STRATEGIC ANALYSIS OF TATA SOLAR POWER

1
 Executive Summary
Along with traditional non-renewable energy sectors, the renewable energy sector has also
gained major prominence. Among all renewable sectors, Solar Energy is one of the most
effective one. The Indian Solar Energy Market has achieved a major popularity among the
consumers on account of its affordable prices and its sustainable as well as green approach. As a
result, the market has attracted a huge number of competitors. Hence, this report aims to analyse
the strategic position of the organisation and discover its major threats and opportunities both in
the internal and external environment of the business. On the other hand, the report has also
proposed suitable plans for improving business operation and its financial aspects based on these
challenges and opportunities as well.

2
 Table of Contents
1. Industry analysis.........................................................................................................................4

1.1. Industry and Sector performance analysis............................................................................4

1.2 Macro environmental analysis...............................................................................................6

1.3. Competitor analysis..............................................................................................................8

1.4 Industry forces analysis........................................................................................................9

2. Opportunities and Threats..........................................................................................................11

Opportunities..............................................................................................................................11

Threats........................................................................................................................................12

Reference List................................................................................................................................14

Appendices....................................................................................................................................17

Appendix 2: PESTEL analysis.................................................................................................19

Appendix 3: Competitor analysis.............................................................................................29

Appendix 4: Industry forces - Porters five forces analysis........................................................31

Appendix 5: Scenario analysis – Scenario Cube.......................................................................35

Appendix 6: Blue Ocean Strategy Canvas.................................................................................36

Appendix 7: Blue Ocean Four Actions Framework.................................................................37

Appendix 8: Salience Model......................................................................................................38

Appendix 9: Corporate Governance issues identification..........................................................39

3
1. Industry analysis

1.1. Industry and Sector performance analysis

Overview of the market

In the past few decades, the demand for energy has significantly increased due to the gradual
development of the economy, all across the world. According to the opinion of Padmanathan et
al. (2019), besides the popular demand for all non-renewable energy sources such as fossil fuel,
the importance of renewable energy sources have also increased. Among all the renewable
energy sources, Solar energy has obtained a major significance. Similar to all the leading nations,
the Solar Energy Sector in India has also gained its prominence. After windpower, the Solar
power sector has become the second largest sector of renewable energy sources. Wind power has
been able to supply 47% of energy to the Indian market; whereas the solar energy sector has
contributed to 36% of total power supply (Irfan et al. 2020).

Figure 1: Renewable Energy Mix in India

(Source: Irfan et al. 2020)
Key Trend Analysis and Government Support
The industry has become the fourth most attractive sector in India with an annual growth rate of
11% (ibef, 2022). The Solar Energy market in India has also managed to achieve a total PV
capacity of 38.98 GW (ibef, 2022). The solar energy market in India has also achieved the
highest score in “Ernst & Young’s Renewable Attractiveness Index” ranking. India has come to
the top with a total score of 62.7(pv-magazine, 2022). In addition, as per the recent statistics, it

4
has also been observed that the Solar Energy Sector has also accomplished a relevant share in the
contemporary market. According to the statistics, the Solar Energy sector in India has managed
to secure 35.2% market share in the Indian Energy market.

Figure 2: Market Share of Solar Energy Sector in Indian Market

(Source: Irfan et al. 2020)
In addition, the production of the industry has also risen over the years. As per the statistics, it
has been found that during the Initial phase, the sector produced 150,000MW. However, within
the last few years, it has increased up to 399,000MW.

Figure 3: Solar Energy Production in India

(Source: Irfan et al. 2020)
Performance of Tata Solar Power within the Industry

5
Within this lucrative market of Solar Energy Sector, the company has set a significant milestone.
With a total revenue of 110.15 billion USD, it has become the largest integrated solar
organisation in India (mercomindia, 2022). The company has managed to build more than
900MW solar rooftops in India since 1991 serving 10,000 residential customers (tatapowersolar,
2022). In addition, the company has also achieved a total market share of 12% based on their
excellent solar value chain (tatapowersolar, 2022).

