Balance of Plant (BoP)

Equipment Market
Dynamics and Outlook for
Thermal Power Plants in
India - 2017

E-REP Market Research Report May 2017

Why enincon’s report upon “ Balance of Plant Equipment Market
Dynamics and Outlook for Thermal Power Plants in India - 2017?”

Balance of Plant (BoP) Island in a Thermal Power Plant if Not More then Certainly Has Equal Weightage to that of BTG Island and Offers Massive
Business Proposition in the Country

68 GW OF UNDERCONSTRUCTION THERMAL POWER PLANTS OFFER MASSIVE OPPORTUNITIES FOR BoP

SERVICE PROVIDERS; WITH CHANGING PARADIGM OF AIR POLLUTION AND RISING ENVIRONMENTAL
CONCERNS OPENS NEW CORRIDOR OF UNTAPPED OPPORTUNITIES.

In India, currently over 68.5 GW of thermal power plant is under construction of which 25% i.e. close to 17
GWs comes from states, 42% i.e. 28.5 GWs comes from IPPs (private developers) and the rest 33% i.e. 23GW
comes from central sector , which is likely to see commissioning by FY’2022. Given the fact that this 68 GW
capacity shall be commissioned in a phased manner the tune of BoP opportunity appears to be massive with
requirement of BoP equipments like CHP, AHP, cooling towers, ESP, chimneys and electrical switchyard
system etc. shall be indeed of interest for both the integrated service provider or the split contractor. Also,
under the current pretext post CoP 21 summit in Paris, the obligation of India to reduce carbon emissions have
triggered the need for enhanced technology to control upon the same. Hence, for all the new power plants and
also the for ones flouting the norms, it is mandatory to utilize pollution control equipments which certainly
offers a new segment to the service providers. This tune of opportunity even if considered at a normative level
in terms of order book shall still translate to a gargantuan value. Also, this value demands need for extensive
track which uncovers the split of BoP equipment wise opportunity levels. Coupled, with an in depth track for
order book value the competition mapping and relative benchmarking of top players in the BoP segment was a
long felt industry need. Hence, enincon consulting llp in its attempt to demystify the tune of opportunity has
conducted an in depth primary research which is well assisted with secondary domain. It is pertinent to note
that as no fresh announcements are observed in the thermal power segment, the availability of opportunities
for BoP stake holders to suit their business needs is quintessential and through its proprietary knowledge and
wide industry network, enincon unravels the same.
Having said that arguably , by 2020 enincon believes that thermal power is destined to roll back into
generation mix of the country and in all possibilities fresh UMPPs which have hit a road block may witness
announcements sooner than later. Hence, preparedness for OEMs shall be of pinnacle importance which will
be discovered through an in-depth research in this dossier. Queries like what be the region wise business case
for BoP players, opportunity in terms of replacing the old thermal units, futuristic market size for BoP package
wise OEMs and many more apart from the mentioned will find answers in this collective and holistic market
research.
Exhibit 01: State Wise New Supercritical Capacity (MW) Proposed to be Set up as a Replacement
Against Retired/ Proposed to be Retired Old Supercritical Units, Status as on 2017

Package Wise Market Size for

3000 Capacity of New Proposed 2
BoP Players Basis to be Replaced
TPP (MW)
Capacity
Opportunity (USD Billion)
1.8
2500 1.17
Upcoming Thermal Power Capacity (MW)

1.6

Market Opportunity for Players (USD)

1.87
1.4
2000 2640
1.2
1.64
1500 1
1320 1320
0.8
1000
660 0.6

1320 1320 0.4

500
800 800
600 0.2

0 0
TL TN MP GU MH UP HR WB JH

Market Opportunity for Players into Mechanical Package Market Opportunity for Players into Electrical Package
Market Opportunity for Players into Civil Package

Source : Ministry of Power, enincon research

 BUSINESS CASE FOR BoP EQUIPMENT MANUFACTURERS IN INDIA

1. Coal to be the prime source of capacity generation supporting the base load power requirements of the
country
2. Government working in line to make coal a cleaner fuel by replacing the old power plants with new ones,
hence high efficiency on the generation front
3. In order to encourage the domestic manufacturing, government mandates state-run generators to insist on
phased domestic manufacturing plan from supercritical equipment suppliers
4. The (CEA) advisory on indigenous manufacturing of supercritical equipment could lift profitability of
domestic boiler turbine generator manufacturers
5. The government is working on a plan to shut down 25-40 GW of old highly polluting thermal power plants and
set up new coal based super-efficient power projects

REPORT INSIGHTS

1. Detailed study of supercritical and subcritical power generation equipments market size in India
2. Key Drivers and restraints for Balance of Plant (BoP) equipment market in India
3. Competition landscaping of existing OEMs into the BoP market in India
4. Factorial analysis of BoP market industry outlook in India for both domestic and international OEMs
5. Evaluating future outlook for BoP players till 2022 providing mechanical package , electrical package & civil package
6. Focus on supercritical units and the planned capacity additions
 KEY HIGHLIGHTS

1. Understanding the market structure for balance of plant equipment market in India
2. Examining the upcoming supercritical capacity wise business opportunity for balance of plant equipment
manufacturers/suppliers
3. Detailed study and competition tracking of the BoP players in the Indian market basis quality indexation , price
variance & post sales services etc
4. Detailed state wise study on the upcoming thermal power plants and the business case projections for the BoP players
5. Filtering best states in terms for underlying market opportunities for BoP facet

PRESS EXCERPTS

About 10 GW of the new super –critical thermal power capacity proposed to be set up as a replacement against the retired
or old thermal power units by 2022 as on Feb 2017
CEA

NTPC to offer a market size of INR 50,000 crores in terms of replacing its old thermal units

Live mint

KEY QUERIES ADDRESSED

• What would be the opportunity for BoP players in terms of modernization/replacing of ageing thermal units ?
• What would be the consumer category wise market size for BoP equipments in India ?
• What would be the region wise breakup of BoP equipments in India ?
• What would be upcoming market size for ash handling & coal handling systems in India till 2022 ?
• What would be the market size for plant electrical systems, transformers, HT, LT switchgears & bus ducts etc in India
till 2022 ?
• What would be the market size for cooling towers & chimneys , reservoir & intake systems in India till 2022 ?
 MUST BUY FOR

• Independent Power Producers

• Central Power Producers
• State Generation Companies
• BTG OEMs
• Coal Handling & Ash Handling Manufacturers
• Plant electrical systems , transformers, HT, LT switchgears manufacturers/ suppliers
• Control & Instrumentation Systems (inclusive SCADA) providers
• Cooling Towers & Chimney Manufacturers
• Other Balance of Plant Equipment Manufacturers
• Power Generation Equipment Vendors
• Other Value Chain Players
• Research Bodies
• Industry Associations
• Technical Consulting Group
• Financial Institutes/ Banks

WHAT YOU CAN LEARN ? A SNAPSHOT

• Market Structure of power generation equipment manufacturing in India

• Key Drivers and restraints for Balance of Plant (BoP) equipment market in India
• Factorial Analysis Determining Market Size of Balance of Plant Equipments in India
• Player Wise Analysis of BoP market share in India , Examining both domestic and foreign origin players
• Future outlook of BoP mechanical package in India till 2022
• Future outlook of BoP electrical , control & instrumentation package in India till 2022
• Future outlook of BoP civil works package in India till 2022
• Competitive benchmarking analysis of BoP equipment manufacturers in India
• Swot Analysis and Profiling of Key Players in the India BoP segment