BUSINESS OVERVIEW 

Sugs Lloyd Ltd operates in the renewable energy sector with a primary focus on solar energy, electrical transmission and distribution, and civil EPC (Engineering, Procurement, and Construction) projects. The company provides a wide spectrum of services, including the development of power transmission and distribution infrastructure, construction of substations, and renovation, upgrading, and modification of existing power systems.

The company also delivers Outage Management Solutions (OMS) through advanced technologies such as fault passage indicators, auto-reclosers, and sectionalizers, catering to various electricity DISCOMs (Distribution Companies). In the civil construction domain, the company offers turnkey solutions for civil building construction and electrical substation projects, primarily for government clients, with a strong emphasis on serving power distribution companies.

In addition, Sugs Lloyd provides skilled manpower and staffing services to government organizations, particularly state DISCOMs, ensuring the smooth operation and maintenance of energy infrastructure. Business is primarily derived from state power utilities, private sector power entities, and renewable energy developers. Projects are typically awarded through open bidding processes with government utilities and either bidding or preferential allocation in the private sector, based on the company’s merit and performance track record.

Operations and Capabilities

The company’s business model is designed around two core activities: Supply and Service. To execute these, sequential activities are deployed with the aid of quality manpower, advanced resources, and adequate machinery. While core machinery requirements are met internally, specialized machinery is procured on a hire basis. At project sites, dedicated offices, storage facilities, project teams, and labor force are mobilized as per requirement.

Customer satisfaction remains central to operations, with an emphasis on timely project completion, safety, environmental protection, and adherence to client specifications. The company is committed to continual improvement and flexible execution, ensuring projects meet the quality requirements defined in international standards.

Sugs Lloyd is an ISO 9001:2015 certified organization for Quality Management, ISO 14001:2015 for Environmental Management, ISO 27001:2013 for Information Security Management, and ISO 45001:2018 for Occupational Health and Safety Management. This ensures delivery of work that meets strict standards in materials, workmanship, tolerances, schedules, and service quality, while maintaining profitability and competitiveness.

Leadership and Management

The promoters and senior leadership have played an instrumental role in the company’s growth. Managing Director and Promoter, Mrs. Priti Shah, along with the senior management team, brings extensive experience in commissioning and operating manufacturing capacities, finance, sales, business development, and strategic planning. Promoter and Non-Executive Director, Mr. Santosh Kumar Shah, has significant experience in the electrical transmission and distribution sector and currently serves as Chairperson of Sugs Lloyds Ltd.

The vision and foresight of the leadership team, combined with over a decade of industry expertise, have positioned the company to explore new opportunities, launch innovative products, and capitalize on the fast-growing renewable energy sector.

Financial Performance

Sugs Lloyd has delivered consistent growth in recent years. For the financial year ended March 31, 2025, the company reported a Total Income of Rs. 17,787.22 Lakhs and a Restated Profit After Tax (PAT) of Rs. 1,677.76 Lakhs. For the year ended March 31, 2024, Total Income stood at Rs. 6,875.19 Lakhs with a PAT of Rs. 1,048.43 Lakhs, while in FY 2023, Total Income was Rs. 3,635.72 Lakhs with a PAT of Rs. 229.49 Lakhs.

As on date, March 31, 2025, the company have 206 full-time employees. The Banker to the company are Punjab National Bank and ICICI Bank.

INDUSTRY ANALYSIS

Renewable Energy in India

India’s energy demand is projected to grow faster than that of any other country in the coming decades, driven by its vast population and rapid economic development. Meeting this demand sustainably requires a strong shift towards low-carbon and renewable sources. The government has already set ambitious milestones, committing to achieve net-zero carbon emissions by 2070 and ensuring that 50% of electricity needs are met through renewable sources by 2030.

Globally, India is already recognized as a renewable powerhouse, ranking fourth in wind power, solar power, and overall renewable energy capacity as of 2021. The country’s installed renewable power capacity has grown rapidly at a CAGR of 15.4% between FY16 and FY23, reaching 125.15 GW in FY23. By 2026, new renewable capacity additions are expected to double, making India the fastest-growing market for renewable electricity. With rising government support and favorable economics, the sector has also become highly attractive for investors.

As India’s electricity demand is expected to touch 15,820 TWh by 2040, renewables are positioned to play a pivotal role in ensuring energy security and sustainability.

