Fedco to tap townships, international markets for growth

Firm looking to collaborate with SAIL to expand business

Feedback Energy Distribution Company Ltd (Fedco), a fully owned subsidiary of Feedback Infra Ltd, is looking to tap potential segments like townships and international markets to grow its business.

The company that operates as a power distribution franchisee is actively holding discussions on collaborating with the Steel Authority of India Ltd (SAIL) to provide services. Diversification of business is expected to cut Fedco's dependence on electricity distribution utilities.

"We are looking at three to four townships and are actively in discussions with SAIL. Some private townships have shown interest in our distribution franchisee business model. The Kandla Port Trust is also interested in our model”, said Devtosh Chaturvedi, managing director, Fedco.

Fedco is also eyeing the international markets to expand its business.

"Fedco has a huge recall value in many sub-Saharan countries in Africa. We have signed a technical services partner (TSP) agreement with one of the power distribution companies (discoms) in Nigeria. Other discoms in that country have also evinced interest. As a TSP, Fedco would fill up the management positions and take the responsibility of reducing the aggregate technical & commercial (AT&C) losses”, said Chaturvedi.

While Fedco is keen to take its business model elsewhere, the power distribution franchise would continue as its flagship service. “The electricity distribution space is very scattered. There are around 51-52 discoms and out of them even if 10 show interest, it would be enough for us”, he added.

Fedco has its key business in power advisory and consulting services.

The company has been actively operating in select areas of Odisha as an electricity distribution franchise since 2012-13. In the first three years of its operations in the state, Fedco claims to have cut the AT&C loss to 36 per cent in 2016-17, from its earlier standing of 58 per cent. The AT&C reduction is the second best by any power distribution franchisee after Torrent at Bhiwandi (Maharashtra). 

Overall collection by Fedco in the same period doubled from Rs 198 crore to Rs 396 crore. In Odisha, Fedco operates in Khurda, Nayagarh, Puri and Balugaon divisions- all falling under the Bhubaneswar circle.