Macro Tsimmis

intelligently hedged investment

Sterlite Industries India Ltd. (SLT) update

Posted by intelledgement on Sun, 18 Nov 07

Sterlite management unveiled a presentation detailing their plans to enter the Indian power market last week. They outline the already large shortfall in subcontinental electricity supply and projections that it will worsen as the ongoing buildout continues. They enumerate changes in policy and market behavior that are engendering conditions favorable to private power providers, and they discuss the irony that although India has the fourth largest coal reserves, the country currently has to import coal to meet demand. Their conclusion is that given Sterlite’s core competencies, conditions are ripe for the company to bid on coal-fired electrical production plant projects, and they provide details on two already-announced projects totaling 3600 megawatts of power-generation capacity, and two follow-on projects amounting to an additional 6000 megawatts.

Well worth a gander.


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