1. COMPANY OVERVIEW A.

Industry/sectors: Electrical Equipment

B. Company history:
Birla Power Solutions Ltd., (BPSL), a Rs.2500 Crore Yash Birla Group Company, established in April1984 in collaboration with globally renowned Yamaha Motor Co. JAPAN by dynamic visionary late Shri Ashok Birla. The Company has many a firsts to its credit. It was the first Company to manufacture portable generators in India in 1986. The Company has the expertise of manufacturing 2 stroke as well as 4 stroke engines. The Company is presently producing a wide range of Generators catering to the power requirements of 500W to 40K.W being fuelled by variety of fuel options like Kerosene , Petrol, Diesel, LPG ,CNG ,Biogas etc . It was the 1st Company to roll out Self Start Gensets and became the 1st Company to launch emission compliant Generators under the brand name BIRLA ECOGEN, once again taking a step ahead, to launch low noise gensets, complying with phase-II noise norms and entering a new era of silent technology gensets. BPSL is committed to provide total Power Solution depending upon customer needs by manufacturing Portable Generators, Inverters, Home UPS. To provide complete Power Solution to its esteemed customers under one roof company has recently started opening POWER SHOPPEE across the country.

PROMOTERS: The Company was promoted jointly by Tunghabhadra Industries limited and Yamaha Motor Co. limited, Japan.

C. Company milestone:
1985 - 160 shares allotted to promoters, directors, etc. 79,99,840 shares then issued at par out of which the following shares were reserved & allotted: 20,80,000 shares to Yamaha Motor Co. Ltd., Japan, 20,79,840 to Tungabhadra Industries Ltd., other associate Indian companies, directors, etc. & 11,290,000 shares to Pratap Malapani. Out of remaining 27,20,000 shares, 1,36,000 shares to the Company employees including working directors & 54,400 shares to business associates were reserved and allotted on a preferential basis. The balance 25,29,600 shares were offered for public subscription during November/December. 1997 - The Comp. was discharge from the purview of BIFR under the sic industrial companies [Sp. Provisionss] Act, 1965. - Genset manufacturer Birla Yamaha would be launching single battery inverters in April. - Birla Yamaha Limited, a joint venture of Yashowardhan Birla group & Yamaha of Japan, is making a preferential allotment of equity shares worth around Rs.10 crore to the promoters. 1997 - The Comp. was discharge from the purview of BIFR under the sic industrial companies [Sp. Provisionss] Act, 1965. - Genset manufacturer Birla Yamaha would be launching single battery inverters in April. - Birla Yamaha Limited, a joint venture of Yashowardhan Birla group & Yamaha of Japan, is making a preferential allotment of equity shares worth around Rs.10 crore to the promoters. 2002 In the year 2002, the company has acquired the stake of Yamaha Motor Company

Japan. BPSL have become one of the few Indian Companies to buy out the equity of our MNC partner. Today, company has become totally self sufficient in all aspects. BPSL is entering into a new era with constant emphasis on state of - the - art R &D and insistence on quality products.

VISION AND MISSION:-

Vision:
The Yash Birla Group would be on the forefront of Indian industry, while expanding its global footprint and carrying forward the legacy of the Birla name by pursuit of excellence driven growth on the bedrock of our ideals.

Mission:
We at the Yash Birla Group will continually strive to add value for all our stakeholders, employees and customers. Guided by intelligent thought, maturity and integrity, we will work together as a family to create wealth and well being. As good corporate citizens, we will always uphold our code of ethics. We value sincerity, effort and merit, and will always act as responsive and responsible citizens wherever we are present.

MANAGEMENT TEAM:

Name M S Arora N Nagesh N Nagesh P V R Murthy P V R Murthy Rajesh V Shah S K Sharma Upkar Singh Kohli Y P Trivedi Yashovardhan Birla

Designation Additional Director Co Secretary & Compliance Officer Secretary CEO Managing Director Independent Director Asst.VP-F&A Independent Director Independent Director Chairman / Chair Person

Mr. Yash Birla - Chairman

Scion of Birla clan, Mr. Birla has done his masters in commercial stream and obtained a degree in law. He took over the reins of the group at an early age of 23 and has been heading the group successfully by setting very high standards of performance in all areas of businesses for the past 16 years.

