Adani Green Energy Ltd.

RENEWABLE ENERGY

Competition & Strategy

Group 01
RAHUL PUROHIT 2411172
SHRUTI VISHNUBHATLA 2411186
MUHAMMED SHAMEEM 2411153
DARSHANA BEVARA 2411203
MANAV GADA 2411165
CHIRAG BANSAL 2411157
 Adani Green Energy Ltd. Overview

COMPANY CUSTOMER COMPETITOR COLLABORATOR CONTEXT

A subsidiary of the Adani Government controlled Key competitors include AGEL works closely with the Growing RE demand in India,
Group, is a major player in organisations like State ReNew Power, NTPC Govt. of India, which offers supported by policies and
India's renewable energy Discoms, NTPC etc. are the Limited, and Tata Power subsidies to encourage sustainability goals, presents
sector, focusing on solar, major customers for AGEL Renewable Energy growth in the sector & with opportunities, while
wind, and hybrid power technology providers and regulatory changes and global
engineering firms competition pose risks
 GROWTH

Key Challenges AGEL aims to increase operational

portfolio to 50GW by 2030 which is an
ambitious target and needs a

for AGEL comprehensive action plan

AGEL needs to reach its ambitious target of 50GW ACCESS TO MARKETS

installed capacity by 2030. However, the recent bribery Given the recent bribery allegations,
rating agencies have increased scrutiny
allegations will make access to international markets and thus funds may be difficult to arrange
difficult and borrowing costs may rise. or cost of borrowing may be higher

LOSS IN CREDIBILITY
Bribery allegations may further
negatively impact existing
partnerships (like TotalEnergies),
PPA’s or even prospective contracts
Recommendations (Short Term)
Project Financing using Focused Communication Change Distribution
Asset Monetization Strategy Structure with PV modules

Monetize assets that are in Develop robust strategy by Launch advanced PV

operation using InvITs and look being proactive and modules for commercial and
Implementation emphasizing on industry residential customers
into the avenue of Carbon credit
bonds (Nascent) credentials when addressing bundled with energy storage
allegations.

• Regulatory Complexities • Building trust among • Building D2C sales and service
Challenges • Tough to balance liquidity with stakeholders network
the operational control for • Ensure consistency across • Steep Competition from the
ongoing projects different channels local players

• Ensures steady cash flows • Improves accountability • Diversifying into untapped

Strategic • Enhances ESG Credentials • Helps in the other customer segments
Advantage by derisking the portfolio business operations • Vertical Integration
Recommendations (Long Term)
Green Hydrogen Strategic Acquisition in PV Setup EV Charging Infra
Production Tech + Operational Excellence Powered by Renewables

Leverage government incentive Acquire startups like Vikram Leverage existing Adani Gas
mechanisms and develop end- Solar for research focus along infrastructure for pilot and
Implementation with focus on AI-enabled setup stations strategically
to-end supply chain
maintenance

• Market viability • Integration risks • High investment

Challenges • Policy uncertainties • Maintaining congruence • Navigate regulatory hurdles
• Steep Competition from among the different teams • Power distribution
alternative energy sources

• Add to the RE capabilities • Reduces dependence in • Differentiates a commodity

Strategic • Helps to tackle the case of geo-political issues with true clean energy promise
Advantage seasonal nature of Wind & • Strengthens renewable • Foray into a nascent market
Solar capabilities
Industry Analysis
 Industry Trends Governments’
commitments to carbon
Bio Power, 11.33 neutrality across the globe
Target : 500 GW by 2030

Wind Increasing cost of fossil

Solar
47.72 fuels
92.12

Hydro
Increased financing
52.05
opportunities for
greenfield project

Installed Capacity (in GW)1

Emphasis on ESG
responsibilities by
corporates

Technological
advancements that reduced
the cost of green energy
generation

Expansion of domestic
Renewable energy Market size Trend in Yearly Energy Generation3 manufacturing base

Source: 1. NITI.gov 2. NovaOne 3. MNRE.gov

Porter’s 5 Forces Analysis
Bargaining Bargaining
Threat of Threat of Competitive
power of power of
new entrants substitutes Rivalry
suppliers buyers

High threat of new

entrants due to the lack of The competitive rivalry is
entry barriers - The threat of substitutes is quite high because -
The bargaining power of
suppliers is low to The bargaining power of very low in the industry Currently there are a few
A lot of green financing
moderate because - buyers is high because - because - large firms in the industry
initiatives, high cash
generating hence can The available substitutes like TATA, Adani but the
There are a lot of Large number of players
service high debt levels like nuclear energy, fossil industry is seeing entry
component are available in the market
fuels come along with from a lot of large
manufacturers available Low switching cost for There is no proprietary conglomerates as well as
of the parts, but a few their own share of
buyer because there is technology emergence of a lot of
components' supplier operational and
only one buyer Demand side economies environmental challenges smaller firms
base is yet to expand. (government) of scale for government hence there is a shift The basis of competition
project but not for towards renewable energy in this industry is price as
residential and industrial it is a commodity product
projects.

