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Document From Hrithik Naveen

Tata Power Company Limited, a publicly listed entity under the Tata Group, is a leading integrated power utility in India, focusing on electricity generation, transmission, and distribution from both conventional and renewable sources. The company has experienced growth in recent years, reporting a net profit increase and expanding its renewable energy capacity, while facing challenges such as land acquisition issues and managing debt. Looking ahead, Tata Power plans significant investments in renewable energy and aims to substantially increase its revenue and profits by 2030.

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9 views4 pages

Document From Hrithik Naveen

Tata Power Company Limited, a publicly listed entity under the Tata Group, is a leading integrated power utility in India, focusing on electricity generation, transmission, and distribution from both conventional and renewable sources. The company has experienced growth in recent years, reporting a net profit increase and expanding its renewable energy capacity, while facing challenges such as land acquisition issues and managing debt. Looking ahead, Tata Power plans significant investments in renewable energy and aims to substantially increase its revenue and profits by 2030.

Uploaded by

hrithiknaveen7
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Category 1: What the Company Does

· What company/business unit are you evaluating?

This evaluation focuses on Tata Power Company Limited, a prominent entity within
the Tata Group conglomerate.

· What is the focus of the company/business unit?

Tata Power is an integrated power utility engaged in the generation, transmission,


and distribution of electricity. Its operations encompass both conventional energy
sources, such as thermal and hydroelectric power, and renewable energy sources,
including solar and wind power. The company also offers energy solutions like
rooftop solar installations and electric vehicle (EV) charging infrastructure.

· What sector of the electric industry does the company’s/business unit’s focus fall
under?

Tata Power operates across multiple sectors of the electric industry, including:

Electricity Generation: Utilizing thermal, hydro, solar, and wind energy sources.

Electricity Transmission and Distribution: Managing the delivery of electricity to end-


users.

Renewable Energy Solutions: Providing solar rooftop installations and EV charging


stations.

· Is the company or parent company of the business unit public, private, or


government-controlled? Explain your basis for categorizing the company as such.
Tata Power is a publicly listed company, trading on Indian stock exchanges. It
operates under the umbrella of the Tata Group, which is a privately-owned
conglomerate. The public listing of Tata Power allows for public investment and
trading of its shares.

· Where does the company/business unit operate geographically?

Tata Power's operations are primarily concentrated in India, with a significant


presence in states such as Maharashtra, Delhi, Odisha, and Rajasthan. The company
serves over 12 million customers across these regions. Additionally, Tata Power has
international operations and interests in countries like Indonesia and South Africa,
focusing on power generation and distribution.

How does the total size of these operations compare to those of other companies
that compete in this sector (e.g., is your company among the top-five biggest in the
sector, worldwide if international or in the country they operate if domestic)?

With an installed electricity generation capacity of 14,707 MW, Tata Power is


recognized as India's largest integrated power company. This capacity places it
among the leading power utilities in the country, competing with other major entities
in the Indian power sector.

· What is the company’s market like, is it regulated, restructured, or deregulated?

India's power market is regulated, with oversight from entities such as the Central
Electricity Regulatory Commission (CERC) and State Electricity Regulatory
Commissions (SERCs). These bodies govern tariffs, power purchase agreements,
and other operational aspects. Tata Power operates within this regulated framework,
adhering to the guidelines and regulations set forth by these authorities.

Category 2: How the Company/Business Unit has Performed

· What has been the overall state of the sector that the company/business unit
operates in over the past 3-5 years in terms of product supply, demand, and prices?

Over the past 3-5 years, India's power sector has experienced significant growth,
particularly in renewable energy capacity. Government initiatives have driven an
increase in solar and wind power installations. However, challenges such as land
acquisition disputes and financial stress among state-run distribution companies
have impacted the sector. Despite these hurdles, the demand for electricity has
generally been on an upward trajectory, influenced by economic growth and
urbanization. How has the company/business unit done relative to other
companies/business units engaged in the same activities?

Tata Power has maintained a strong position relative to its peers, demonstrating
consistent financial growth. In Q2 FY2024, the company reported a consolidated net
profit of INR 1,017 crore, marking a 9% year-over-year increase. This performance
underscores Tata Power's resilience and effective operational strategies in a
competitive market.

· Has the company/business unit grown/shrunk/stayed largely unchanged? Why?

Tata Power has experienced growth in recent years, driven by strategic investments
in renewable energy and expansion of its distribution networks. The company's
focus on increasing its renewable energy capacity aligns with global trends and
government policies promoting sustainable energy sources. Additionally, Tata
Power's initiatives in solar manufacturing and EV infrastructure have contributed to
its growth trajectory.

Category 3: What the Challenges/Successes have been for the Company

· What have been the most significant challenges and/or successes for the company
over the past 3-5 years?

Challenges:
Land Acquisition Issues: Projects like the 100-megawatt solar plant in Maharashtra's
Nandgaon faced resistance from local farmers, leading to delays and highlighting the
complexities of land acquisition in India.

Financial Leverage: Managing debt levels has been a challenge, with the company's
consolidated debt standing at Rs.49,480 crore as of March 2024.

Successes:

Renewable Energy Expansion: Tata Power has significantly increased its renewable
energy capacity, aiming for green energy sources to surpass coal within five years.

Financial Performance: The company has demonstrated consistent profitability, with


a reported net profit of Rs 4,200 crore in FY24.

· What challenges/successes does the company/business unit (and/or expert


followers of it) say it will be positioning itself for in the next 3-5 years?

Tata Power plans to invest nearly 1.46 trillion rupees in capital expenditure by 2030,
with 60% allocated towards renewable energy projects. The company aims to
increase its revenue by 60% and double its profit by 2030, focusing on green energy
and transmission

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