Re-report on the report submitted

by Basma Rizvi

Financial Turnaround of a Power

Distribution Business: The BSES
Model

Presenters:
Kunal Gautam
Nabeela Khan
Farah Ahmed
Saadat Parveen
INTRODUCTION
 Bombay Suburban Electric Supply Ltd (BSES Ltd) now
known as Reliance Energy Ltd.

 Operating since 1st October 1929.

 Undertook turnkey electrical contracts in 1966

 Acquired 51% stake in three distribution companies of

orissa.

 Provide electricity to 1.24 mn consumers in an area of

1,23,000 sq kmts in orissa
 MUMBAI

 2.23 mn
Delhi
BSES Yamunaconsumers
Power Ltd (BYPL)
1226MVA
•10.6 lakh consumers
384sq
•200 sq kmts over kmts
14 districts
•977MW peak demand
99.98% online
•5283 MU annual consumption
reliability
 Power Ltdpioneers
BSES RajdhaniAmongst (BRPL)
in adopting
•14.5 lakh consumers
computerisation
•1360 sq kmts over 19 districts
•1647MW peak demand
•9865 MU annual consumption

Source: http://web.mit.edu/sangam/www/images/india_map.gif
NEED OF RESEARCH
 Revenue leakage
 Technical losses
 Efficient tracking of consumption
 Consumption behaviour
 Seeking new opportunities
 Sensing threats
RESEARCH OBJECTIVE

To study the financial turnaround the power

distribution business (Specifically, BSES Ltd)
since its privatization, thereby recommending an
Ideal turnaround model.
RESEARCH DESIGN
 Type of Research design : Descriptive
 Type of Data: Secondary data

 Source of data :
 Company website
 Websites of related government bodies

 Related reports on power distribution

 Tools for analysis:

 Balance sheet
 Income statements

 Ratio analysis
 CONCLUSION OF RESEARCH
 BYPL and BRPL have been assigned different areas of Delhi.

 Both BYPL and BRPL have similar approach to loss reduction

and system development.

 Additional power quota to BYPL.

 Both companies have invested in fixed assts in 2005 and 2006

RECOMMENDATIONS
 System improvement
 Load growth

 Loss reduction

 Cash box security for interest

 Effective monitoring

 Improvement in commercial processes

 LT network improvement and securitization

 Metered distribution transformers

 Automatic meter reading (AMR)

LIMITATIONS
 Based majorly on financial analysis
 Effects of other factors are unknown

 Power sector’s performance hugely affected by

external factors like climate, government, events.
 No space for contingencies in proposed model

 Superficial study due to small amount of data

available
 Strengths Improvement
areas
•Clearly stated •Concise and crisp
limitations •Provision of
annexure for
•Comprehensive supporting data
•Indexes for
•Simple language tables and
figures
•Flow and continuity •Nomenclature for
tables and figures
•Reader orientation
•Nicely structured •Tables’ explanation

•Thorough study •Volume

THANKS