To Understand And Analyze Market For Concept Sales And

Brand Awareness Of Panasonics High Efficiency HIT Solar

PV In India



SAI ADITHYA (Amrita Business School)
SPRIHA TANTIA(NMIMS,Hyderabad)

15
th
April 2014 15
th
June 2014

GUIDED BY: MR KRISHNAN RAJAGOPALAN
TEAM AVAKAI
YUVA SURYA- THE YOUNG SUN


2

AKNOWLEDGEMENT

We take this opportunity to express our profound gratitude and deep regards to our
mentor, Mr. Krishnan Rajagopalan for his exemplary guidance, monitoring and constant
encouragement throughout the course of this project.

We also take this opportunity to express a deep sense of gratitude to Mr. Nagendra for
his cordial support in the administrative related issues.

We are obliged to staff members of Anchor Electricals, for the valuable information
provided by them in their respective fields. We are grateful for their cooperation during
the period of our project.

Lastly, we thank our faculty guides Mr. Rama K. Kompella(NMIMS) and Ms. Puja
Sharma(ABS) for their constant encouragement without which this assignment would
not be possible.


Yours Sincerely,
Spriha Tantia
SaiAdithya











3

Contents
1 Introduction to the Project ................................................................................................................. 6
1.1 Objective of the project ............................................................................................................. 7
1.2 Scope of the Project ................................................................................................................. 7
1.3 Assumptions ............................................................................................................................ 8
1.4 Limitations ................................................................................................................................ 8
2 Indian Solar Market........................................................................................................................... 9
2.1 The current state of affairs: ..................................................................................................... 10
2.1.1 Global demand ................................................................................................................... 12
2.1.2 Polices, Regulations and Existing Projects .......................................................................... 13
3 Andhra Pradesh State Policy .......................................................................................................... 15
4 Market segments and Behavior....................................................................................................... 16
5 Solar Technology ............................................................................................................................ 18
5.1 Introduction to Solar Power and Products ............................................................................... 18
5.1.1 Solar Cell: .......................................................................................................................... 19
5.1.2 Solar Module ...................................................................................................................... 19
5.1.3 Solar Array ......................................................................................................................... 19
5.2 Types of Modules: .................................................................................................................. 20
6 Product Information ........................................................................................................................ 23
6.1 Solar Cell Efficiency: .............................................................................................................. 26
6.2 System Requirements ............................................................................................................ 28
6.3 Savings and Benefits of Installation ........................................................................................ 29
6.3.1 Practical Calculated savings using Power bill ...................................................................... 29
6.3.2 Benefit Tax savings ......................................................................................................... 29
7 AEPL Targeted Strategic Market Segments .................................................................................... 33
8 AEPL concept selling and product positioning ................................................................................. 35
9 Marketing efforts & Business Lead Generation ................................................................................ 36
10 Client Expectations and Survey Details ...................................................................................... 38
11 Conclusive entry strategy for AEPL to position as a Strong Player .............................................. 40
12 Uniqueness ................................................................................................................................ 44
13 Bibliography ............................................................................................................................... 45






4

List of Tables
Table 6-1 Panasonic Modules (Sanyo) Temp coefficient vs others ........................................................ 24
Table 6-2 HIT VS STANDARD INDUSTRY MODULE EFFICIENCY....................................................... 26

Table of Figures
Figure 2-1 National Solar Mission Tariff ................................................................................................. 11
Figure 2-2 Solar Rooftop PV vs Landed Cost of Power .......................................................................... 11
Figure 2-3 PV Supply and Demand ........................................................................................................ 12
Figure 2-4 Solar PV system prices decline ............................................................................................. 13
Figure 2-5 Indian Solar Projects ............................................................................................................. 14
Figure 5-1 Principle of Solar Power Generation...................................................................................... 18
Figure 5-2 Solar Array ........................................................................................................................... 20
Figure 5-3 Mono Crystalline ................................................................................................................... 21
Figure 5-4 Poly crystalline ...................................................................................................................... 21
Figure 5-5 Thin Film Module .................................................................................................................. 22





















5










PART 1:
INTRODUCTION, INDIAN SOLAR MARKET AND PRODUCT
INFORMATION




















6

1 Introduction to the Project

Anchor:
Brand Anchor is synonymous with Trust, safety and Reliability. Truly, had there been any company that
silently revolutionized Indian unorganized switch manufacturing then it has to anchor. From being a family
owned company to a subsidy of Panasonic eco labs, anchor has come long away in its 50 years history.
Anchor is the leading electrical equipment manufacturer in India. In specific, anchor is kind of de facto
choice for switches and accessories, switchgear and protection devices, wires & cablev s. Its lamps &
luminaries and fans are also quite well know in the market.
The revenue of anchor in 2012 was 1300 crore with estimates for fore coming year to be 1700 crore .
Anchor plans to rake operations and target 22 per cent growth in following years. This possible for a
company that registered its presence with 5000 dealers,450000 retails outlets serving the market .
Anchors manufacturing operations are based in Daman, Kutch, Haridwar and Roorkee .One interesting
fact is the presence of around 70 % women workforce.
The respect for excellence of the brand anchor is testified by being awarded super brand four times in a
row and consumers most trusted brand by readers digest.

Panasonic
Konosuke Matsushita was leader par visionary in every sense, this is testified by the fact that he made
250 year vision document of the company he founded in 1932. Matsushita ascent from humble origins
due to passion commitment is embedded in the culture of matsushita electrical that eventually became
Panasonic, the largest electronic company in Japan and a giant in the world.
A 75 billion dollar company, Panasonic product range are well harvested. From cameras to supporting
Audio Video technology at Olympics for past 25 years, Panasonic presence is seen in almost every
electronic home and office appliance product categories. In fact, its one of worlds largest TV
manufacturers.
Established in 1918 at Japan, Panasonic has been focusing on making life simpler by addressing key
human needs and working on it, the tagline ideas for life summarizes this.
Known for its quality and efficient products, Panasonic is notable for one more strategy i.e pertaining to its
commitment to environment issues. The company is known for its strong advocacy of conserving
environment for sustainability through its green friendly products and operations.
In 2007 anchor Merged with Panasonic stating the same vision of contributing to soeity through its
business as public entity.




