### **Overview** GE Power India Limited (GEPIL) is a leading provider of power generation equipment and services in India, operating across thermal, hydro, and gas power segments. As a key entity within the GE Vernova ecosystem, GEPIL serves public and private sector utilities, independent power producers (IPPs), and industrial customers with a focus on emissions control, plant modernization, and sustainable energy solutions. With manufacturing facilities in **Durgapur, West Bengal**, and **Noida, Uttar Pradesh**, and a robust network of sales offices and workshops across India, GEPIL supports both domestic and international markets. It is strategically positioned to play a pivotal role in India’s energy transition by enhancing the efficiency and sustainability of existing power infrastructure while supporting renewable integration. --- ### **Strategic Developments (2025 and Beyond)** #### **Demerger of Durgapur Undertaking to JSW Energy (Effective July 1, 2025)** - In Nov 2025, GEPIL announced the **strategic demerger** of its Durgapur operations to **JSW Energy**, marking a major structural transformation. - The transaction is being executed via a **share entitlement ratio of 10 JSW Energy shares for every 139 GEPIL shares**. - The demerger aims to: - Streamline GEPIL’s portfolio. - Unlock shareholder value. - Allow GEPIL to focus on **high-margin, shorter-cycle business opportunities** in core services and upgrades. #### **Divestiture of Non-Core Businesses** - In Aug 2024, GEPIL initiated the **carve-out of its Hydro and Gas businesses** via a slump sale: - Hydro Business: Contributed ~31.1% of FY23–24 income but carried a net liability of INR 2,140.9 million. Projected to consume INR 4,897.7 million in cash over two years. - Gas Business: Contributed only 5% to revenue, deemed non-strategic and non-scalable; headcount reduced by 48% (2021–2024). - These divestitures are expected to: - Reduce net liabilities by **INR 252 crores**. - Improve net worth by **INR 818.6 crores**. - Unlock **INR 700 crores** in non-funded banking limits. - Avoid **INR 500 crores** in future working capital needs. - The strategy reflects a shift toward financial stability, improved credit ratings, and eligibility for new tenders. --- ### **Business Portfolio & Strategic Focus Areas** GEPIL is realigning around **four strategic business pillars**: 1. **Core Services Growth** - Includes **spare parts supply, in-house repairs, overhauling, and maintenance** for boilers, turbines, generators, and AQCS. - Short-cycle (≤12 months), **low-risk, high cash conversion**, and margin-accretive projects. - Achieved record services revenue and order volumes in FY2023–24. 2. **Plant Upgrades & Retrofits (R&M)** - Focus on **efficiency improvements**, **emissions control (NOx/CO2/SPM)**, **grid stability**, and **flexible operations** for aging thermal plants. - Targets the **60 GW retrofit market** driven by government policy. - Technical leadership in high-impact retrofits (e.g., 14% heat rate improvement at GSECL; biomass co-firing at NTPC–Tanda). - CAGR of **30% in thermal upgrade business** in recent years. 3. **Flue Gas Desulfurization (FGD) Projects** - One of only three Indian companies with **>98% local capability** in wet FGD technology. - Delivered FGD projects for ~13 GW; executed **India’s first live FGD installation at NTPC Vindhyachal**. - Shifting from **EPC to EP (Engineering & Procurement)** models to reduce working capital stress and cycle time (3 years vs. 8–10 years). - Total Indian FGD market: **~INR 67,000 crores**, with **133 GW still pending** compliance. 4. **Durgapur Facility – Industrial & Export Manufacturing** - Post-demerger, GEPIL retains **5-year contractual access** to the Durgapur facility for generator and turbine manufacturing. - Expanding into **non-coal industrial applications**: - **Pressure vessels and cryogenic systems** for oil & gas, steel, and chemicals. - Export of **boiler pressure parts, piping, and components** to 13 countries (MENAT, APAC, SSA). - Target: Surpass **200,000 manufacturing hours** to eliminate underutilization losses (INR 25–40 crores/year). - Has secured **INR 7+ crores in pilot orders**; certifications valid for three years. --- ### **Global & Domestic Market Expansion** - **International Expansion (Fourth Pillar of Strategy):** - Actively pursuing service and spare parts orders in **13+ countries** including Saudi Arabia, Turkey, Malaysia, Dubai, and Bhutan. - Initial market entry achieved in seven targeted countries; strategy now focuses on **deepening penetration** rather than geographic expansion. - Example: Successful delivery of pump turbines and generators for the **1280 MW Saundatti Pumped Storage Project** and the **Tehri PSP** upgrade. - **Hydro & Pumped Storage Leadership:** - Key player in **pumped storage hydro (PSP)** technology. - Completed mechanical wet spinning for India’s first variable-speed PSP machine at **Tehri** (2024), with all four rotors installed. - Secured major orders for **Kundah (500 MW)** and **Saundatti PSP projects**. - Successfully modernized **3x130 MW units at Idukki HEP** with zero downtime. - **Gas Power Operations (Declining Strategic Relevance):** - Provides EPC and engineering support for **South Asian and global gas projects** from Noida Execution Center. - Active projects include **Summit Meghnaghat II, Unique Meghnaghat (Bangladesh)**, and HRSG engineering for Taiwan and Poland. - Business is **contracting** due to low global demand and strategic repositioning. - **Automation & Control (Centre of Excellence):** - Noida facility serves as a **global Center of Excellence** for control systems. - Delivered DCS upgrades and cybersecurity solutions to power plants in India, China, Slovenia, and Israel. - Supplied ALSPA DCS to **Tanjung Kidurong CCPP (Malaysia)**. --- ### **Leadership & Capabilities** - **Prashant Jain**, Managing Director, leads GEPIL with deep experience from GE, Siemens, and Schneider Electric. Focus areas: sustainability, reliability, and affordability in power generation. - **Puneet** heads key growth verticals in Steam Power India, including Services, AQCS, and Durgapur manufacturing. Brings 36+ years of experience from NTPC, BHEL, and Siemens. --- ### **Technology & OEM Advantage** - Leverages **GE Vernova’s global technology** in turbines, generators, and power systems. - Serves **>50% of non-GE installed base** (BHEL, Chinese OEMs), despite owning only **6% of its own OEM fleet**. - Strong **reverse engineering and cross-OEM capabilities** developed over 5+ years. - Active in **digital solutions**, including remote virtual testing (e.g., Angat hydro project, Philippines) and digital twin applications. --- ### **Financial & Operational Strategy** - **Shift from EPC to EP models** to reduce working capital cycle (target: **2–3 years** vs. historical 10+ years). - Targeting **cash-accretive, high-margin deals** with faster conversion. - Focused on **improving net worth**, **reducing net debt**, and **restoring profitability** post-demerger. - Royalty payments to GE entities (e.g., INR 270 million to GE Steam Power Switzerland, INR 140 million to GE Vernova) offset by INR 124 million in reimbursements from GE affiliates. --- ### **Role in India’s Energy Transition** - Supports India’s **net-zero by 2070** goal by enabling: - **Flexible coal plant operations** to support renewables. - **Decarbonization** through FGD, biomass co-firing, and efficiency retrofits. - **Grid stability** via pumped storage hydro and advanced control systems. - Government policy (e.g., 60 GW upgrade mandate, delayed FGD timelines) is creating long-term **order visibility** through 2030.