energy sector with products that are indigenously developed,
qualitatively superior and affordable to adopt.

➢ To be the preferred choice of customers desiring to adopt renewable energy and energy
efficient products and services

➢ To provide world class products and services which are value driven and help reduce
dependence on non renewable energy sources

➢ To facilitate pro environment choices that allow people to reduce their carbon footprint
and protect the environment for a better tomorrow

We are a service oriented company that likes to WOW our customers every time. We
innovate, deliver world class products and support our customers as they make decisions of
foresight. We put our customers first and their contentment is our true reward.

We believe our employees are our indispensible strength. They power us on to greater
heights of achievement and excellence. We have a tremendous respect for their service and put
employee interests above all other aspects of business.

Creativity and innovation are the sacred tenets of our existence. With or without
Government support we are committed to innovating in the field of alternate, renewable energy,
so that our consumers can access high quality products at affordable rates.

We are deeply committed to change, and an environment that is safe and healthy. We will
do all in our power to give consumers environmentally friendly choices, and develop products
that a qualitatively superior and less burdensome on the environment.

Management

(Managing Director)

Mr. T J Joseph has played a stellar role in the renewable energy sector in
India. His foresight guided him to established Anu Solar Power Pvt Ltd
with an aim to develop and offer high value renewable energy products and services. Mr
Joseph’s pioneering spirit has deeply impacted the growth of Anu Solar Power Pvt Ltd. Whose
mission is to reduce the nations dependency on fossil fuels while accessing reliable and better
renewable energy. Mr Joseph has played a thought leadership role in launching I-Hot, the first
pay per use solar powered water facility in the world.

Mr. T J Joseph has been conferred the CMO Asia Award in 2010 for excellence in
promoting solar water heaters in India and is the motivating force steering Anu Solar towards a
one lakh strong employee base.

Mr. Joseph is a science graduate and a member of the Institute of Chartered Accountants
of India with over 28 years of experience in the renewable energy sector.

(​Director​) ​

Mr Jomy Joseph is an engineer by profession. He has been the most recent

addition to the Anu Solar Management. He holds a Bachelor’s Degree in
Electrical & Electronics and has done his Masters in Global Production
Engineering from the Technical University Of Berlin, Germany, with his specialization being in
the field of solar technology.

He had successfully interned at SEI AG, Germany and was actively involved in the
technology transfer between SEI AG and Anu Solar for the solar power generators. In his current
capacity as Technical Director, he is actively involved with the engineering team at Anu to
innovate and explore newer technologies in the field of renewable energy. He is actively
involved in the introduction of Anu Smart Solar Power Generators to the Indian Market. ​

(​Director​)
Erich, a qualified engineer with specialization in hydraulic engineering
and hydrology, ​founded his first ​Company in 1980. Since then, he has
 increasingly overseen international projects and has been working
together with numerous international organizations and development.

From 1987 to 1994 Mr. Hauck has held the post of technical expert for the
Thermie-Program, division hydropower, for DG XVII Energy of the European Union in
Brussels.. He has played at numerous international conferences as chairman and participated in a
number of published articles. He is also a member of several national and international
organizations. Erich Hauck is the Managing Director of Smart Power Systems International
GmbH, which has emerged as one of the founding companies in SEI AG.

Since the year 2000, Smart battery generators which is developed by him and patented
are distributed worldwide​ . Realising the huge potential of Solar Power Generators in India and
also the reduced manufacturing cost, in April of 2012, SEI AG signed a JV with Anu Solar for
in-house manufacturing of Solar Power Generators in India.. With his vast experience in
numerous related fields and urge to innovate new​ ​technologies in the solar generator series, his
vision is to take this industry to new horizons ​.

(General Manager, Service)

An engineer by profession, Mr T. A. George kutty trained at the

distinguished HMT Ltd. He has been associated with Anu Solar Power for
the last 23 years, and has worked in various capacities before taking over as the Head of Service.

Mr. George kutty’s extensive exposure to various aspects of the business at Anu Solar
and his industry experience proves him invaluable as we continuously strive to improve and
strengthen our service delivery. Mr. Georgekutty also has vast expertise in design & production.

