solar energy business in south asian countries

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The demand of energy is continuously increasing throughout the whole world. We have witnessed that Bangladesh and many of neighboring countries like India, Pakistan, Sri Lanka, Myanmar, Nepal, Afghanistan, Bhutan and Maldives are in need of energy. Most of the people of these countries are live in rural area and they can not get electricity.

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3Source: http://en.wikipedia.org/wiki/List_of_countries_by_electricity_consumption

All the above countries are producing energy depending on Thermal or Hydro sources. These countries use Natural Gas, Coal etc for producing energy. The stocks of these sources are limited and also cause Green house effect, Global Warming etc. So, the demand of Solar Energy is continuously increasing

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Solar energy is power from the sun's rays that reaches the earth. Using photovoltaic cells made from silicon alloys, sunlight can be converted into other forms of energy, such as heat and electricity. Steam generators using thermal collectors to heat a fluid, such as water, sometimes convert even higher amounts of solar energy into electricity.

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6Source: visual.merriam-webster.com

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A typical solar plant

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Source: www.doingbusiness.org/EconomyRankings

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Select India as our target market:-

Vast growing market.Very sunny region of the world and at mid-low

latitude.The total installed capacity barely meets

electricity demand.Highly skilled workers especially in the high-

technology sector.Power demands may rise from 120 GW to 315-335

GW by 2017.Increasing social awareness about its own villagesLikely to run out of its 60-70 billion tons of coal

reserves by 2040Government policy on renewable energy.

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Source: www.renewableenergyworld.com

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In January of 2009, the government announced significant programs to promote megawatt-plus size solar power growth:-

80% rebate incentive to solar power projects no import duty and excise tax on materials

needed for the project. loans for solar power installations. a 25 cents/kWh incentive for net-metering. mandatory solar dependence for all new

government building and multi-story building projects.

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Potential customers Residential clusters

Business office complexes

Rural townships and villages

Individual Residences

Large government power production facilities

Water-pumping

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Mode of International Business

Access to new markets and distribution networks Increased capacity Sharing of risks and costs with a partner Access to greater resources, including specialized staff, technology and finance Built long term relationship Increase business credibility by teaming up with reputable, branded businesses partner Save money on business operating costs Save valuable time to start the business Save money by sharing advertising and marketing costsExpand and grow the business quickly etc

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Source materials

The materials quality is good. Price of chinese materials are competively lowar. Chinese companies offer fastest shipping. Most of the chinese companies maintain good and successful relationship whith their business partner. Chinese solar companies give warranty for more times. They have various products at their product line

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Supply Chain

Raw material flow

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Supply Chain Continued…

Product flow

Source: Sunil Chopra, Peter Meindl, “Supply Chain Management, Strategy, Planning & Operation”, Pearson Prentice Hall,, 3rd Edition

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Fixed Cost

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Variable cost

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Variable cost continued…

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Variable cost continued…

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Variable cost continued…

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Variable cost continued…

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Variable cost continued…

Total variable cost per month

A + b + c + d = 6,0000 +1,00,0000 +7,000+3,3000   = Rs.  1,10,0000/-

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Fixed cost

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Cost to Production

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Profit

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Return on Investment

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Return on Investment

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Pricing Strategy

We use market penetration as our pricing strategy:-

It is a quick-entry price strategy

Assumes low price will gain high sales volume

Most of the customer are rural people

New competitors think that there will be high risk to enter current market.

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Competitive strengthCost leadership and Product development will be our core competency. As well as we always emphasize of products features and quality.

Maintenance free battery that is charged by the Solar P V module Absolutely omni directional white light Nominal consumption, with high performance and excellent lighting Made form ABS plastic and minimal use of metallic parts Provides light equivalent to 40 watt ordinary bulb Four pin CFL is used which is 80% more efficient

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Competitive strength continue…

8 times longer life than ordinary lamp Capacity to store energy for over three fully operational days, thus works in bad climatic conditions as well Sufficient protection is granted, reducing harm to the electronic circuits even No-load, short-circuit and reverse polarity connections are provided in addition to avoid battery drain beyond utmost depth of discharge Invalidate flow of current from the battery to the module at nighttime is prevented with shot key diode.

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Benefit from core competency

Core competency can be evolved with time and customer needs.

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Promotion

Promotion is communication tool.

Promotion may be push…it uses direct selling techniques. 1. Samples in Temples 2. Counseling office in village market 3. Door to door selling

Promotion may be pull… it uses mass media to draw consumes attention 1. Radios 2. local news papers 3. Banners 4. Tv

Brand is using of name, logo, signature, etc. in order to differentiate a product service from its competitor

Brand mix

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Brand

Slogan- Light your house with surja LanternLogoPublic relations Return policies

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Thank you