The Tata Power Company Limited
Transcription
The Tata Power Company Limited
The Tata Power Company Limited Analyst Meet – March 2008 1 Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements”, including those relating to The Tata Power Company Limited’s general business plans and strategy, its future outlook and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in The Tata Power Company Limited’s business, its competitive environment, its ability to implement its strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in India. This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire any Shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of The Tata Power Company Limited’s Shares. Neither this presentation nor any other documentation or information (or any part thereof) delivered or supplied under or in relation to the Shares shall be deemed to constitute an offer of or an invitation by or on behalf of The Tata Power Company Limited. The Company, as such, makes no representation or warranty, express or implied, as to, and do not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this presentation, unless otherwise specified is only current as of the date of this presentation. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. The Tata Power Company Limited may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation may not be copied and disseminated in any manner. THE INFORMATION PRESENTED HERE IS NOT AN OFFER FOR SALE OF ANY EQUITY SHARES OR ANY OTHER SECURITY OF THE TATA POWER COMPANY LIMITED. 2 Management Team Prasad Menon S Ramakrishnan Managing Director Executive Director (Finance) S Padmanabhan Banmali Agrawala Executive Director (Operations) Executive Director (Strategy & Business Dev) 3 Agenda • Part A: Overview of Tata Power • • Part B: Global Scenario Part C: Power Business – Section 1: Generation – Section 2: Fuel & Logistics – Section 3: T & D – Section 4: Power Trading • Part D: Other Businesses • Part E: Financial Performance • Part F: Beyond Business 4 Part A: Overview of Tata Power 5 A Tata Company 6 Tata Power: Introduction • Largest private, integrated utility company in India today with presence across the value chain in fuel, generation, T&D and trading • Founded in 1906, to supply hydro-electric power to Mumbai. Set-up thermal generation in Trombay in 1960s • • • Expanded outside Mumbai with IPP (Belgaum) and CPP (Tata Steel) in 1990’s Thrust on renewables including wind, hydro and solar Successful Public Private Partnerships in generation, transmission and distribution 7 Pioneer in Power Sector First 800 MW thermal unit First pump storage unit in the country of 150 MW Capacity First to Introduce SCADA and Fibre Optic ground wire communication Flue Gas De-sulphurisation plant using sea water 220 kV Cable Transmission 220 kV Network transmission Computerized lines in grid control First four circuit and energy gas towers management First insulated system 500 MW switch First 150 MW thermal gear thermal unit unit 8 Existing Presence in Power Sector NDPL Trombay 1330 MW Mumbai Distribution Mumbai Transmission Hydro 471 MW Tala Transmission Jojobera 428 MW Supa 17 MW Khandke 51 MW Bramanvel 11 MW Belgaum 81 MW Thermal (1839 MW) Hydro (471 MW) Wind ( 79 MW) Transmission Distribution 9 Vision, Mission and Values 10 Tata Power Group – Major Companies Tata Power Subsidiaries Joint Ventures 100% Coastal Gujarat Power Ltd 49% 100% Tata Power Trading Company Ltd` 40% 100% TPC Asia Pte Ltd 74% Maithon Power Ltd 74% Industrial Energy Ltd 51% North Delhi Power Ltd 51% Powerlinks Transmission Ltd 50% Nelco Ltd 33% Tata BP Solar Ltd Tubed Coal Mine Ltd Mandakini Coal Mine Ltd 11 Associates 30% KPC 30% Arutmin 40% Tata Ceramics Ltd • • • • • • • • • • • Trombay Hydro Jojobera Belgaum Haldia Wind Farm Solar PV Mundra Maithon Tata Steel JV (IEL) Tata BP Solar Transmission • • Mumbai Tala Distribution • • Mumbai Delhi • Tata Power Trading • • • • • Indonesian Coal Mines Coal Bed Methane Mandakini Tubed TPC Asia Businesses Generation Division Other Entities Power Business Tata Power Trading Fuel & Logistics