​(Production Head)
Mr. Sree Kumar Nair is responsible for the extensive and high quality production at Anu Solar
Power. He heads a 92 person production team and ensures high level of quality control.

After finishing his education, Mr. Sree Kumar Nair joined Anu Solar in 1987. His deep
commitment to developing innovative renewable energy products has made him a crucial
member of the Anu Solar family. His dedication and thirst to think out-of-the-box, has enabled
Mr Nair to grow to his current esteemed position as Production Head. With more than 24 years
of deep domain expertise, Mr. Nair is an ardent worshipper of perfection.

Milestones

1987 : Pioneered the introduction of Bio-mass gasifiers for the first time in India.

1989 : Launched ‘Swosthe’ – smokeless chula for household cooking.

1991 : Introduced first of its kind solar water heaters with mild steel collectors.

1996 : Developed first indigenous fully automatic LPG baking oven- a leader in this space even
today.

2001 : Established first and only dedicated NBFC, Nagarjuna Credits and Capital Ltd in the
country to finance renewable energy products.

2002 : ISO certification received; early adaptors to quality.

2004 : Company rechristened Anu Solar Power Pvt. Ltd with a renewed vision to stay focused
on solar energy.

2008 : First to develop and introduce modular type system in evacuated tube collector (ETC) for
the Indian Market.

2008 : Conceptualized India’s first clean development mechanism (CDM) project in solar water
heaters.
2009 : Established India’s first renewable energy service company (ESCO).

2010 : Introduced indigenously developed solar inverters in Indian market.

2011 : Indigenously developed LED bulbs / street lights for Indian market.

2011 : Accredited as Channel Partner for Ministry of New & Renewable Energy (MNRE).

2012 : Developed glass reinforced polymer (GRP) tanks – a permanent solution against
corrosion in solar water heaters for domestic and industrial applications.

Facilities

With extensive domain expertise in renewable energy, a culture that goes back to the
nationalistic entrepreneurial spirit of the seventies, and a modern state-of-the-art research and
development unit, Anu Solar Power Pvt. Ltd. Prides itself for offering solar energy solutions that
are indigenous and commercially viable.

Our foresight and tremendous grit have powered us forward and besides numerous
victories, we are today one of the largest evacuated tube collector based solar water heating
system manufacturer in India.

Manufacturing Facility :

We have a swank multi storied building with approximately

50,000 sq. ft of floor space per floor. A state-of-the-art facility,
we have over 200 highly skilled and trained personnel engaged
in our manufacturing unit in Bangalore. We also have a host of
quality certifications from BIS, ISO and Ministry of Natural and
Renewable Energy that ensure the quality of our products is on par with international standards.

Research and Development Unit :

 Our research and development unit is constantly incubating and
engineering new ideas that can enhance efficiency of solar water
heaters and LED lights. Our constant entrali is to develop
renewable energy products that affordable to the large masses of
India, especially those in rural areas where conventional sources
of energy are infrequent. Our R&D facility is engaged in reverse engineering and indigenously
developing world class products.

​Operational Excellence :

At our manufacturing unit you can expect only quality,

knowledge based, process driven operations that are integrated
through a SAP ERP. We thrive on automation and control over
our manufacturing, so that our customers access only the best
products.

Trained Employee :

Besides the conventional training that our employees come with,

our 600+ manufacturing, support, sales and administrative staff
are also trained internally so they understand the finer nuances
and superiority of our product. They are also trained to anticipate
customer needs and deliver solutions with a personalized touch
and service oriented attitude.

Management Experts :

Our management and consultants are a host of experienced,

highly respected industry specialists. They come with extensive
exposure to the alternate and renewable energy sector, and
imbibe our ethos in the way Anu Solar is managed from our head office in Bangalore.

Certification :

Bureau of Indian Standards

Green Audit Solutions

Solar energy is the most abundant, easy and cost effective renewable energy to harvest.
It’s not just a sense of responsibility towards the environment, but legislative compliance too that
should propel you to explore and leverage renewable energy like that from the sun. Solar voltaic
panels can be non obtrusively placed on the roof of your building or home, it can help you
reduce your demand for expensive polluting energy generated from fossil fuel, and considerable
reduce your monthly energy bill.