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1.1 Objective of the project
Renewable energy is need of our generation and future as well, for country like India that is deprived of
conventional resources like oil and coal, its foremost important that country makes serious efforts to tap in
renewable resources.
Amidst all the mechanisms of exacting energy from renewable resources like sun, wind, water, solar is
game changer due to number of reasons that arguably is best to tap. This is considering the wide
irradiation and sheer space occupancy of solar products as against wind-based products.
Two kinds of technology are developed from solar, one is thermal, that uses the heating property of sun
and other is light that it emits throughout day. The light based technology is called Photovoltaic
technology.
Since 1975, Panasonic has been working on this PV technology and successfully developed various
modules that can be installed on rooftop or open space, which can convert the light radiated upon them
from sunlight into power.
One such path breaking module that Panasonic developed is EUPD Award winning module HIT. Along
with HIT two more varieties of modules are available which poly crystalline and mono crystalline products
are.
The objective of this project is following:
1. Assesses and analyze the Indian Solar Market.
3. Identify a potential client, Market and Sales pitch and create brand awareness about the product.
4. Finally, understand and analyze the customer feedback before launching this product on a huge scale
across India.
1.2 Scope of the Project
On broader terms, nowthe scope of the project involves the following:
Market Study
- This involves understanding of electric sector with special emphasis on solar industry.
Client Identification
- This is the second stage, which involves identification from existing as well new potential clients.
Sales Pitch
- This stage is the first with potential client it involves giving him a brief product description as well
noting feedback which includes their expectations.






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1.3 Assumptions
I. While in the process of sales rough estimates on panel requirements, savings, investment and
returns based on tariffs and power bill have been made.On the field visit it has been realized that
losses and associated costs have been ignored,Hence, rough assumptions have been estimated.

II. Another Assumption most of customers who were met give rough estimates of power loads and
area available for installation hence, necessary assumptions have been made based on that.
1.4 Limitations
I. Since, Solar panel installation involves significant amount of Investments apart from constraints
like space availability. The decision involved may take some time hence; it is cumbersome for
deal to be made within the time of internship.
II. Since, project involves client identification, hence it difficult to maximize the clients contacts within
the stipulated time.
III. Government policies are a critical factor some states have an incentive scheme for solar other do
not have such plans or mission. Also Speculation of Anti Dumping duties started during summer
hence, some of the clients were concerned on that aspect as well.
IV. Price is major factor of consideration; Panasonic Solar HIT is seen to be at very High price as
compared to its competitors. Hence, its a key factor for consideration since; most of customers
were looking at the price rather than the value delivered.
V. The overall cultural and social outlook and knowledge and attributes associated to renewable
energy are important factors since, many lack initiatives or have preconceived notions about
solar.









9

2 Indian Solar Market

Climate change and the need to manage diminishing fossil fuel reserves are, today, two of the biggest
challenges facing the planet. In order to secure the future for ourselves and generations to follow, it is
widely accepted that we must act now to reduce energy consumption and substantially cut greenhouse
gases, such as carbon dioxide
Renewable energy technologies are clean sources of energy that have a much lower environmental
impact than conventional energy technologies.
India currently relies heavily on coal, oil, and natural gas for its energy. Fossil fuels are non-renewable,
that is, they draw on finite resources that will eventually dwindle, becoming too expensive or too
environmentally damaging to retrieve. In contrast, the many types of renewable energy resources-such as
wind and solar energy-are constantly replenished and will never run out.
India in last few decades Installed Huge wind turbines for energy generation and reaped benefits.The
market of wind power is highly saturated in India and benefits have been exploited by producers Hence,
time has come where the market is seeing shift in paradigm from Incentive driven market to Competitive
force .
Meanwhile, solar market in India isemerging. India needs to do lot more since, the potential of solar in
India is unprecedented the following Image will give an understanding about which such a conclusion can
be driven



10


One can see that the solar irradiation is about 1700Kwh /m2 on average.
2.1 The current state of affairs:

The challenges in the power sector continue. India is facing a power deficit of 9 percent and this is likely
to continue over the next few years. In many states, industries are facing up to 50 percent power cuts.
The gap between the power purchase costs and the power tariffs has severely constrained the finances
of state power utilities with net losses estimated at around INR 88,170 cores in 2012-13.
India faced massive power black-outs in July, 2012 due to overdrawing and grid indiscipline. On the other
hand, solar power costs have reduced rapidly in the last few years. Globally, the solar photovoltaic (PV)
market has grown from around 9.5 GW in 2007 to 69 GW of cumulative installations by 2014.
Accordingly, the solar PV industry has grown from USD 17 Bn in 2007 to USD 93 Bn in revenue by 2011.
The National Solar mission and solar level program tariffs are in fact comparable to industrial and
commercial power consumers.


11


Figure 2-1 National Solar Mission Tariff
According to Earnest and Younge, solar power prices parity could happen at earlier end of this range.
Here, grid parity is a function of solar power prices and rate of decrease in solar power prices.

Figure 2-2 Solar Rooftop PV vs Landed Cost of Power
According to same report, at rate of 4 % the landed cost of power is set to increase in the upcoming
years. The trend is set to accelerate and continues due to increasing imports costs of raw materials and
high investments in network assets in order to improve operational efficiencies
On the other hand , the solar power prices is set to decline at the cost of 5 % per annum due to factors
such as attainment of economies of scale of companies that could lead their way through low cost
manufacturing.





12

2.1.1 Global demand
According Earnest and young, The gap between poly silicon supply and demand is set to widen, that
would further downgrade the prices .There has been huge influx of polysilcon manufacturing companies
leading to decrease in the price of products.

Figure 2-3 PV Supply and Demand
Hence, this overproduction of polysilcon has lead to cut in the incentives in countries like Germany, the
leading solar market.
Meanwhile the solar system prices associated are set to decrease rapidly in the upcoming years, due to
lack of demand and over supply , this is expected to be good news for consumer end since, prices are
bound to fall because companies would be forced to produce at low cost else they will be driven out of
business.