Other Business • • • SED Tata Ceramics NELCO 12 Strategic Directions Integrated Play • Presence across value chain • Fuel supplies & logistics Competency Management Focus on Large Indian Opportunity • Create strong project pipeline • Operations • Project Execution • New Business Models Grow Subsidiary Businesses Thrust on sustainable development • Renewables • CSR Initiatives International Play 13 Part B: Global Scenario 14 World Primary Energy Needs ‘000’ Mtoe Other renewables Biomass and waste Hydro Nuclear 18 14 10 • • Gas 6 Oil 2 Coal 2005 2015 2030 Projected to grow from about 11.4 billion to about 17.7 billion tonnes of oil equivalent from between now & 2030 74% of that increase will be accounted for by developing countries (India & China would account for 45% of that increase) Source: International Energy Agency 15 World Primary Energy Needs by Fuel 000’ Mtoe 6 5 4 3 2 1 2005 Coal Oil Gas Nuclear 2030 Hydro Biomass and waste Other renewables • Fossil fuel will continue to dominate this scenario • 84% of the increase would come from fossil fuel, and coal use will increase significantly. Electricity demand will double Source: International Energy Agency 16 Energy Related CO2 Emissions 45 High Growth Scenario 41.9 4 68% Reference Scenario 35 27% Alternative Policy Scenario 26.6 57% 25 15 1980 1990 2000 2010 2020 2030 • Energy related CO2 emissions will go up by 57% from 26.6 to 41.94 billion tons and US, China, Russia and India will contribute 2/3 of this increase. • India will become the 3rd largest emitter by 2015, with China & US above it. Source: International Energy Agency 17 Energy & Electricity Consumption Per Capita Energy Consumed Kgoe kwh 7,000 12,200 1,000 US • • Per Capita Electricity Consumed China 2,150 500 625 US India China India Per capita energy consumption of India is 500 Kgoe as compared to US which is at 7,000 & China at 1,000 (2005) Per capita electricity consumption of India is 625 kWh as compared to US of 12,200 & China 2,150 (2007) Source: International Energy Agency 18 Part C: Power Business – Section 1: Generation – Section 2: Fuel & Logistics – Section 3: T & D – Section 4: Power Trading 19 The Indian Power Industry: Snapshot Plan Achievements (GW) (92-97) (97-02) (02-07) Deficit Scenario (07-12) Source: CEA, CrisInfac • Capacity addition has not kept pace with demand leading to significant shortages • Investment tilted towards Generation: – G to T & D 1 : 0.5 – In developed markets. 1: 1 20 Generation Up to 2032, Indian GDP (USD per capita) expected to jump 6x from $ 646 to $ 4119... … creating a potential energy demand (BU): 690 to over 1800 Installed Capacity (GW) Private Contribution Expected 6x Huge capacity additions will be required Private participation is likely to increase This presents a great opportunity for Tata Power Source: Planning Commission Documents 21 Generation: Business Models 22 Tata Power: Existing Operations Mumbai Licence Area (1777 MW) Trombay - Thermal Hydro Power Generation Unit 4 150 MW Oil & Gas Khopoli 72 MW Unit 5 500 MW Oil, Coal & Gas Bhivpuri 75 MW Unit 6 500 MW Oil & Gas Bhira 300 MW Unit 7 180 MW Gas Total 447 MW Total 1330 MW Wind 79 MW Jojobera 428 MW Belgaum CPP 81 MW IPP 23 Thermal Projects Under Implementation Maithon1050 MW Jojobera/Jamshedpur 240 MW Haldia 120 MW Mundra 4000 MW Trombay 250 MW Thermal (5660 MW) 24 Project Capacity • 4000 MW (5 x 800 MW) Ownership Structure • 100% subsidiary: Coastal Gujarat Power Limited Customers • Gujarat (1805 MW), Maharashtra (760 MW), Punjab (475 MW), Haryana (380 MW), Rajasthan (380 MW) Funding • Project Cost: Rs 17,000 Crore (D/E: 75:25) • Financial closure expected by April 08 Completion • Targeted by 2012 vs 2014 as per bid conditions Project Status • Fuel: 10 mtpa offtake agreement with KPC/Arutmin - 50% for Mundra. Pricing part fixed and part linked to CERC index. • Land: Acquisition for construction activities completed Mundra UMPP 25 Project Capacity • 1050 MW (2 x 525MW) Ownership Structure • Maithon Power Limited 74: 26 JV of Tata Power and Damodar Valley Corporation Business Model • Regulated