Important to remember is that while the initial investment may be high, the renewable
energy system be it a solar water heater or solar powered LED lights can last for up to 15 or 20
years. The maintenance on this infrastructure is low and soon, the solar energy harvesting system
begins to pay for itself.

Are you wondering if your home, housing colony or company could be used to harvest
the energy of the sun?

Anu Solar Power has 27 years of deep domain expertise in developing world class solar
energy products, from solar water heaters to solar powered LED lights. Call us to conduct a
Green Audit of your location.

Our Green Audit Solution Involves :

➢ Extensive understanding of current situation

➢ Analysis of data gathered to locate areas of improvement

➢ Detail report on areas for improvement and optimization. Our report includes budgets so
you understand your total cost of ownership and investment commitment

Since we research, develop, and manufacture an array of world class solar energy
products, Anu Solar Power can help you take your green audit to the next level and implement it
too.

➢ We can provide your home, housing colony, company or institution energy-saving

products
➢ Improve distribution routes and systems to reduce CO2 emissions
 ➢ Train your staff to manage the installation
➢ Put in place processes to monitor and maintain the infrastructure

Green Building Consulting from Anu Solar :

Interested in making a commitment to the environment and reducing your carbon

footprint, green building is the way to go. One need not think ‘green’ only when putting up a
new home, housing colony or commercial establishment, if you already have a building and want
to go green, you could still do so through a few, simple, cost effective methods.

Prominent ways to reduce the impact of your building on the environment and also make
a statement that is pro environment is to adopt solar water heaters and solar powered LED lights.

With over 27 years of deep domain expertise and extensive knowledge of auditing and
implementing green solutions across a host of geographies and constructed areas, our green
building consultancy is process driven. At Anu Solar Power we offer you holistic solutions that
can be easily and quickly implemented without burning a hole in your pocket. We are sensitive
to esthetics and offer solutions you would be proud to implement.
 At Anu Solar Power we have trained consultants who work
keeping in mind standards. We spend time understanding
your needs and deliver options that can be implemented.
Sourcing green materials can be time consuming and
exhaustive work, we help you run through this process while
accessing materials that suit your budget. We also train your
staff to get them on board with your green initiatives and to
continue infrastructure maintenance.
 As a company engaged with research, development and manufacture of indigenous world
class solar water heaters and solar powered LED lights, we offer you affordable options that are
designed to last and are low on maintenance.
 CHAPTER 3

MCKINSY’S 7S FRAMEWORK
 CHAPTER 4

SWOT ANALYSIS

SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By definition,

Strengths (S) and Weaknesses (W) are considered to be internal factors over which you have some
measure of control. Also, by definition, Opportunities (O) and Threats (T) are considered to be external
factors over which you have essentially no control. SWOT Analysis is the most renowned tool for audit
and analysis of the overall strategic position of the business and its environment. Its key purpose is to
identify the strategies that will create a firm specific business model that will best align an organization’s
resources and capabilities to the requirements of the environment in which the firm operates.

In other words, it is the foundation for evaluating the internal potential and limitations and the
probable/likely opportunities and threats from the external environment. It views all positive and
negative factors inside and outside the firm that affect the success. A consistent study of the
environment in which the firm operates helps in forecasting/predicting the changing trends and also
helps in including them in the decision-making process of the organization

Strengths

1. Our India is blessed with almost 300 sunny days in a year. Solar energy will be accessible as long
as we have the sun and we would not run out of solar energy like other power sources.
2. Since you will be meeting some of your energy needs with the electricity your solar system has
generated, your energy bills will drop. How much you save on your bill will be dependent on the
size of the solar system and your electricity or heat usage. Savings can further grow if you sell
excess electricity at high rates during the day and then buy electricity from the grid during the
evening when the rates are lower.
3. Solar power is inexhaustible. In an energy deficient country like India, where power generation
is costly, solar energy is the best alternate means of power generation. You don’t need a power
or gas grid to get solar energy.
4. A solar energy system can be installed anywhere. Solar panels can be easily placed in houses and
commercial roof tops. A separate land area for installing solar panels is not necessary. Hence, it
is quite inexpensive compared to other sources of energy.
 5. Solar energy is environment friendly. When in use, it does not release CO2 and other gases
which pollute the air. Hence it is very suitable for India, India being one of the most polluted
countries of the world.
6. The geographical locations of the whole India is a most appropriate place for getting solar
energy in abundant and there are also vast areas in rural India can be utilized for installing solar
panels.
7. Ministry of New and Renewable Energy announced 30% Capital Subsidy for all Solar Power
Plant Projects in India through Jawaharlal Nehru Mission Scheme. These subsidies and
motivations to public reduces the cost of implementation and increases interest in going
through solar
8. In our India, it would be suitable for small entrepreneurs to commence solar energy business as
only few large corporates are playing role in developing and distributing solar energy
9. Solar energy can give uninterrupted supply of power to households and commercial places.