1.2 Macro environmental analysis

PESTLE Analysis
Political
● Being the largest democracy within the world, the Country has manifested a stable
political environment with a right wing government that has shown immense support to
the thriving of the industry (mnre, 2022).
● The Government policies as that of PM KUSUM, CPSU, Solar Park Schemes or
Defence Scheme has granted the renewable energy sectors in India to enhance their
capacity from 20,000MW to 40,000MW by the end of 2023 (mnre, 2022).
● In addition, the Government has also promoted a fair competition within the industry
with its strong administrative powers and has helped the organisations to utilise their
resources in order to fulfil their objectives (mnre, 2022).
Economic
● The present inflation rate of India amounting around 7.5% may eventually help
companies such as Tata Solar Power in the Indian Solar Energy Sector to deal with
discretionary Cash flow as well.
● However, corruption in India appears to be a major factor that may pose a challenge to
the successful and non-hazardous operation of the industry
● With the repeated attack of Covid-19 pandemic, the unemployment rate of India has
amounted to around 7.83% in April, 2022 (business-standard, 2022).
Social
● In India, a high density of the young generation aged between 15 to 60 has been observed
(67.27%) that may help the industry to increase its workforce (Statista, 2022)

6
 ● On the other hand, 85% literacy rate in India may also lead a positive impact on the
industry in order to mitigate challenges regarding shortage of skilled labours
● Complex and large family structure with moral values (Mishra et al., 2020)
● In addition, the health awareness among common Indians have also helped the Solar
energy sector in India to put emphasis upon the corporate social responsibilities and
achieve further milestones along with business sustainability.
Technological
● The Solar Energy Sector in India has been run b y three primary technologies namingly,
PV or Photovoltaics technology, CSP or Concentrating Solar Power Technology and SHC
or Solar Heating Technology (Lugovoy et al. 2021).
● The introduction to hybrid Silicon or carbon made solar cells may bring sustainability in
operation cost of the company as well as the industry
● In addition, the deal of Social Media giant Facebook regarding the renewable energy
source in India may introduce a new aspect of business operation within the country.
India’s electrical grid technology may be enhanced further.
Legal
● Republic Act No. 9513 that includes Renewable Energy Act of 2008 has conferred
restriction within the Government’s acceleration regarding utilisation of renewable
energy resources in India. (ap.fftc.org, 2022)
● The RPS (Renewable Portfolio Standard) policy has set an obligation for distribution of
the utilities and set emphasise upon manufacturing a specific fraction of energy from the
eligible resources (ap.fftc.org, 2022)
● DOE (Department of Energy) has been formed as a regulatory body to maintain the
regulations levied by NREP (National Renewable Energy Programme) (ap.fftc.org, 2022)
Environmental
● Being located within a tropical region, Indians receive an average 3000 hours of Sunlight
daily. This may help the industry to run operation smoothly
● Growing concern for green consumption among the Indian Consumers may help the
industry as well as the company to rectify their brand image and popularity (Guangul and
Chala, 2019)

7
 ● In addition, the moderate rainfall and the ambient temperature of India have also emerged
as positive factors in growth of the industry

1.3. Competitor analysis

After the consistent performance for the past few decades, Tata Solar power has become India’s
largest Integrated Solar Power organisation. However, the attractiveness of the industry has also
influenced others to enter into the market. As a result, in the last two decades there have been
around 25 companies that have operated with solar energy production. Among these companies,
Vikram Solar Pvt. Ltd, Loom Solar and Moser Baer Solar Ltd. (MBSL) appears to be the major
competitor of the company.
To begin with, Vikram Solar Pvt. Ltd appears within the list of top ten solar companies in India.
The organisation has gained their expertise in manufacturing PV modules and EPC solutions. In
addition, the company has also provided services regarding procurement, engineering and
construction of solar services and operation at other plants. As per the recent reports, the
company has gained a total revenue of 283.9 million USD (vikramsolar, 2022). In addition, the
company has earned 21.63% revenue from the EPC solution and 73% from PV modules
(vikramsolar, 2022). The company has also managed to secure a total 28% share within the
national market.
On the other hand, another major competitor of the company, Loom Solar has achieved their
excellence in manufacturing AC modules. The company has developed an advanced
manufacturing protocolo with the implementation of Mono perc Cell Technology. As a result, the
company has been able to develop a total 100MW of solar energy. The company has earned a
total revenue of 308 million USD in 2021 (energy.economictimes, 2022). However, the company
has held only 2-3% share within the nativce market.
Moser Baer Solar Ltd. (MBSL) is another major competitor of the organisation in the
contemporary market. The company has operated with technologies such as Crystalline Silicon
Cell, Thin Film Modules and Solar EPC Services. The company has earned a total revenue of
268 million USD with a market share of 13%. In addition, the organisation has built their
subsidiaries all across the country to develop an enhanced solar value chain as well.

8
1.4 Industry forces analysis

From the above competitor analysis, it becomes clearly evident that the Solar energy market in
India has highly condensed with steep competition between solar power giants. Hence, in order
to gain stability in the market, it becomes essential to analyse the position of the company in the
contemporary market. As a result, in order to identify the contemporary challenges and
advantages within the market, the following report has developed a Porter’s Five Force analysis
for the company to derive its competitive positioning.