13


Figure 2-4 Solar PV system prices decline

2.1.2 Polices, Regulations and Existing Projects
Jawaharlal Nehru National solar mission and Gujarat solar mission are the key drivers of for utility
capacity additions in India.The total installed capacity in India is set to stand at 1.7 GW.The government
plans to install over 22 GW by 2020.



14


Figure 2-5 Indian Solar Projects

Apart from NSM, states like Gujarat and Keralahave independent policies like 10,000 rooftop installations
of 1kW each. The Gujarat announced a 25 MW rooftop policy, under which projects have been allocated
in five cities. The second NSM has already carried out allocations for 5.5 MW and additional allocation of
11.1MW.
Another major development is the drive for commercial parity throughout India.






15

3 Andhra Pradesh State Policy

The state policy had been released in 2012, according to policy that state has removed all wheeling and
transmission charges, allowed banking and exemption on VAT upon procurement of components within
A.P. Concessions like cross subsidy surcharges and Electrical duty have also been made on products
procured within state.
A.P invited bids for 1000 MW generation, the lowest price was offered by sun borne systems with price
been 6.49 Rs /KWH.Initially the policy stipulated was to allocate project based on lowest bidder at each
interconnection junction.
Latter, the policy was changed to state parity across the state. This sudden change in policy leads to dip
in investor confidence and significantly affected Investment.






















16

4 Market segments and Behavior

Feed in Tariff (FiT)
This segment has provided the viable project development opportunities in the market until now. FiT
based capacity addition in India has been driven by the NSM and various state solar policies. With over
800 MW installed, Gujarat has been the largest contributor of Indias total installed capacity.
A total of 10 Indian states have already announced their respective solar policies. More than 200 project
developers have been allocated projects under preferential FiT in India. Welspun, Azure Power, Mahindra
Solar, Lanco, Green Infra, SaiSudhir and Sun Edison are among others some of the leading project
developers in India Projected market size till 2016 is 4.8 GW.
RPO (REC)
This segment consists of projects that will generate Solar Renewable Energy Certificates (RECs) and sell
them on the power exchange. Such projects are driven by Renewable Purchase Obligations (RPOs) of
states and are thus termed as RPO (REC).
This segment is yet to take off because of a lack of financing for such projects. The biggest hurdle has
been the demand for these certificates at current levels and clarity on revenue beyond 2017. The
countrys first solar RECs were issued on 24th May, 2012 to M&B Switchgear. The total installed capacity
under the REC mechanism as of May 2013 is over 70 MW. Projected market size till 2016 is 1.4 GW.
RPO (SP)
Each state has a yearly RPO. This is guided by the aim to source 3% of the total power through solar by
2022. Instead of allocating projects through a policy, states may set up their own plants to generate solar
power in order to meet this requirement.
BRIDGE TO INDIA terms such projects as RPO Solar Power or RPO (SP). NTPC is working on projects
planned in Uttar Pradesh, Odisha, Madhya Pradesh and Andhra Pradesh. Mahagenco has recently
installed a solar project in Maharashtra with a capacity of 125 MW to meet the states RPO. Projected
market size till 2016 is 460 MW
RPO (thermal captive)
Captive thermal power producers have a solar specific RPO requirement. Requirements for thermal
captive power producers are enforced by the state regulators. Industries like mining, chemicals and
cement have large captive power generation capacities. Vedanta Aluminum, Jindal Stainless, SAIL,
Aditya Birla Group, National Aluminum Company Ltd (NALCO) and Bharat Aluminum Company Ltd.
(BALCO) among others are the largest obligated entities in India. Projected market size till 2016 is 1.0
GW.






17

Commercial captive
Commercial tariffs in some states of India are as high as ` 10 ( 0.15/ $ 0.20)/kWh in certain states. Solar
power has already reached commercial parity in states such as Maharashtra, Kerala and Delhi. As per
BRIDGE TO INDIA analysis, this market is poised to take off from 2014 onwards as Renewable Energy
Service Companies (RESCOs) start selling power with this business model. By 2016, it is expected that
thirteen Indian states would have achieved commercial parity. Projected market size till 2016: 2.3 GW.

Telecom towers
India will have 550,000 telecom towers by 2015. 33% of the currently installed towers are completely off-
grid and 23% of them are situated in regions with less than 14 hours of grid supply on average. Based on
the current costs of diesel generated units of electricity and the Levelized Cost of Energy (LCOE) of solar
PV-generated units, there already exists a significant gap between the costs per unit generated from the
two sources.
This happens to be the case for both off-grid tower sites as well as the grid-interactive sites with poor grid
supply. This has made the telecom tower segment a front-runner among diesel-parity based market
segments for solar PV solutions. Further, the
Department of Telecom (DoT) has brought in Renewable Energy Technology (RET) targets for telecom
towers. Under this obligation, 50% of the telecom sites in the rural areas and 20% telecom sites in urban
areas need to switch to a renewable technology by 2015. Projected market size till 2016 is 1.9 GW.
Diesel captive and diesel backup
Large parts of India are still off the grid or suffer from significant power cuts. Many consumers in such
areas use diesel based captive power generation for activities ranging from agricultural pumps to running
industrial and commercial establishments on completely or partially on diesel based captive power
production. The LCOE for solar power is already lower than diesel and it makes financial sense for these
consumers to adopt solar power. Projected market size for replacement/ augmentation of diesel captive
till 2016 is 217 MW (over and above the telecom tower segment).











18

5 Solar Technology
5.1 Introduction to Solar Power and Products
The sun provides the Earth with two major forms of energy: heat and light. There are some solar powered
systems that utilize heat energy while others transform the light energy into electricity.


