Towards Energy Saving
India’s need for power is huge and so is the demand for various products and small equipment used by power generation and distribution companies or others serving the power sector. Genus Power is an interesting story thriving in that niche segment – manufacturing and distributing electronic energy meters, power distribution management projects, hybrid microcircuits, inverters, batteries, home UPS and online UPS. Its customers are spread across telecom, industry, defence and the power sector. The key strength of Genus is the value addition it brings while making these products. In many of its products, there is a strong element of software, allowing it to provide additional features and, hence, are charged at a higher price. For instance, it has launched a smart streetlight management system which has an IT-enabled automatic online monitoring system with data analysis software. This system is far superior to the traditional manually-controlled system; it not only measures the electricity consumed but also controls the on/off timings with seasonal variations using the internal real-time clock of the meter and high-efficiency low-power-consuming latching relays.

The meter has also been integrated with GPRS modem so users can communicate and get information about loads, tampering and consumption patterns. The switching time can also be changed, by using GSM/GPRS communication modules, eliminating a major source of revenue loss to electricity boards due to improper switching of the streetlights. Another feature is that it can precisely calculate the time of switching lights on and off based on the exact sunrise/sunset timings on each day for the next 100 years at precise longitudes and latitudes. This feature, which maximises electricity savings, is based on astronomical algorithms.

Genus’s software design and application also integrates electric meters with data-monitoring software leading to a reduction of losses on transmission and distribution, which is of great value to power distribution companies. During the year, it developed a wireless automated meter solution in collaboration with Dakshinanchal Vidyut Vitran Nigam Ltd. The programme involves installing wireless power meters at the premises of its industrial consumers that will drastically bring down meter-reading costs as well as power theft; the process of manual meter reading would be eventually redundant. Another innovation has been a keypad-based pre-paid electricity meter which is better than the conventional plug-in type card-based pre-paid meters. These meters ensure advance revenue collection for utilities. The current government policies promote this concept, which means a large potential market in coming years. The product is getting international acceptance too and has been approved by Brazilian utilities. Another product innovation is a modem with a built-in isolated power supply used for data transfer for home automation, intelligent buildings, automatic meter-reading, remote display, fire and security alarm systems, etc.

On the power infrastructure services side, Genus offers turnkey solutions in areas like sub-station commissioning, transmission and distribution (getting preliminary design approved, procurement of accessories such as conductors, insulators and hardware accessories, construction, setting up transmission towers, civil work, laying of cables, installation of transformers). Genus hopes that if a part of the target of rural electrification under the Rajiv Gandhi Grameen Vidyutikaran Yojana is met, it will mean large orders for years. This scheme targets to set up at least a 33/11KV substation, village electrification infrastructure with at least one distribution transformer in a village or hamlet, and standalone grids with generation, where grid supply is not feasible.

The demand for Genus’s products and services and its continuous innovation shows in its financial results. It ended 2007-08 with a 32% rise in turnover and 52% rise in operating profit. At the current price of Rs462.20, the market-cap is 9.52 times the operating profit and 1.53 times its operating revenues for 2007-08. A 20%-25% annual growth looks reasonable and, from that perspective, the stock is undervalued.

  • Like this story? Get our top stories by email.


    We are listening!

    Solve the equation and enter in the Captcha field.

    To continue

    Sign Up or Sign In


    To continue

    Sign Up or Sign In


    online financial advisory
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    28 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 4 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)