1. ZEITGEIST Indian Institute of Management Indore Presented By: Shyam Naren J Sriram S Jatish V C Presented at Ranniti, GLIM

2. Proposal to enter the rural off-grid solar lighting systems market Objective Scope Opportunities in Indian markets Methodology Market Scoping Impact analysis Triple Bottom Line

3. Market Scoping Source :Various Sources Around 22 % of the world’s population lacks access to electricity ~ 23 % of this is from India, spread across 95,500 villages Fuel Based solutions account for 20% of all lighting costs, yet only produce 0.1% of all lighting. Existing solutions impose a huge cost on the environment (For e.g. Lanterns emit 190 million tonnes of CO 2 /year, ) 78% 22%

5. Solar energy industry has high Globalization Potential Source : Various Sources Cost Drivers Customer Drivers Competitive Drivers Government Drivers Over the last 9 years, price per Watt peak has fallen at a compounded annual rate of 16.3 % Large underserved market, Low levels of customization, facilitates transferable marketing with little local adaptation. Relatively low, although PV manufacturers are expanding E.g. BP solar in India High levels of interest shown by governments in the form of Legislations, norms and subsidies worldwide.

10. Profit of ALS stands at 241.91 million dollars in March 2010 Profit Loss Statement – Current Scenario Income In Million Dollars Mar '09 Mar '10 12 Months 12 Months Sales Turnover 1233.25 1381.24 Net Sales 1233.25 1381.24 Other Income 77.31 86.59 Total Income 1310.56 1467.83 Expenditure In Million Dollars Mar '09 Mar '10 12 Months 12 Months Employee Cost 743.74 751.18 Other Manufacturing Expenses 73.58 89.77 Selling and Admin Expenses 128.53 129.82 Miscellaneous Expenses 53.75 50.16 Total Expenses 999.60 1020.92 Profit/Loss In Million Dollars Mar '09 Mar '10 12 Months 12 Months PBDIT 310.96 360.32 Interest 5.12 5.63 PBDT 305.84 354.69 Depreciation 61.06 67.17 Profit Before Tax 244.78 287.52 Extra-ordinary items 1.43 1.57 PBT (Post Extra-ord Items) 246.21 285.95 Tax 38.12 201.26 Reported Net Profit 208.10 241.91

12. Projected profit of 0.22 million USD/year from solar street lights Solar Street Lights Sales revenue (In INR) 50000000 Sales revenue (In dollars) 1111111.11 Sales revenue (In Million dollars) 1.11 Profit @ 20% Margin 0.22

13. Projected profit of 1.55 million USD/year from solar lantern Solar Lantern Sales revenue (In INR) 1000000000 Sales revenue (In dollars) 22222222.22 Sales revenue (In Million dollars) 22.22 Profit @ 7% Margin 1.55

14. Revenue growth YoY from 12% to 14.27% Projected – Income/Expenditure - 2011 Profit & Loss account In Million Dollars WITHOUT ADDITIONAL INVESTMENTS Expected Growth SOLAR LIGHTING EXPANSION Expected Growth Mar '09 Mar '10 Mar '11 Mar '11 12 Months 12 Months 12 Months 12 Months Income Sales Turnover 1233.25 1381.24 1546.99 1580.32 Net Sales 1233.25 1381.24 1546.99 1580.32 Other Income 77.31 86.59 96.98 96.98 Total Income 1310.56 1467.83 1643.97 12.00% 1677.30 14.27% Expenditure Employee Cost 743.74 751.18 841.32 Other Manufacturing Expenses 73.58 89.77 109.52 Selling and Admin Expenses 128.53 129.82 131.11 Miscellaneous Expenses 53.75 50.16 50.16 Total Expenses 999.60 1020.92 1132.11

15. Marginal profit growth to 15.64% Projected – Profit/Loss - 2011 Profit & Loss In Million Dollars WITHOUT ADDITIONAL INVESTMENTS Expected Growth SOLAR LIGHTING EXPANSION Expected Growth Mar '09 Mar '10 Mar '11 Mar '11 12 Months 12 Months 12 Months 12 Months Mar '09 Mar '10 Mar '11 Mar '11 PBDIT 310.96 360.32 414.88 15.14% 416.66 15.64% Interest 5.12 5.63 6.20 6.20 PBDT 305.84 354.69 408.68 410.46 Depreciation 61.06 67.17 73.88 90.00 Profit Before Tax 244.78 287.52 334.80 320.46 Extra-ordinary items 1.43 1.57 1.73 1.73 PBT (Post Extra-ord Items) 246.21 285.95 333.07 318.73 Tax 38.12 44.04 51.29 49.08 Reported Net Profit 208.10 241.91 281.78 269.65

16. Marginal profit growth to 15.64% Projected Return Without Expansion With Solar Expansion Assets 649.06 659.06 Sales 1546.99 1580.32 Profit 414.88 416.66 Capital 75.00 85.00 Ratios Gross Profit Margin(%) 26.82% 26.37% Asset Turnover Ratio 2.38 2.40 Return on Investment 63.92% 63.22%

17. References Alternatives to Fuel-based Lighting in Rural Areas of Developing Countries http://evanmills.lbl.gov/presentations/fuel_based_lightinggrocc.pdf http://www.direc2010.gov.in/pdf/Off-grid%20Lighting%20in%20India.pdf http://tvnz.co.nz/technology-news/solar-power-lighting-rural-india-3095795 http://www.theglobalist.com/rawmaterials/syndication/sample.htm http://www.theenergycollective.com/robertrapier/47068/cleantech-globalization-and-energy-independence http://globalization-and-its-risks.wikischolars.columbia.edu/Chapter+VII http://globalization-and-its-risks.wikischolars.columbia.edu/Chapter+VII#cite_note-4

18. Thank You !