Customers • DVC (300 MW), Active discussions with PSEB, NDPL and WBSEB Funding • Project Cost: Rs 4450 Crores • (D/E: 70:30) • Debt syndication completed Completion • Unit 1: 2010, Unit 2: 2011 Project Status • Fuel: Linkage Coal, initial supply by DVC • Site works initiated Maithon 26 JAMSHEDPUR (PH #6) Project Capacity JOJOBERA (Unit #5) • 120 MW • 120 MW Ownership Structure • IEL (74:26 JV of Tata Power and Tata Steel) • IEL Business Model • CPP • CPP Funding • Project Cost: Rs 490 Crores • Project Cost: Rs 640 Crores • D/E 70:30 • D/E 70:30 Completion • August 2008 • September 09 Project Status • Fuel: Coke oven gases of Tata Steel • Fuel: Linkage from West Bokaro and Mahanadi Coal field. • Land: Provided by Tata Steel • Land: Provided by Tata Steel Captive Power Plants 27 Project Capacity • 250 MW Ownership Structure • Tata Power Division Business Model • PPA with TPC D, BEST (150 MW) Funding • Project Cost: Rs 1066 Crore • D/E 70:30 Completion • August 2008 (ahead of schedule) Project Status • Fuel: Imported coal • Land: Existing land at Trombay Trombay Unit 8 28 Project Capacity • 120 MW (2 x 45 MW + 30MW) Ownership Structure • Tata Power Division Business Model • Regulated Customers • Hoogly Metcoke, PPA with Tata Power Trading and WBSEDCL Funding • Project Cost Rs 605 Crores • D/E 70:30 Completion • March 2008 (45MW) • October 2008 (75 MW) Project Status • Fuel: Hot flue gases from Hoogly Metcoke • Land: Subleased from Hoogly Metcoke Haldia 29 Projects in Pipeline Total Planning & development activities initiated 30 5670 Generation Capacity (Tata Power Group) Capacity (MW) 12861 11261 5261 2389 2474 3041 3161 2007 2008 2009 2010 2011 Fiscal Year (Ended 31st March) 31 2012 2013 Future Opportunities In Thermal Generation Bid Based Captive IPP/Merchant International Tata Power qualified for about 8000 MW of bidding based generation projects such as Tillaiya, Dhopave and Shahpura. Further opportunities to be explored as available Growth in Tandem with Tata Steel requirements Opportunity to grow with similar other customers Further IPPs being explored based on coal mine allocation Opportunity to set up CBM based projects Actively exploring opportunities for acquisition and greenfield expansion 32 Hydro Electric Power • Oldest and one of the largest private sector players with capacity of 447 MW • Several awards and recognitions – Bhira and Bhira Pump Storage Scheme received the CEA Silver Shield this month • Actively exploring additional 1000 MW in large hydel projects including India, Nepal, Bhutan etc 33 Initiatives In Renewables • 79 MW operational & 23 MW under commissioning • 101 MW ordered – will be commissioned by Dec 2008 • 300 MW being additionally explored • Developing a 3 MW grid connected solar PV farm in Maharashtra • Evaluating potential for concentrated solar thermal (CST) generation Other Initiatives • Exploring micro hydel opportunities • Actively looking for fuel cell technology partners to pursue opportunities in the Indian market • Exploring feasibility of standalone biomass based power plants • Exploring possibilities of geothermal generation 34 Installed Capacity • 79 MW Project Under Implementation • 123 MW (50 MW Karnataka, 50 MW Gujarat, 23 MW Maharashtra) Ownership Structure • Tata Power division Business Model • Regulated Funding • Project Cost: Rs 633 Crores Completion • September 2008 (23 MW) • February 2009 (100 MW) Project Status • Turnkey projects by Enercon • Substations ready at Gujarat and Karnataka Wind Farms 35 Wind Projects Under Implementation Samana 50 MW Sadawaghapur 23 MW Gadag 50 MW Wind (123 MW) 36 Tata BP Solar • • • • • 51:49 JV between BP Solar and Tata Power Market leader in Solar Photovoltaic technology in India with turnover of Rs 660 Crores Nearly 75% of sales from exports largely to Europe and USA India’s first Polycrystalline Solar cell manufacturing plant and 45 MW module manufacturing facility (largest in the region) Growth plans include expansion of its module manufacturing facility and thrust on domestic sales 37 Part C: Power Business – Section 1: Generation – Section 2: Fuel & Logistics – Section 3: T & D – Section 4: Power Trading 38 Fuel Fuel supplies for new proje cts f s ear y 25 0 or 2 39 Indonesian Coal Mines Deal Highlights Off Take Agreement: Key Features • Acquired 30% equity stake in KPC and Arutmin from PT Bumi Resources, Indonesia • Pricing in line with Mundra assumptions for first 5 years • Prices linked to CERC index post 5 years • Acquisition value of USD 1.1 bn • Off-take contract of 10.5 mtpa ± 20% Loading port – all weather, capable of handling cape size vessels Mining operations are efficient – Rio Tinto and BHP practices followed Loading port at KPC Coal conveyor belt at KPC 40 TPC Energy Asia Private Limited • SPV incorporated in Singapore for owning ships to meet shipping requirements and trading in fuels • Present shipping requirements of 8-9 vessels for Mundra • To be met through a combination of long term charters and out right purchases • Spare capacity may be used commercially 41 Part C: Power Business – Section 1: Generation – Section 2: Fuel & Logistics – Section 3: T & D – Section 4: Power Trading 42 Inter Region Transmission Opportunities Northern Region + 4000 MVA • Interregional transmission capacity is inadequate and leads to network congestion North-Eastern Region + 5500 MVA 2300 MVA + 3500 MVA 5000 MVA Western Region 1250 MVA + 1000 MVA + 5700 MVA 2800 MVA + 1000 MVA 1700 MVA Southern Region Eastern Region • Accumulating utility / zone access charges lead to high tariff for power flow from East to demand centers (North and West) • Longer term allotment (> 7 yrs) prioritized over short term • Capacity to be increased to 37 GW by 2012 3150 MVA Capacity to be implemented 43 Distribution Opportunities • Second License – parallel licensing unlikely to happen soon • Privatization – not much progress in replicating Delhi model • Outsourcing – opportunity for marginal players • Franchisee Opportunity – window is open for private participation 44 Mumbai: Transmission and Distribution • 23,000 customers with 2500 MUs of sales (mostly to high value bulk consumers) • 17 receiving and distribution stations, 318 consumer substations and 1335 Kms of HT & LT Cable network. Total asset base over Rs 1400 crores • MERC regulated tariff with 16% RoE on distribution and 14% on transmission. Incentive on reducing ATC losses 45 North Delhi Power Limited (NDPL) • 51:49 JV of Tata Power and Delhi Vidyut Praday Nigam – A Govt. of Delhi undertaking • Over 1 million consumers with 5000 MUs of consumption and net asset base of over Rs 1800 Crores • Assured returns upto 16%, plus incentives on loss reduction Privatized July 2002 AT&C Losses 46 Re du c ed f ro m 53 % to 23 % Powerlinks Transmission Limited • • • 51:49 JV of Tata Power and Power Grid Corporation of India • • Total investment of Rs 1560 Crores (D/E 70:30) 1200 km 400 kV double-circuit transmission lines Transmits power from Tala Hydroelectric Project and Eastern/North-Eastern region to New Delhi and adjoining areas. CERC based tariff (14% ROE) with incentive of 10% (pre-tax) as majoration charges 47 Part C: Power Business – Section 1: Generation – Section 2: Fuel & Logistics – Section 3: T & D – Section 4: Power Trading 48 Power Trading Traded Power (MU) Power Trading Projections (MU) G CA % 1.7 3 R Improvements needed: • Cap on trading margins • Operational - scheduling delays, non-grant of intra-state corridors • Corridor congestion - inter-state and inter-regional power evacuation for merchant plants • Regulatory framework - long term commitments and forecasting is a challenge 49 Tata Power Trading Company Limited TPTCL Sales (MU) Market Share Position as of Feb 2008 Source : Compiled from RLDC web sites 50 Part D: Other Businesses 51 Strategic Electronics Division (SED) • • • • • • Revenues of Rs. 47.17 crores against Rs. 38.18 crores during the previous year. Current revenue contributors include electronics system for the Rocket Launchers, Fire Control Computers for Arjun Tank and Command and Control systems. Future revenue to come from MBRL Pinaka production order and Air Defence System. Defence