ELECTRUM

WE BRIDGE THE POWER GAP

AN INNOVATIVE SERVICE SECTOR PROJECT

Ranajit Bhattacharya 28/05Debashish Sarkar 28/47

Arnab Nandi 28/38

Prof. Shovan Nandi

Institute of Business ManagementJadavpur University

ELECTRUM

WE BRIDGE THE POWER GAP

ELECTRUM

WE BRIDGE THE POWER GAP

Power Scenario in India•India is the world's fifth largest power generator.•India has an installed capacity of 225.133 GW as of May2013.•Over 300 million Indian citizens had no access to electricity (Dec 2012)•Over one third of India's rural population have no access to electricity •6% of India's urban population have no access to electricity •blackouts and power shedding are common in all parts of India hampering irrigation and manufacturing

Per Capita Average Annual Domestic Electricity Consumption

2009 Data Rural Urban

India 96 kWh 288 kWh

European Union 2600 kWh 6200 kWh

ELECTRUM

WE BRIDGE THE POWER GAP

Where lies the opportunity:• As we see that in India there is a non uniformity in

power distribution. Whereas some states are power surplus and some other states are power deficient.

• Before 2003 Electricity Act power was unregulated and no definite laws and regulations were there to cater this non uniformity of power distribution.

• Elec. Act 2003 has opened the door for advent of Power Traders.

ELECTRUM

WE BRIDGE THE POWER GAP

Who are the Power Traders•Power Traders play one of the vital roles in power market.

•Generators generate power in isolation and don’t know what to do with their surplus power.

•Power Traders utilizing their knowledge of power market and various regulations help the generators to distribute the power in intra and inter state transactions there by helping the power starved consumers/states meet up their deficiency of power.

ELECTRUM

WE BRIDGE THE POWER GAP

ABOUT USMission:Establish and maintain a pool of power system operation experts along with state of the art online computerized control room for online bidding. A highly professional work force to facilitate transfer of power from a surplus area to a deficit area at market competitive price through Power Exchange Platform.

Objective:India is a power deficit country. Our objective is to fulfil the Short term as well as Long term energy requirements of its customers and facilitate transmission of power from surplus utilities, CPP\92s and others non conventional energy sources to the deficit region or load centres at market competitive price .

ELECTRUM

WE BRIDGE THE POWER GAP

Services We Offer:•Power Trading :- Providing electronic Platform for trading of Power on the IEX.

•Bilateral Trading :- Trading of Power between generators and consumers.

•REC :- Support in Accreditation, Registration, Issuance and Trading of Renewable Energy Certificates.RPO :- Support in Registration and Compliance of Renewable Purchase Obligations.

ELECTRUM

WE BRIDGE THE POWER GAP

PRODUCT

Our product is Electricity.

SERVICEPower Trading :- Providing electronic Platform for trading of Power on the IEX.

Bilateral Trading :- Trading of Power between generators and consumers.

REC :- Support in Accreditation, Registration, Issuance and Trading of Renewable Energy Certificates. RPO :- Support in Registration and Compliance of Renewable Purchase Obligations.

ELECTRUM

WE BRIDGE THE POWER GAP

POSITIONING: •We have positioned ourselves as one of the distinct Power Traders in Power Market. •As a bilateral Power Trader we are transacting power between IPP, CPP, Discoms to various discoms, large and small scale industries through Open Access.•We are also Trader Member of Indian Energy Exchange(IEX) transacting in Day ahead Market (DAM), Term Ahead Market(TAM), • Renewable Energy Certificate(REC)

ELECTRUM

WE BRIDGE THE POWER GAP

PRICE / Our Profitability:• For Bilateral transaction we charge <= 7 paisa pu of electricity• For IEX we charge <= 4 paisa pu of electricity• For ex. if a consumer transacts 10lakhs units of electricity/month, our trading margin=

1000000x.04 =Rs.40,000.• If we can transact 30 transactions, total trading margin = Rs.12 lakhs pm. Yearly= 144 lakhs• Licensee fee for CERC bilateral trading licensee=15lakhs, • For IEX=5lakhs• So a net income=10.33lakhs/month• For a total strength of 20employess having average salary=Rs.30000, the running expenses

=6lakhs.• profit on the lower side=4.3lakhs/month • Initial capital expenditure for 20 laptops(Rs.30000) and other infrastructure=10lakhs.• Running expenses for infrastructure= Rs.1 lakhs• Running profitability= 3.3lakhs

