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Scope of the call

Our client is looking to understand margins and cost structure of EPC players operating in ‘Solar Rooftop/ ground mounted space’ in detail particularly for “Residential and C&I sector”. Desired Industry: Solar EPC for CAPEX route (OPEX/ Open Access may also be preferred)

A LEADING CONGLOMERATE

Expected date of call: 6/05/2024 or 7/05/2024

Minimum experience Needed: 10 Year(s)

BROAD CATEGORY

Strategy and Business Development

Sub CATEGORY

Valuations & business modelling

INDUSTRY

Electricial Utilities and Power Producers

Domain Expertise Needed

CAPEX Solar RooftopDomestic salesMargins and Cost StructureGround Mounted

Required experience in organisation like

EnerparcRoofsolHartekTata Power SolarOrb

Have worked in roles like

DirectorGeneral ManagerVP

Question You Would be expected to answer

  • What is the typical cost breakdown for an organization (like Tata Solar/ Roofsol/ other) operating in CAPEX Solar Rooftop or Ground Mounted projects in the Residential and C&I sectors?
  • What percentage of costs are typically allocated to COGS, Manpower, Marketing, WC & other costs as highlighted across different projects in different segments?
  • What is the typical headcount structure involved in residential and C&I sector projects?
  • What are the main cost drivers that impact their profitability in these projects?
  • How do economies of scale influence their cost structure in larger vs. smaller projects?
  • What is the average gross margin target/ EBITDA target for such organizations?
  • How do these companies mitigate risks related to fluctuating material costs impacting contribution margins? Is it through LTA or contractual manufacturing? Do these companies take inventory risks?
  • Any changes anticipated in the cost structures of such organization over the next few years?