Powergrid Case Analysis
Autor: Aatish Pandit • March 29, 2016 • Case Study • 3,661 Words (15 Pages) • 749 Views
TERM III, PGP I, 2016
Course: STRATEGIC MANAGEMENT - I
Instructor: Prof. Sabyasachi Sinha
Case Analysis - Powergrid Corporation of India Ltd.
Date: 24th March 2016
Submitted by:
Group 11 - Section D
Ankur Dahiya - FPM16009
Aatish Pandit - PGP31185
Jareth Lyngdoh - PGP31205
Nitesh Jain - PGP31218
Vineet Borar - PGP31245
POWERGRID CORPORATION OF INDIA LTD.
Powergrid Corporation of India Ltd. (PGCIL) is a government owned electric utility (transmission) public company headquartered at Gurgaon in India. It is credited for transmitting about 50% of the electricity produced in India.
PGCIL came into existence under the name of National Power Transmission Company (NPTC) in 1989 with a share capital of Rs.5000 crore. The objective of setting up this company was to plan, own, operate and maintain high voltage transmission systems in the country. The name of NPTC was changed to PGCIL on October 23, 1992.
The company started its operations from August, 1991 after receiving the Certificate of Commencement of Business. Prior to PGCIL, transmission of power lied in the hands of power generating companies like NTPC, etc. PGCIL took over transmission operations and assets from other companies in phases. In 1992-93, it acquired transmission assets from companies like NTPC, NHPC, NEEPCO, NLC, NPC, THDC, SJVNL etc. During 1994-96, took over the operations of Regional Load Despatch Centers (RLDCs) from CEA (Central Electricity Authority and has upgraded the technology at these centers. National Load Despatch Center (NLDC) was setup by PGCIL in 2009 for coordination of electricity at the country level.
In addition to providing transmission facilities, PGCIL is also responsible for establishing, operating and maintaining Regional and National Grids to enable transfer/transmission of electricity across regions within the country with security, reliability and economy.
It got the title of being a Navratna company in 2008. A Navratna company is authorised to take decisions that require a capital of upto Rs.1000 crore without approval from the government. PGCIL currently operates in all of India with a transmission network of approximately 1,01,866 circuit kilometres with a capacity of around 1,68,063 MVA (Volt Ampere). Inter regional transmission has a capacity of nearly 47,500 MVA.
PGCIL got listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) with its IPO in 2007. Soon after, the company has gone for two rounds of further funding with FPOs floated in 2010 and 2013. It must be noted that subsequent public offers have yielded better prices than previous one’s indicating the stable and steady growth of the company.
The main sources of revenue of the company are
- Electricity Transmission (92%)
- Telecom (1.65%) (under the name POWERTEL)
- Consultancy (under 1%)
PGCIL reported a profit of Rs. 4,497 crore in the financial year 2014-15. The company currently has a market capitalization of Rs. 71,751.25 Crore with its shares currently trading at Rs. 137.30 per share.
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