Wednesday, July 20, 2011

Distribution Franchisee Attractiveness - Comparison for Madhya Pradesh's 9 districts

Madhya Pradesh (MP) has come out with 9 districts tenders for Power Distribution Franchisee business (see our earlier blog 'Upcoming Projects of Power Distribution Franchisee in Madhya Pradesh for more details on districts and corresponding RFPs'.

One bigger question that all prospective bidders are now evaluating is 'Which areas to go for bidding?'.

MP 9 districts benchmarking on 'Distribution Franchisee Attractiveness'
(Source - pManifold Analysis from secondary research and RFP data)

The high EMD money and fierce competition with many corporates (see our earlier blog 'Many new corporates entering into emerging Power Distribution Franchisee race'), makes the selection matrix more involved. Good intelligence on following Factors is needed to base good decision:

  1. Electrical Network and asset health (that will determine initial capex investments)
  2. Demography (Existing consumption patterns and distribution across various consumer categories)
  3. Geography (density, spread, terrain etc.that will determine operational costs)
  4. Socio-economic indicators (that will help in determination of load growth in next 15 years and also local support system to operationalise initial DF model)
A sample case study on 9 districts of MP - Gwalior, Bhind, Datia, Sagar, Satna, Narsinghpur, Ujjain, Dewas and Shajapur is produced here with brief comparison on some of critical Attributes of above mentioned 4 Factors. A coloring scheme is used for better visualization for favorable Distribution Franchisee parameters across each attributes. 

This is a first level analysis. More details with local intelligence on all 9 MP districts is available with pManifold Distribution Franchisee practice

Post by: Rahul Bagdia @ pManifold

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