WEEKNESS

1. Solar energy are limited for a geographical point of view - solar panels are not popular in regions
where there's snow like Jammu & Kashmir.
2. The cost of installation is expensive for a common man. So only rich people chooses solar
energy.
3. The cost of production range is Rs 15 to Rs 20 per unit for the solar energy, which is very high
when compared to, Rs 2 to Rs 5 per unit for other conventional sources in India
4. There is no awareness among people about solar energy and its benefits. It restrains the
turnovers and only literate people chooses solar energy
5. We cannot depend solar energy on rainy and cloudy days
6. Maintenance of solar panel is required at frequent intervals with additional costs.
7. Lack of technical support for the remote locations

OPPORTUNITIES

1. India is depending on the gulf nations for oil and We are running out of oil at some times. The
cost of oil soars high for most of the months in a year and it will force our government to
 depend on solar resource available in our country for generating electricity. It also may force
people to purchase electronic cars or vehicles with solar panel on roof
2. People are concerned about the environment blocking to install nuclear and coal power plants
in their villages will force the government to substantially depend on solar energy. e.g.,
Kudankulam Nuclear Power Plant is facing protests from the local fishermen community in Tamil
Nadu.
3. As more companies are entering into the production of solar panel may lead to reduction in
cost.
4. Awareness programs about solar energy and subsidies announced by the government of India
will make the people feel easy about solar energy
5. Our Indian government announced investment over US $20 billion for 30 years in solar energy
will give more opportunities to the people in attaining solar energy and would boost the
economy.

THREATS

1. The quality of solar cells produced from uranium in Indian soil is inferior to the solar cells
produced from Australia, Germany and other countries may force to import uranium for
producing solar cells.
2. Only large investors can get higher operating profit from solar energy distribution since it
requires huge investment to install, maintain and distribution
3. India may face competition from Chinese firms due to cost difference as they are going to solar
energy intensively.
4. The traditional energy production sector is not likely to diminish in the near future and it bars
the people to change.
 CHAPTER 5

DATA ANALYSIS AND INTERPRETATION

Financials of Anu Solar India Pvt. Ltd

5 Year Highlights

Description Dec 2015 Dec 2014 Dec 2013 Dec 2012 Dec 2011

Sources of Funds

Share Capital 423.8 423.8 423.8 423.8 423.8

Reserves 24921.4 23813.2 23673.5 20622.9 15694.2

Net Worth 25345.2 24237.0 24097.3 21046.9 16118.0

Borrowings - - - 0.2 5.6

Funds Employed 25345.2 24237.0 24097.3 21046.9 16123.6

Income and Profits

Sales and Other Income 74651.5 63726.3 63097.7 69674.5 60013.6

Operating profit before 3779.6 1692.8 6012.9 9024.6 8005.7

interest and depreciation

Profit before tax 2677.4 1002.3 5274.0 8332.4 7564.6

Tax 832.0 370.0 1727.6 2858.3 2647.9

Profit After Tax 1845.4 632.3 3546.4 5474.1 4916.7

Dividend / Dividend Tax 737.2 492.6 485.8 545.4 558

Retained Earnings 1108.2 139.7 3050.6 4928.7 4358.7

Gross Fixed Assets 15458.6 10555.4 9754.6 8838.5 6627.1

Revenues (Rs in Million)

2015 60014

2014 69675

2013 63098

2012 63726

2011 74651

Interpretation :
 The total revenue has increased in the current financial year. It was going on a constant
note for the past 2 years which was lesser than the revenue of the company in 2014.
Profit After Tax (Rs. In Million)

2011 4916.7

2012 5474.1

2013 3546.4

2014 632.3

2015 1845.4

Interpretation :

The profit after tax was highest in 2011. It came down drastically in 2012 and 2013. But
it has seen an upper trend for this financial year. This may be because of the increase in the total
revenue.

