RENEWABLE ENERGY INITIATIVES

1. RENEWABLE ENERGY INITIATIVES By M P Sharma Varroc Group

2. Index: ABOUT VARROC GROUP ENERGY SCENARIO – INDIA ENERGY SCENARIO – MAHARASHTRA WHY RENEWABLE ENERGY SOLAR PROJECT – A B C QUESTION & ANSWER‘S- SESSION

3. About Varroc Group

4. Company Profile – Varroc Group • Headquartered in Aurangabad, India • Leading Indian supplier of Electrical, Metallic and Polymer components and sub assemblies for 2 wheeler and 4 wheeler industry • USD 1.2 Billion annual sales; growing at over 20% annually for the past decade • 10,000+ direct employees, including 400+ engineers globally • 31 manufacturing facilities and 6 engineering centers globally • Serves all major OE vehicle manufacturers in India and abroad. • Among top 3 automotive suppliers in India 4

5. Varroc Group – Global Footprint and Support • Varroc is well positioned to support Customer growth in all markets. Germany Unites States of America Slovakia Czech United Kingdom Italy China France India Mexico Vietnam Guatemala Nigeria Egypt Globally Angola

6. Varroc Group- India Foot Print

7. Customer Base – Varroc Group 2 WHEELERS PASSENGER CARS COMMERCIAL VEHICLES SYSTEM SUPPLIERS Trademark Shown are exclusive property of respective Companies

8. Varroc Core Values S H I P S

9. Varroc Renewable Energy Mission • Varroc Renewable Energy Mission targets to achieve 20% of its power requirement through Renewable Energy by 2016 • Estimated Power requirement of Varroc Group by 2016 will be 100 MW • 20 MW of this power shall be through renewable energy Achievements of Mission till 2013 • 8 MW of power from Wind energy • 5 MW of power from Solar energy (operational Dec 2013) Other activities under green mission • Planting & distributing Sapling • Distribution of Seeds

10. Energy Scenario- India

11. India’s Energy Challenge In next 12 years India’s electricity requirement to grow 2.5 times Electricity shortage estimated at 25-35 GW 400 Million people still without access to electricity Climate Change is also an important issue India is dependent on oil imports for 80% of its demand

12. Indian Power Sector(30 June 2013) (Source: CEA Annual Report)

13. Renewable Power Capacity(30 June 2013) Past Focus Area CurrentFocus Area (Source: MNRE)

14. Energy Scenario-Maharashtra Demand – Supply Scenario in MW at the Time of Peak Demand (Source: CEA Monthly Report)

15. Why Renewable Energy?

16. Why Choose Renewable Energy • Corporate Social Responsibility (CSR) Initiative • Sustainable business model- Eliminate long term impact of energy cost on current business • Excellent Investment opportunity considering government Incentives (Project IRR 20-25%) • Improves Infrastructure & Groups visibility in rural areas & helps evaluating new locations to spread business

17. Wind Energy Vs Solar Energy

18. Solar Project ABC!!!

19. Steps for entering into Solar power • Understanding the Scheme / policy under which plant will be set-up • Feasibility Study & Risk Management • Identification of site • Identification of Technology & EPC partner • Project Financing & Execution

20. Policies in India for Large Scale Solar Project There are 3 Schemes available. 1. Under JNNSM by Signing Preferential Tariff PPA with NVVN 2. Under Preferential Tariff PPA with State Government • 3. As Independent Power Producer (IPP) in REC Mechanism

21. Solar Feasibility in India • > 300 Sunny Days in India • > 5-6 KWH/ Sq Meter / Day - Irradiation • Govt Initiatives & Incentives

22. Risk Management & SWOT Analysis

23. Identification of Site Key Parameters of a good site: • Good Solar Irradiance throughout the year (Data from NASA, Meteonorm, MNRE) • Average temperatures throughout the year • First year generation expectations • Proximity to grid • Water availability • Road Connectivity • Load bearing capacity of land • STFI Hazards (Storms, Tempests, Floods, Inundation)

24. Site Evaluation Results of Sakri

25. Technology Evaluation

26. Identification of EPC Partner • - Functions throughout technology value chain • Diversified business for 25 year Warranty fulfilments • Has own Solar power plant • Experience & track record • Access to local execution team

27. Varroc EPC partner • Inetest Technologies India from Chennai along with Anukul Power Engineers from Aurangabad • Inetest has technology from AUO, a listed company in NYSE, with business in Flat panel displays & Solar. • AUO has Polysilicon & WaferTechnology from Japan while Cell & Modules made in Taiwan & Malaysia. • AUO has own 10 MW roof top project in Taiwan • Anukul Power Engineers has vast experience in Electrical Power Transmission & distribution Erectioning, commissioning in Maharashtra • Anukul has Installed many sub-stations, many Kms of Transmission line in Maharashtra Pic from AUO Japan plant during Vendor Evaluation

28. Project Financing & Execution • Project Financing to be considered due to unstable INR • ROI & cashflow preparation • Finance available at low interest cost from government & international bodies, but not easy • Identification of Project team • Government Approvals • Approval for Project from concerned body (MEDA for Maharashtra) • Signing of Power Purchase Agreement with Discom (Mahagenco or MSEGCL) • Approval from substation for erection of Transmission line & grid connection • Approval from MNRE for concessional duties • Prepare project execution roadmap & progress monitoring

29. Solar System Schematic

30. Other Green Initiatives • Audit for Energy optimization by third parties • Audit for Power Quality improvement by third parties • Installation of Solar Street lights in existing plants • Installation of ABT Meters with 0.2S Accuracy • Use of transparent sheds for day light utilization

31. Way Forward…. Solar parks Solar pumps Solar Car parking Solar Roof Top Systems Solar Street light

32. Thank You!M P Sharmasharma.madhusudan@varrocgroup.com

33. Q & A