XTRAS: AGEL, the world’s largest solar power developer and the renewable energy giant has received approval for being a member of the prestigious GRI South Asia Charter on Sustainability Imperatives and its sole member from India.
SWOT Analysis
Strengths
• Track record of innovation - Even though most players in the Utilities strive to innovate, Adani Green Energy has successful record at consumer driven innovation.
• Wide geographic presence - Adani Green Energy has extensive dealer network and associates’ network that not only help in delivering efficient services to the customers but also help in managing competitive challenges in Electric Utilities industry.
Weakness
• High turnover of employees at the lower levels is also a concern for the Adani Green Energy. It can lead to higher salaries to maintain the talent within the firm.
• Niche markets and local monopolies that companies such as Adani Green Energy able to exploit are fast disappearing. The customer network that Adani Green Energy has promoted is proving less and less effective.
Oppurtunities
• Increasing customer base in lower segments - As customers have to migrate from unorganized operators in the Utilities industry to licensed players. It will provide
• Adani Green Energy an opportunity to penetrate entry level market with a no-frill offering. Lowering of the cost of new product launches through third party retail partners and dedicated social network. Adani Green Energy can use the emerging trend to start small before scaling up after initial success of a new product.
Threats
• Commoditization of the product segment - The biggest challenge for Adani Green Energy and other players in the industry is the increasing commoditization of the products in Utilities industry.
• Shortage of skilled human resources - Given the high turnover of employees and increasing dependence on innovative solution, company name can face skilled human resources challenges in the near future.
FUTURE PROSPECT
• Renewable energy is the next big thing. And the government has outlined some massive ambitions for the country. They’ve planned to install 175 gigawatts (GWs) of renewable capacity, including 100 GW of solar capacity by the year 2022.
• To put that into perspective — India’s total installed renewable capacity as of Mar 2020 is only half this number and solar contributes a meagre 37 GW. That means we need another 63 GW in 2 years to achieve our intended target.
• Adani enters into binding contracts with central and state-owned DISCOMs over a 25-year tenure, there is a fair amount of visibility in terms of revenues as well.
❮
❯
