Market Intelligence

Input-Based Power Distribution Franchisee Market in India 2012Q2

Input-Based Power Distribution Franchisee Market in India 2012Q2

Get Your Copy

Price: Contact Us for Price

Pages: 77

Publishing Date: October 1, 2012

Once payment is received, PDF copy of the report will be shared across email

Download

Various experts in power sector are of the opinion that in the coming 5 years, the Distribution Franchisee model is expected to grow manifold, thereby improving the power distribution scenario of the country.
PopUp

pManifold’s Market Research Report on ‘Input based Power Distribution Franchisee’ in India provides an insight into the current scenario of Power Distribution Franchisee and potential future trends.

Brief Summary

Fill the form below or on the right to download a FREE Executive Summary of the Q2 Report.

If you face some issue in downloading then please drop an email to kunjan.bagdia@pmanifold.com

Power Distribution Franchisee – evolving Public Private Partnership (PPP) model has picked traction since 2009 after successful demonstration by Torrent Power Ltd. at Bhiwandi, Maharashtra, which got operational in 2007.

The licensee (state utility) appoints a private company on the basis of rationale bidding for distribution of electricity in a specified area for specified years of contract. This Distribution Franchisee model stands midway between licensee and full PPP model and is considered as one of the major energy reforms in power distribution sector that has the potential to turnaround the sector and take electricity to rural areas as well.

Out of the variants available, ‘Input based Distribution Franchisee’ model has recently seen an increase, currently with five cities across India, out of which distribution in three cities was handed over to private companies in 2011. Three new cities in MP have recently been franchised and undergoing handover, further boosting up the DF model. Input based Distribution Franchisee, by far, has been mostly used operating model in urban areas.

Investments in this space are driven by the emerging nature of the ‘Input based Distribution Franchisee’ model which promises high returns, has low entry barriers, maintains proximity to end-consumers, involves high Capex with predictable cash flows and easy financial leverage when operating efficiently.

Detailed Table of Contents (Q2 Report)

  1. Terminology / Acronyms
  2. Executive Summary of Power Distribution Franchisee
  3. Power Distribution Scenario in India
    • Energy Value Chain & its Leakages
    • Distribution Scenario in India
    • Key Issues faced by Utilities?
    • Different Operating Models in use
    • Attractive of DF model over other Privatization Models
  4. Distribution Franchisee as a Business Model
    • Introduction to Power Distribution Franchisee
    • Types of Business Models
    • Suitability to ‘Urban’ and ‘Rural’ circles
  5. Input based Distribution Franchisee (IBDF) Market
    • Key Market Drivers
    • Projects Update – Operational / Ongoing / Suspended
    • Players – Operators and Bidders
    • Model Uptake – Trends and Future Projections
    • Industry Analysis – Porters 5 Forces Model
  6. IBDF Operating Model
    • Key Stakeholders
    • Stakeholders Analysis
    • Major Activities and Operations
    • Model Risks
  7. IBDF Bid Process and RFP Analysis
    • Bid Process
    • RFP Key Contract Parameters
    • Comparative Review of RFPs, Bidders Preferences & Outlook
  8. Analysis of Bids in Maharashtra
    • Connections and Assets Information from RFPs
    • Customer Segmentation
    • Winning Bid Comparison
    • Projected Contribution of Winning Bid to Utility
  9. ​Analysis of Bids in Madhya Pradesh
    • ​Bids Quick Characterization
    • Attractiveness Matrix
    • Connections and Assets Information from RFPs
    • Customer Segmentation
    • Winning Bid Comparison
  10. Analysis of Bids in Jharkhand & SAIL
    • Connections And Asset Information From RFPs
    • Customer Segmentation
  11. SAIL Distribution Franchisee bids – 4 Townships
  12. IBDF Investment Model
    • Base Case (Input) – Key Assumptions
    • Base Case (Input) – Bid Price and Loss Reduction Trajectories
    • Base Case (Input) – Capex Assumption
    • Base Case (Input) – Estimated Returns
    • Case 1: Sensitivity of Equity IRR to Levelized Input Price
    • Case 2: Sensitivity of Equity IRR to Capex
    • Case 3: Sensitivity of Equity IRR to Opex
    • Case 4: Sensitivity of Equity IRR to Tariff Growth Rate
    • Case 5: Sensitivity of Equity IRR to Load Growth Rate
    • Case 6: Sensitivity of Equity IRR to Input Price Shape/Curve
  13. Case Studies
    • IBDF Case Study 1: Torrent Power Ltd (TPL) @ Bhiwandi
      • ​Comparison of Torrent Power at Agra and Bhiwandi by Reuters
    • IBDF Case Study 2: SPANCO @ Nagpur
  14. Conclusions
  15. References
  16. Appendix
    • 255 towns suggested by Shunglu Report for IBDF Implementation
    • List of Unbundled States in India (in Chronological Order)
    • List of Pilot Smart Grid Projects
    • Lists & Links of Distribution Companies, SEB’s in India​