Return on Capital employed (%)

2011 54.6

2012 46.6

2013 24.5

2014 4.9

2015 12.0

Interpretation :

Return on capital employed percentage is a measure of the returns that a business is

achieving from the capital employed, usually expressed in percentage terms. Capital employed
equals a company's Equity plus Non-current liabilities (or Total Assets − Current Liabilities), in
other words all the long-term funds used by the company. ROCE of Anu Solar India indicates
the efficiency and profitability of the company's capital investments.
Balance Sheet as of 31 December 2015 (Rs. In Lakhs)

31/12/2015 31/12/2014

Equity and Liabilities

Share Capital 4238 4238

Reserves and surplus 255926 249220

Preference shares by - 185

subsidiary company

Total 280164 253643

Non – current liabilities

Other long-term liabilities 389 330

Long-term povisions 571 571

Total 960 901

Current – Liabilities

Short term borrowings 32768 -

Trade payables 192928 198656

Other current liabilities 139487 155900

Short-term provisions 24136 22795

Total 389317 377351

Total Equity & Liabilities 650441 631896

Assets

Non – current assets

Fixed Assets 135080 128931

Non – Current investments 1656 1664

Deferred tax assets (net) 1499 2251

Long – term loans and 23125 16427

advances

Other non-current assets 897 917

Current Assets

Current investments 8 8

Inventories 93337 93915

Trade Receivables 328082 309356

Cash and Cash equivalents 8684 25995

Short-term loans and 23051 20188

advances

Other current assets 35022 34243

Total 488184 483705

Total Assets 650441 631895

Income and Expenses statement for the year ending 31/12/2015

31/12/2014 31/12/2013

Income from operations

Net sales / income 751368 737273

Other operating income 9680 7906

Total 761048 745179

Expenses

Cost of raw materials 468572 472508

Purchase of stock-in-trade 29453 32218

Changes in inventories of (6) (8501)

finished goods, WIP, SIT

Subcontracting charges 47934 43467

Employee benefits expenses 62396 58721

Depn and amortization 9417 7955

Other expenses 118541 113059

Total expenses 736307 719427

Profit / (Loss) from 24741 25752
operations before other
income

Other Income 726 4115

Profit / (Loss) from 25467 29867

ordinary activities

Finance costs 4324 3068

Profit / (Loss) from 21143 26799

ordinary activities after
finance costs

PBT 21143 26799

Tax expenses 7049 8328

PAT 14094 18471

Ratio Analysis

Operating Profit Margin (%)

Dec 2011 4.11

Dec 2012 3.62

Dec 2013 9.96

Dec 2014 11.93

Dec 2015 13.58

Interpretation :

The companies operating profit margin was highest in 2011 with 13.58%. It has seen a
gradual decrease since the last 3 years. But this financial year it showed a recovery with 4.11%.

Profit Before Interest And Tax Margin(%)

Dec 2011 3.01

Dec 2012 2.78

Dec 2013 9.1

Dec 2014 11.32

Dec 2015 12.92

Interpretation :

Profit before Interest and Tax margin percentage ​indicates how much profit an entity
makes after paying for variable costs of production such as wages, raw materials, etc. (but before
interest and tax). For Anu Solar India even the Profit before tax margin also has seen a setback
over the years with only in 2011 it was good.

Net Profit Margin (%)

Dec 2011 2.47

Dec 2012 0.99

Dec 2013 5.62

Dec 2014 7.91

Dec 2015 8.19

Interpretation :

Net profit margin​ (or ​profit margin​, ​net margin​, ​return on revenue​) is a ratio of
profitability calculated as after-tax net income (net profits) divided by sales (revenue). The
company has been recovering in this area also which is definitely a positive sign.