Figure 5-1 Principle of Solar Power Generation

The photovoltaic effect is the creation of voltage or electric current in a material upon exposure to light.
The Photovoltaic effect, Is nothing but the process in which two dissimilar materials in close contact
produce an electrical voltage when struck by light or other radiant energy. Light striking crystals such
as silicon or germanium, in which electrons are usually not free to move from atom to atom within the
crystal, provides the energy needed to free some electrons from their bound condition.
Free electrons cross the junction between two dissimilar crystals more easily in one direction than in the
other, giving one side of the junction a negative charge and, therefore, a negative voltage with respect to
the other side, just as one electrode of a battery has a negative voltage with respect to the other. The
photovoltaic effect can continue to provide voltage and current as long as light continues to fall on the two
materials
Hence, the solar Pv technology uses Light rather Heat for the entire operation ,taking advantage of solar
Photovoltaic.


19

5.1.1 Solar Cell:
A solar cell is an electronic device which directly converts sunlight into electricity. Light shining on the
solar cell produces both a current and a voltage to generate electric power. This process requires firstly, a
material in which the absorption of light raises an electron to a higher energy state, and secondly, the
movement of this higher energy electron from the solar cell into an external circuit. The electron then
dissipates its energy in the external circuit and returns to the solar cell. A variety of materials and
processes can potentially satisfy the requirements for photovoltaic energy conversion, but in practice
nearly all photovoltaic energy conversion uses semiconductor materials in the form of a p-n junction.
5.1.2 Solar Module
A PV module consists of a number of interconnected solar cells (typically 36 connected in series)
encapsulated into a single, long-lasting, stable unit. The key purpose of encapsulating a set of electrically
connected solar cells is to protect them and their interconnecting wires from the typically harsh
environment in which they are used.
5.1.3 Solar Array
An Array is made of 8 panels, consisting of 3 modules each totally for a 24 modules per array. If the PV
modules have more than one grouping of PV Modules, then we call it a sub array and the total of all the
sub-arrays is called a PV Array.



20


Figure 5-2 Solar Array

5.2 Types of Modules:
Basically there are three types of modules:
1. Solar Mono crystalline
2. Solar Poly Crystalline
3. Solar Thin Film
For direct conversion of light to electricity photovoltaic (PV) technology is used. This uses layers of silicon
to convert energy from the sun directly into electricity. There are three main ways this silicon layer can be
produced, resulting in three types of PV modules
The cells in a monocrystalline module are made from a single silicon crystal. This crystal is cut into wafers
roughly 0.2mm thick before the wafers are chemically treated and electrical contacts added. The fact that
they are cut from a single crystal means that they are highly efficient, with modules in production
converting up to 15% of the energy from the sun into electricity, and test models over 20 %


21


Figure 5-3 Mono Crystalline
Polycrystalline (also known as multcrystalline) modules are made from cells containing lots of small
silicon crystals. This makes them cheaper to produce but also slightly less efficient than monocrystalline
modules. The many small crystals give polycrystalline modules a frosted look.

Figure 5-4 Poly crystalline




22

While the 0.2mm wafers in crystalline cells are already incredibly thin, the layers making up thin-film
modules are about 40 times thinner than a strand of human hair, at just 2 microns (a micron is one-
millionth of a meter). The layers can be deposited on glass forming a panel similar to crystalline modules,
but many other materials can also be used and even flexible panels can be made. Although the efficiency
of thin-film panels is only about 10%, they use less material and are cheaper than crystalline modules.
Generally speaking, monocrystalline modules are the most expensive but most efficient, thin film is the
cheapest but least efficient and polycrystalline is in between.

Figure 5-5 Thin Film Module















23

6 Product Information

Anchor Panasonic is launching two modules in India, the first being HIT module i.e. Heterojunction with
Intrinsic Thin Layer (HIT) andPoly crystalline module.
The HIT is a thin film module and manufactured in malaysia and is imported to India .The HIT has
following features
1) Water Drainage system :
A separate path is laid so that Rain water is drained off the module surface, this avoid not only
water accumulation but also avoid water stains.
Even Low angle installations water drainage corners keeps the module clean.

2) Power on Both sides :
HIT generate solar electricity simultaneously on the front and back side.
This additional amount of light is combined with light taken by front side of module.


3) Quality
Panasonic has been in solar division since 1975 through its subsidy ,sanyo electrical . Their claim
rate is only 0.0036% .

4) Emission free and compact


5) High Performance at High temperatures
Most modules performance degrades after temperature increases, Panasonic modules have
distinctive quality of extremely low level of degradation of -0.29 % at very High temperature.



24

Table 6-1 Panasonic Modules (Sanyo) Temp coefficient vs others

6) PID free Potentially Induced Degradation
Its free of corrosion and damage induced from moist or sultry environment.




25









26

6.1 Solar Cell Efficiency:
The solar efficiency is calculated by dividing a cell's power output (in watts) at its maximum power point
(Pm) by the input light (E, in W/m2) and the surface area of the solar cell (Ac in m2).
i.e


From the data sheet of HIT module The Pmax is 240 watts ,E=1000 watts/m^2 the Surface area Ac is
found to be 1.265 m2
So the Efficiency is found to be 19.2 %. This is nothing but in space of 1. 265 it is able to produce 240
watts.
Table 6-2 HIT VS STANDARD INDUSTRY MODULE EFFICIENCY

From the table, one can see that the conversion efficiency is higher than best in industry,this proves its
path breaking innovation.
As far as cost is concerned, The HIT module is priced at 1.2 $ /watt .
Characteristics as mentioned earlier, Delivers high output in less space.



27

Note the fact that there types of modules under HIT category, each having nameplate wattages as
245, 240 and 235 watts respectively.
The Short circuit current is around 5.86,5.85 and 5.84 respectively with Open circuit voltage being
53.0,52.4,51.8 volts.
Note that these are measured at temperatures of 25c and irradiance ( sun light ) being 1000/m2
As The irradiance decreases the output decreases as shown in graph.
Hence, Two key factors that determines the productivity of HIT module is good irradiance (1000/m2)
,moderate temperature (25c)
The guaranteed power or warranty is up to 25 years with 10 years guaranteed power of at least 90% of
Pmin and 80% of Pminupto 25 years.
The HIT module has certifications from:
1) JET-Japan electricity safety and environmental technological laboratories -
The objectives of this scheme are to ascertain the reliability and the safety of Photovoltaic (PV)
modules and to promote wide application and usage of PV systems in the field and thus to serve
to end users.

