Apollo Green Energy

Apollo Green Energy is positioning itself to be a major player in India's rapidly expanding renewable energy sector. Here's a breakdown of their company thesis, combining their current strengths with their stated future plans:

Current Strengths:

• EPC Expertise: Apollo Green Energy has a strong background in Engineering, Procurement, and Construction (EPC) for renewable energy projects. This means they have the experience to design, build, and manage large-scale solar and wind installations.
• Established Parent Company: They are part of the larger Apollo International Group, which provides financial stability and access to resources.
• Growing Order Book: Apollo Green Energy has a healthy and expanding order book, indicating strong demand for their services.
• Focus on Solar: They have a significant focus on solar power projects, which aligns with India's ambitious solar energy targets.

Future Plans & Growth Drivers:

• Transition to Developer: They aim to shift from primarily being an EPC contractor to also being a developer of renewable energy projects. This means they will own and operate some of the projects, generating recurring revenue.
• Solar Manufacturing: Apollo Green Energy plans to enter the solar module manufacturing space. This will allow them to vertically integrate, reduce costs, and potentially supply their own projects as well as others.
• Expansion into Other Renewables: While solar is their primary focus, they are also looking to expand into wind energy, green hydrogen, and battery storage solutions. This diversification will make them a more comprehensive

renewable energy company.

• IPO in 2025: The planned IPO is expected to raise significant capital, which will be used to fund their expansion plans and new projects.
• Government Support: India's government is heavily promoting renewable energy through policies and incentives.This creates a favorable environment for companies like Apollo Green Energy.

Key Thesis Points:

• Capitalizing on India's Renewable Energy Boom: Apollo Green Energy is well-positioned to benefit from India's massive push towards renewable energy.
• Vertical Integration: By moving into manufacturing, they can gain better control over their supply chain and costs.
• Diversification: Expanding into wind, hydrogen, and storage reduces reliance on a single technology and opens up #### new revenue streams.
• Strong Leadership and Execution: Their experienced management team and EPC track record suggest they can effectively execute their growth plans.

Potential Risks:

• Competition: The renewable energy sector is becoming increasingly competitive, with both established players and new entrants.
• Technology Changes: Rapid advancements in renewable energy technology could make some investments obsolete.
• Execution Challenges: Scaling up operations and managing large projects can be complex and may lead to delays or cost overruns.
• Regulatory Changes: Changes in government policies or regulations could impact the profitability of renewable energy projects.

Overall:

Apollo Green Energy's company thesis is based on capitalizing on the growth of the Indian renewable energy market, vertically integrating into manufacturing, diversifying into other renewable technologies, and leveraging their EPC expertise. While there are inherent risks, the company appears to have a solid strategy and the potential for significant growth in the coming years.

SHAREHOLDING PATTERN

Raaja kanwar – Managing Director Sanjay Gupta – Chief executive officer Suman Lata Suri – Head Legal and Company Secretary

INDUSTRY OVERVIEW

The India Power EPC market, valued at USD 13.8 billion in 2022, is projected to grow at a CAGR of 21.94%, reaching USD 45.36 billion by 2029, driven by rising energy demand, government initiatives, and technological advancements. Rapid industrialization, urbanization, and programs like "Power For All" are expanding market opportunities, while innovations in power generation and transmission boost growth. The market is segmented by power generation, with a dominance of thermal and rising renewable energy, and by transmission, where investments in network enhancement are significant. Regional demands vary across North, South, East, and West India. Despite regulatory constraints and COVID-19 disruptions, key players like BHEL, Larsen & Toubro, Tata Group, and Sterlite Power Transmission are enhancing their positions through mergers, acquisitions, and new projects.