Boond: Dynamic

Capability
CREATING A BOP ENERGY MARKET

Submitted by Case Group 8

Aakanksha Shegaonakar MBA21001

Atul Kumar MBA21034
Ajeet Singh MBA21012
Harjas Singh Sodhi MBA21070
Mohit MBA21114
 case Introduction

Boond, a last-mile energy access company, was founded to serve the rural
base of the pyramid market in India.
The company operated in the two states of Rajasthan and Uttar
Pradesh(UP).
It came face to face with multiple challenges like low purchase capacity,
lack of awareness about solar technology and difficulty of reaching out to
the remote consumers.
Boond innovated its business model to provide customized solution for
energy access at an affordable price along with doorstep servicing.
It created social capital that facilitated the collectivity of the stakeholders
like banks, suppliers, grassroots organizations and community.
 case Introduction

This led to energy access and had a multi-dimensional impact on human

well-being (health, education, employment, etc.), thereby improving lives of
many.
The challenge for Boond is in scaling up its business model for energy
access to the other Indian states, each of which pose unique challenges
along with varying environmental factors.
 Business MOdel

Since the target is rural customers, Boond creates an ecosystem that ensures
cultural sensitivity in sales, high quality servicing, and affordable financial
linkages. The business model of Boond is four-fold:

Cultural sensitivity in sales by associates and entrepreneurs.

Community engagement through NGO / local organizations.
Financial linkages established through Bank/MFI.
Technological intervention through new products/services.
Partnerships
Boond had developed multiple strategic partnerships to
implement its business model. For instance, they had a
technology partnership with cresonix and formed
partnerships with NGOs to connect with the community.
The company forged strong research partnerships with
leading academic institutions, including New york university
in Abu Dhabi and Columbia University.
Apart from this, Boond collaborated with Purica Dairy to
power the milk collection centres. It has established 400 solar
energy-driven milk collection centres in remote unelectrified
villages by 2013
Apart from this, the company formed relationships
with leading regional rural banks like-
Baroda Rajasthan Kshetriya Grameen Bank
Mewar Aanchalik Grameen Bank for Rajasthan
Grameen Bank of Aryavrat in UP
The partnership with banks made it possible for
customers to obtain financing to purchase solar
systems.
INNOVATION
Vision of Boond's senior management drove its innovation and it was an ongoing process.

People received hands on training and were exposed to knowledge through field experiences.
New innovations are happening because of people and changing landscape which drives to look

for solutions and tap the ecosystem.

Boond had launched its micro-grid business model using innovative prepaid meter technology

managed by village micro-entreprenuer. This allowed rural household to obtain access to clean

energy around the clock.

Boond's real innovation was in smart charge controller and prepaid meters. Poor consumers

had to pay only a small amount for the connection and could purchase consumption credits

on a weekly or monthly basis for which Cresonix was the partner in innovation.
INNOVATION
People
Boond had a high powered leadership team. Had the presence in Rajasthan and UP, with its

headquarters in Delhi. Boond opened energy centres in rural locations, hiring local people.
Field work had contributed to relationship building. Employees had to perform multiple tasks

and were exposed to many different circumstances and experiences. Boond found that

securing good people was not only helpful but also essential.
The firm grows organically with the people having good understanding of situation. For

Boond, as new entity entering from outside, it was important to understand and develop trust

with local community. For them relationships are important

 Marketing
Market - Boond sees an opportunity in the large number of un-electrified households,
and households where energy needs are not being met by current low wattage. This is a
potential market of over USD 5 million in Rajasthan and UP alone
Products & Services - Boond is product agnostic and has built technical expertise in
solar to install and service systems of different sizes (10W to 10KW)
Customers - Boond has segmented the customer base into three clear categories and has
innovative business models for each, which utilize the common technology and local
resource pool

Customers - Livelihood - Project based model for shops, rural establishments and
customers requiring over 200W of power a month.
Present sales share: 30%; Potential market (UP & Rajasthan): 10,000+ units
 Marketing
Customers - Rural Underserved - Rural Bank financed & govemment subsidy based
model for 'bankable' rural poor requiring 10W-200W of energy a month
Present sales share: 50% ; Potential market (UP & Rajasthan): 150,000 households

Customers - Ultra Poor - Peer lending and philanthropic donor financed small system
(10W to 20W) model for ultra poor 'un-bankable customers along with small donor
supported micro grids like the 'Light for Education' campaign
Present sales share: 20% ; Potential market (UP & Rajasthan): 50,000+ households

Progress -
Strong partnerships with rural banks
Large team of on ground technicians and rural entrepreneurs
Grew by 150% over the last year and estimated to grow at over 500% in the next year
 Conclusion

The company has set up its last-mile energy access business in Rajasthan and UP.

Although it provided energy solutions to the rural middle class, the extreme poor

needed to be served.

Boond had developed an innovative prepaid micro-grid business model for the rural

ultra-poor. But scaling up in rural BoP areas of Rajasthan and UP, as well as in other

parts of India, had challenges.

Thank
You!