Mr. P.V.R. Murthy - Group Director Finance, Legal, HR, Strategy, Corporate Communications
A Chartered Accountant and an MBA with over 30 years of experience in the finance sector, with an unmatched reputation in the industry. He has worked in the top management team in companies like Sunflag Group of Companies, Aryaman Financial Securities Ltd.

Geographics:-

DEALERS NETWORK

North Region
Delhi / NCR Uttar Pradesh/Uttrakhand Jammu & Kashmir Rajasthan

South Region
Andhra Pradesh Kerala Tamil Nadu Karnataka

East Region
W.Bengal North- East Bihar & Jharkand Orissa

West Region
Madhya Pradesh Gujarat Maharashtra Haryana/Punjab

ORGANIZATIONAL STRACTURE:-

President

KEY FACTS AND FIGURE:

No of Employees:
There are 550 employees in the company out of which around 200 are skilled workmen most of them are ITI educated. Work culture at the factory is very cordial and in the last 3 years, there has been no loss of production due to industrial related issues.

Quarterly Performance:

Quaterly - Birla Power Solutions Ltd.

Dec'11 Sep'11 Jun'11 Mar'11 Dec'10 INCOME: Net Sales Turnover Other Income Total Income 99.76 0.01 99.77 89.37 0.01 89.38 93.42 0.00 93.42 95.06 0.03 95.09 81.21 3.52 84.73

2. Product and services:

Silent Portable Generators

The Ecogen Generator range is the world's first co friendly low-emission, low noise generator made of high-tech Alloyed components. The generator is packed with featnres such as fuseless circuit breakers, fan system and an Acoustic cover to reduce noise significantly.

Higher Capacity Silent Generators

The Company's range of higher capacity Gensets (7.5KVA - 40KVA) addresses to demands of the telecom, defence and other institutional customers.

5 KVA DIESEL GENSET

The 5 kva Portable Genset range is the India t first co friendly low-emission, low noise Diesel generator made of high-tech alloyed components. The generator is packed with Features such as fuse less circuit breakers, Tamperproof oil alert system, pilot, lamp, Non fuse Breaker, Reverse and an Acoustic cover to reduce noise significantly.

Alternate Fuel Based Generators

The Company has also introduced a range of LPG/CNG generators for domestic and institutional customers. This provides our customers with an econo -mical and environmentally.

Multi Purpose Engines (MPEs)

The power packed MPEs can playa number of varied roles and can substitute machines such as floor polishers, concrete mixers and rail drilling machines among others.

Pumpsets
The Birla Ecoshakti 4 stroke pumpset redefines reliability and also provides unmatched power, which means more power per drop of fuel.

Sprayer The Company has also introduced a range of Sprayer for domestic and institutional customers. This provides our customers with an economical and environmentally friendly means to meet their energy needs.

Inverters
Inverters are available in a wide capacity range of 1OO VA to as high as 10KVA.The most popular range is the 500/800/1500 VA that enables the user to run fans,tube lights and a television set.

Batteries
Birla Power Battery is an Industrial Non Automotive battery. The heavy duty thick lead terminals aid in better connection and also help in providing minimum voltage drops in the circuit.

Power Tiller
The Company has also introduced a range of Power Tiller for agriculture and Farm customers. This provides our customers with an economical and environmentally friendly means to meet their energy needs.

Lawn Mower
The Company has also introduced a range of Lawn Mower for domestic and institutional customers. This provides our customers with an econo - mical and environmentally friendly means to meet their energy needs.

Y B Series
The Ecogen Generator range is the world's first co"friendly low-emission, low noise generator made of high"tech alloyed components. The generator is packed with featnres such as fuseless circuit breakers, fan system and an Acoustic cover to reduce noise significantly.

