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00:00 Let me start by just giving you a context setting to begin with.
00:04 So one of the largest themes that the society is currently experiencing is the theme of
00:10 decarbonization.
00:11 And this is a 20 to 30 year theme that will prevail across the world.
00:15 And this theme will attract capital in many parts of the entire energy value chain.
00:20 So we at Sterlite, we are offering investors an opportunity to play this theme through
00:25 multiple ways.
00:27 One of them is our manufacturing business, which is the products and services business.
00:30 One of them is a transmission BOT business.
00:33 And the third one is around the clock renewable business where we serve large CNI clients
00:37 and provide them around the clock green power.
00:40 So all of these are basically riding the same wave, which is global decarbonization.
00:46 Now coming to the question on demerger, we have this company Sterlite Power Transmission
00:50 Limited, which has two businesses.
00:53 One of them is the GPS, the global products and services business, where we have roughly
00:57 six to 7000 crores of turnover, which sells products and services that go into the global
01:03 transmission sector.
01:05 The second business is where we are a BOT operator.
01:08 We are the second largest in the country and largest in the private sector, where we build
01:12 on and operate transmission assets.
01:15 And we have more than 25,000 crores of track record in India at the moment.
01:19 Now both these businesses, while they are serving the same sector of transmission, but
01:23 they're very, very different business models.
01:26 It's like one is a cement business and one is a real estate business.
01:29 So both are very, very different.
01:30 Therefore, based on the feedback we got from advisors and investors, we have decided to
01:35 demerge these two.
01:36 One will be a standalone manufacturing and services business.
01:39 And the second one will be the BOT business.
01:41 Okay.
01:42 And if you can talk about in terms of value also, what kind of value unlocking you see
01:47 for the two businesses now, once the demerge happens?
01:51 So see, value is in the eyes of the investor.
01:56 And both of these businesses have a unique set of investors.
02:00 The investors that typically love manufacturing capital goods businesses and love the power
02:05 sector are one set.
02:07 And globally, this is a big theme.
02:09 Then there's altogether different set of investors who like long term infrastructure play and
02:14 they like to invest in annuity like assets, especially transmission assets.
02:18 So once these companies demerge, both sets of investors will be able to pick and choose
02:24 which company they want to invest in.
02:26 And generally such demergers historically have always created huge shareholder value.
02:30 As each business gets its due value, and all the investors that are interested in that
02:34 business can finally invest in that business.
02:37 Our manufacturing business has many peers.
02:40 They are doing extremely well in the stock market.
02:44 Of course, we are unlisted at the moment, we'll look at listing in the near future.
02:48 But all investors can certainly expect overall value unlocking, both as a result of the demerger,
02:54 but also as a result of the underlying tailwinds that both these sectors are currently witnessing.
03:01 If you can talk about both the businesses, what is the total order books that we have?
03:06 And what's the kind of visibility we see in the future?
03:09 Sure.
03:10 So I'll try and give you broad numbers.
03:14 Let's start with the transmission BOT business.
03:16 In transmission BOT business, like I said, we are one of the largest, if not the largest
03:21 in the private sector, and we're the second largest in the country.
03:24 We have been in this business since 2010, ever since transmission came up for private
03:30 sector to participate in that opportunity.
03:33 Now, recently, we have announced that one of the largest sovereign wealth funds in the
03:38 world, which is GIC, has agreed to partner with us in this business and will be owning
03:43 a large stake in this company.
03:46 And together we will look to build about $4 billion worth of assets in this joint venture,
03:51 which is the transmission BOT joint venture.
03:53 To give you a sense of the market size, this business, the country will award roughly $50
04:00 billion worth of transmission projects just in the next seven to eight years.
04:04 In fact, just in the current year, India will award $12 to $14 billion of transmission opportunity.
04:09 Now, from that, historically, we've had about a 20% to 25% market share.
04:14 So today we are executing roughly 12,000 to 14,000 crores of projects, and we are expecting
04:22 to win, and very soon we think we will win many more projects in that space.
04:27 So that's as far as the transmission BOT sector is concerned.
04:31 Our products business, we have an order book of somewhere between 7 to 10,000 crores currently,
04:38 and we are looking to grow.
04:39 We have three verticals.
04:40 One of them is the overhead conductor business.
04:43 Second is the underground cable business.
04:45 And third is the MSI business, where we do services using our products.
04:50 And each of the businesses are witnessing a 12% to 20% KGAR annual growth rate.
04:56 And this is driven by a very simple theme, that the whole world is looking to add renewable
05:01 energy capacity, be it North America, South America, Europe, Asia, Australia.
05:07 Every single part of the world is adding huge renewable capacity.
05:11 And each time any country adds renewable capacity, they need to build more transmission capacity.
05:17 And all of that transmission capacity requires our products.
05:20 We are amongst the top five, top eight in the world, minus China, in those products.
05:24 And therefore, we're a natural partner for most of the utilities around the world.
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