Our strategy
Our blueprint for the future
With the help of its value-creation model, Tata Power continues to take positive strides towards consolidating its position as India’s largest integrated power company. FY20 witnessed steady progress across business lines enabled by a sound strategic plan. The business strategy is framed bearing in mind the Company’s core focus areas.
Fuel growth in renewables business, including solar rooftop solutions
Expand distribution presence and network, including microgrids
Invest in Next-Gen
power solutions
We adopt an integrated approach to cater to the evolving needs of our customers. A strategy review and planning is conducted annually, which enables effective assessment, evaluation and appraisal of our strategy and future roadmap.
We also undertake a detailed study to identify the interdependence of our business activities with external factors such as geo-political conflicts, market instability, innovation and legislative or regulatory requirements, among others.
These external factors are also considered during risk identification and strategy development. We have a programmatic approach that enables effective rollout of our strategy encompassing four key phases.
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Strategic Business Objectives
In accordance with our leadership’s intent to present a consolidated and holistic view of the Company’s overall business performance and outlook, we have identified eight Strategic Business Objectives (SBOs).
Set new benchmarks in operational excellence and financial returns for existing businesses
Targets
- Operate thermal and hydro plants at optimum efficiency
- Operate RE portfolio above design parameters to increase yield
- AT&C loss reduction for TPDDL, TPADL and CESU
- Maximise incentives in regulated business
Resolution of CGPL coal cost under-recovery
Targets
- Optimise coal blending to minimise impact of rise in coal benchmark price
- Advocacy for quick implementation of High Power Committee recommendations
- Optimisation of coal transportation and handling cost
Deleveraging Balance Sheet
Targets
- Reduce debt through divestment of non-core assets and strengthen balance sheet
- Adopt debt-light models through innovative financial engineering and re-structuring
Create an engaged, agile and future ready workforce
Targets
- Culture and engagement
- Workforce planning
- Leadership and succession planning
- Capability building
Scale-up Renewables, Distribution, Services and Energy Solutions businesses
Targets
- Increase share of clean energy/ renewables to 50-60% of the generation portfolio by 2025
- 1 crore+ customer base across business by 2025
- More than 1 lakh EV Chargers across India by 2025
Leverage digital to establish new business model and enhance existing business delivery
Targets
- Improve asset performance
- Enhance customer experience through use of data analytics
- Productise current IT assets and services
- Explore new business opportunities leveraging digital technology
Building a customer-centric organisation
Targets
- Roll out of value-added services for customer delight
- Improve customer satisfaction
- Building organisational capabilities to drive customer-centricity
Focus on Sustainability with an intent to attain carbon neutrality
Targets
- Attain carbon neutrality by 2050
- Reduce specific fuel consumption by improving operational efficiency
- Benchmark in waste management (Gainful fly ash utilisation