Figure 4: Porter’s Five Force for Solar Energy Sector

(Source: ibef, 2022)
Competitive Rivalry
On account of the attractiveness of the industry, in the past few decades, there have been more
than 25 large and medium organisations dealing with solar energy manufacturing. On the other
hand, thousands of small and medium corporations have registered themselves under MNRE. in
addition, as per the observations of Suman and Ahamad (2018), the industry has also faced
major competition from agencies such as the other global firms, local manufactures and the
NGOs.

9
Threat of new Entry
The threat of New Entrants into the solar energy market in India is always high. The
attractiveness of the industry along with the friendly schemes levied by the Indian Government
has always attracted the newcomers. In addition, the open policy with no limitation for entrance
or exit from the industry has also encouraged the new organisations to enter into the market. The
low rate of tax and affordable loan schemes from the native financial institutes have also helped
the newcomers to the industry to gain both success and sustainability within the market.
However, as for this organisation, one of the largest integrated power producers within the
industry, the threat of these new entrants has become moderate.
Threat of Substitution
Though the consumer satisfaction has increased for PV models, the popularity of off-grid models
has also increased. The rapid increase of off-grid power supply with abundance in availability of
grid-supply has posed a major threat to the industry, especially to those operating with PV
models. Since, the organisation primarily operates with PV model manufacturing and producing
energy from that, this factor may pose a great threat to the organisation. In addition, another
major threat of substitution for the organisation may come from the Wind power industry.

Figure 5: Customer Satisfaction for PV Model

(Source: Yadav et al. 2019)
Bargaining power of Buyers

10
On the other hand, with the presence of too many solar power companies within the market,
including both those that are registered or unregistered under MNRE, the bargaining power of
the customers has become a little high. The monopolistic nature of the competitive market along
with the high brand value of this organisation has somehow reduced the risk to a moderate level
on the organisation.
Bargaining Power of the Suppliers
However, unlike the bargaining power of the customers, the monopolistic natures of the market
and stagnant market with too many competitors have increased the bargaining power of the
suppliers. The supply of Solar PV panels in India including both silicon water and solar panel is
usually controlled by China. In addition, the suppliers for accessories such as engineering works,
battery backup and cable wires and inverters have also increased the power of the suppliers over
the industry as well as this organisation.

2. Opportunities and Threats

From the above discussion and analysis, it has been observed that the position of the organisation
within the existing market has created both challenges and opportunities on the path of their
successful operation.

Opportunities

● In addition, the Government of India has also manifested a moderate taxation system
towards the corporate organisation. In case of organisations that operate with PV-grid
solar energy production, the Government has levied a tax of 12% to 15% and the
companies that operate with off-grid energy have been subjected to 16% to 20% tax
(astralegal, 2022). In addition, as per the opinion of Kumar et al. (2019) the rate of
interest in both Government aided and Government institutions may also lead a positive
impact on the industry. According to Raina and Sinha (2019), the simple structure of
crediting loans eases the process of opedration and meets the aspects of sustainability as
well. As a result, the Government of India has also increased their budget allocation to
this definite sector. In 2022, the Government has allocated 2.57 billion USD to the Solar
Energy Sector in the Union Budget of 2022 (ibef, 2022).

11
 Recommended Plan- In association with this friendly Government Policy, the company
needs to extend their business operation and include more sustainable technologies to
improve the service quality. (Long-Term)
● As per the observations of Al-Saidi and Lahham (2019), another major opportunity for
this present industry has been observed in terms of advancement in new technologies,
with introduction to further new technologies such as PV or Photovoltaics technology,
CSP or Concentrating Solar Power Technology and SHC or Solar Heating Technology
has helped the company to further grow.
Recommended Plan- As a result, the company needs to include better technology to
increase further expansion and explore new business ventures. As a result, the company
may focus on including the off-grid power supply to include more profit and
sustainability. (Mid-Term)
● In addition, with increased pollution from the consumption of the non-renewable energy
sources, the consumers have developed a mass concern among the consumers. As a
result, according to the opinion of Bose et al. (2021), this interest for green and
sustainable consumption of energy has also grown. With the increased interest of the
customers for Green Consumption has also created an opportunity for the organisation.
Recommended Plan- Based on this Rising interest, the company needs to promote their
policies of green manufacturing and the eco-friendly nature of Solar Energy to raise the
popularity of the sector. With inclusion of value-added marketing and an effective
promotional strategy (with help of Social media and traditional approaches), the company
may increase their brand image. (Short-Term)

Threats

● As discussed earlier, it has been observed that the Indian Solar Energy market has been
dense with competitive rivalry (Yadav et al. 2019). The major companies such as Vikram
Solar Pvt. Ltd, Loom Solar and Moser Baer Solar Ltd. (MBSL) have stagnated the
market with their intense competition. Hence, it can be stated that this intense
competition in the market may pose a moderate threat to a big agency such as that of Tata
Solar Power.