2) MCS APPROVED-Micro generation Certification Scheme (MCS) is an internationally recognized
quality assurance scheme, supported by the Department of Energy and Climate Chang

3) ROHS COMPLIANT- RESTRICTION OF HAZARDOUS SUBSTANCES
RoHS compliance means acting in full accordance with RoHS regulation.
Apart from this there are other major certifications, but what is lacking is MNRE, India i.e ministry of
renewable energy certification, which is hindering to compete with local firms that are Possessing it .











28

6.2 System Requirements



GRID CONNECTED PV SYSTEM WITH BATTERY BANK

Solar Panels here are placed at roof tops or either laid on open space as in case of power plant. As
mentioned earlier Panasonic is supplying two modules HIT and Poly.
If one installs an off-grid onewillbe provided in option of placing a battery to store electricity rather than
the connection to the grid. When this is in place, if the production ismore than one can charge the battery
provided.
A charge controller limits the rate at which electric current is added to or drawn from electric batteries. It
prevents overcharging and may prevent against overvoltage, which can reduce battery performance or
lifespan, and may pose a safety risk.
It may also prevent completely draining ("deep discharging") a battery, or perform controlled discharges,
depending on the battery technology, to protect battery life.
The inverter is roughly the same size as a microwave, and converts the DC electricity into alternating
current (AC), the same form used in your house to run your appliances. The inverter also makes sure that
the PV modules perform at their best and generate as much electricity as they can.
The system is then connected to an export meter, which monitors how much electricity you are
producing and sending back to the grid.
The Fuse box is supplied with Grid power that is 220 volts at 50 Amperes and Solar power and whenever
there is absence of solar, the load is supplied with grid. When solar is available grid need not be used and
solar is directly supplied.



29

6.3 Savings and Benefits of Installation
6.3.1 Practical Calculated savings using Power bill
Before proceeding to clients, we have done an experiment on calculating the estimated savings on in
stallion:
Our power bill is around 523 Units .So if we convert into watts its 523000 or 523 K watts.
Our terrace area is 120 sq meters .If we eliminate shadows then we obtain the area to be around 80 sq
meters.
Each module can occupy around 1.265 sq meters, so in area of 80, 63 modules can be easily fitted.
63 modules generate 151 .1Kw per Hour. So for 1 month its about, 5430 Watts.
This way too much then what is required ,had there been a state policy of selling to government as in
case of Gujarat or Tamil nadu ,I would have profited but AP lacks such pragmatic policy.
So upon skilling down on requirements , if estimate that 10 modules are required with sunlight being only
for 8 hours or losses are accounted in cable wires ,In worst case scenario the per day output is 19.2 KW.
This is considering 240 watts generated by 10 modules yield 2400 watts.
19.2KW in a day yields 576 modules. Again this is way too much then my requirement.
If estimate 8 modules are sufficient, then based on above conditions of losses or lack of sunlight, I can
derive that 460 Watts are produced and rest 63 Watts are derived from gride.
Current bill is 3138 rs for 523 Units, so 460 Watts is worth 2760 Rs, which is savings. This attributed to
charge of 6 rs per unit.
Now, on averageWecan save 33120 Rs.
The cost of In stallion of solar is about 1,60000 .So at the rate of 33120 Rs ,we can recover Investment
within 5 years of In stallion and Enjoy the benefit of free power for 20 years.
This is the sales pitch that we have been utilizing.
6.3.2 Benefit Tax savings
The government provides are provision of accounting 80 % accelerated depreciation on solar projects.
Its explained as shown below:
Depreciation is 20 % on plant and machinery for any business.
In the case of solar power generation, in order to incentivize the entrepreneurs to enter into the solar
power generation market, the Government of India has allowed claiming 80% depreciation in year one of
the commissioning of the solar power generation plant.
If we assume that the total project cost is Rs7crores.
If a solar power generation plant costs Rs7crores, the company setting up that plant can claim 80
% depreciation in the first year itself.


30

Depreciation of 80 % is allowed on plant and machinery of the solar power plant.
Deducting Rs20 lakhs (approximately) from the project cost for land costs, which are eligible for only 10 %
depreciation, we get Rs6.80crores.
80 % of this is Rs5.44crores. This can be depreciated in a new solar power generating plant in year one
itself. This is why they call it Accelerated Depreciation (depreciating 80% in one year instead of 20%).
33.99% of Rs5.44cr is about Rs1.85 cr.
So, in a solar power generation plant of Rs7crores, Rs1.85cr is the tax saving that the company gets
using Accelerated Depreciation.
AD benefit in year one is Rs1.85 cr.
So, the actual project cost of solar power plant for an AD client is Rs5.15cr
In fact the Accelerated Depreciation or AD client will be able to depreciate 80% of the written down value
of the project, next year. Thus the saving in taxes will be nearly Rs2.1crores.
In a 1MW solar power generation, the AD as shown below:
Project cost (capital cost) to be Rs800 Lakhs (Rs8 Cr)
The depreciation amount to be 90% (assuming 10 % scrap value)
Book depreciation (on fixed assets) to be 5.28 % (Dep. As per companies act)
Tax depreciation rate to be 80% (under AD benefit)
Effective tax rate (as per government) to be 33.99%







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Another example is if the net sales of a company IsifnetSalesis 5000 crore
Others and Machinery 4000
Income 500 crore
EBITDA 1500 crore
If there Debt amount is 750 crore then Profit before tax 750Crore.
In case a solar project of 400 crore is installed, then considering 80 % of Deprication on 400 crores, 320
crores are deduced.
So 750 crore-350 crore is 430 crore.
Hence, a company needs to pay tax on 430 crore instead of on 750 crores.





