3. FINANCIAL ANALYSIS:
A .Revenue / sales turnover:

B .Operating profit, net profit, share value:

C .Liquidity position or profitability of the company:

Mar11 Mar10 Mar09 Mar08 Mar07

D. Cash flow statement:

E. Market capitalization: (Rs Cr.): 109

F.P/E ratio (profit earnings ratio): 12.50

Share value:
Face Value (Rs):1.00 Book Value / sh. (Rs) :2.41

Latest Div. (%):7.50 Div. Yield (%):N.A. P/B Ratio (x):0.21

4. CSR Initiatives;
The Birla group has been in the forefront among others in envisioning a larger societal purpose of giving back to society manifold. As a corporate citizen with enduring relationships, the Birla group has a history of collaboration with communities whether in building temples, educational institutes or in setting up hospitals for the public good. The Group has upheld its family tradition of earmarking a portion of the income for community service because it believes in fulfilling one's dharma. Therefore, the Group portrays its spiritual conscience in all its philanthropic initiatives. The Birla Group has consciously chosen this path, an expression of a commitment that goes beyond organization. Corporate Social Responsibility has always been an integral part of the Yash Birla Group ever since the days of Rameshwardas Birla. Having contributed to Indias freedom struggle by propagating Mahatma Gandhis ahimsa and non-violence, today, the Birla group is associated with mobilizing funding and supporting many charitable institutions. The group defines Corporate Social Responsibility as engaging in socially responsible employee relations and making a commitment to the community around it. We, at Yash Birla Group contribute the same level of commitment to our Corporate Social Responsibility as our other businesses by actively contributing in social and economic development of the poor & needy.
Our focus areas are:

1. MATRI SEVA SADAN CHARITY TRUST

General Unit
Help in Educational & Medical Relief for the poor and needy as a General Charity

Educational Unit
Educational Institution at Pilani as Birla School of Nursing, Pilani, Rajasthan Birla College of Nursing, Pilani, Rajasthan

Hospital & Medical Unit

Medical Institution at Pilani & Mumbai as Dispensary at Sagar Tarang, Nepean Sea Road, Mumbai Birla Sarvajanik Hospital, Pilani, Rajasthan

2. BIRLA INDUSTRIES GROUP CHARITY TRUST

General Unit
We are giving help for General Charity as Educational & Medical Relief to poor & needy persons

Medical Institution
Medical Institution at Jabalpur & Mumbai as Shri Rameshwardas Birla Dharmarth Aspatal, Jabalpur Yeoor Dispensary, Thane

Educational Institution
Educational Institution at Mumbai as Gopi Birla Memorial School, Walkeshwar, Mumbai

3. ASHOK CHARITY TRUST

Guest Houses for Pilgrim as Ashok Vatika, Sonprayag, Uttaranchal Shri Gajanan Birla Dharmarth Hostel, Jabalpur, M.P Smt. Gopibai Birla Guest House, Dwarka, Gujarat Smt. Sharadadevi Birla Dharamshala, Udupi, D.K

4. SUJATA BIRLA CHARITY TRUST

Provide help for General Charity as Educational & Medical Relief to poor & needy people

5. SHARDADEVI BIRLA MEMORIAL FOUNDATION

Provide help for General Charity as Educational, Medical & Relief of poverty to poor & needy persons

6. RAJA BALDEODAS BIRLA CHARITABLE TRUST

Provide help for General Charity as Educational & Relief of poverty to poor & needy persons

7. YASH SOCIETY
Medical Institution at Nasik & Mumbai as
Sujata Birla Hospital & Medical Research Centre, Nasik Road, Nasik Birla Charitable Dispensary Ayurvedic, C.P. Tank, Mumbai

8. JAPANESE BUDH MANDIR VIHAR TRUST

Budh Mandir at Worli, Mumbai

9. SUNANDA MEDICAL INSTITUTE

Dispensary at Laltappar, Deharadun

10. SUNANDA EDUCATIONAL SOCIETY

Provide educational help as General Charity

11. SUNANDA CHARITABLE SOCIETY

Provide help for General Charity as Educational & Medical Relief of poverty to poor & needy persons