Q2 Report also available, contact us to know more.

Key Highlights of the Report are

  1. Current Market Scenario, its uptake and Upcoming Opportunities of Distribution Franchisee
  2. Key Functional Roles and Responsibility of Distribution Franchisee Operator
  3. Key Roll Out Challenges for Distribution Franchisee Operator across various stakeholders
  4. Case Studies of already existing Operators
  5. Bid Process description for distribution franchisees
  6. Evolution of RFP terms and conditions across various past DFs, with highlighting of critical risks
  7. Past bid analytics of DFs at Nagpur, Aurangabad, Jalgaon, Gwalior, Ujjain and Sagar
  8. Detailed Financial numbers derived using a base financial model for UJJAIN city (recent MP bid analysis)
    • Sensitivity to different parameters like CAPEX, OPEX, Tariff Rate, Load Growth Rate, Price bid curve, etc.

Key Questions Answered

  1. What is the potential of Distribution Franchisee model?
  2. Which states are looking to adopt the model?
  3. What are the key risks and challenges of the distribution franchisee model?
  4. How is the bid process and how to analyze critical contract terms and conditions in the RFP?
  5. What is a typical Capex Distribution for new Distribution Franchisee?
  6. What Returns to expect from a DF model, and what key sensitivity parameters to analyse?
  7. How has been the bidding scenario and trend in previous DF bids?
  8. How is the experience of current distribution franchisee operators?
  9. How is the current competitive landscape in the distribution franchisee space?

Information Sources

  1. Excerpts from industry experts
  2. Opinions and Reviews of various reports in Distribution Franchisee sector
  3. Inputs from Conferences and Workshops
  4. Secondary Research

A Must Buy for

  1. Potential New Entrants in Distribution Franchisee space to get up-to speed on the market
  2. Existing Distribution Franchisee operators to train / update new hires and stay up to date on market trends
  3. Research and Educational Institutes to learn about various aspects of the Distribution Franchisee market
  4. Banks and Financial Institutions to learn about the sector and understand the financial implications of investing in distribution franchisee businesses
  5. Consultants to upgrade their know-how in the distribution franchisee market space

Pricing:

  • Rs. 40,000/- (exclusive of taxes) for Report + 2 report updates free
  • Rs. 1,10,000/- (exclusive of taxes) for Report + 2 report updates free + Financial Excel model for Ujjain and Gwalior Distribution Franchisee

(Once payment is received, PDF copy of the report will be shared across email)

Payment:
Payable to “pManifold Business Solutions Pvt. Ltd.
IFSC : HDFC0001786
A/c No. – 17862320000109

Get your copy now…

Additional Consulting Services are available on demand for subscribers or buyers of our reports.

Contact Rahul.Bagdia@pManifold.com OR Call +91 95610 94490

Comments are closed.

pManifold - All Rights Reserved
In-Company Workshop
pManifold team is helping spread knowledge and accelerate EV ecosystem in India through the “India Charging Ahead” Webinar and Workshop series.

Call Now
Directions

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

pManifold will use the information you provide on this form to be in touch with you and to provide updates and marketing.