Cleantech Market Opportunities in India

1
Cleantech Market Opportunities in India

• US India Venture Capital Association
• 13th February 2008
• Erin Iping Kuo Jeff Castellas
• Director, India CEO
• Cleantech AustralAsia

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About Us

• Mission to accelerate the investment in and
  deployment of cleantech in Asia Pacific to
  address Sustainable Development
• Niche Investment Bankingplacement, advisory
• Consulting--Asia Pacific Partnership
• 4th AustralAsian Cleantech Forum
• 11/12th March 2008, Melbourne
• 2nd India Cleantech Forum
• 10th/11th July 2008 New Delhi
• Online Cleantech platform _at_

www.cleantechforum.com
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What is Cleantech?

• Broad range of products and markets, including
• technologies in alternative energy, such as
  wind, solar, or biomass power
• energy storage and energy efficiency
• advanced waste management and recycling
• smart-grid technologies for the utility grids
• electric or hybrid-electric transportation
• advanced materials, including biodegradable
  plastics
• water technologies
• alternative fuels, including bio diesel and
  ethanol
• green building technologies

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Drivers for Cleantech in India

• Energy uncertainty
• Climate Change
• Energy Security
• Need for improved infrastructure
• Public Health and Environmental Degradation
• Sustainable Development Imperative
• Policy initiatives
• Resource availability

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VC/PE Statistics

• 2007 Indian PE deals 10 Billion across 245
  deals, 1 of which were Clean tech
• 2007 Indian VC/PE activity in Energy Efficiency
  1.4 Billion
• Typical Opportunity Size 250m-5MM
• Sources Sun Group, New Energy Finance

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Examples of Recent Deals

• In June 2007, Indian Luminous Power Technologies
  received INR 829m (USD 20.3m) from CLSA ARIA
  Investment partners and CLSA Clean Resources in
  series A first round financing.
• In December of 2006, Indian electric car
  manufacturer, Reva Electric Car Company (RECC),
  received an investment of USD 20.0m from Draper
  Fisher Jurveston (DFJ) and Global Environment
  Fund.
• As of 15 October of 2007, Vestas RRB India, the
  India-based manufacturer of wind electric
  generators, has received an investment of USD 55m
  from Merrill Lynch.

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Examples of Recent Deals continued

• In April 2007, Lakshmi Energy and Foods arranged
  project finance for its 30MW biomass plant in
  Khamanu district in the state of Punjab, India.
  Power Finance Corporation is acting as lead debt
  agent/arranger for this USD 112 million project.
• In March 2007, Reliance Energy secured finance
  for their USD 202m 150 MW wind turbine capacity
  project in Sangli District in the State of
  Maharashtra.
• On 5 July 2007, Indian hydro and wind project
  developer Bhoruka Power acquired SLS Power
  Industries for INR 800m (USD 20m).

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Renewable Energy
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Cleantech Market Opportunities in India
Source U.S. Foreign commercial service and
U.S. Department of State as on 2006 Providing
knowledge based services for implementing
environmental initiatives
10
Technology Mapping, India-U.S. CollaborationsSola
r PV
Source Pursuing Clean Energy Business in India.
Cleantech AustralAsia, 2008
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Technology Mapping, India-US CollaborationsWaste
to Energy
Source Pursuing Clean Energy Business in India.
Cleantech AustralAsia, 2008
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Success Story

• Suzlon
• wind
• 1995
• September 2005, IPO, oversubscribed 46 times
• Today 5th in world market share, 1.5 B in
  revenues
• Sold over 3000 MW
• Successful MAs of RE Power Systems AG, Hansen
  Transmission
• End to end packaging, integration

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Sectors with momentum

• Sectors with momentum
• Waste treatment site management
• Management of existing waste infrastructure
• Energy efficiency at plant and building level
• TD efficiency
• Distributed power generation
• Wind
• Small Hydro Power

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Challenges

• Lack of Coordinated policy
• Market distortions
• Weak or unclear regulatory environment
• Technology-specific barriers
• Lack of access to affordable capital
• Uncertainty surrounding son of Kyoto
• Lack of capacity at all levels
• Fragmented market sectors
• Companies fall into two campsno middle market
• IP issues

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Solutions

• Consistent national and regional policies
• Policy guarantees
• Level the playing field
• Protection in law
• Investment grade data on RE
• Technology mapping
• Increased RD collaboration
• New products and Funds and financing arrangements
• Package Solutions
• Innovation in Carbon Finance
• Capacity building for all RE industry
  participants
• Standardized guides and case studies
• Platforms for knowledge exchange

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What may be coming

• Increasing technology transfer
• Central Renewable Energy law?
• Feed-in tariff for solar?
• Fuel blending standards for both biodiesel (5)
  and ethanol (10)
• Consolidation
• Increased Incubation Programs
• Shift in mentality of SMEs

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India Clean Tech Entry

• 2nd India Clean tech conference in partnership
  with CII in Delhi, 10-11 July 2008
• India entry strategies for portfolio companies
• Indian investment banking partner, Yes Bank
• -Deep understanding of the clean renewable
  energy space,
• -Setting up Clean Technology Energy Fund,
• -Specialized Sustainable Investment banking
  practice which provides service to the companies
  in the Clean Technology and Clean Energy space
• -Service transaction intermediary support to
  companies generating CERs
• -Buy side advisory services for Financial
  Sponsors in India

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Contact

• Thank you!

Contact Erin Iping Kuo Jeffrey
Castellas Mumbai, India Melbourne,
Australia erin_at_cleantechnology.com.au jeff_at_cleante
chnology.com.au Mobile [phone] Mobile
61 4 0106 7252