12
 Recommended Plan- In order to reduce the intensity of this competition, it becomes
essential to form collaboration with the medium sized organisation and bring them under
organisational support. (Short-Term)
● Among all the renewable energy sources in India, Wind Power operates with the largest
market share and highest manufacturing capacity as well.
Recommended Plan- In order to reduce the threat from the Wind Power, the company
needs to put emphasis upon its aspects of sustainability and its enhanced promotion. In
addition, the company may also consider restructuring their pricing policies to make their
services more affordable to their customers and more popular. (Long-term)
● From the adobe discussion it has been observed that the rate of unemployment has
significantly increased in the last two to three years (Mausam et al. 2019). This has
severely affected the workforce rotation. As a result, this increased rate of unemployment
may affect both the company and sector with limited labour mobility and distortion in
redistribution.
Recommended Plan- The company may undertake a suitable CSR policies to educate the
employees and increase more vacancies with gradual expansion of business operation.
(Mid-Term)

13
Reference List

Journals
Al-Saidi, M. and Lahham, N., 2019. Solar energy farming as a development innovation for
vulnerable water basins. Development in Practice, 29(5), pp.619-634.
Bose, D., Saini, D.K., Yadav, M., Shrivastava, S. and Parashar, N., 2021. Decentralized Solar
Energy Access and Assessment of Performance Parameters for Rural Communities in
India. Sustainability and Climate Change, 14(2), pp.103-114.
Guangul, F.M. and Chala, G.T., 2019, January. Solar energy as renewable energy source: SWOT
analysis. In 2019 4th MEC international conference on big data and smart city (ICBDSC) (pp. 1-
5). IEEE.
Heynen, A.P., Lant, P.A., Smart, S., Sridharan, S. and Greig, C., 2019. Off-grid opportunities and
threats in the wake of India’s electrification push. Energy, Sustainability and Society, 9(1), pp.1-
10.
Irfan, M., Zhao, Z.Y., Ikram, M., Gilal, N.G., Li, H. and Rehman, A., 2020. Assessment of India's
energy dynamics: Prospects of solar energy. Journal of Renewable and Sustainable
Energy, 12(5), p.053701.
Kumar, S., Rawat, M.K. and Gupta, S., 2019. An evaluation of current status of renewable
energy sources in India. International Journal of Innovative Technology and Exploring
Engineering, 8(10), pp.1234-39.
Lugovoy, O., Jyothiprakash, V., Chatterjee, S., Sharma, S., Mukherjee, A., Das, A., Some, S.,
Dinesha, D.L., Das, N., Bosu, P. and Dasgupta, S., 2021. Towards a zero-carbon electricity
system for india in 2050: Ideea model-based scenarios integrating wind and solar
complementarity and geospatial endowments. Energies, 14(21), p.7063.
Majid, M.A., 2020. Renewable energy for sustainable development in India: current status,
future prospects, challenges, employment, and investment opportunities. Energy, Sustainability
and Society, 10(1), pp.1-36.
Mausam, K., Ghosh, S.K., kumar Tiwari, A. and Singh, R.P., 2019, November. Solar power
development: a root for sustainable development of India. In IOP conference series: materials
science and engineering (Vol. 691, No. 1, p. 012084). IOP Publishing.