ELECTRUM

WE BRIDGE THE POWER GAP

DISTRIBUTION MODEL:

pPower Trading

Bilateral Power Exchange

Interstate i.e. in all States

Intra state

State discoms

Open Access Consumers/Industries

Business Model And Process

Long TermLong Term Power Purchase AgreementsPower Purchase AgreementsUpto 25 YearsUpto 25 Years

Medium TermMedium Term3 months- 3years3 months- 3years

OTCLicensed traders (42)OTCLicensed traders (42)

Short-TermShort-Term OTC Intraday- 3 monthsOTC Intraday- 3 months

Exchanges Exchanges

Balancing MarketBalancing Market

Intraday - 3 monthsIntraday - 3 months

Unscheduled InterchangeUnscheduled Interchange

1. Intra-day2. DAM3. DAC4. Daily5. Weekly

1. Intra-day2. DAM3. DAC4. Daily5. Weekly

Real TimeReal Time

ELECTRUM

WE BRIDGE THE POWER GAP

ELECTRUM

WE BRIDGE THE POWER GAP

CURRENT PROMOTIONS Apart from Power Trading we are diversifying in the related field of open access by providing the total solution of Open Access right from procurement of ABT meters, CT-PT set, liaising up to commissioning to consumers without which they are not allowed to purchase/sale power thru’ inter/intra/power exchange.We charge our consultancy fee which may be in the tune of 3-4 lakhs per metering point for Open Access. This helps in promotion of our core business of Power Trading as open access for consumers are inevitable to procure power from outside.Publishing of trading reports in CERC site, Giving interviews in business newspapers and magazines,

ELECTRUM

WE BRIDGE THE POWER GAP

External Marketing:

•Publishing of trading reports in CERC site

•Giving interviews in business newspapers and magazines

•Broadcasting interviews in TV channels

•Sponsoring seminars and workshops on power generation and trading

•Close interaction with international bodies e.g. IEEE and national institutes

like CPRI

ELECTRUM

WE BRIDGE THE POWER GAP

Interactive Marketing:

•Regular interaction with prospective clients over telephone•Video conferencing with prospective clients •Visiting premises by marketing people•guiding prospective clients about the modalities of the best combinations of power procurement through bilateral and power exchange•Organizing seminars and workshops on Power Trading in all the big cities •Inviting the officials of big industries in our offices and make them aware of the recent developments of power market and regulations, useful clauses and detrimental clauses of regulations•Helping clients for making petition against problem clauses, dispute mitigation•More and more interaction with clients , listening to their problems and try to find effective solutions definitely make a power trader very close to industries

The goodwill of a trader in power market spread like wild fire and indirect marketing is done by the

industries on behalf of the Trader, then we do not need to search clients but clients search us.

ELECTRUM

WE BRIDGE THE POWER GAP

Electrum has a dedicated service team and delivery team to cater to the customer base

ELECTRUM

WE BRIDGE THE POWER GAP

Indentifying Competition:As a Power Trader we face lot of competitors. Firstly there are some emerging Power Traders backed by big groups, secondly there is power exchange which is eating away our bilateral trading market to power exchange market, direct bilateral trading bypassing the Power Traders and Fourthly parallel UI market by which states over draw power at higher frequencies and don’t approach the traders.

Combating With Competition: Continuous networking with the consumers, reaching and identifying the remotest consumers before the other competitors could reach. Immediate PPAs with them for at least 2-3 years by which our clients can be insulated from others.

ELECTRUM

WE BRIDGE THE POWER GAP

PEOPLE POLICY:•As Power Trading involves interaction with high end ,sophisticated, technical, commercial and finance people of various industries we recruit engineers preferably electrical with MBA in marketing or finance.

•To make them conversant with regulations along with technical requirements we recruit experienced people from power industries.

•This combination of young enthusiasts and experienced middle age people give us the required mobility and dynamism throughout the market.

ELECTRUM

WE BRIDGE THE POWER GAP

Projected H R Growth

ELECTRUM

WE BRIDGE THE POWER GAP

Summary

• A high growth Company• Focused on technology and marketing• Company relentlessly working towards customer benefit and services• Diversifying for a better tomorrow• Aims for high brand value and brand recall

• Projected growth over next 5

ELECTRUM

WE BRIDGE THE POWER GAP

Thank you