Market Size and Growth Trends

By July 2024, India’s renewable sources, including biomass and waste-to-energy, had reached a combined installed capacity of 150.27 GW. As of October 2024, 44.72% of the total installed capacity came from non-fossil fuel sources. Research estimates suggest that renewable capacity could rise to 170 GW by March 2025, up from 135 GW in December 2023, with a long-term target of 450 GW by 2030, of which 280 GW will come from solar alone.

The country has witnessed strong momentum in solar power. India added 16.4 GW of solar capacity between January and September 2024, recording a 167% year-on-year increase. By September 2024, cumulative installed solar capacity stood at 89.1 GW, with utility-scale projects making up over 86%. Today, solar accounts for 20% of India’s total installed power capacity and 44% of its renewable capacity. The solar base has expanded 26-fold over the past nine years, reaching 73.32 GW by December 2023, with solar power alone generating 75.57 billion units in the first eleven months of FY24.

Hydropower continues to play a critical role as well. India is building 15 GW of new hydroelectric capacity, which will raise the total hydro base from 42 GW to 67 GW by 2031-32. Supported by favorable rainfall projections and government initiatives, hydropower expansion is expected to complement solar and wind growth.

Overall, India generated 189.48 billion units from renewable energy (excluding hydro) between April–December 2024, reflecting a steady rise from 172.48 BU in the same period of the previous year. By 2026, renewable energy capacity is expected to touch 250 GW, driven by a strong pipeline of projects. Northern India, with a potential of 363 GW, is emerging as a future hub for renewable energy investments.

Investments and Policy Developments

The Indian renewable energy space has become a magnet for global and domestic investors. Between April 2000 and September 2023, the sector attracted US$ 15.36 billion in FDI inflows. Investment momentum has continued to accelerate, with renewable energy investments projected to grow by 83% to US$ 16.5 billion in 2024. To achieve its 500 GW renewable target, India will require between US$ 190–215 billion in new projects, alongside US$ 150–170 billion in transmission and storage infrastructure.

Several corporations have announced large-scale renewable commitments. BPCL has earmarked US$ 1.19 billion for green energy, targeting 2 GW by 2025 and 10 GW by 2035, while Brookfield Asset Management plans to expand investments in India’s renewable space to over US$ 10 billion. Similarly, NTPC Green Energy Ltd is investing Rs. 80,000 crore (US$ 9.59 billion) in Maharashtra for green hydrogen, ammonia, and large-scale renewable projects.

The Union Budget 2025-26 has reinforced this momentum by allocating Rs. 20,000 crore each for nuclear power and the PM Surya Ghar Muft Bijli Yojana, boosting rooftop solar adoption and long-term energy security. In parallel, states such as Tamil Nadu, Gujarat, and Andhra Pradesh are seeing massive renewable project announcements worth billions of dollars from companies like Tata Power, Torrent Power, and others.

India is also diversifying into newer clean energy technologies. Initiatives include wave power development through partnerships between Eco Wave Power and BPCL, expansion of green hydrogen manufacturing capacity to 8 GW annually by 2025, and offshore wind projects with a 30 GW target by 2030.

Notable developments also include:

• 59 solar parks approved, aggregating 40 GW capacity, with mega parks like Pavagada (2 GW), Kurnool (1 GW), and Bhadla-II (648 MW) among the world’s largest.

• The 30 GW hybrid solar-wind park in Gujarat, set to be the largest renewable project globally.

• Maruti Suzuki’s Rs. 450 crore investment in solar and biogas capacity expansion, aligned with Suzuki’s ‘Environment Vision 2050’.

• Delhi’s IGI Airport becoming the first Indian airport to run fully on solar and hydro power.

Road Ahead

India’s roadmap is ambitious yet achievable. The government aims to reduce carbon intensity by 45% by 2030, achieve net-zero by 2070, and produce five million tonnes of green hydrogen by 2030. The green hydrogen market alone could reach US$ 8 billion by 2030, with electrolysis capacity requiring at least 50 GW.

By 2040, renewables could supply 49% of total electricity, aided by advancements in storage technology that could cut solar power costs by 66% compared to current levels. According to the Central Electricity Authority (CEA), renewable generation’s share will rise from 18% in 2020 to 44% in 2030, while thermal power’s share will decline from 78% to 52%.

The transition is expected to bring not only environmental benefits but also significant economic advantages, with the replacement of coal by renewables projected to save Rs. 54,000 crore (US$ 8.43 billion) annually. Moreover, the adoption of hybrid projects—particularly the addition of 15,000 MW of wind-solar hybrid capacity by 2025—will ensure a more balanced and resilient energy mix.

