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Cyan wins second Larsen & Toubro smart metering order in India

Larsen & Toubro place follow-on order for 5,000 smart meters at Tata Power Mumbai

Cyan (AIM:CYAN.L), the integrated system and software design company delivering mesh based flexible wireless solutions for utility metering and lighting control, announces a follow-on order for a further 5,000 meters from Larsen & Toubro (“L&T”) to expand the deployment of Cyan’s smart metering solution at Tata Power Mumbai (“Tata Power”).

This second order from L&T, for Cyan’s CyLec Advanced Metering Infrastructure (“AMI”) solution, follows the successful implementation of 5,000 consumer smart meters in Mumbai, announced by Tata Power in July 2015:

The follow-on contract is to provide a complete AMI solution for the deployment of 4,000 single phase consumer meters and 1,000 three phase meters for high use consumers and light industrial customers. The order will be delivered to Tata Power over the coming weeks.

Discussions have now commenced with Tata Power regarding a Framework Order to meet their future needs over a multi-year period.

John Cronin, Executive Chairman of Cyan, commented, “We are delighted to have a follow-on order from L&T, providing a clear signal to customers, partners and shareholders that Cyan’s AMI communications platform is ideally suited for emerging market technical requirements as well as reconfirming our leadership position in the India smart metering market. Tata Power is pioneering initiatives in the generation and transmission of electricity and the success of this project has provided Cyan with a strong customer reference for opportunities in India.

“Cyan’s communication platform is an enabling technology, delivered through a collaborative engagement model. Our eco-system of partners supports the transfer of skills to facilitate customer ownership, demonstrating a scalable business model. Due to the training investment the Company has already made in Tata Power staff, delivery of this follow on order can be achieved without on-site assistance from Cyan staff, demonstrating the scalability of its business model.

“I would like to thank Tata Power and Cyan’s partners, L&T and NeoSilica, for their valuable contribution and look forward to their continued support to successfully deploy the next phase of this project.”

Mr. Ashok Sethi, COO & ED, Tata Power, commented, “Tata Power is committed to providing its customers with affordable, clean and abundant power. Cyan’s CyLec smart metering technology provides data to enable Tata Power to distribute power more efficiently, improving the reliability of the customer’s power supply and optimising peak power demand management. CyLec also provides customers with hourly usage patterns, empowering them to consume energy efficiently and reduce monthly bills.”

Currently, Mumbai is experiencing unprecedented growth, augmenting the demand for sustainable power. This is reflected in the growth of Tata Power’s consumer base which has increased by 50%, from 400,000 in 2014 to over 600,000 consumers today. Tata Power is India’s largest integrated power company with a growing international presence.

Cyan’s technology has been developed to address the requirements of utilities in emerging economies, of which India is one of the leaders. India has a growing population and 300 million without power(1). According to a report from Northeast Group, the Indian government will spend $21.6 billion(2) on smart grid infrastructure over the period 2015-2025. In November 2015(3), the India Ministry of Power announced a program to implement smart metering for all consumers serviced by state distribution companies with completion deadlines ranging from December 2017 for high power usage households through to December 2019 for the remainder. This will be financed via the States taking over 75% of existing State power distribution company debt (through the issuance of new 10 year bonds) together with an arrangement for the States to take over future losses of the distribution companies.