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PART II
PROJECT EXECUTION AND STRATEGY




















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7 AEPL Targeted Strategic Market Segments

Andhra Pradesh has been relying under sever power crisis since past few years, the industry has a
requirement for alternative sources of energy but the state policy for adoption is not seems to be
encouraging for driving massive installation.
For instance, the state policy that has been newly drafted doesnt address issue like rooftop solar
installation at individual homes and doesnt have attractive incentives that other states like Gujarat and
Tamil Nadu possess.
On the other hand there have been frequent power cuts in the State and the dependence on diesel
backed generators is shooting up which is increasing the costs for the industry .
In order to tap such market we have decided to segment the market broadly in three sectors.
AEPL had three targeted strategic market segments:
Industrial
Commercial
Residential
Industrial
Industrial is the sector that is concerned with manufacturing of goods and services. Hyderabad has been
an economic hub for value creation since a decade, the state has witnessed massive investments in IT
service sectors in recent past.
Though, primarily this sector must have been the one that could be encased the most but most
companies are located in leased buildings that have been risen up in knowledge parks and SEZs. Hence,
the scope of in stallion decreases due to the ownership is not with company.
Notheless, there have been few companies like TCS that possess their own buildings but have already
installed solar pv. Few other companies that we visited like Intergraph though possesses own buildings
are located within cities and have the roof occupied by Telecom Towers.
There have also been companies like Wipro which have certified as green buildings,so a few of the IT
companies such as this can be considered as potential target in future.
On the whole IT has not been very encouraging sector to target, barring few most companies do not have
space, knowledge or drive to install.
As far as manufacturing sector is concerned, the city is dotted with small scale manufacturing facilities in
places like habsiguda where there is concentration of SME. However what we have seen most
manufacturing units have little to No knowledge in this sector.
Some like OM industries have shown a certain degree of interest and one of the companies is planning to
install but the cost advantage of Chinese PVs are seen as more encouraging. One interesting feedback
that we received from one of the SME is the famous Ramoji film city have installed solar pv and did not
have pleasant experience with it .The same project was again cited by Snow world, an amusement park
,both the parties raised concerned but this shows there has been a certain idea which needs to be
countered .


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There have planned visits to few pharmacy companies who again possess various degrees of knowledge
on solar PVs but there havent been any encouraging news enough.
We also had visited few solar Power project developers like PVK solar, JONAKI solar, both claim pricing
as major concern. The effect of dumping duties on Malaysia based panels were also raised by them.
Commercial
In the commercial segment, we chose to target Malls, Hotels, Hospitals, Amusement parks and Resorts.
This segment has fair knowledge of solar but there are certain challenges as far solar Pv installation are
concerned. Some Hotels and Hospitals claim they use the entire Roof as a store room facility hence, they
lack space. Others like ITC ,Snow world and HITAM college claim it takes time to make concrete
decisions.
Few other claim that they already purchase power from third party vendor website that supply energy
based on slots of reservation ,hence when demand peaks they would buy power rather than install solar
PVs. Instability of government is also major concern which some have expressed.
Finally, Panasonic Brand was of very high resonance in almost all establishments.
Residential
The residential segment included the upper middle class to upper class strata of the society who had their
own houses and could be educated for Solar panels and its benefits.
While we did not resort of door to door sales but we did try to pitch in at Architecture firms, whom we
found are very encouraging. Though here price is a concern among them but few others wanted orders
within next few months few others had concerns related to mounting solar in roofs with tiles, or on slanted
roofs etc..
One residential customer sounded very interesting to mount it at his home, the brand PANASONIC had
great resonance among such customers though the investment is less among such customers but those
who have installed solar water heaters trust performance of solar PV far then those who did not.
What we found a common behavior among all segments :
Price: This a major concern since most of the products available in the market are one half of
price that anchor is pitching in. Only two competitors like Mitsubishi and Tata solar are competing
against Panasonic at this range.
Buying energy from a third party: This is very common across the two market segments. They
would buy power from a third party which would cost them less.
Trading energy of exchange board: This was yet another aspect that came up where the
clients would trade for energy form the government for 15 minutes slot and it could easily reduce
their bills by 17-20%.
Roof used as storage: In most of the companies the Roof is increasingly being used as storages
for dumping all the materials. Moreover, most of the roofs are already filled with telecom towers,
water heaters etc..
Peanuts to their actual bill: The clients feel that with the amount of space available, the
electricity that would be produced would be peanuts to their actual consumption and they would
rather pay for it than go for investments.


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Leased Spaces: Some companies are based on leased spaces hence, its difficult to tap them .
No stable Government: Since the state was getting bifurcated during that point the tourism and
Hyderabad Real estate market had decline, Hotels are reluctant to invest due to low occupancy of
business customers, the state policy drafted in 2012 also seems not help much .
Live Demo: Before investing in solar panels, clients expect to go and have a look where it is
already installed.
8 AEPL concept selling and product positioning

For Adoption of any product with massive investments the customer needs to have deeper insight of
product and hence, the conventional selling should be backed with enlightening the customer.
AEPL core belief lies in that solar panel that its offerings are just not Solar Pv. But high Performing HIT
Module that results in savings in electrical consumption.
The entire concept wove around invoking the lack of power supply in region and positioning itself as a
solution to power crisis that could cut the over reliance of power supply by government or diesel backed
generators.
The concept also conveyed the message that sun lights energy can be harnessed and can result in
savings as far bill is concerned. Thus, non adoption of solar is foolish strategy when abundant resource is
available right on their roof.
There are myths in the market regarding this concept that needed to be removed. It was to make people
realize that it was a brilliant source of energy that could complement their existing system.
AEPL hired thirteen interns and launched this project in six different cities that receives enough irradiation
form the sun. It involved directly meeting the clients and creating awareness about the brilliant technology
that Panasonic planned to enter the market with.
The need of the client and the area available was taken and a proposal was given to the clients. They
were also sensitized with the units that would be generated and the electricity bills they would be saving.
Also, the ROI was calculated and presented. The product quality, new technology and a perception of a
green building organization were used for the concept selling.
The HIT module is positioned as a premium quality and highly efficient product coming from a very old
brand that is already trusted in India. They have also emphasized on the long term benefits that the
product brings along.