Power Distribution Industry in India

Power is one of the most critical components of infrastructure and plays a central role in driving economic growth and social welfare. For India, the availability and development of adequate power infrastructure remain essential to sustain long-term economic expansion. The guiding principle of the Indian power sector has been to provide universal access to affordable and sustainable electricity. Over the last decade, the Ministry of Power has worked extensively to transform India from a nation facing persistent power shortages into one with a surplus, supported by the establishment of a single national grid, strengthening of distribution networks, and universal household electrification.

India’s power sector is also among the most diversified in the world. The country derives energy from conventional sources such as coal, gas, oil, hydro, and nuclear, while at the same time making large-scale investments in non-conventional resources like solar, wind, biomass, and waste-to-energy. Electricity demand continues to rise sharply, and in order to meet this growing requirement, India needs to make massive additions to its generating capacity. Notably, India ranks fourth globally in both wind and solar capacity and is among the very few G20 nations on track to meet its Paris Climate Agreement commitments.

Market Size

India is currently the third-largest producer and consumer of electricity worldwide, with a total installed power capacity of 466.24 GW as of January 2025. Out of this, 209.45 GW comes from renewable sources, including large hydro. Within the renewable mix, solar leads with 97.87 GW, followed by wind at 48.16 GW, while biomass/co-generation, small hydro, and waste-to-energy add further diversity. This shift highlights the country’s significant strides in sustainable energy.

In FY23, India added 15.27 GW of non-hydro renewable capacity, surpassing the previous year’s 14.07 GW. Power generation also rose by 6.8% to 1,452.43 billion kWh in FY23, marking the highest growth rate in over three decades. Peak demand touched 249.85 GW in September 2024, underlining the accelerating consumption. Coal-based plants operated at a PLF of 73.7% in FY23, up from 68.5% in FY22, reflecting a rebound in thermal performance. According to estimates, the Indian power sector presents an investment opportunity worth Rs. 40 lakh crore (US$ 462 billion) over the next decade, driven by demand growth, clean energy transition, and infrastructure modernization.

Developments and Investments

Foreign investment has been a key driver of growth, with FDI inflows in the power sector reaching US$ 19.59 billion between April 2000 and September 2024. The renewable energy sector alone attracted Rs. 32,141 crore (US$ 3.7 billion) in FY24, while the solar segment received US$ 3.8 billion over the last three years. Between 2015 and 2022, India ranked fourth globally in renewable energy investments, with an allocation of US$ 77.7 billion.

Recent developments underline the sector’s momentum. NTPC’s capacity crossed 73,000 MW in July 2023, while it also announced pioneering hydrogen and energy storage initiatives. Tata Power strengthened its leadership in EV charging, partnering with Zoomcar and city authorities to expand charging infrastructure. SJVN, NHPC, and PFC have entered multiple agreements worth billions to promote pumped storage, hydro, and clean energy projects across states. Global players like Adani Group, Essar, and Norfund are also ramping up large-scale renewable investments, cementing India’s position as a global clean energy hub.

Road Ahead

The coming decade (2020–29) is expected to be transformative for India’s electricity sector. The government aims to ensure reliable access to power while accelerating the clean energy transition. Ambitious goals include the installation of 500 GW of renewable capacity by 2030, scaling up nuclear power capacity from 7,480 MW to 22,480 MW by 2031, and achieving 44% of total generation from renewables by 2030. At the same time, thermal power’s share is projected to decline from 78% to 52%.

The Central Electricity Authority (CEA) estimates that India’s power demand will reach 817 GW by 2030, highlighting the scale of future requirements. Government policies like the proposed ‘rent-a-roof’ scheme for solar rooftops, along with massive infrastructure upgrades, will create new opportunities for both domestic and international investors.

BUSINESS STRENGTHS

1. Quality Assurance and Standards
Sugs Lloyd Ltd places strong emphasis on delivering high-quality services, supported by ISO-certified systems. Stringent quality standards are implemented from the initial stage and maintained throughout service execution and assembly processes. The company ensures the deployment of the right expertise at the right place, enabling delivery of specialized services to clients. Consistent focus on quality in services, processes, and inputs has provided a competitive edge, contributing to goodwill and generating repeat business orders from long-standing customers.

