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“WIND ENERGY AS A SUSTAINABLE RENEWABLE ENERGY AND PROFITABLE INVESTMENT”
Presented by- Richa Alchiya
OBJECTIVES OF THE REPORT
To conduct a market research to identify and target potential investor segment of wind energy in order to study the clientele of Suzlon energy and contact with such potential investors.
To meet the existing customers of wind energy to know their willingness of investing in wind energy.
To understand the government policies benefitting investors to invest in wind energy.
To understand the scope of wind energy as renewable sustainable resource
To study the profitability of investor To identify the potential segment of investors in pune region.
WIND ENERGY AS A RENEWABLE ENERGY
Renewable Energy Sources are those energy sources which are not destroyed when their energy is harnessed. Human use of renewable energy requires technologies that harness natural phenomena, such as sunlight, wind, waves, water flow in order to generate energy.
Renewable energy sources:-1. Biomass2. Wind3. Hydro-power4. Geothermal5. Solar
COMPANY PROFILEThe Suzlon Energy Limited started in 1995 by founder Mr. Tulsi Tanti after providing power for his textile company, he moved into wind energy production as a way to secure the textile company’s energy needs, and founded Suzlon energy Ltd. In 2001, Mr. Tanti sold off the textile business and moved to Renewable wind energy. Now Suzlon is a market leader in India with a global footprint across Asia, Australia, Europe, Africa, north and South America. Suzlon takes pride in creating enduring value through sustainable development. The group is long driven by the Concept of sustainable development, its wind turbines with a total installed capacity of 15 GW spread across six continents. It has a wide range of wind turbines. Suzlon group pioneered the concept to commissioning model in the wind energy industry, opening the market to new customer segments. Also it offers and executes best in class operations, maintenance and service (OMS) across the globe.With powering a greener tomorrow as its vision, Suzlon Group has mandated Suzlon Foundation, to ensure sustainability across all its business operations. Suzlon is guided by its philosophy of pursuing social, economic, ecological and sustainable development for the planet.
SWOT ANALYSIS OF WIND ENERGY STRENGTH
STRENGTH
1. No Pollution2. Clean Electricity3. No fuel needed4. Inexhaustible5. Shortest Payback time6. O&M cost is low
THREAT
1. Rising competition from solar energy 2. Hard to estimate wind power 3. Highly capital intensive 4. Changing government policies
WEAKNESS
1. High initial investment2. Unpredictable power generation3. Safety issues4. Infirm power
OPPORTUNITY
1. Favorable government policies2. Increasing requirement of renewable energy3. Clean air Act4. To increase the scope of IPP and captive5. Dedicated power ministry.
Project Keyword “Segmentation”Market segmentation is a marketing strategy which involves dividing a broad target market into subsets of consumers, businesses, or countries that have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them.
Research methodology • Primary Data-• Interview• Questionnaire• Observation• Secondary Data- • Newspaper• Internet• Journals
Customer segmentation in suzlon – It comprises of Existing potential investors of suzlon energy who have opted for Captive, third party or sale to EB.Sample size- 40
CUSTOMER SEGMENTS IN SUZLON ENERGY LTD
INVESTMENT
SALE TO EB
WITHOUT DEPRICIATIO
N
WITH DEPRICIATIO
N
OPEN ACCESS
CAPTIVE THIRD PARTY
WITHOUT DEPRICIATION(IPP)
• POWER TARRIF• GBI
WITH DEPRICIATION
• POWER TARRIF• DEPRICIATION
CAPTIVE
• DEPRICIATION• POWER TARRIF• REC
DATA PROCESSING AND ANALYSIS
INVESTORS AWARENESS ABOUT RENEWABLE
ENERGY SOURCES:.Interpretation- Sample size is
of existing 40 customers, all of them are aware about renewable energy sources. As they have invested earlier in renewable sources such as wind and solar. Therefore 100% of the existing customers are aware about renewable sources.
INVESTORS EARLIER INVESTMENT IN WIND ENERGY COMPANIES :
Interpretation- Therefore out of 40 sample size all of them have invested in suzlon energy but Navalakha translines, Serum
Institute and Ghodawat Energy have also invested in other competitors of wind energy like PPM, Vestas, Gamesa, Enercon,
Regen, kenersys.
INVESTOR SEGMENTATION BASED ON POWER CONSUMPTION:
Interpretation- Out of sample size of 40,
all have opted for any one of the mode of
investment while, 3 Investor opted for
both captive and third party, 1 investor
opted for captive and sale to EB
Therefore, the most potential customer
segment that should be targeted by suzlon
energy in pune region is Sale to EB
customer (59%). It can further capture
open access customer, Captive (20.45%)
and third party (20.45%).