14
Padmanathan, K., Govindarajan, U., Ramachandaramurthy, V.K., Rajagopalan, A.,
Pachaivannan, N., Sowmmiya, U., Padmanaban, S., Holm-Nielsen, J.B., Xavier, S. and
Periasamy, S.K., 2019. A sociocultural study on solar photovoltaic energy system in India:
Stratification and policy implication. Journal of cleaner production, 216, pp.461-481.
Raina, G. and Sinha, S., 2019. Outlook on the Indian scenario of solar energy strategies: Policies
and challenges. Energy Strategy Reviews, 24, pp.331-341.
Suman, S.K. and Ahamad, J., 2018. Solar energy potential and future energy of India: an
overview. International Journal of Engineering Science, 8(5), pp.17575-79.
Yadav, P., Davies, P.J. and Sarkodie, S.A., 2019. The prospects of decentralised solar energy
home systems in rural communities: User experience, determinants, and impact of free solar
power on the energy poverty cycle. Energy Strategy Reviews, 26, p.100424.
Websites
ap.fftc.org (2022), Renewable Energy Act for Self-sufficiency in India its Harmful Reduction,
https://ap.fftc.org.tw/article/721
astrealegal (2022), Tax liability for solar power business in India, https://astrealegal.com/tax-
liability-for-solar-power-business-in-india/
business-standard (2022), India's unemployment rate rose to 7.83% in April, shows CMIE data,
https://www.business-standard.com/article/economy-policy/india-s-unemployment-rate-rose-to-
7-83-in-april-shows-cmie-data-122050201088_1.html#:~:text=The%20unemployment%20rate
%20in%20the,data%20released%20on%20Monday%20showed
energy.economictimes (2022), Loom Solar Eyes 100 Cr turnover in FY 2021,
https://energy.economictimes.indiatimes.com/news/renewable/loom-solar-eyes-rs-100-cr-
turnover-by-fy21/77754422#:~:text=Loom%20solar%20is%20holding%202,nearly
%201%2C000%20crore%20at%20present
Ibef (2022), Renewable Energy Industry in India, https://www.ibef.org/industry/renewable-
energy#:~:text=Introduction,installed%20capacity%2C%20as%20of%202020
investindia.gov (2022), Thermal Power, https://www.investindia.gov.in/sector/thermal-power
mercomindia (2022), Tata Power’s Revenue Jumps 42% to 110.15 Billion in Q3 FY 2022,
https://mercomindia.com/tata-power-revenue-jumps-yoy/#:~:text=Events-,Tata%20Power's
%20Revenue%20Jumps%2042%25%20YoY%20to%20%E2%82%B9,Billion%20in

15
%20Q3%20FY%202022&text=Tata%20Power%20has%20recorded%20a,the%20same
%20period%20last%20year
Mnre (2022), SOLAR SCHEMES, https://mnre.gov.in/solar/schemes
pv-magazine (2022), Ernst & Young ranks India as world’s most attractive solar market,
https://www.pv-magazine.com/2021/05/21/ernst-young-ranks-india-as-worlds-most-attractive-
solar-market/
Statista (2022), Age distribution in India 2010-2020,
https://www.statista.com/statistics/271315/age-distribution-in-india/#:~:text=This%20statistic
%20depicts%20the%20age,over%2065%20years%20of%20age.
Statista (2022), India: Real gross domestic product (GDP) growth rate from 2017 to 2027,
https://www.statista.com/statistics/263617/gross-domestic-product-gdp-growth-rate-in-india/
tatapowersolar (2022), About Us, https://www.tatapowersolar.com/about-us/
thehindu (2022), India’s solar capacity: Milestones and challenges,
https://www.thehindu.com/sci-tech/energy-and-environment/indias-solar-capacity-milestones-
and-challenges/article65227709.ece#:~:text=In%202019%2D20%2C%20for
%20instance,inefficiencies%2C%20and%20grid%20integration%20challenges
vikramsolar (2022), Financial Performance, https://www.vikramsolar.com/financial-
performance/

16
Appendices

Appendix 1: Industry and Sector Analysis

Industry Sector- Solar Energy Market
Attractiveness of Industry- The Solar Energy Market is the fourth most attractive one within
the energy sector. The Solar Power industry has gained a total Budget allocation of 2.57 billion
USD within the union budget of 2022 (ibef, 2022). In addition, the Solar Energy market in India
has also achieved the highest score (62.7) within the global market as per the ranking of “Ernst
& Young’s Renewables Attractiveness Index” (pv-magazine, 2022).
Growth Rate- In 2019, the Industry has exhibited an 11% growth rate with total PV capacity
around 38.98 GW (ibef, 2022).
Challenges
● In 2020, the sector contributed only 3.6% to country’s total energy production (thehindu,
2022)
● High cost for land management, T&D loss and Grid integration (thehindu, 2022)
● Financial instability of Power Distribution Associations
Opportunity
● Fourth most popular sector within the industry
● Renewable source ensures sustainability and unlimited resources
● Increased investment from the Government
Threat
● Fluctuation of Coal prices both in national and international markets
● Mismatched demand and supply
● High cost for buying solar system and its storage
● Depends highly on weather
Future Shift
The industry has been expected to generate 100,000 MW power by the end of 2022 and may
attract a total investment of 128.24 to 135.37 billion USD within 2023. In addition, the Solar
Energy industry may also surpass coal by 38% and other renewable sources by 44% by the end
of 2027 (investindia.gov, 2022).

