Last time we had a look at the detailed SWOT analysis of Shell, an Anglo Dutch-based multinational oil and gas company. This time we will dive deep into the SWOT analysis of RattanIndia Power and its work.
RattanIndia Power is a power generation company based in India and it is principally engaged in the business of dealing in power generation, distribution, trading and transmission and other ancillary and incidental activities.
RattanIndia Power’s efforts in marketing have helped them a lot. Marketing helps in achieving the desires and preferences of the target audience. Today every other company is using digital marketing, hence it has become a very important and essential skill to learn. You can check our Free MasterClass on Digital Marketing 101 by Karan Shah, the founder and CEO of IIDE.
Before we begin further with the SWOT analysis of RattanIndia Power, let us discuss the company, what products it has to offer, its financials and its competitors.
About RattanIndia Power,
RattanIndia Power, having 2700MW thermal power plants in Amravati, Nashik is one of the largest private power generation companies in India. RattanIndia Power was incorporated in 2007. The company was first known as Sophia company ltd. which later changed to Indiabulls ltd. in 2009. It was in 2014 that the company was known as RattanIndia Power.
The company focuses on constructing, developing, and operating power projects in India and internationally. RattanIndia Power ltd. is located in New Delhi and is a part of the Electric power generation, transmission, and distribution industry.
The company has big investors like Goldman Sachs and VardePartners, the USA in the business. RatanIndia Foundation is a responsible corporate house that has been giving back to society by addressing grassroots social and development issues. RattanIndia Power has Successfully Commissioned the 3rd 270 MW unit of Amravati Thermal.
| Founder | Rajiv Rattan |
|---|---|
| Year Founded | 2007 |
| Origin | New Delhi, India |
| No. of Employees | 93+ |
| Company Type | Public |
| Market Cap | Rs 3,087.81 Crore (2021) |
| Annual Revenue | $215.32 Million (2021) |
| Net Income/ Profit | Rs 104.44 Crore (2021) |
Products By RattanIndia Power
RattanIndia Power is India’s largest private power generation company. It is basically business conjunction of:
- Power generation
- Mining
- Cement
Competitors of RattanIndia Power
- Adani Power Ltd
- Gujarat Industries Power Company Ltd.
- Jaiprakash Power Ventures Ltd.
- JSW Energy Ltd.
- KEC International Ltd.
Now that we know everything we need to know about RattanIndia Power, let’s start with the SWOT analysis of RattanIndia Power.
SWOT Analysis Of RattanIndia Power
SWOT analysis is like a formula for identifying Strengths, Weaknesses, Opportunities, and Threats (SWOT) that a market possesses for a company. The main objective of this analysis is to help us, as investors and the company, to make business decisions wisely.
By using this method, we analyse where the company is falling short, where it is excelling, and what needs to be worked upon.
To better understand the SWOT analysis of RattanIndia Power, refer to the infographic below:
So let us first start by looking at the strengths of RattanIndia Power from the SWOT analysis of RattanIndia Power
Strengths of RattanIndia Power
The strengths of a firm can be positive qualities that help the company to maintain goodwill in the market or give it a competitive advantage. Mentioned below are some of RattanIndia Power’s strengths:
- Huge Customer Base: It has a great market influence in the domestic business which makes it a huge strength for RattanIndia Power.
- Quality: The quality of RattanIndia Power is quite strong and it provides a quality manual for the entire organisation.
- Research and Development: It is a strong, innovative and creative advanced team for research and development which is a pro point. They invest 2.5% of their annual turnover in the R&D of RattanIndia Power.
- Support From Collaborators: RattanIndia Power has been getting constant and huge support from collaborators that helps for modern technologies and transform them to suit it according to Indian conditions.
- Strong Base in Engineering: Since it has a strong base in engineering, it is stable in the market and industrial relationship. It is the largest power generation equipment manufacturer with products like gas and steam turbines, boilers, electric motors, heat exchangers, etc.
Weaknesses of RattanIndia Power
Weaknesses are negative aspects and attributes which have little control over. These are the areas where the business needs to improve to remain competitive.
- Shortage of Technical & Financial Resources: The business has experienced a shortage of technical and financial resources, which has reduced its ability to grow its service locally and globally.
