Riddhi Siddhi Gluco Biols Ltd Management Discussions.

Economic Scenario:

India continues to be one of the fastest growing major economies in the world and is expected to be among the worlds top three economic powers in the next 10-15 years. The Indian economy is expected to improve and close the year 2019 with a GDP growth of 7.3% (Source: IMF).

Sustained real GDP growth of over 6% since FY91 has led to a fundamental transformation of Indias economy. Today, India is the worlds seventh largest economy in real terms, backed by strong demand, positive consumption pattern and rising disposable income. In PPP terms, the economy is expected to be among the top five global economies by 2020.

Industry Structure and developments:

Wind energy accounts for 10% of the overall installed power capacity in India and 47% of renewable energy capacity in the country. The ever increasing demand for energy in India, can no longer be met through traditional energy sources alone. Renewable energy must be a major part of the solution because it can meet the demand in a cost–effective and sustainable manner. With policy stability, availability of land and grid infrastructure and timely payments by utilities, governments target of 175 GW of renewable energy by 2022 can be achieved. There should be enabling policies to ensure utilization of 10 GW wind turbine manufacturing capacity available in the country today, which will lead to job creation and overall socio-economic development in a sustainable way.

Performance:

At the end of F.Y. 2018-19 the total capacity of wind mills stood at 33.15 MW located in Tamil Nadu (28.50 MW), Maharashtra (3.00 MW) and Gu-jarat (1.65 MW). Energy generated from the wind mills were sold to the respective state level distribution companies. There is no change in the capacity during the year under consideration. Total energy generated during the year under review was 41.03 million units as against 46.66 million units in the previous year yielding revenue of Rs. 1387.66 lakhs against Rs. 1565.07 lakhs in the previous year.

There was reduction in generation of electricity through wind mills mainly on account of lower wind speed and non-operation of wind mill of 3 MW during major part of the year. However, performance of trading in Agricultural Commodities is based on monsoon season of the country.

Outlook:

During the last five years, the wind energy capacity in India has grown at compound annual growth rate (CAGR) of 11% whereas the overall renewable capacity grew at CAGR of 16%. Overall, the outlook for wind energy segment looks positive given the Governments push for achieving 175 GW (2022) renewable energy capacity (to meet increasing power demand) by auctioning 10 GW of bids annually.

Risk and Concerns:

The future performance of company entirely depends upon wind pattern and availability of grid from State Electricity Board during wind season.