Sanghvi Movers: Intention to Become an EPC Player
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Policy Shift Impact
- Transition from feed and tariff regime to reverse auction led to a decline in capacity addition.
- In FY14-15 and FY15-16, 5.5 GW was added annually; this level has not been reached since.
- Industry took a long time to adjust to this policy change.
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OEMs’ Role Shift
- Initially, OEMs provided full product and project services, including wind farm erection.
- Over time, OEMs adopted a global operating model, focusing solely on product supply.
- This left Independent Power Producers (IPPs) to execute projects independently.
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Challenges for IPPs
- IPPs, primarily hedge funds, pension funds, and private equity investors, lacked execution capabilities.
- Market gap emerged for reliable project execution vendors.
- The supply chain was fragmented, with small players lacking financial strength, corporate governance, and performance reliability.
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Sanghvi Movers’ Market Opportunity
- Achieved a 15 GW erection track record.
- Present in nearly every wind farm constructed in the country.
- Strong demand from the market to provide additional services beyond turbine erection.
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Expansion into EPC Services
- Developed capabilities across five key areas:
- Mechanical
- Electrical
- Civil
- Transportation (Surface Logistics)
- Land Approvals & Permits
- Aimed at providing a turnkey solution for the renewable wind energy sector.
- Developed capabilities across five key areas:
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Industry Outlook & Company Positioning
- Industry is still in its early stages, with top EPC players yet to emerge.
- Some companies have gained traction, but most are still establishing execution track records.
- Sanghvi Movers is committed to only taking projects where delivery is assured.
- Confident in EPC execution, leveraging 15 GW of prior erection experience.
- Strategic approach driven by market demand and in-house capability development.
Source: Latest Concall