LOW MOD HIGH LOW MOD HIGH LOW MOD HIGH LOW MOD HIGH LOW MOD HIGH
Firm Analysis
Business Model Canvas
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
Government agencies (MNRE, SECI, RE project development (solar, wind, Affordable and reliable Long-term contracts and PPAs Central and state utilities
DISCOMs) hybrid) renewable energy Stakeholder engagement and Distribution companies
Strategic investors like TotalEnergies Operations and maintenance of via Sustainable and scalable energy transparency (DISCOMs)
Technology providers ENOC solutions Proactive grievance redressal Commercial and industrial
Financial institutions Innovations in RE technologies Cost savings through fixed-rate mechanisms customers
EPC contractors for project execution Securing PPAs and merchant projects PPAs Community-focused initiatives Sovereign-backed entities
Development of energy storage Contribution to decarbonization International stakeholders and
solutions and ESG goals green energy buyers
Merchant energy market
participants

Key Resources Channels

Integrated RE portfolio Direct government and corporate

Scale of Execution engagement
Strategically located land resources Participation in renewable energy
Energy Network Operation Centre tenders
(ENOC) Digital platforms for reporting and
Brand Reputation investor engagement

Cost Structure Revenue Streams

Capital expenditures for project development Energy sales via long-term PPAs
Operational costs for maintenance and resource planning Revenue from RECs and carbon credits
Investments in technology, storage, and innovation Government subsidies and green incentives
VRIO Analysis
Organisational
Resource/Capability Valuable Rare Inimitable Competitive Advantage
Efficiency

Scale of execution Yes Yes Yes Yes Sustained Advantage

Integrated RE Portfolio Yes Yes Yes Yes Sustained Advantage

Energy Network Operation Centre Yes Yes Moderate Yes Temporary Advantage

Institutional Support Yes No No Yes Competitive Parity

Strategic Partnerships Yes No No Yes Competitive Parity

Brand Reputation Yes Modrate Moderate Yes Temporary Advantage

Green Certificates Yes No No Yes Competitive Parity

Revolving credit facility- one of asia's largest

project financing deals Yes No No Yes Competitive Parity

Resource rich sites in strategic location Yes Yes Yes Yes Sustained Advantage

Resource rich sites, Scale of Execution and Integrated RE Portfolio are the
sources of Competitive Advantage for AGEL
Financial/DuPont Analysis
Profit Margin
Profit margin aligns with the industry average
(15–20%) => effective cost management 16.29%
relative to revenue

Asset Turnover
Well below the industry average (0.2–0.4) => 0.087
inefficiency in generating revenue from its
assets

Equity Multiplier profit Margin asset turnover equity multiplier

Significantly exceeds the industry average (2.5– 8.37 AGEL Industry Average

4.5) => high reliance on debt, which may

increase risk
 Conclusion
Stabilize the
Communication
As per our analysis the strategy, while
industry is not very continuing to pursue
attractive, yet it is an existing growth targets
important prospect as exploring unique
the emphasis on AGEL has comprehensive sources of financing
sources of competitive Pursue growth in
Renewable Energy grows
advantage and is enroute existing industry as
to achieve it’s 2030, 50GW well as innovation and
target . The basis of diversification of the
competition in the industry renewables portfolio.
Industry Overview is ‘Cost Advantage’ and Short Term Explore forward
integration in emerging
‘Operational Excellence’
Recommendations high demand areas

Current Strategy
Long Term
& Goal
Recommendations
THANK YOU
 Renewable Industry in India
India's renewable energy capacity reached approximately 201.45 GW,
accounting for 46.3% of the nation's total installed power capacity

In accordance with COP agreements, India has ambitious goals to

achieve 500 GW of renewable capacity by 2030 , and net zero by 2070

Policies like the Production Linked Incentives scheme have been introduced
to boost domestic manufacturing of critical renewable energy components

The sector faces significant challenges in transmission infra, intermittency,

seasonality dependence, skill gap and geopolitical interdependencies
 Strategic Intent

Aggressive Capacity Strategic Partnerships and Strong Government

Expansion Alliances Partnerships

In alignment with India's ambitious AGEL has entered partnerships with International investors and By aligning closely with Government
renewable goals AGEL growth plan is technology providers, these partnerships help the company gain policies and incentive programs, the
underpinned by an aggressive expansion access to capital, technology, and new markets company ensures favourable
of its renewable energy capacity. They conditions for its large-scale
are aiming to reach 50 GW by 2030 by renewable projects
adding 6–7 GW annually to reach this
goal
 PESTEL Analysis

P E S T E L
Political Economic Social Technological Environmental Legal
High influence because Medium influence, the Medium influence, High influence, newer High influence because of Medium influence, ALMM and
the government issues economy has been growing companies are technologies help improve the given climatic conditions BIS norms are mandatory to
tenders for PPAs, sets consistently and as the cost becoming conscious of the efficiency of renewable and given the effects of do business India.
renewable energy of borrowing comes down fossil fuels and nuclear fuels
green energy as part of energy projects and also Additionally, there are legal
for energy generation
targets and more and more individuals their ESG efforts and as make it cost effective. The requirements that need to be
renewable energy is the
commitments and industries will also opt pollution is per KW cost of solar has choice ahead fulfilled for land acquisition,
for solar power rising individuals are also come down from 72000 to tendering etc
preferring green energy 26000
 Value Chain Analysis

Inbound Logistics Operations Outbound Logistics Marketing and Sales Services

Support Activities

Human
Infrastructure Technology Procurement
Resource
Development
Management

Value Drivers
• Land Acquisition • Institutional Support • Integrated Portfolio
• ENOC and AIMSL • Brand Reputation • Revolving Credit Facility
• Key Strategic Partnerships • Green Certificates • Talent
Financial Overview

Adani Greens Key Financials as of September 2024 (in crores rupees)

Total Assets 88538

Shareholder's Equity 10576
Total Debt 77962
Annual Revenue 7735
Net Income 1260

Key Financial Indicators Adani Greens Industry Average Values

Profit Margin 0.162895928 0.15 to 0.20

Asset Turnover Ratio 0.087363618 0.2 to 0.4
Equity Multiplier 8.371596067 2.5 to 4.5
ROE 0.11913767 0.08 to 0.14

ROE = Net Profit Margin × Asset Turnover × Equity Multiplier