Bluearth Energy Private Limited
Grading Drivers
ICRA has assigned SP 2D grading* to Bluearth Energy Private Limited indicating ‘High Performance
Capability’ and ‘Weak Financial Strength’ of the channel partner to undertake solar projects. The
grading is valid for a period of two years from the date of assignment of grading i.e. till March 19, 2017
after which it will be kept under surveillance.
Strengths
 Strong technical and managerial acumen as well as relevant prior experience of one of
the promoters
 Bulk orders fetched from institutional clients, which reflects adequate quality of
products supplied and services offered, and also provides revenue visibility in the near
term
 Ability to offer customized solutions through internally developed electronic
components and remote monitoring systems
Risk Factors
 Small scale of current operations with low geographical diversification; however, the
company is in the process of expanding its business across geographies
 Limited number of manpower at present; expansion of manpower would remain critical
to business growth
 Increasing competition from a large number of players in the solar system integration
business, which is likely to exert pressure on margins and revenue growth
 Low tangible net worth relative to total outside liabilities
SI Related Business – High
Performance Capability
Fact Sheet
Bluearth Energy Private Limited
*
Date of Incorporation
28th May 2012
Office Address
F/152, South S. K. Puri, Boring Road, Patna – 800 001,
Bihar
Mr. Mukul Milind Ojha
Mr. Awadh Bihari Ojha
Incorporated in May 2012, Bluearth Energy Private Limited (BEPL) is engaged in system
integration of solar photo voltaic (SPV) projects. The company at present operates
primarily in Jharkhand and Bihar, and is in the process of expanding presence in the
states like West Bengal, Uttarakhand, Uttar Pradesh, etc.
Directors
Promoter Track Record: Till February 2015, BEPL installed/sold SPV systems of around
303 KWp. The key promoter, Mr. Mukul Milind Ojha, possesses high technical and
managerial acumen as well as relevant prior experience. An electrical engineer from IIT,
Delhi, and a PGDM from IIM, Ahmedabad, Mr. Mukul Milind Ojha has worked in a number
of recognized technology based companies in his professional career of 12 years, and
also held a leading position in a reputed company in the solar technology space before
setting up BEPL. Another promoter and founder director of BEPL, Mr. Awadh Bihari Ojha,
is a senior advocate. He primarily remains involved with the statutory and legal matters of
BEPL.
Technical competence and adequacy of manpower: BEPL has installed a significant
number of SPV systems for solar powered water pumps used in rural water distribution
systems as well as solar powered petrol pumps. For the solar powered water pumps, the
company has developed a system for remotely monitoring the performance of the SPV
The grading is for Solar PV
system and the volume of water distributed on a daily basis. It also offers remote
monitoring services for other SPV projects. BEPL has also internally developed some
ancillary components, and undertakes assembling of the same to provide customized
solution to its customers. However, the extent of backward integration in its operation is
low.
Apart from the key promoter Mr. Mukul Milind Ojha, the technical team of the company
comprise of three other technical persons. The second tier management of the company
includes an electrical engineer from IIT, Delhi, having 14 years of experience in
development of electronic system designs, and a graduate electrical engineer with
relevant experience of around 3 years. BEPL, in its technical team, has another graduate
engineer who is engaged in development of data management system, and three other
employees who have limited educational qualification, but are experienced in electrical
workmanship and carry out maintenance and installation works for BEPL. The company
has also appointed an advisor for management of human resource processes, having
adequate academic qualification, and a procurement and accounts manager as part of the
company’s second tier management. The company has a small scale of operations and
limited number of manpower at present. Expansion of manpower would remain critical to
its business growth.
Quality of suppliers and tie ups: BEPL procures components from recognized
suppliers. Solar modules are purchased from suppliers like Vikram Solar Pvt. Ltd. and PV
Power Technologies Pvt. Ltd. It purchases Kaco make inverters from the Indian channel
partner of Kaco New Energy, Germany. Inverters are also purchased from companies like
Emerson, Sukam and Luminous. Batteries are procured from Luminous, as well as from
Exide from time to time. BEPL assembles charge controllers and also procures from
suppliers, as per requirement. DC solar pumps are mostly procured from Rotmag,
whereas Shakti Pump make AC pumps are normally purchased. At present, BEPL does
not have any long term agreement or technology tie-up with any the suppliers.
Customer and O&M Network: At present the company primarily operates in Jharkhand
and Bihar. However, it is in the process of expanding presence in the states like West
Bengal, Uttarakhand, Uttar Pradesh, etc. It has three branch offices at present, and has
tie-up with three distributors. The company, as a vendor of an established contractor in
the field of environmental planning & management, has installed solar powered water
pumps in more than 40 water distribution systems in rural Bihar, which belong to a project
undertaken by public health & engineering department (PHED) of Bihar. The company
has also secured orders for similar projects from another contractor, and has pending
orders for solarization of around 300 water pumps. The company has also solarized
around 70 petrol pumps owned by dealers of Indian Oil Corporation Ltd (IOCL), and is in
the process of installing a 20 KWp SPV system for solarization of IOCL’s bottling plant in
Kalyani, West Bengal. BEPL also have other institutional clients and individuals in its
customer portfolio. The company offers annual maintenance contract (AMC) including
extended period of warranty for the components for up to 5 years, depending on
customers’ requirement.
Bulk orders generated by BEPL from reputed institutional clients reflects adequate quality
of products supplied and services offered, and also provides revenue visibility in the near
term, at least. Nevertheless, increasing competition from a large number of players in the
solar system integration business is likely to exert pressure on margins and revenue
growth of players like BEPL going forward.
The overall performance capability is high.
Financial Strength – Weak
Revenues
Return on Capital Employed (RoCE)
Total Outside Liabilities/Tangible
Net worth
Interest Coverage Ratio
Net-Worth (Promoters + Entity +
Group)
Current Ratio
Relationship with bankers
BEPL’s revenue stood at a modest level of Rs.
1.54 crore in 2013-14. Till February 2015 in the
current fiscal, the company has achieved a
turnover of Rs. 1.53 crore.
Comfortable return on capital employed of
52.55% during 2013-14, on the back of less
capital intensive nature of operations.
The ratio stood at an aggressive level of 4.25
time as on 31st March 2014.
Strong interest coverage of 14.68 time in 201314, aided by low financial expenses.
The net worth of BEPL stood at a low level of
Rs. 0.16 crore as on 31st March 2014. The
promoter’s net worth is valued at Rs. 1.7 crore.
No other group entity’s net worth has been
reported. The aggregate net worth of the entity
and promoter stands at a modest level.
The ratio stood at a moderate level of 1.24 time
as on 31st March, 2014.
Positive feedback has been received from the
banker about the company’s financial discipline,
promoters’ strength and general conduct.
The overall financial profile is weak.
March 2015
For further details please contact:
Analyst Contacts:
Mr. Jayanta Roy, (Tel. No. +91-33-22876617 / 22800008)
[email protected]
Relationship Contacts:
Mr. Jayanta Chatterjee (Tel. No. +91 33 7150 1100)
[email protected]
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