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9 Marketing efforts & Business Lead Generation

Initially before entering the market we had drafted a methodology. We split the entire process into two
stages, described as follows:
First stage Secondary research on Indian Solar Market specific to Hyderabad.
Second stage :
1. Criteria of selection /Guild lines
2. Identification of Industries
3. Scrutinizing companies based on balance sheet and Green track record
4. Making first contact via telephone for appointment with facility manager/ Maintenance manager.
6. On the day of appointment, inputs such as client requirements for further study or analysis.
7. Sales pitch
8. Feedback
9. Tracking client for further course of action
After analysis, the execution methodology was as follows :
Week 1 : Market Research
Week 2 and 3 : Dealers ,Distributors and Retailers
Week 3 : 5 star and 4 star Hotels ,Malls,
Week 4 : Architecture Firms and residential customers
Week 5 : Green buildings
Week 6 : Industries , Manufacturing
Week 7 : Pharmacy and IT companies
Week 8 : Solar Power Generation companies
We have worked upon the execution based on frequent changes, feedbacks and leads. Now most of
leads were from Internet.
We started searching for dealers/distributors on yellow pages and just dial .Similarly hotels and malls
were contacted and appointments with utility manager were fixed, some of leads were generated in this
sector by directly meeting without prior appointment.
In week 4 westarted searching for Green architecture firms and based on efforts pertaining to that leads
were generated.


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Database on green buildings were found on websites like LEED INDIA website.
The Manufacturing industry information was more or less based on direct visit without prior appointments.
As far as Pharma and IT companies were concerned, some leads were given by AEPL but others like
TCS were generated by direct appointments.
The solar power generation company leads were specifically accessed from LinkedIn.
The company followed a blend of different traditional marketing techniques.
Brochures
There were brochures of the product which could be given to clients. They could have a look at the
product and its features, keep it in case of future requirements and also clear their doubts about the
product.
Direct Marketing
This is a wide term which refers to the technique where organizations communicate directly with the
consumer. It directly reaches out to the consumers and helps them know about the product better.
B2B Marketing
This involves selling it directly to an organization to augment their business or reduce their internal
operation costs.
Optimistic Marketing
This involved emphasizing on the power cut, reducing coal supply for the same and also, using Diesel
generators for power consumptions along with the cost associated with it. Thus, creating a sense of
buying the product both for oneself and for the benefit of the environment. It gave a feel good factor for
reduced electricity bills.











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10 Client Expectations and Survey Details

The client expectations are segregated as follows:
1.Retailers, Distributors and Dealers:
Most of the Dealers were happy with the product but almost all baring couple of them expressed concern
over price, some wanted to know the order quantities lead time for supply and operation aid provided at
Hyderabad end.
Amongst all the following dealers are ones that have shown high interest in being dealer.
1. Vortex Solar: Based in Australia, currently handling Distribution of REC
2. PTL Solar: Dubai based company that is handling MITUSHBISHI solar.
3. Sunsai: Handling Chinese PV but wants to switch to AEPL completely.
2.Hotels, Malls and Amusement Parks:
The Hotels were one of the prime targets of our strategy to introduce in Hyderabad. This is based on
deduction that most hotels have the capital and ownership of the land along with open spaces for in
stallion.
But Hotels turned out to be quite a difficult crack because of following factors :
1. Most Hotels are using the terrace space as store room.
2. Many like The Park, khairtabad, are purchasing power through websites like INDIAN ENERGY
EXCHANGE .Com
3. Competition from Companies like Titan Solar which was installed in couple of hotels like Manohar is
another challenge since, there are competing on price.
Green Park Hotel, Ameerpet is another potential client that is really interested in taking up project .
Apart from these there is a prolonged delay in decision making hence, its difficult for prospects to be
converted soon.
As far as Malls are concerned, GVK, Banjarais interested but it needs site assessment by Anchor
Technians prior to talks.
In Amusement Park category, Snow World, Lower tank Bund has shown visible interest but management
is taking time considering the proposal.
Cracking Snow world can really make difference because the management is interested in installing in its
other big amusement park Ocean Parkas well.
Snow world contact also added that management would be eager to see installed project preferably at
Hyderabad.


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But Management was busy in taking to proceed forward due to Summer being peak season and there
seems to be a delay in decision process due to reason best known to them .
4. Architecture Firms and Real Estate:
In our Client analysis, this sector delivered reactions that were very surprising.
Architecture firms like Fountainhead FHD Groupare interested in mounting solar panels on rooftop of
their villas they are being built in outskirts of city at place called chilkur, Hyderabad but they were
interested in Panasonic poly considering price and they wanted supply in a few weeks from meeting.
Another Architecture firm Srishti designs has shown interest along with SatyavaniProjectsboth wanted
panels in near future.
Among household consumers, the proprietor of DIANA Packaging has shown very high Interest for
installing at his home and had no issues regarding price.
We have done a rough estimate based on consumption units and found it that he may require 5 panels
and investment would cost upto 1 lakh .
Overall this sector is the by far most unexpected and positive sector among all that we contacted.
5. Green Buildings
HITAM college, Hyderabad is LEED certified Green Building campus that has shown potential interest in
in stallion of solar panels at rooftop.
HITAM shown visible interest but communication from the management regarding solar is awaited yet.

6. Industries and Manufacturing
None of the industries that we visited were interested in mounting solar panels at rooftop, The factory
units lack of interest and initiative.
One manufacturing company OM industries a SME has shown sparks of interest but were interested in
visiting installed project in past.
They also had myths like an installed project at Ramoji Film city turned to be a disaster, the same of
which was echoed by Snow world.

7. Pharma and IT companies:
None of the Pharma companies like Dr Reddys and IT companies like TCS, Wipro were interested in
installing solar projects for the reasons best know to them.
8. Solar Power Generation Companies:
Solar Power generation companies like PVK projects, Jonaki solar and UKM power showed visible
signs of interest but price is key consideration.