Return on Net Worth (%)

Dec 2011 7.28

Dec 2012 2.60

Dec 2013 14.71

Dec 2014 26.00

Dec 2015 30.50

Interpretation :

The return on equity is the amount of net income returned as a percentage of shareholders
equity. Moreover, the return on equity estimates the profitability of a corporation by revealing
the amount of profit generated by a company with the money invested by the shareholders.
From the above graph we can see that the percentage of RONW has increased from the last year.

Management Efficiency Ratios

Current Ratio

Dec 2011 1.32

Dec 2012 1.46

Dec 2013 1.51

Dec 2014 1.41

Dec 2015 1.36

Interpretation :

The current ratio is a liquidity ratio which estimates the ability of a company to pay back
short-term obligations. The current ratio was highest in 2013 but has come down in 2015
indicating debt payback capability of the company has come down.

Quick Ratio :

Dec 2011 1.05

Dec 2012 1.24

Dec 2013 1.26

Dec 2014 1.20

Dec 2015 1.19

Interpretation :

The quick ratio, also referred as the “acid test ratio” or the “quick assets ratio”, this ratio
is a gauge of the short term liquidity of a firm. The quick ratio is helpful in measuring a
company’s short term debts with its most liquid assets. This ratio is showing a downtrend which
is not very good for the company.

Inventory Turnover Ratio :

Dec 2011 13.11

Dec 2012 11.47

Dec 2013 8.94

Dec 2014 9.52

Dec 2015 8.36

Interpretation :

Inventory turnover​ is a measure of the number of times inventory is sold or used in a

given time period such as one year. It is a good indicator of inventory quality (whether the
inventory is obsolete or not), efficient buying practices, and inventory management. This ratio is
important because gross profit is earned each time inventory is turned over.

Debtor Turnover Ratio :

Dec 2011 2.98

Dec 2012 2.54

Dec 2013 2.15

Dec 2014 2.18

Dec 2015 2.46

Interpretation :

Debtor turnover ratio indicates the velocity of a company's debt collection, the number of
times average receivables are turned over during a year. This ratio determines how quickly a
company collects outstanding cash balances from its customers during an accounting period.
Investment Turnover Ratio :

Dec 2011 13.11

Dec 2012 11.47

Dec 2013 8.94

Dec 2014 9.52

Dec 2015 8.36

Interpretation :

Investment turnover ratio was very high in 2011. It has gradually come down in the
subsequent years. Though it started increasing in 2012, this year it has come down.

Fixed Assets Turnover Ratio :

Dec 2011 10.63

Dec 2012 9.08

Dec 2013 7.19

Dec 2014 6.42

Dec 2015 5.68

Interpretation :

Fixed asset turnover ​ratio compares the sales revenue a company to its fixed assets. This
ratio tells us how effectively and efficiently a company is using its fixed assets to generate
revenues. This ratio indicates the productivity of fixed assets in generating revenues. From the
above graph we can infer that Anu Solar India company is efficient at managing its fixed assets.

Total Assets Turnover Ratio :

Dec 2011 3.73

Dec 2012 3.28

Dec 2013 2.61

Dec 2014 2.62

Dec 2015 3.11

Interpretation :

Asset turnover​ (total asset turnover) is a financial ratio that measures the efficiency of a
company's use of its assets to product sales. This ratio tells us that Anu Solar india company is
effectively managing its assets at its disposal to promote sales. The increase in Total assets
turnover ratio indicates that the company is utilizing its assets in a very effective manner.

Assets Turnover Ratio :

Dec 2011 10.63

Dec 2012 9.08

Dec 2013 7.19

Dec 2014 6.42

Dec 2015 2.98

Interpretation :

T​he asset turnover ratio does not look at how well a company is earning profits relative to
assets. The asset turnover ratio only looks at revenues and not profits. This is the distinct
difference between return on assets (ROA) and the asset turnover ratio, as return on assets looks
at net income, or profit, relative to assets. Hence the the company’s asset turnover ratio even
though decreasing, is not a very worrying factor.

