Mytrah Energy: Diversifying into Solar

Abstract

Ravi Kailas the Chairman of Mytrah Energy Limited was reflecting on his group’s entry into the solar energy sector. Mytrah, one of the largest Independent Power Producers in renewable energy in India with a capacity of around 1,000 MW of wind power across 15 installations in 8 states believed in “delivering sustainable energy in a world without subsidies”. Thus, Mytrah was an entrenched player in the wind energy business and they had recently added solar energy to their portfolio. Ravi believed this move was important to consolidate their position in the renewable energy sector in India. The global solar market had seen an explosive growth with photovoltaic operating capacity increasing from 1 GW in 2004 to 227GW in 2015. The Indian market was no exception with the government targeting to add 175GW of renewable energy by 2022. Mytrah seized this opportunity to consolidate their position and decided to venture into the solar energy sector as they were certain synergies between the two businesses. Mytrah had envisaged three different lines of business for its growth strategies into the solar energy market. First, the Business to Government segment (B2G); second, the Business to Business segment (B2B); third, the retail model, the Business to Customer (B2C) segment where although the scalability was limited Mytrah could charge a premium for their services. Which business line from the three different choices available in the solar energy landscape should Ravi Kailas focus in the coming days?