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11 Conclusive entry strategy for AEPL to position as a Strong Player

Before describing the potential entry strategy we can have look at SWOT and Porters Five forces for
Clear understanding of scenario:
SWOT






STRENGTHS
Strong Brand
Name.
Huge Presence In
India
HIT
Efficiency,quality
and Guarantee
WEAKNESS
Niche Market
because of
Premium Pricing.
Lead time for
delivery
Lack of solar sales
and operations
units in
Hyderabad
OPPORTUNITY
Huge demand for
Power.
Untapped Market
AEPL can develop
solar power
plants
THREATS
Government
fickle polices.
Market lacks
awareness and
rigidity towards
adoption.
Space or land
constraints
Competition


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Porters five force model

From the above the analysis, it is clear that despite goodwill of company image but the AEPL is not able
to leverage it in order to drive its product.
Now for any strategy to succeed it has to bank on three strategies:
1. Cost
2. Differentiation.
3. Focus.
Panasonics HIT is surely a different from rest of the modules, the fact that its efficiency is far better than
the industry vindicates the stand.


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But in order to drive in a price sensitive market like India, Panasonic has to focus on the strategy of cost
as well as focus aspect.

A dealer (ptl solar) had gave an interesting insight where he mentioned that Mitsubishi mono and Tata
solar poly are priced at similar range and had no qualms in accepting Panasonic at 1.2 dollar per watt. He
also displayed the condition of a competitor product that was affected severely by Hyderabads
temperature.
Similarly, the same has been echoed by another dealer and a residence owner who was convinced at the
potential of the product and had no issues pertaining to price.
This indicates that Panasonic need not necessary lower its price to enter into the price war waged by
Indian manufactures and Chinese companies as despite positioning at low cost still there shall be another
company that will further lower its cost. Hence, long term sustainability by lowering price is questionable.
Now, there two basic strategies that AEPL can adopt :
1. Lower the price and compete on volume.
2. Leverage Brand and position product clearly.
To address such a decision we have drafted a strategy that clearly outlines the options , that Panasonic
can pursue :







Power Generating firms Rooftop In stallion
Infrastructure Projects Dealership
Green Buildings
Low cost :
Power Plants: Government backed projects for development of solar projects is a good option .But the
sector faces heavy competition as well as risks in terms of fickle policy regulations.
Alternatively Panasonic can develop its own power plants in the outskirts of city, generate power and sell
them via contract or through websites like Indian energy exchange .com
NO
Low cost
Yes


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Infrastructure Projects:
Most of the existing Infra Projects like Hotels, Malls, resorts, housing societies are potential targets where
lowering price and leverage brand perception can give higher returns .This is a major sector to drive
sales, since the order purchases are always in huge number. The main issue in this sector is competitor
pricing.
In both states of Telangana and Andhra Pradesh new projects are being laid out with industries,
educational institutes,malls, hotelsare going to be in constructed massive way. This a great opportunity
for AEPL to venture in, sales efforts are smoothened if it can sales pitch to project builders much before
construction of projects, so that its inclusion is already part of building design and no additional costs are
borne post construction .
Premium Pricing:
In order to drive sales yet retain the premium price, Panasonic has to indulge in massive marketing
Rooftop In stallion:Fromour observation, Household consumers can be nudged to pay premium price
provided their made to understand the benefit of it .
Panasonic is Suggested to take marketing campaigns on print ,radio ,tv and digital media as well as by
participating in solar exhibitions to convey the importance and value delivered of its product .
It should Position itself as House hold power solution provider with strong ROI in few years after
investment.
It may also place products in local electrical retail unit which already have a tie up with Anchor. Local
Anchor offices across India should have one team that is exclusively dedicated to solar.
Specifically Panasonic must initially target states like Kerala,Tamilnadu and Gujrat ,that have strong
policies and consumer incentives for adoption and in stallion of rootop solar.
Demand will also be spiked up by Architecture firms that were very interested from our observation of
sample of this sector .
Dealership:
Since, Anchor Panasonic HIT is new player in Indian Market, Its suggested that It may identify potential
dealer and sell the products through dealer rather than itself.
The advantage of dealership is Panasonic can tap in contacts of dealers and concern only about
manufacturing and supply chain logistics.
Dealer market is highly demand driven, its observed that if AEPL can convey its message to its
household consumers through its advertising efforts then Dealers can drive sales based on demand
created.
Although most dealers were reluctant to accept AEPLs Price points, the fact that three dealers were
interested with one wanting for all India dealership itself shows the fact that price need not be
compromised to large extent.
Green Buildings:


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The rise of green architecture and LEED certified Green buildings can be of good news to AEPL , since
they may be prospects for AEPLs HIT.
Green Buildings have strong emphasis on emission targets and hence, if AEPL can position itself ultimate
green energy solution provider, then it may gain wider acceptance among existing Green buildings.


Conclusive strategy:
AEPL should focus on Real estate and Household sector by promoting HIT on mass and Traditional
media in order to develop the solar market first.
By clearing positioning itself as energy saver with very high ROI, it can penetrate in Indian market in
significant way.
To facilitate smoother delivery of products and to tap big companies as customer, it has no choice then to
formant relationship with major dealers.
Hence, this we believe would be appropriate strategy for AEPL to consider.
12 Uniqueness

ABOUT THE PROJECT
We were more of an employee than an intern. The independence that we had to take on spot
decisions and deal with the client made the project unique.
We were not made to do the traditional market research and just get the surveys filled.
A real time and enriching working experience was provided.
ABOUT OURSELVES
It took lot of effort for us to identify potential targets, hence our uniqueness was to identify clients in
diversified sectors.
Right from Dealers to Power Generating companies through hotels and healthcare, we touched upon
every possible sector and gained information that we think is valuable.







45

13 Bibliography

www.bridgetoindia.com
www.mnre.gov.in
www.igbc.in
www.kpmg.com
www.panasonic.net
www.anchor-world.com
Indian Energy Exchange.net