- Net Loss: RattanIndia Power is experiencing consolidated net loss from the day of its establishment. Its net loss widens to Rs 386.69 Crore in January 2022. The reason for net loss could be due to the company’s repayment of debts consisting Rs 1,219 Crore for 15 months.
- Limited Presence: RattanIndia Power has limited presence in its nation also. They only have 2 thermal power plants in India, one in Amravati and another in Nashik from which Nashik is in a huge debt.
- Not in Leading: RattanIndia Power is still not a leading power generation company in India. It is still dealing with paying debts and recovering losses which makes it difficult for the company to soon get in the list of the leading companies.
- Less Marketing Manufacture: RattanIndia Power lacks marketing manufacture which leads to inadequate supply. The company has only installed a 35km railway line and 63km of water pipelines which is relatively low as compared to the demand.
Opportunities for RattanIndia Power
Opportunities are uncontrollable external events a person can potentially leverage. These are favourable external factors that could give an organisation a competitive advantage.
- Debt-Free Expectation:The company said that it is going to become a debt-free company within 2 years based on its revenue from thermal plants. As said this could become an opportunity for the company to rise back in the market.
- Accelerated Technological Innovations & Advances: Rapid technical advancements are increasing industry productivity, allowing suppliers to provide a wider range of products and services. This may enable RattanIndia Power to expand its product portfolio dramatically.
- Local Collaboration: Partnerships with local firms can help RattanIndia Power expand its market share in foreign markets. Local firms have local experience, but RattanIndia Power can contribute global procedures and execution skills.
- Increasing Government Regulations: The Electric utility business is becoming increasingly regulated, making it difficult for unorganised firms to compete. RattanIndia Power may be able to expand its client base as a result of this.
- Demand for Power Domain: There is a huge power domain to produce more equipment. This provides a huge opportunity for RattanIndia Power.
Threats to RattanIndia Power
These are the factors that have the potential to harm an organisation. Threats are uncontrollable external factors that might overcome or damage the strength and opportunities.
- Growing Technological Knowledge of Local Businesses in the Export Industry: For RattanIndia Power, one of the most significant risks of partnering with local firms in the export market is the risk of losing intellectual property rights. In emerging nations, particularly in China, the intellectual property rights framework is weak.
- Competitors are Catching Up with Product Development: RattanIndia Power still does not dominate the Electric utility market in product innovation. It is up against severe competition from both foreign and domestic opponents.
- Urban Market Saturation and Rural Market Stagnation: This tendency is a continuing problem for RattanIndia Power in the Electric utility business. One of the causes is that product acceptance is delayed in the rural market. Second, because of the wide distances and lack of infrastructure, serving rural clients is more expensive for RattanIndia Power than serving urban ones.
- Shortage of Trained Human Resources: Due to significant staff turnover and a growing reliance on new solutions, the firm name may encounter skilled human resource issues in the future.
- Shut Down Due to Debt: RattanIndia Power is assuring to clear its debts within 2 years of time but if the company somehow fails and pushes itself in more debts will lead to a proper show down or closure of the company.
- Increase in Small Contractors: The increase in small contractors can lead to price wars which can be a huge threat for RattanIndia Power.
This ends our comprehensive SWOT analysis of RattanIndia Power. Let us conclude our learning below.
To Conclude
RattanIndia Power is a power generation company. In this SWOT analysis of RattanIndia Power, we have observed that it has had commendable growth in the past years. But rising debts and increasing net losses caused increasing financial issues.
To repay the debts and make itself safe from a huge loss, the company has to develop its marketing strategies and hire contracts so that the company can get a significant presence in the market and an increase in cash flow.
With the growing competition in the RattanIndia Power-like market, companies are left to struggle to win over their customers with better marketing efforts. In an ever-changing world where digital marketing is very important, a good knowledge of the industry is essential for all marketers. If you would like to learn more and develop skills, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to learn more.
We hope this blog on the SWOT analysis of RattanIndia Power has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
If you enjoy in-depth company research just like the SWOT analysis of RattanIndia Power, check out our IIDE Knowledge portal for more fascinating case studies.
Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of RattanIndia Power in the comments section below.
0 Comments