Industrial segment Customer relationship assessment study Customer Satisfaction Management & Measurement, IMRB International Field work duration Feb Apr 2013 Field work duration Feb Apr 2013 Central Zone & Competition 8 th May 2013

© CSMM 2013, Confidential & Proprietary Study Objectives To understand the needs requirements & expectations of Tata Power customers of the industrial segment To understand how Tata Power is perceived by the customers 1 To understand the satisfaction levels & assess how Tata Power is meeting these customer expectations To understand what drives customers loyalty To identify strengths and weaknesses of Tata Power To identify strategic improvement priorities & leveragable strengths

© CSMM 2013, Confidential & Proprietary Research design & Methodology GEOGRAPHIC COVERAGE All interviews were conducted in Mumbai. This track has been covered for the following zone for Tata Power customers. Competition was covered across Mumbai. Central Zone INTERVIEWING METHODOLOGY Blind methodology was used for conducting the interviews i.e. Customers were not informed who the sponsor of the study was. CENTRAL ZONE Goregaon Malad Borivali Kandivali Aarey Milk colony

© CSMM 2013, Confidential & Proprietary Customer Satisfaction Index CSI EXPERIENCE INDEX LOYALTY INDEX Dissatisfaction Index * Dissatisfaction index has been calculated using the bottom box scores for all the aspects considered for the CSI score.

© CSMM 2013, Confidential & Proprietary Customer Satisfaction Index Customer Satisfaction Index Experience Index Loyalty Index LT All Total Customer Satisfaction Index HT Direct Chang eover Base: BEST RIL

© CSMM 2013, Confidential & Proprietary Metering and Billing Electricity Supply Payment Process 2% 1% Additional process with high dis-satisfaction Bottom 2 snapshot DRIVERS (in order of impact) Bottom 2 box Customer Relation Centre 13% Complaint / query handling by Call Centre 15% Complaint Handling 80%

© CSMM 2013, Confidential & Proprietary Drivers of Loyalty – Overall Experiences Loyalty Payment Process Impact wise Rank All Total Top 2 Box % All Total Bot 2 Box % Top 2 % (Excellent + V.Good) Bot2 % (Fair + Poor) % 1% Metering and billing Metering and billing % 2% Electricity Supply % 1%

© CSMM 2013, Confidential & Proprietary Customer Experiences Top 2 % (Excellent + V.Good ) 45% 29% 25% Base : TATA Power TATA Cable type TATA Customer typeCompetition LTHTDirectChangeoverBESTRIL  88  33* *  84  20*  *25* 50* 0* * 100* 22* * 52* 12* 39 94*  20* 50*0* - 0* 0* 13* 0* Base : Scores in RED indicate high bottom 2 => 20 * : Low Base < 30 Impact % Competition Scores significantly higher/ lower than TATA Power     Scores significantly higher/ lower than TATA Power TATA Power is performing better among HT consumers. Dissatisfaction is mainly around the areas of Complaint Handling and Relationship Building.

© CSMM 2013, Confidential & Proprietary Metering and Billing Top 2 % (Excellent + V.Good ) 45% 47% 36% 17% Base : TATA Power TATA Cable type TATA Customer typeCompetition LTHTDirectChangeoverBESTRIL  88  33*  100  34*   72  28*   94  31*  84  38* Base : Scores in RED indicate high bottom 2 => 20 * : Low Base < 30 Impact % Competition Scores significantly higher/ lower than TATA Power     Scores significantly higher/ lower than TATA Power TATA Power is performing well across segments. Dissatisfaction is mainly around the areas of Timeliness and regularity of receiving bills.

© CSMM 2013, Confidential & Proprietary Electricity Supply Top 2 % (Excellent + V.Good ) 29% 40% 33% 27% Base : TATA Power TATA Cable type TATA Customer typeCompetition LTHTDirectChangeoverBESTRIL * * *54* 100* 61* 0* * *50* 100* 57* 0* Base : Scores in RED indicate high bottom 2 => 20 * : Low Base < 30 Impact % Competition Scores significantly higher/ lower than TATA Power     Scores significantly higher/ lower than TATA Power Dissatisfaction for Tata Power is mainly for not Providing Intimation in case of a predetermined power cut.

© CSMM 2013, Confidential & Proprietary What is the average daily usage of Power at your establishment? Base : 92 Mean : In which season is your Power consumption minimum? Usage pattern Base : 35

© CSMM 2013, Confidential & Proprietary Voltage Fluctuation / Power cuts How often do you have voltage fluctuations in the power? TATA POWER Base : 92 More than once a month9% Once a month16% Once in 3 months15% Once in 6 months2% Less than once in 6 months7% Don't know/Can't say/ Can't remember51% Have you faced power cuts / failure in the past 6 months? TATA POWER Base 92 Yes34% No66% How many times have you faced power cuts / failures in the past 6 months? Mean : 2.40 Base : 31

© CSMM 2013, Confidential & Proprietary What was the average duration of the Power cut/failure? Base : 31 Mean : 27.90