12. SHREE RAM MANDIR SOCIETY

Shri Ram Mandir at Nasik

13. MADHU MANGAL SOCIETY

Provide educational help as General Charity

14. ASHOK BIRLA FOUNDATION

We are giving help for General Charity as Educational & Medical Relief of poverty to poor & needy persons

15. SUNANDA BIRLA FOUNDATION

Provide help for General Charity as Educational & Medical Relief of poverty to poor & needy persons

16. SUJATA BIRLA FOUNDATION

Provide help for General Charity as Educational & Medical Relief of poverty to poor & needy persons

17. BIRLA CHARITY TRUST Guest Houses at Mumbai & Nasik as

Fanaswadi Dharamshala, Fanaswadi, Mumbai

5. Key Competitors: Market Scenario:Indias thrust on achieving higher economic growth rate has intensified construction activities all across the country. This has also created huge demand for power supply. According to some market research, there is a demand-supply gap of about 17% in power generation. This has thrown open huge market opportunities for the power backup providing companies. The power backup market in India is growing at an annual rate of 15-20%, varying within the three different segments. India is now the fifth largest power market in the world. The per capita electricity consumption in the country is around 665 units which is envisaged to increase to 1,000 units by 2011-12.

Good opportunity continues to exist in power sector in India due to growing gap between demand and supply. The demand for power is typically driven by sectors such as Telecom, Commercial construction, IT, ITES, Retail, etc.

The present domestic market share of BPSL Generators is around 32%. Till date, the company has more than 4.25 lakh satisfied genset owners in every nook and corner of the country. BPSL has a network of more than 600 dealers spread throughout the country. These dealers are given extensive training and are well equipped to provide efficient after sales services for generators.

Competitors:-

6. SWOT Analysis;

STRENGTHS:
BPSL enjoys strong brand recognition and recall. BPSL has almost a complete range of products making it a single window for power solutions. The plants of the company are ISO 9001 and ISO 14001 certified by Underwriters Laboratories Inc., USA. All products manufactured by the Company are fully emission compliant and ISI marked. BPSL has a very strong dealer distributor network through which the products of the company are marketed and sold. BPSL has tied up with global players like Kipor to have a technological edge. The manufacturing facility of the company is situated on the main high way between Haridwar and Dehradun which is well connected with Delhi by road / rail and there is an abundance uninterrupted power supply.

WEAKNESS

Lack of new product launch after the exit of foreign partner has resulted in a decline in the market share for BPSL. BPSL is operating in the lower range of in house engines & pumps, which is a highly competitive segment.

Opportunities
The Company can increase its market share by expanding capacity. The Company plans to introduce higher KVA gensets and water pumps to capitalize on growing demand in this segment. It can increase market share in the mid-size gensets market by increasing institutional sales. Increase presence in the agricultural and construction sector by offering a higher range of diesel engines. Export market is still untapped specially for engines, alternators, Inverters. Erratic power situation in the semi urban & rural towns has resulted in increase in demand. Power requirement of consumers increasing opportunity for adding new higher capacity products Rural demand improving Shift towards LPG/ CNG based gensets has opened new avenues for the company.

THREATS Portable genets industry growth has shown decline in recent times.
Cheaper products from China are giving stiff competition to local players.