17
Whether industry is worth staying- Yes, the market is supposed to achieve a total CAGR of
8% by 2027 (investindia.gov, 2022)
Scope-
● Fast pace of Off-grid power
● Total sales of INR 329,000 for off-grid power in India (ibef, 2022)
● Potential capacity around 363GW (ibef, 2022)
● Being located in the tropical region receives 3000 hours of total sunshine in India
GDP Count Analysis

Year 2017 2018 2019 2020 2021

GDP rate 6.8% 6.45% 3.74% -6.6% 8.95%

Table 1: GDP growth in India
(Source: Statista, 2022)

18
Appendix 2: PESTEL analysis

Political Intext citation

Implication Significan Likelihoo Total
S. No. Factor to ce Rating d Rating (AxB Source
organisation (1-5) A (1-5) B )
Largest Being largest Opportunit
Democracy democracy, it y
would
provide the
1 5 5 2019 Bose et al. (2019)
company a
stability
within the
market
Government Government Opportunit
Policies policies such y
as “PM
KUSUM”
would help
the industry Guangul and
2 3 4 12
to to increase Chala (2019)
production
and
distribution
capacity
(mnre, 2022)
3 Taxation The 1 5 5 Heynen et al. Threat
System Government (2019)
has levied
12% to 15%
tax for PV-
grid solar

19
 energy
production
and 16% to
20% tax for
off-grid
production
(astralegal,
2022)
Privatisation With Opportunit
increased y
Foreign
Direct
Investment
most of the
4 4 1 4 Irfan et al. (2020)
organisations
have been
privatised
and avoided
Government
control
Trade Block Exchange Opportunit
squares have y
assisted
sustainability
5 and 1 1 1 Bose et al. (2019)
responsibiliti
es of the
sector (Irfan
et al. 2021)
6 Competition Promotes fair 1 1 1 Guangul and Opportunit
Regulation competition Chala (2019) y
between

20
 rivals
Economi
c
Implication Significan Likelihoo Total
S. No. Factor to ce Rating d Rating (AxB Source
organisaion (1-5) A (1-5) B )
Inflation Rate The inflation Opportunit
rate may y
benefit the
company
with
discretionary (business-
1 cash flow 2 2 4 standard, 2022).
Interest Rate Cheap cost in Opportunit
financing y
matt help
Tata Solar
Power to
easily avail
credits and
loans from
native (business-
2 organisations 3 1 3 standard, 2022).
Consumer Higher Opportunit
Spending trends of y
Rate Customer
spending
may help
organisation
to increase (business-
3 sales 2 3 6 standard, 2022).
4 Unemployme Increased 3 3 9 (business- Threat
nt rate unemployme standard, 2022).

21
 nt has
affected
additional
cash in
economy
5
6
Social
Implication Significan Likelihoo Total
S. No. Factor to ce Rating d Rating (AxB Source
organisaion (1-5) A (1-5) B )
Demographic High density Opportunit
of young y
population
may increase
the
workforce
(Lhazom et
1 al., 2019) 3 3 9 (Statista, 2022)
Education Advanced Opportunit
education y
system
would help
to increase
skilled
labours
within the
company as
well as the (Mishra et al.,
2 industry 2 2 4 2020)
3 Family Size Complex and 3 1 3 (Mishra et al., Threat
large family 2020)
structure

22
 with moral
values
(Mishra et
al., 2020)
Health Health Opportunit
Consciousnes consciousnes y
s s among the
Indian Mass
may help to
increase CSR
practices of
the
organisation
and ensure
sustainability
(Manohar et (Mishra et al.,
4 al., 2019) 3 2 6 2020)
5 5 1 5
6 5 1 5
Technological
Implication Significan Likelihoo Total
S. No. Factor to ce Rating d Rating (AxB Source
organisaion (1-5) A (1-5) B )
Infrastructure Emergence Opportunit
of new y
technologies
may bring
consistency
in innovation
and (Lugovoy et al.
1 upgradation 1 4 4 2021)
Penetration Increased Opportunit

2 of Internet internet 2 2 4 y

23
 penetration
has widened
the access to
a larger
customer
base
Social Media Popularity of Opportunit
Popularity Social media y
has enhanced
promotion
and
marketing
3 strategy 3 1 3
R&D Increased
investment invest in
R&D may
help to
increase
innovation
and (Lugovoy et al. Opportunit
4 sustainability 3 2 6 2021) y
5 5 1 5
6 5 1 5
Environmental/ Ecological
Implication Significan Likelihoo Total
S. No. Factor to ce Rating d Rating (AxB Source
organisaion (1-5) A (1-5) B )
1 Emphasis on Recycling 3 3 9 (Guangul and Opportunit
Recycling policy would Chala, 2019) y
add up to
organisationa
l
sustainability

