When Ratan Naval Tata (RNT) took over its reins in 1991, Tata Power was a generation company serving the power needs of Mumbai. Today, with an installed capacity of 6,899 MW, it is India’s largest integrated private sector power company with a presence across the entire value chain including thermal, hydro, solar, wind and geothermal transmission, trading and distribution.
Re-jigging the company’s growth plans by looking at new regions, Tata, during his tenure as the chairman of Tata Power, took the company global. His blueprint covered five regions globally including India and its neighbourhood; the Far East; West Asia and Turkey; Africa and the Americas.
The company holds stakes in various coal mining, hydel power and transmission projects in Indonesia, Singapore, South Africa, Australia, Bhutan and Nepal.
It now remains to be seen where Cyrus Mistry takes it once he assumes charge from Ratan Tata on Friday.
The company has also gained financially. Its standalone revenues rose 22% to above Rs. 8,000 crore in 2011-12 and net profit increased 24% to Rs. 1,170 crore from the previous year. On a consolidated basis, the company crossed the Rs. 25,000- crore mark in revenues.
Ratan Tata has taken his father’s legacy forward.
Says Tata Power managing director Anil Sardana: “Tata Power has had the good fortune to be chaired by Naval Tata, RNT's father for a long period, who created a legacy in the form of productive assets, as well as building a strong culture of team spirit through initiatives like participation in sports, happy living in colonies and many more. Ratan Tata has contributed in taking the legacy forward. Through his leadership and vision, he has facilitated Tata Power's growth in opportunities beyond Mumbai. RNT's foresight and commitment to an all-round sustainable development has brought focus in areas of business growth as well as environmental, social and cultural aspects in and around the geographies in which Tata Power operates.”
The company is developing India's first 4000-MW ultra-mega power project at Mundra (Gujarat) based on super-critical technology. It has successfully created public-private partnerships in generation, transmission and distribution business in India.
These include Tata Power Delhi Distribution Ltd with Delhi Vidyut Board for distribution of power in North Delhi and Powerlinks Transmission Ltd with Power Grid Corporation of India Ltd for evacuation of power from Tala hydro plant in Bhutan to Delhi. The company is also targetting an installed capacity of 26,000-MW by 2020.
Mistry,who was inducted into the board of Tata Power on December 23, 2011, is no stranger to the company.
He had served on the its board earlier for 10 years (1996-2006).
While the future looks bright and the possibilities are immense, it would be interesting to see to what further heights Cyrus Mistry takes the company-- which now looks like an energy supermarket.