by Sohini Bagchi    Aug 10, 2005

North Delhi Power Ltd (NDPL), a joint venture of Tata Power and The Government of Delhi, has announced that it will be using SAP R/3 for it’s ERP requirements. NDPL is the third company in the Indian power sector — after National Thermal Power Corporation and Power Grid Corporation — to opt for SAP implementation.

Speaking on the implementation, President and CEO, SAP South Asia, Alan Sedghi, remarked, “When implemented, the SAP solution will enhance NDPL’s strategic planning capabilities and streamline operations. With the complex nature of electricity retailing, it has become essential for companies to adopt technology solutions early so as to prepare for the open access era in power distribution.”

With this module, NDPL hopes to achieve a three-pronged objective. It expects to generate multi-dimensional cost information to facilitate competitive, flexible, customized pricing decisions for consumers; integrate finance, inventory management and project implementation in a seamless, dynamic manner; and implement a transparent, objective, goal-oriented HR tracking process to enhance productivity and performance.

Sedghi feels that the power utility business all over the world is undergoing a change and it is important that flexibility is maintained in all the processes within an organisation to meet these changes.

“The strategic objective of any power utility planning to go for implementation of an ERP solution should be threefold: Flexibility in operations, customer focus and reduction of the total cost of ownership of IT infrastructure. From this perspective, SAP will facilitate the availability of cost data on a multi-dimensional basis to allow for robust decision-making in place of intuitive decision-making, which is often prone to error,” Sedghi explained.

“With a customer base of 0.8 million, recording thousands of transactions each day, we consider this selection as a vital move for extensive distribution of its operations, personnel and assets,” commented Sunil Wadhwa, Chief Financial Officer, NDPL.

On the benefits of selecting this ERP, he said, SAP was chosen because it offers ready-made solutions with a range of options that reduces the need for customization and makes implementation smoother.

We needed a system that consistently captures information online and facilitates a uniform way of conducting our operations so that we are in a position to control our business and plan our strategies more proactively,” said Wadhwa.
Wadhwa believes that this ERP implementation can bring down the internal cost of operation of the Rs 1,500-crore company, by using its resources more effectively and increasing the plant availability. Moreover, according to him, improved billing and invoicing and reduced collection time for bills will have a direct impact on the bottom line and improve profitability.

NDPL has chosen SAP consulting as the implementation partners. The solutions will be implemented across 15 locations, which may be scaled up later. The company has set the date of implementation on November 1, 2005. The company has opted for 250 licenses and plans to scale up to more than 500 in one and a half years.

Tags: SAP R/3