24
 and cost
reduction
Waste Strict waste Threat
management management
policies policies may
help further
environment
2 al risks 2 2 4
Green Popularity of Opportunit
Consumption Green y
consumption
may enhance
brand image
and include (Guangul and
3 sustainability 3 3 6 Chala, 2019)
Investment in This may Opportunit
renewable help to y
energy reduce
digital
carbon
footprint

Legal
Implication Significan Likelihoo Total
S. No. Factor to ce Rating d Rating (AxB Source
organisaion (1-5) A (1-5) B )
Health and Assures Opportunit
Safety issues security of y
internal and
external
1 stakeholders 3 3 9
2 Employment Provides 2 2 4 Opportunit

25
 Regulations emphasis on y
fair
management
of human
resources
and avoids
exploitation
Anti- This law Opportunit
discriminator would bring y
y Laws diversity
within the
3 workforce 3 3 9
Republic Act Republic Act
No. 9513
that includes
Renewable
Energy Act
of 2008 has
conferred
restriction
within the
Government’
s
acceleration
regarding
utilisation of
renewable
energy
resources in
India.
(ap.fftc.org, (ap.fftc.org,
4 2022) 3 2 6 2022)

26
 RPS The RPS
(Renewable
Portfolio
Standard)
policy has set
an obligation
for
distribution
of the
utilities and
set
emphasise
upon
manufacturin
g a specific
fraction of
energy from
the eligible (ap.fftc.org,
5 resources 3 2 6 2022)
DOE DOE 2 2 4 (ap.fftc.org, Opportunit
(Department 2022) y
of Energy)
has been
formed as a
regulatory
body to
maintain the
regulations
levied by
NREP
(National

27
Renewable
Energy
Programme)

28
Appendix 3: Competitor analysis

My
Competitors Organisatio
Analysis n
Bhadla Mahind Vikram TATA
Solar ra Moser Baer Solar Loom Solar Solar
Factors Park Susten Ltd. (MBSL) Solar Power
Conversi Reputati Organic marketing Conversion Organic Sustainable
on Rate on Rate marketin Green
optimisat Marketi optimisatio g Marketing
Strategy ion ng n
Maintain Collabor To develop Develop Attract Sustainable
the ate with Sustainable Energy Advanced research , affordable
existing rivals to Distribution Solar Chain grants and
PV-grid gain Value from Innovative
producti stability governm production
Objectives on ent
Increase Value- Diversification in Increased Longer Increase
d added Workforce Production range of capacity
network approac Capacity product through
h to marketin hybrid
resource g demands
Assumptions s
Resources and Solar solar Manufacturing PV Mono perc solar solar
capabilities thermal photovol modules and EPC Cell heating photovoltai
electricit taic solutions. In addition, Technology c electricity
y electricit the company has also
y provided services
regarding
procurement,
engineering and

29
 construction of solar
services and operation
at other plants
Anyother (some
from below)
Mkt share 7% 5.90% 13% 2-3% 6.80% 12%
Moderat Sustaina Moderate Sustainable Moderat Strong
Consumer sentiment e ble e
Low Moderat Strong Low Moderat Strong
Brand image e e
Low Moderat Moderate Moderate Moderat Moderate
Pricing e e
CAGR 60% 20% 25% 22% 53.91% 69%
30.7 50 157.7 110.15
million billion 308 million billion billion
Financial analysis USD USD 268 million USD USD USD USD

30
Appendix 4: Industry forces - Porters five forces analysis

Industr
y Five high=5,
Forces low=1
Strength
of force
(High/Me Source
dium/ (Intext
Forces Factors Description Strength Low) citation)
Al-Saidi, M.
and
Industry Density of Solar energy Lahham(201
concentration companies are high 2 9)
Competi Padmanatha
tive Growth of n et al.
Rivalry industry Fast rate of growth with 11% 4 (2019)
Al-Saidi, M.
Bhadla Solar Park, Mahindra and
No of Susten, Vikram Solar and many Lahham(201
competitors more 3 3.4 9)
Suman and
Increased investment attracts Ahamad
Govt spending newcomers 5 (2018)
Capital Increased capital investment Irfan et al.
Investment increases threat 2 2020
Threat the industry has also faced
of entry major competition from agencies Al-Saidi, M.
such as the other global firms, and
NGOs and other local manufactures and the Lahham(201
agencies NGOs. 3 9)
High tax rate may discourage the Irfan et al.
Tax reform new comers 3 3.4 2020
Threat Increased With increased competition, 1 3 Irfan et al.

