Praveer Sinha Announces Tata Power's Shift to B2C Model
CEO Insights Team, 0
Praveer Sinha, Managing Director & Chief Executive says India’s second-largest power company in the private sector will continue to focus on reducing under-recoveries from its 4GW coal-based power plant in Mundra this fiscal even as it restarts negotiations with the Gujarat government for a higher tariff.
This shift to B2C model means changes within the culture, getting more customers and retail-focused and service-oriented. Praveer adds, “We’re investing much more in digital platforms and giving customers access to information. What we achieved in FY20 was the work of the 12-18 months before that.
This company is a hundred years old and directionally, we want to change into new segments and we want employees to identify with these new segments”. The company is talking about more renewables, rooftop solar, electric vehicle charging, home automation. These last few years, it has incubated these new businesses and is now witnessing results.
Tata Power is present in 100 cities for rooftop solar. It has acquired revenue of Rs.50-60 crore two years back; this year, it will reach Rs.500 crore.
We’re investing much more in digital platforms and giving customers access to information. What we achieved in FY20 was the work of the 12-18 months before that
Two years back, in its solar pumps business, Tata Power has installed 2000 pumps. By FY20, the company has reached 25,000 pumps while expecting both solar rooftop and pumps to earn Rs.10,000 crore by 2025.
Praveer asserts, “We saw that we need to be more focused on ESG (environmental, social, and governance). We decided to be carbon-neutral by 2050 and we decided to demonstrate leadership in sustainability”.
Tata Power’s existing plants (over 7GW of thermal capacity), once they complete their useful life in another 35 years or so, will be shut down. The company doesn’t plan to make any new thermal acquisitions either through the Resurgent platform abd won’t be participating in the coal mining auctions.
In terms of size, the shift to B2C will be the biggest InvIT for renewables in India for Tata Power while it aspires to be always within the top two players in the renewable space. That’s why it holds 2.6GW of projects operational and another 1.5GW in the pipeline besides planning to increase this to 15GW by 2025.
The InvIT will bestow Tata Power with the opportunity to deal with M&A. Praveer adds, “I think a lot of plants sub-1GW will come to the market soon. We hope to launch it by Q3”.