7. Recent Development:-

BIRLA POWER ARM EYES JV WITH US FIRM IN SOLAR ENERGY

The diversified Yash Birla Group is likely to sign a joint venture agreement with a US-based company to set up and maintain solar power plants in India. According to sources, Birla Urja Ltd, a power utility subsidiary of Birla Power Solutions Ltd., (BPSL), is in advanced stage of talks with the US-based solar energy service provider, which manages over 300 sites globally. The proposed JV will focus on building; managing and maintaining grid connect solar power plants for BUL. It is learnt that the US firm has been developing, financing, operating and monitoring solar plants for two decades. An email sent to Yash Birla Group spokesperson did not elicit any response. Recently, the group announced that Birla Power Solutions Ltd., (BPSL) will invest Rs 3,000 crore to set up a 600MW coal-fired thermal power plant that will be commissioned within the next three years under Birla Urja Ltd. BPSL will additionally invest Rs 2,000 crore to set up 125MW of solar photo-voltaic power plants over the next three years. In the first phase, the allocation will be divided as: Haryana (10 MW), Uttarakhand (5 MW), Rajasthan (5 MW) and Andhra Pradesh (50 MW). BUL has already applied for allocation of 300 acres from the Andhra Pradesh Government for setting up a 50 MW solar PV grid Connect Power Plant and already applied for licenses for setting up these Photovoltaic grid Connect Power Plants, a person close to the development said. Photovoltaic (PV) is popular method for converting energy from the sun into electricity by using solar cells. Solar PV cells convert solar radiation into direct electricity.

The company has recently launched POWER TILLER in the brand name BIRLA HARIT. The Diesel Engine of 11.5 HP used in it has been manufactured by YANMAR, THE GLOBAL LEADER OF ENGINE MANUFACTURING, with their latest technology. This Power Tiller will be very useful particularly to the farmers having small & medium land holdings. The products are extremely compact, light weight, portable and efficient and shall be very popular in the farming community because of their reliability, low maintenance and low running cost. In a nutshell, it shall offer VALUE FOR MONEY TO THE FARMERS.

BIRLA EICHER

Birla Power tiedup with TMTL(Eicher) for manufacturing of DG's with Eicher brand of Engines. Eicher Engines (A Unit of Tafe Motors & Tractors Limited) having state of the art manufacturing unit at Alwar in Rajasthan produces a wide range of world class air cooled & water cooled engines ranging from 17.8 BHP to 57 BHP in technical collaborations & tie-ups with Valtra" Finland, 'Ricardo' England, AVL and other reputed companies. The engines are suitable for a range of 7.5 KVA to 45 KVA Diesel Generating Sets.

8. Company Outlook:-

Future Plans:

Birla Power to invest Rs 5,000 cr in thermal & solar power projects. Birla Power Solutions will invest nearly Rs 5,000 crore to set up thermal and solar power projects in the next three years, according to Chairman Yash Birla. Mr Birla on Wednesday said his group has floated a special purpose vehicle (SPV) Birla Urja to run the power business. Birla Power holds a 51% stake in the SPV, while the balance is with group companies.

According to him, his group will set up 600 mw of thermal power plant capacity in Maharashtra and 125 mw solar power capacities in Andhra Pradesh, Rajasthan, Uttaranchal and Haryana. The investments in the power projects will have a debt-equity ratio of 70:30. The equity component will be funded through various options, including contribution from the promoters and private equity funds, while debt will come from institutions like State Bank of India and Power Finance Corporation, Mr. Birla said.

However, analysts are unclear on how the group will fund such large projects. A power analyst said Mr. Birla needs to chip in least Rs 1,500 crore to finance the projects. The present market capitalization of Birla Solutions is Rs 160 crore. The stock gained 10% to close at Rs 3.91. Birla Cotsyn , another company of his group, is valued at Rs 120 crore.

Half of the power generated from the plants will be sold to state distribution companies, while the balance will be for the captive use of group facilities, said Mr. Birla. Meanwhile, Birla Power on Wednesday informed BSE that its board would meet on March 25 to discuss the fundraising options.

Future Plans:
Recognizing the need of the market, we are working towards introducing newer products with specific emphasis on agricultural segment. In the financial year 2011-12, we are expecting to launch Diesel Pump Set and Power Tiller. We realize, with government''s initiatives on farm mechanization, these products will be in great demand with high growth rates. We are building on the strength of last year''s introduction of LED business unit. In some of the government agencies, our products have passed the testing parameters and we expect order flow to start during current financial year. Eurther the company recognizes that employees are key strength and has lately been on a drive to induct young and bright sales force. This is to ensure that we are closer to customer and helps us identify products that they need.