31
 collaboration may decrease the
competition risk 2020
Government policies of PM Suman and
Government KUSUM may help smaller Ahamad
policies companies to grow 2 (2018)
In addition, another major threat
of substitution for the
organisation may come from the Irfan et al.
Wind Power Wind power industry. 2020
Though the consumer
satisfaction has increased for PV
models, the popularity of off-grid
models has also increased. The
rapid increase of off-grid power
supply with abundance in
availability of grid-supply has
posed a major threat to the
industry, especially to those
operating with PV models. Since,
the organisation primarily
operates with PV model
manufacturing and producing
energy from that, this factor may Padmanatha
Off-grid pose a great threat to the n et al.
Manufacturing organisation. 4 (2019)
of Competitors with low to
substitut Financial moderate financial performance
ion Analysis poses less threat 3
Reduces the bargaining power of
More buyers buyers 1
Power On the other hand, with the
of presence of too many solar
Buyers Limited Sellers power companies within the 1 2

32
 market, including both those that
are registered or unregistered
under MNRE, the bargaining
power of the customers has
become a little high. The
monopolistic nature of the
competitive market along with
the high brand value of this
organisation has somehow
reduced the risk to a moderate
level on the organisation.
Power Power of Suppliers are abundant, so 4
of Suppliers reduced bargaining power 2
supplier Limited Irfan et al.
s Competition Increased competition 2 2020
However, unlike the bargaining 4 Padmanatha
power of the customers, the n et al.
monopolistic nature of the (2019)
market and stagnant market with
too many competitors have
increased the bargaining power
of the suppliers. The supply of
Solar PV panels in India
including both silicon water and
solar panel is usually controlled
by China. In addition, the
suppliers for accessories such as
engineering works, battery
backup and cable wires and
inverters have also increased the
power of the suppliers over the
industry as well as this

33
organisation.

34
Appendix 5: Scenario analysis – Scenario Cube

Trying to develop scenario

Scenario Analysis
for future
Scenario Cube Impact Uncertainty Independence
PESTEL Significance Rating (1-5) ALikelihood Rating (1-5) BTotal (AxB)
Government Stability 4 4 16
Government spending 2 2 18
Trade restriction 3 2 12
Tax Regulations 4 5 10
Employment laws 5 4 4
Corruption levels 2 3 5
Lifestyle 1 4 4
Education 2 4 8
Demography 3 3 12
Attitudes and beliefs 2 3 10
Ethics and religion 4 2 14
Culture 1 2 8

35
Appendix 6: Blue Ocean Strategy Canvas

Strategy
Canvas
Critical success Bhadla Mahindra Vikram TATA Solar TATA Solar
S. No. factors Solar Park Susten Solar Power Power Proposed
Existing Elimi
1 Technology 1 2 5 4 2 nate
Price Redu
2 3 2 3 5 3 ce
Use of Coal in Redu
3 operation 1 2 3 4 3 ce
4 Brand value 2 3 2 3 4 Raise
5 Market Share 1 2 3 4 4 Raise
Solar Panels Creat
6 2 4 5 3 4 e
Social Media Creat
7 Promotion 3 2 1 2 5 e
Blue variance in Solar Elimi
ocean Intensity 1 2 3 2 4 nate
Blue Include off-grid Creat
ocean technology 2 2 3 3 5 e

36
Appendix 7: Blue Ocean Four Actions Framework

Eliminate Reduce
Existing Technology Price
variance in Solar Intensity Use of Coal in operation
Crabon Emission in Operational Action

Raise Create
Brand value Social Media Promotion
Market Share Enhanced Cyber Security system
Solar Panels Include off-grid technology

37
Appendix 8: Salience Model

Stakeholder Mapping : Salience Model

Stakeholder Power Legitimacy Urgency Type

Suppliers Y N Y Definitive
Employees Y Y Y Dependent
Consumers Y Y Dominant
EPC Companies N Y Y Definitive
Utility Companies N N Y Demanding

38
Appendix 9: Corporate Governance issues identification

Governance Issues
Who Involved- Internal and External Stakeholders
Governance issues- High manufacturing Costs, Diverse Supply, financing issues
Governance Chain- Investors, Developers, Utility Companies, EPC companies
Board Members- CEO, CFO, Chairman, President, vice president, Zonal heads
Stakeholders- Employees, Suppliers, Consumers, Utility companies

39