© CSMM 2013, Confidential & Proprietary Payment Process Top 2 % (Excellent + V.Good ) 25% 54% 20% Base : TATA Power TATA Cable type TATA Customer typeCompetition LTHTDirectChangeoverBESTRIL  84  20*   97  21*  *  100*  75* 79* *  100*  75* 79* 51   94  17*   *  * 13* 46* * * * 0* * 60* 0* 1479*50* 100* 50* 83* 43* * 1471*33* 100* 50* 75* 63* 71* 1479*50* 100* 50* 83* 69* 43* 367*50* 100* 0* 67* 100* 50* 2100*0* * 0* * * 0* 2 *0* * 0* * * 0* Base : Scores in RED indicate high bottom 2 => 20 * : Low Base < 30 Impact % Competition Scores significantly higher/ lower than TATA Power     Scores significantly higher/ lower than TATA Power 15% 11% TATA Power performs relatively well on Payment process. Adequacy of reminders serves as an area of improvement.

© CSMM 2013, Confidential & Proprietary Customer Relation Centre Top 2 % (Excellent + V.Good ) Base : TATA Power TATA Cable type TATA Customer typeCompetition LTHTDirectChangeoverBESTRIL 1132*25* 50* 0* * 100* 22* 1118*25* 0* 0* 29* 100* 29* 1127*13* 67* 0* 43* 100* 29* 1136*38* 33* 0* 57* 100* 29* 1127*38* 0* 0* 43* 100* 14* 1145*25* 100* 0* 71* 100* 14* 1136*13* 100* 0* 57* 100* 14* Base : Scores in RED indicate high bottom 2 => 20 * : Low Base < 30 Competition Scores significantly higher/ lower than TATA Power     Scores significantly higher/ lower than TATA Power Wait time at the Customer Relation Center, Knowledge level of the Executive and Promptness in resolving queries, score lower especially among LT consumers

© CSMM 2013, Confidential & Proprietary Complaint / Query Handling By Call Centre Top 2 % (Excellent + V.Good ) Base : TATA Power TATA Cable type TATA Customer typeCompetition LTHTDirectChangeoverBESTRIL * 52* 12* 39 94*  20* * 20* 7* 11* 100*  25* *  70*  7*  48* 50* 17* * 25* 0* 22* 100*  25* * 25* 7* 15* 100*  17* *  70*  7*  48* 100* 8* 41 19* 65* 29* 48* 100* 17* * 45* 14* 48* 100* 17* * 75* 29* 63* 100* 25* *  70*  7*  48* 100* 25* Base : Scores in RED indicate high bottom 2 => 20 * : Low Base < 30 Competition Scores significantly higher/ lower than TATA Power     Scores significantly higher/ lower than TATA Power Ease of navigating the IVR, Wait time before getting connected to the executive and Time kept on hold score low among HT consumers.

© CSMM 2013, Confidential & Proprietary Complaint Handling Top 2 % (Excellent + V.Good ) Base : TATA Power TATA Cable type TATA Customer typeCompetition LTHTDirectChangeoverBESTRIL 50*0* - 0* 0* 17* 0* 50*0* -- 0* 0* 17* 0* 50*0* -- 0* 0* 17* 0* 50*0* -- 0* 0* 17* 0* Base : Scores in RED indicate high bottom 2 => 20 * : Low Base < 30 Competition Scores significantly higher/ lower than TATA Power     Scores significantly higher/ lower than TATA Power

© CSMM 2013, Confidential & Proprietary Attitudinal Loyalty Top 2 % (St. Agree + Agree) Base : TATA Power TATA Cable type TATA Customer typeCompetition LTHTDirectChangeoverBESTRIL *  51  * 74  49  *  53  Base : Scores in RED indicate high bottom 2 => 20 * : Low Base < 30 Impact % Competition Scores significantly higher/ lower than TATA Power     Scores significantly higher/ lower than TATA Power

© CSMM 2013, Confidential & Proprietary Behavioral Loyalty Top 2 % (Extremely Likely + Very Likely) Base : TATA Power TATA Cable type TATA Customer typeCompetition LTHTDirectChangeoverBESTRIL *  44  *  36  *  42  Base : Scores in RED indicate high bottom 2 => 20 * : Low Base < 30 Impact % Competition Scores significantly higher/ lower than TATA Power     Scores significantly higher/ lower than TATA Power

© CSMM 2013, Confidential & Proprietary The way forward How do our customers perceive us? Tata Power is seen to be much better than Competition.HT consumers have rated Tata power higher than others. Tata Power is not seen as Responsive /Proactive to consumer needs and nor as a Technologically advanced company The landscape The CSI score is 70. The Loyalty index is higher (93) compared to the experienced index (47) The DSI is 0 among the Commercial customers Additional analysis Over 90% of the customers are in the Accessible or Truly Loyal zones. Only 27%, i.e. One in four customers have a lower emotional connection to the company – i.e. are Trapped or High Risk. About 79% of Direct customers are Truly Loyals. Future.. Ensuring that operational issues with the Payment Process, Metering and Billing are resolved. Focusing on service and process level initiatives to win back the dissatisfied customers. What is our customer experience? Reliability of electric supply has emerged as a leveragable strength. Payment Process, Metering and Billing, Customer Relation Centre and Complaint handling by Call Center have emerged as the key improvement / focus areas