Indian Power Industry.pptx
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Indian PowerIndustry
Indian Power Industry
byKASHIF KALIMRACHIT DHALLTANUJ VIRMAYANK CHATURVEDINIRBHAY TANEJA
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5 th largest electricity generation capacity
6 th largest consumer accounting for 3.4% of global energy
consumption
Grown 3.6 % p.a over the past 30 years
Introduction
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Players in power sector
48%
21%
31%
State utility
Private utility
Central utility
Report of Central Electricity Authority31-03-2011
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Indian Power Sector
One of the most diversified in the word
55%
21%
10%
2%1%
11%
End of Aug 2011
Total 99503 MW
Coal
Hydro
Gas
Nuclear
DieselRenewable
2010-11 4.9 %2011-12 9.2 %2012-13 9.3 %
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Porters Five Forces Analysis
Industry Rivalry
(Medium)
Potential Entrants(Low)
Buyers
(Buyer Power )
(Medium)
Substitutes
(Medium)
Supplier
(supplier power )
(High)
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Potential Entrants(LOW)
Highly capital Intensive Behemoth like NTPC, SEBs contributing around 85% of total
power produced
Reliance power, Adani power, Lanco etc entrer sector aftermarket opened up for private sector through Electricity
Act 2003 However obtaining regulatory approvals, fuel linkages, land
etc still remain the major hindrance Hence the threat of new entrant appears to be low
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Threat of substitute products or services(Medium)
Power does not have substitute but it can be generated from
different sources of energy Currently thermal power is dominant in India, coal being the
major raw material Coal availability is limited & therefore power from nuclear,
hydro, and other renewable sources could be used assubstitute for thermal power in future
Although, demand for power exceeds its supply , thermalpower plant companies have threat from non thermal powergenerators
Hence the threat of substitute product s is medium
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Buyers Power (Medium)
Industrial consumers have huge demand for power Their bargaining power is Low in India as the number of
companies to buy from is limited in number. Hence powercompanies are in better position
Retail customers - Government regulates the power sector toensure supply of power at reasonable prices but thisregulation is limited
Peak shortage is much more in every region & it is about 12%
on all India basis which allows suppliers to dictate terms withbuyer
Overall, the bargaining power of buyers is Medium
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Power of supplier(High)
Coal is majorly used as a feed for generating powers
The supply of coal is limited in India & hence coal suppliers
are in dominant position
Import of coal is an expensive affair
Hence power of supplier is high
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Intensity of competitive rivalry with in Industry(Medium)
Power Producing companies No competitive rivalry asdemand for power is way above its supply
However, with government encouragement , private
participation is expected to increase in the coming years totake advantage of huge demand-supply gap Power equipment market- Market leaders like BHEL is facing
tough competition from L&T, Alstom, Doosan and mostimportantly chinese suppliers.
So overall the intensity of competitive rivalry is medium
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References
Planning commission report on power sector
http://planningcommission.nic.in/aboutus/committee/wrkgrp12/wg_power1904.pdf
Ministry of power, Government of India
http://www.powermin.nic.in
http://planningcommission.nic.in/aboutus/committee/wrkgrp12/wg_power1904.pdfhttp://planningcommission.nic.in/aboutus/committee/wrkgrp12/wg_power1904.pdfhttp://planningcommission.nic.in/aboutus/committee/wrkgrp12/wg_power1904.pdfhttp://planningcommission.nic.in/aboutus/committee/wrkgrp12/wg_power1904.pdf -
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THANK YOU