Average Raw Material Holding Period (days) :

Dec 2011 71.65

Dec 2012 24.57

Dec 2013 30.41

Dec 2014 29.66

Dec 2015 35.29

Interpretation :

The average raw material holding period was very high in 2011 indicating sufficient raw
materials. But this decreased drastically the next financial year when it came down from 71.65
days to 24.57 day. But after that year it started increasing on a steady note.
Average Finished Goods Held (days) :

Dec 2011 3.38

Dec 2012 6.77

Dec 2013 7.94

Dec 2014 4.33

Dec 2015 5.64

Interpretation :

Increase in average finished goods holding ratio means the demand in the market has
decreased and the stock is in the godown for a long time. This trend is not too good for the
company. It was very less in 2011 showing a healthy trend but increased drastically in 2013.
Though it decreased in 2014, it again went up in 2015.

Number of Days in Working Capital :

Dec 2011 66.49

Dec 2012 72.05

Dec 2013 93.04

Dec 2014 90.24

Dec 2015 59.93

Interpretation :

The number of days in Working capital is the length of time between a firm's purchase
of inventory and the receipt of cash from accounts receivable. It is the time required for a
business to turn purchases into cash receipts from customers. The increase in number of days is
not a very good sign for the company. Fortunately for Anu Solar India that length of days has
come down drastically in this financial year.
 ANNEXURE

5 Year Highlights

Description 2015 2014 2013 2012 2011

Sources of Funds

Share Capital 423.8 423.8 423.8 423.8 423.8

Reserves 24921.4 23813.2 23673.5 20622.9 15694.2

Net Worth 25345.2 24237.0 24097.3 21046.9 16118.0

Borrowings - - - 0.2 5.6

Funds Employed 25345.2 24237.0 24097.3 21046.9 16123.6

Income and Profits

Sales and Other Income 74651.5 63726.3 63097.7 69674.5 60013.6

Operating profit before 3779.6 1692.8 6012.9 9024.6 8005.7

interest and depreciation

Profit before tax 2677.4 1002.3 5274.0 8332.4 7564.6

Tax 832.0 370.0 1727.6 2858.3 2647.9

Profit After Tax 1845.4 632.3 3546.4 5474.1 4916.7

Dividend / Dividend Tax 737.2 492.6 485.8 545.4 558

Retained Earnings 1108.2 139.7 3050.6 4928.7 4358.7

Gross Fixed Assets 15458.6 10555.4 9754.6 8838.5 6627.1

Balance Sheet as of 31 December 2015 (Rs. In Lakhs)

31/12/2015 31/12/2014

Equity and Liabilities

Share Capital 4238 4238

Reserves and surplus 255926 249220

Preference shares by - 185

subsidiary company

Total 280164 253643

Non – current liabilities

Other long-term liabilities 389 330

Long-term povisions 571 571

Total 960 901

Current – Liabilities

Short term borrowings 32768 -

Trade payables 192928 198656

Other current liabilities 139487 155900

Short-term provisions 24136 22795

Total 389317 377351

Total Equity & Liabilities 650441 631896

Assets

Non – current assets

Fixed Assets 135080 128931

Non – Current investments 1656 1664

Deferred tax assets (net) 1499 2251

Long – term loans and 23125 16427

advances

Other non-current assets 897 917

Current Assets

Current investments 8 8

Inventories 93337 93915

Trade Receivables 328082 309356

Cash and Cash equivalents 8684 25995

Short-term loans and 23051 20188

advances

Other current assets 35022 34243

Total 488184 483705

Total Assets 650441 631895

Income and Expenses statement for the year ending 31/12/2015

31/12/2015 31/12/2014

Income from operations

Net sales / income 751368 737273

Other operating income 9680 7906

Total 761048 745179

Expenses

Cost of raw materials 468572 472508

Purchase of stock-in-trade 29453 32218

Changes in inventories of (6) (8501)

finished goods, WIP, SIT

Subcontracting charges 47934 43467

Employee benefits expenses 62396 58721

Depn and amortization 9417 7955

Other expenses 118541 113059

Total expenses 736307 719427

Profit / (Loss) from 24741 25752

operations before other
income

Other Income 726 4115

Profit / (Loss) from 25467 29867

ordinary activities

Finance costs 4324 3068

Profit / (Loss) from 21143 26799

ordinary activities after
finance costs

PBT 21143 26799

Tax expenses 7049 8328

PAT 14094 18471