2. Strong Client Relationships
The company has built a solid reputation that has enabled it to retain clients and secure repeat business over time. Long-term customer associations reflect a robust customer retention strategy and serve as a competitive advantage in expanding the client base and winning new business opportunities. Established client trust continues to strengthen market presence and foster sustained growth.

3. Scalable Business Model
The business model is designed for optimum utilization of existing resources, leveraging the expertise of a skilled development team, and consistently achieving high levels of client satisfaction. This model has proven both successful and scalable in recent financial years, allowing expansion into new sectors requiring advanced technological management while simultaneously strengthening the company’s presence in renewable energy projects. Growth is driven by the development of new markets, supported by the company’s consistent ability to maintain quality standards across all services.

BUSINESS STRATEGIES

1. Optimal Utilization of Resources
Sugs Lloyd Company emphasizes continuous improvement of service processes to ensure optimal utilization of resources. Significant investments have been made, and further investments are planned, to develop customized systems and processes that strengthen management control. Regular analysis of operational policies enables identification and resolution of bottlenecks, thereby enhancing efficiency and ensuring resources are used to their fullest potential.

2. Improving Operational Efficiencies
The company remains focused on improving operational effectiveness and efficiency to achieve cost reductions, including lowering overhead expenses. This is pursued through ongoing business process reviews, timely corrective actions in case of deviations, and technology upgrades supported by analytics. Such measures are expected to increase market share while enhancing profitability.

3. Leveraging Market Skills and Relationships
A strong emphasis is placed on nurturing customer-centric skills within the workforce to build long-term relationships. Expansion into new countries is part of the growth plan, with the objective of making services accessible in more markets. This strategy relies on leveraging marketing expertise and existing relationships to strengthen customer satisfaction. Consistent efforts are directed toward fulfilling orders on time, maintaining client trust, and renewing business ties with existing customers.

4. Building a Professional Organization
Transparency, ethics, commitment, and coordination form the foundation of the company’s operational philosophy. Strong relationships are maintained with suppliers, customers, government authorities, banks, and other stakeholders. A balance of experienced professionals and skilled staff ensures efficient handling of day-to-day operations, while external agencies are consulted on technical and financial matters as needed. The long-term goal is to build a more resilient and professional organization, capable of sustaining growth and stability.

BUSINESS RISK FACTORS & CONCERNS

1. High Concentration of Revenue from Government Sales
A substantial portion of revenue is derived from sales to government entities, which constituted 93.44% in FY 2024-25, 69% in FY 2023-24, and 45% in FY 2022-23. Such heavy dependence on government contracts exposes the business to several risks:

• Reliance on government policies, procurement procedures, and regulations

• Exposure to budgetary constraints, delays, or reduced government spending

• Limited diversification and over-dependence on a single customer segment

• Potential non-renewal or loss of contracts

• Compliance and regulatory challenges associated with government projects

2. Risks Associated with Tender Bidding Process
Tender participation involves detailed project studies and cost estimations. However, the process is subject to inherent risks that can impact financial outcomes, including:

• Inaccurate cost estimations leading to margins below acceptable thresholds

• Insufficient or unreliable project data affecting bid calculations

• Changing market conditions, regulatory shifts, or evolving customer requirements

• Intense competition resulting in aggressive pricing strategies

• Failure to secure contracts due to misaligned bidding strategies

The bid-to-win ratio has shown a downward trend:

• FY 2022-23: 16 bids, 7 wins → 44% win rate

• FY 2023-24: 84 bids, 29 wins → 35% win rate

• FY 2024-25: 32 bids, 10 wins → 31.25% win rate

This indicates increasing challenges in contract acquisition.

3. Common Pursuits with Group Companies
The company is engaged in Renewable Energy, Electrical Engineering, Engineering, Procurement & Construction (EPC), and manpower staffing. Certain activities, particularly manpower staffing, involve common pursuits with group entities. This overlap introduces risks such as:

• Coordination challenges and operational inefficiencies

• Unequal contributions or conflicts of interest

• Strategic misalignment between entities

Although these risks have not materially impacted performance to date, their potential occurrence could disrupt business operations, financial performance, and long-term growth prospects.

Summary :
Sugs Lloyd faces key risks stemming from its over-reliance on government contracts, vulnerabilities in the tender bidding process, and common pursuits with group companies. While these risks have not yet caused significant disruption, they present material challenges that could impact the company’s operations, profitability, and strategic objectives in the future.