THE POLICIES BENEFITTING INVESTOR THE MOST FOR INVESTING IN WIND ENERGY
Interpretation- 62.5% are attracted by AD (Accelerated Depreciation) benefit that is received by Investors, that is 80% tax free on the investment made by them and no tax on power revenue for 10 years.
WILLINGNESS OF INVESTOR TO INVEST IN WIND ENERGY IN FUTURE:
Interpretation- Out of sample size
of 40 existing investors, 30 of them
that is 75% of them are willing to
invest in wind energy in future. As
they are having future power
requirement and are also willing to
invest due to favoring government
policies as they are having increased
benefits for the investors. But 10 of
the existing investors are not willing
to invest that is 25% of them.
INVESTORS PROFITABILITY SATISFACTION IN SUZLON ENERGY:
100%
Investors Satisfaction of Investment in Suzlon En-ergy Ltd
Yes
No
Interpretation- Out of the sample
size of 40 existing customer, all of
them had a good experience with
Suzlon Energy Company. They are
satisfied with the companies’
services. And their investment in
wind energy has proved to be
profitable. Therefore 100% existing
customers are satisfied with Suzlon
Energy Company and their
investment in WTG.
FINDINGS:
100% of the existing Investors of suzlon energy are aware about wind energy and renewable energy investment benefits.
95% of existing investors have invested into wind energy for getting Accelerated depreciation benefit. 75% of existing investors see positive future of investing in wind energy and they would prefer
investing in Suzlon’s wind power project. Suzlon is now offering to most of its investors 2.1mw wind turbine whose price are high and the
company is not manufacturing now any other lower MW turbines hence the Investors are the major corporates that have huge sales turnover. Also price of WTG per MW is 7.5 crore.
Scope of IPP and open access customers is increasing for wind energy. Most potential customer segment identified in pune region consist of Sale to EB customers as 59% of
Existing investors belong to sale to EB that is (21 existing investors out of 40) There is positive growth in renewable energy especially, Wind energy if government policies are
stabilized in future as the government is encouraging installation of 175 GW coming from wind and solar till 2022.
Feedback was provided to company regarding their shift of choice now company can take further steps. They can improve on following aspects: Improvement is needed in regular and accurate machine system (projection & monitoring of machine. Improving wind location assessment Reducing grid losses. Company can take steps to motivate 25% of investors to invest in wind energy. They were not willing due to
lack of funds and changes in renewable policies hence they can be further motivated by supporting them to fund it though debt capital, also further the policies that benefit renewable energy can be stabilized by taking steps consulting government. Company can send proposal to the 30 existing investors that are willing to invest in suzlon energy and see positive profitability on their investment.Company can positively retain existing customer by taking CRM departments help as existing investors are the future investors too.
RECOMMENDATIONS-
COMPANY CAN TARGET FOLLOWING CAPTIVE CUSTOMERS
Note- Monthly power consumption units are specified for only Captive Users
• Sale to EB and Third party it is not Applicable.
• For 30 Investors which consist of third party and sale to EB users its
Not Applicable.
SR.no company namecompany's monthly power consumption
1 Pudumjee Paper products Ltd 75 lakh MW
2 Persistent System Limited 5 lakh MW
3 Navalakha Translines 18 lakh units
4 Serum Institute of india Ltd 70 lakh units
5 RENOM (Ghodawat energy) 30 lakh units6 Bajaj Finserv Ltd. 60 lakh7 ITC Limited, Ranjangaon 10 lakh units8 fabtech projects and engineers ltd 8 lakh units9 Cooper foundry pvt ltd 6 lakh units
10 Badawe Engineering ltd 5 lakh units
AFTER MEETING THE EXISTING CUSTOMERS FEEDBACK WAS COLLECTED WHICH WAS SUBMITTED TO THE MANAGEMENT WHICH CAN HELP THE COMPANY TO IMPROVE ON SOME ASPECTS SUCH AS :TO STABILIZE THE GOVERNMENT POLICIESTO IMPROVE ON REGULAR AND ACCURATE MACHINE SYSTEM ( PROJECTION & MONITORING OF MACHINE)TO WORK ON PERCEPTION OF INVESTORS ON WIND ENERGY SCOPE
ALL THE EXISTING CUSTOMERS ARE SATISFIED WITH SERVICES AND TURBINES MANUFACTURED BY SUZLON ENERGY, IN THE COMING YEARS RENEWABLE ENERGY IS GROWING MARKET AS THE GOVERNMENT IS SUPPORTING RENEWABLE ENERGY SOURCES.
CONCLUSION-