Selco

By,

Nishit Sapat, I2MBA,

SIBM Pune 114038

SELCO REPORT "1

SELCO

SELCO Solar Pvt. Ltd, a social enterprise established in 1995, provides sustainable energy solutions and services to under-served households and businesses . It was conceived in an effort to dispel three myths

1) Poor people cannot afford sustainable technologies;

2) Poor people cannot maintain sustainable technologies;

3) Social ventures cannot be run as commercial entities.

SELCOs key features: 1. Creating products based on end user needs: going beyond just being a technology supplier and customizing their products based on individual needs.

2. Installation and after-sales service: dedicating regional energy service centers to ensure prompt maintenance and service.

3. Standardized financing packages: creating channels for end users to afford systems based on their cash flow.

4. SELCO currently employs about 140 employees in Karnataka and Gujarat spread across 21 energy service centers. Since 1995, we have sold, serviced and financed over 95,000 solar systems to our customers.

Value Proposition Including the financing requirement in the overall product package.

SELCO REPORT "2

Brief History:

1. The Solar

Electric Light Company (SELCO) was founded in 1997 to manage subsidiary companies engaged in the selling and servicing of solar electric lighting systems.

2. SELCO was started by the Solar Electric Light Fund (SELF) to commercially scale-up a distribution and retail network through which to sell and service household lighting systems.

3. The Company is a Delaware-registered US corporation with majority interests in two operating subsidiaries in India and Sri Lanka, and maintains a project office in Vietnam.

Founded in 1995 by Dr. Harish Handean alumnus of IIT Kharagpur with INR 15,000 funding from its co-founder Mr. Neville Williams founder of SELF (Solar Electric Light Fund), a U.S.-based non-profit organization facilitating rural electrification worldwide.

SELCO Distribution Network

SELCO REPORT "3

Key: HQ- SELCO Headquarters, Bangalore

SELCO REPORT "4

RO: Regional Offices: Located strategically throughout service territories, each office directly manages about 5 ESCs ESCs: SELCOs Energy Service Centers, base of sales, service, and inventory. Located in central rural towns. Salesforce & Business Associates/Technicians: SELCOs direct sales force and BAs market SELCOs products to potential customers. Technicians look after technical requirements

SELCO PRODUCTS

SELCO REPORT "5

SELCO PRODUCTS

1. Solar Photovoltaic Lighting System

Solar Lighting (CFL and LED)

2. Indoor Home Lighting System

3. Outdoor Home Lighting System

4. Solar Headlamp

5. Solar Inverter

6. Solar Cook Stove

7. Solar Thermal Water Heater

a. Domestic

b. Institutional

8. Selco Customized Products

a. Solar Powered Sewing Machine

b. Headlamps for Midwives

c.Portable Lights for Silk Farmers

SELCO REPORT "6

The SELCO Model 1. The underserved at the bottom of the pyramid require innovations in product and finance for them to afford and access these energy services.

2. Financial Risk:Absence of financial innovations.

3. Technology Innovations:Manufacturers are unable to judge the needs of the end-users.

4. Lack of Commitment:Most organizations do not consider innovations for the BOP market a main priority for the companys business.

SOCIAL IMPACT

SELCO REPORT "7

Impact Increased productivity: Through provision of solar lights, SELCO has been able to successfully empower individuals to run their businesses without dependence on fuel based products for lighting.

Created pivotal financial schemes Indias extensive rural banking system did not have financial portfolios for solar lighting technology. SELCO played a pivotal role in convincing these large commercial and rural banking institutions to finance sustainable energy systems for poor rural households. Since then SELCO has forged partnerships with numerous regional rural banks, commercial banks, NGOs and rural farmer

SELCO REPORT "8

cooperatives to develop financial solutions that match the cash flow of the target client base.

Creating awareness and faith in solar power In its nascent stage, it took five years for SELCO to provide solar lighting for 500 houses. Creating awareness about the company was not the challenge, it was generating an understanding about better alternatives to unreliable rural lighting.

SELCOs efforts of reliable after sales servicing and linking appropriate customized financial schemes was instrumental in sustaining faith in an unfamiliar technology.

Improving quality of life Linking income generating activities with energy services has improved the quality of life for several members of underserved households by providing affordable channels to procure the technology thereby increasing work hours and hence productivity.

Market linkages to income generating activities also contributed to increasing affordability of end user.

Providing high quality customized products

SELCO provides the same quality of products and services to all its customers irrespective of their economic status: thereby distinguishing itself as a need based solution provider.

In addition to SELCOs standardized systems, we also provide customized solutions to fit end users needs.

SELCO REPORT "9

SELCO Milestones and Awards 1. More than 1,25,000 households and 2000 institutions as clients

1,35,000 + solar lighting systems set up in India;

2. 224 employees;

3. 38 Energy Service Centers across Karnataka, Gujarat, Maharashtra & Kerala;;

4. Largest solar water heating system~ 4,00,000 litres for a single client in India

5. 9 partnerships with Financial Institutions;

US$ 3.09 million revenue;

6. Ashden award for sustainable energy 2005 and 2007;

7. Green Energy Award from Prince Charles 2005;

8. Ramon Magsaysay Award for efforts to make electricity affordable and customizable to poor customers 2011;

SELCO REPORT "10

SELCO REPORT "11