TATA POWER : CSR & SUSTAINABILITY

Presented By- Rishabh Katiyar

Siddharth Kumar Tanuj Chawla Varun Pratap Singh

Power Sector in India-> Huge Demand as India is a growing

Economy.->Dominated by Government – State Government : 58% Central Government : 32 %-> Private Sector : 10 %-> Electricity demand of 80,000 MW was

expected to increase to 157107MW in 2012.

TATA GROUP India’s Largest Privately owned Business Group . Diverse business in 7 sectors. Revenue equivalent to 3.2% of India’s gross GDP. Tata Steel is the 6th largest steel maker globally,

Tata Tea is the 2nd largest branded tea, Tata chemicals is the 2nd largest manufacturer of soda ash , TCS and Tata Communications are widely spread.

57th rank among top 100 brands. Encouraged more than 11,500 registered

volunteers worldwide in CSR activities.

TATA Power Started in 1919 with operations in

Maharashtra, Jharkhand and Karnataka Highest growth rate among TATA companies

in other sectors. TPC business operations were divided into

two segments: power and others. Power segment : generation, transmission

and distribution of electricity. Other segment : electronic equipment,

broadband services, oil exploration and research and development.

Major areas of CSR activities

Health Education Infrastructure

Energy Environment

Income Generation Activities

CSR Challenges & Sustainability Issues

Challenges Issues

->Balance of bargaining power – NGOs/PBOs

-> Differentiation from competitors

Striking balance – environment & business

More production = More pollution

c.) Villagers lack basic skill setsd.) No markets for their products

a.) Cultivating ownership among communitiesb.) Role of employees – how to motivate them?

WHY CSR The power sector involves large scale

movement of people residing in any area for putting up of a thermal or hydel power plant.

Hence TPC is bounded to do rehabilitation and provide reward to the people displaced or whose lives are directly or indirectly involved in the same.

The way forward Create a separate department with

dedicated staff for CSR

CSR activities remain as a part of operations

CO-existence of CSR department along with PBO/NGO

Analysis Increasing Paid-up Capital, decreasing Debt-equity ratio – This

trend is opposite to the overall industry trend.

Sustained increase in Profits, Dividend rate.

Increasing Current ratio.

Increasing number of companies in the Industry.

However the cash profit margin, return on capital employed and return on net worth are below industry average.

Hence TPC is currently having a fair amount of goodwill among its shareholders

Also due to its CSR activities other stakeholders like NGOs and other involved committees hold it in high stead, hence we propose that the CSR activities at TPC should remain as a part of the operations.

THANK YOU