spend over Rs. 400 bn, 40% indigenous. Expected growth ~ 15%. SED expected to be granted Raksha Udyog Ratna status which will provide access to technology, prequalification benefits and defence R&D budgets 7 manufacturing licenses of SED to provide access to foreign vendors under domestic offset obligation 52 • A subsidiary of Tata Power (50.04% stake) listed on BSE and NSE • Current Businesses structured around Automation & Control and Network Systems. • Caters to core industries like Defence, Railways, Steel, Cement, Automobile, Oil and Gas etc. • Tie-ups with international players for defence, weather management systems, VSAT, SCADA etc. 53 Tata Ceramics • Best quality fine bone chine products in the world. • Products exported to UK, Ireland, USA, Canada, Italy, Germany, Korea, Australia and New Zealand • Customers include Wedgewood, Churchill China, Royal Doulton and Villeroy & Boch – • Future growth to be driven by domestic sales. Focus areas to include hospitality and retail 54 Part E: Financial Performance 55 Financials Nine Months Ending December 31 2007 56 Tata Power – Financials (Standalone) Annual Sales (MU) 12,318 2003 12,231 2004 12,663 2005 13,616 2006 Profit After Tax (In Billion Rs.) 14,422 2007 EPS (in Rs.) 5.19 5.09 2003 2004 5.51 2005 26 2003 2004 28 29 2005 2006 2006 6.97 2007 Net Worth (In Billion Rs.) 34 26 6.11 32.01 2003 2007 57 35.36 36.19 2004 2005 40.10 2006 44.67 2007 Dividend History Earnings (Rs.) 40 Dividends (Rs.) Payout ratio (%) 30 30 Rs. 20 20 10 10 0 0 2003 2004 2005 58 2006 2007 % Funding by Tata Power - Projects under Implementation Own Funds (Rs 6,000 Crores) Debt (Rs 18,000 Crores) • Domestic loans through domestic financial institutions, banks and capital markets • Internal accruals: Rs 2900 Crores • Preferential Issue/warrants - Tata Sons: Rs 1900 Crores • Remainder • Foreign loans through external Credit Agencies and Multilateral Agencies: ADB, IFC – Disinvestment of various holdings or assets – Equity dilution through warrants, preferential issue and/or rights if required Total Fund Requirement (2008-12): Rs 24,000 Crores 59 Sensex vs Tata Power Rs / share Points 60 Part F: Beyond Business 61 Socially Responsible Environment • • • Community Over thirty year old eco-restoration and eco-development program in the Western Ghats – One of the most sensitive ecosystems in the world Over 7 million saplings of 60 tree species planted in the area. Over 600,000 trees being planted regularly A green belt raised around Thermal Power Plants in Trombay and Jojobera Health • Sponsored Lifeline Express - the world' s first Hospital Train • Medical camps with the Doctors of Rotary Club for local communities Education • Construction of Primary schools in rural areas • Training imparted to more than 200 teachers Livelihood • Distribution of fruit trees and providing fingerlings of fast growing fish species • Actively supports pisciculture activities at their hydro stations by assisting in the breeding of fishes • Supplying drinking water from the Company’ lakes to local communities 62 Environment: Achieving Global Norms • • Operates under one of the strictest SO2 emission norms in the world Recipient of various environment awards such as – – – Greentech Environment Excellence Silver Award 2004 Golden Peacock Award for Environment Excellence – 2005 Golden Peacock Environment Management Award – 2006 Source : PwC Report 63 63 Drive Energy Efficiency & Conservation Measures • Launched “I will Mumbai will”, a joint advertising campaign with REL and BEST to educate Mumbai consumers on energy conservation. Key messages were: – • Shift consumption away from the 10 am - 8 pm peak times – – AC at 24 degree centigrade Switch off the devices from the plug point Ongoing education of Mumbai consumers to invest in energy efficient devices/appliances 64 Thank you 65
Similar documents
> - Tata Power
Trust Energy Resources Pte Ltd incorporated in Singapore for owning bulk carriers to meet shipping requirements and trading in fuel, Energy Eastern Pte Ltd incorporated for chartering of ships To b...
More information