SELCO is a for profit social enterprise which has been providing to the poor and underserved regions of India

for the past 15 years.

Objective:-
Long term-Sustainable business.

 Create opportunities for lower income group of society to access alternate energy sources.
 Middle term:-Rural electrification on a large scale.

Product line extension according to need of rural segment having frequent power cut and longer duration power cuts. Products
should match the need of people, in terms of pricing, quality and efficiency.

Solar product Use/opportunities Cost

Solar lantern/light For lighting and reading purpose 400-800
Solar mobile For charging mobile and power bank 500-2000.
charger/power bank
Solar calculator Can be used by shop and student 100-500
Solar torch Can be used by every user and travelers. 300-600

On commercial basis it can be used by installation of

 Solar rooftop- for lightening entire single house.

 Solar Street light-for street lightning system.
 Solar motor for agriculture purpose –As rural sector/rural people depend mainly on agriculture and farming, so this product
can be frequently where there is no power supply and long duration power cuts.
 Solar water heater –for commercial purpose by hotel/institution and household system.

Solar power plant installation for lightening entire area and also grid connected power supply.
This can be used as alternative medium for lightening entire village, during power cuts it can be alternate mode of power supply.
Revenue can be also collected on basis of uses and tariff can also be lived by user.
Roof top can be used by individual household for lightening of household equipment. Price can differ on rating and amount of
uses.

Opportunities –Firstly company should focus on daily need based equipment and then also on commercial section.

All solar product and equipment should be efficient, durable and handy and also certified by any rated institution bodies (such as
ISO standard).Separate R & D based centre should also be opened for commercial section

For geographical expansion -Geographic Expansion is the process of defining the target customers and business potential to
expand a company's presence to new geographies. It can be done by firstly focusing in home based i.e. Karnataka, covering
entire area and rural sector of this state.

Geographic Expansion model for SELCO

 Expand firstly in local market and nearby surrounding ,then diverse by opening new store by providing unique solution in
alternate source of energy and also distribute the product to local store dealing with electrical equipment and also quality
service and long term relationship.
 Open new store exclusively for Solar Equipment (by SELCO brand name.)
 Distribution of product in local market and also provide quality service and certified product according to ISO
standard.
 Gaining word of mouth and distribution of product to dealers selling electrical equipment in local area.
 Franchise model for distribution of product in other area.
 Expand product line according daily need of rural area such as solar led lantern and mobile charging panel and led
torch.
 Diversify product to address other energy related needs-For example village farmer depend on agriculture and
productivity of crop depend mainly on water supply and fertilizers. Solar motor can be used for irrigation purpose.
 Roof top solar panel for total lightening solution of house.
 Company should also hire agent in gaining commercial market segment –These agent should be trained and brief
idea of product and installation of commercial product like solar motor, solar rooftop panel and solar water heater.
 On large scale company can install solar power plant and supply power to nearby area and earning according to need
and rating of appliances.
Invest and incubate the potential entrepreneurs to replicate SELCO’s business model.
Government initiative can be also taken for providing product on subsidized rates and distribution of product on block level and
panchayat level.

SELCO must focus on daily need of people and quality service at affordable cost and then providing alternate solution of energy on
commercial basis. All products should be according ISO standard available in nearby store.

On commercial basis agent should be hire which must be trained for product installation and quality service should be provided.

 Agent hiring for commercial purpose such as roof top based solar panel
 Solar water heater installation in hotel, school and office.

After expansion in village and nearby area company should expand in urban area:-

 Company should launch website providing detail of product, pricing and detail of product.
 Solar lantern and led light can be used in small store during power cuts so should be distributed in every store and also small
vendor selling vegetable and other things. This product (led light) and mobile charger are mostly in demand so it should
available at cheaper rates and abundance amount.
 Solar roof top can be used in mall, buildings, and society for providing alternate solution of power during power cuts and.
 Solar Street light can be used in lightening of street, road and highway.
 Exclusively store should in urban store in mall providing all product and commercial based product.

As company gains market, can be expand and research based industry should be opened.

2. SELCO should focus on nearby area firstly and then spreading product portfolio and aiding daily need based product such as solar
led light, solar mobile charger and solar calculator.

As much revenue can be generated from solar led light and other daily need equipments then company should enter into commercial
section.

Solar -roof top power panel for lightening of entire house and solar pump for irrigation purpose. As these products are costly
government initiative can be taken for providing at cheaper rates to rural areas and poor section.
Separate research & development and workshop should be open for manufacturing of product and efficient product.

It will also provide employment solution to nearby area and agent should be hired for installation of product and marketing of solar
roof top panel.
Industry Analysis

 Relatively untapped industry

 Alternative energy interventions, only by the government
 Very few small and medium enterprises

Competitors

 Providing cheap and dubious quality products

 Competitors don’t have financial model like SELCO’s.
 Customers forced to make trade off between cost and quality, given their economic status
 LPG, Kerosene, Firewood, which don’t involve one time investment (even though more expensive in long run.)

Important factor

 Quality service and better efficient product should be provided to market so that it can compete in local market.
 Store should be opened in village area and even other dealers dealing with electric equipment, product should be distributed.
 Hiring of agent for commercial purpose and efficient training should be provided.

Diversify products to address other energy related needs

 Increase in cost due to R & D.

 Leadership problem not addressed

Create a Franchise model

 Bitter past experience in AP

 Target pressure on franchise to increase sales, making objective purely commercial
 Effective leadership not identified
Invest and incubate the potential entrepreneurs to replicate SELCO’s business model

 New leadership identified

 Social values transferred, Social objective not compromised
 Model can be replicated
 Context based ideas generated

Best alternative solution

 Invest and incubate the potential entrepreneurs to replicate SELCO’s business model.
 Identify potential entrepreneurs in Karnataka and other parts of the country, already working or interested
in energy sector
 Provide training, Share knowledge and align them to the social objective of SELCO
 They will then develop context based ideas in their areas.