Prestige Institute of Management Gwalior

Strategic Marketing
Assignment On Marketing Strategies

Torrent Power Ltd.

Submitted to: Prof. Shailja Bhakar

Submitted By: Princy Agrawal Class: MBA 4th Sem. Section: B Roll. No.: 35

Introduction to the Company

Torrent Power Limited is an India-based company engaged in the electricity generation, transmission and distribution. Its current operations are in the states of Gujarat and Maharashtra. It is expanding into Uttar Pradesh starting 15 August 2009. The company is the sole distributor of electricity to consumers in the cities of Ahmedabad, Gandhinagar and Surat. Torrent Private Limited is the apex company of the Rs. 82 billion Torrent Group. Synergizing the group activities, it spearheads the groups investments in different investee companies, which are managed by their respective Board of Directors and professional CEOs. Besides monitoring and managing the groups investments, Torrent Private Limited is also involved in promoting the corporate image of Torrent and provides specialized services to the group. The company acts as a catalyst and developer of new ventures by providing strategic, financial, corporate and managerial inputs to enhance the groups predominant position in healthcare and power. The latest initiative in this direction is the 1147.5 MW mega power plants near Surat.

Torrent Power is one of the leading brands in the Indian power sector, promoted by the Rs. 11452 crore Torrent Group a group committed to its mission of transforming life by serving two of the most critical needs - healthcare and power. Torrent Pharmaceuticals Ltd., the flagship company of the Torrent Group, is a major player in the Indian pharmaceuticals industry with a vision of becoming a global entity in the arena. With an all-round experience in generation, transmission and distribution of power, and a proven track record of implementing large power projects, Torrent Power is the most experienced private sector player in Gujarat. Torrent Power foresaw the prospects in the power sector much before the liberalization, when it took-over an ailing power cable company in 1989 (now known as Torrent Cables Limited) and successfully turned it around.

The high points of Torrents foray into power however were the acquisitions of two of the Indias oldest utilities The Surat Electricity Company Ltd and The Ahmedabad Electricity Company Ltd. Torrent turned them into first rate power utilities comparable with the best, in terms of operational efficiencies and reliability of power supply. Torrent has a generation capacity of 1647.5 MW and distributes power to more than 3 million customers annually in Ahmedabad, Gandhinagar, Surat, Bhiwandi and Agra. The company is currently implementing a 1200 MW gas based power project at Dahej in South Gujarat. The project, called the DGEN Power Project, is being implemented in a phased manner starting with a 400 MW first phase. It is also in the process of expanding the capacity of its SUGEN plant near Surat. Distribution Franchise business is one area which Torrent Power has been aggressively pursuing as part of its expansion plans. Torrent Power created history by entering into the countrys first distribution franchisee agreement with Maharashtra State Electricity Distribution Company Limited for Bhiwandi Circle in December 2006. It has also been awarded the distribution franchise for Agra and Kanpur in Uttar Pradesh and has already commenced distribution operations in Agra.

History
In 1997, the company received clearance from the Foreign Investment Promotion Board to issue preferential shares to US based MNC Investment Corporation for Rs. 400 Crore to help fund its acquisition of the Ahemdabad Electricity Company by purchasing the entire 28.89% stake held by the Gujarat government. This acquisition formed what was then known as Torrent Power AEC Limited. Similarly, after acquiring the Surat Electricity Company in the same deal, Torrent Power SEC Limited was formed. In 2005, the parent company, Torrent Group floated the company Torrent Power Generation to further expand into the power business. In 2006, the three power-related companies of Torrent Group, Torrent Power AEC Ltd, Torrent Power SEC Ltd, and Torrent Power Generation Ltd were merged to form Torrent Power. In 2007, Torrent Power signed a deal with the Gujarat Power Corporation for setting up a 1000MW coal-based power plant in Gujarat which is to be operational by 2012.

More recently, in 2009, Torrent Power inked a deal with Uttar Pradesh Power Corporation Limited to franchisee to supply power to parts of Kanpur and Agra then handled by The Kanpur Electricity Supply Company Ltd. (KESCo) and the Agra Circle

of Dakshinanchal Vidyut Vitran Nigam Limited (DVVNL) for 20 years. The handover has been marred by bad frequent power-cuts by the currently operating electricity boards and threats of state wide strikes by power engineers.

Marketing Strategies of Torrent Power Limited