Let me share some of my observations on CleanTech in India:
1. CleanTech is in nascent stages in India which gives opportunity to VC firms to nurture early stage companies in India and create long term value. In terms of hype and stage, we are still 5-6 years behind USA. In terms of market opportunity it runs into billions of dollars (DG replacement market itself is more than $10 billion).
2. India is a “CleanTech deployment, delivery and adoption” market rather than “CleanTech IP discovery and development” center. This means the cleantech companies in India will be manufacturing, projects, EPC or services companies rather than strong technology/IP companies.
3. CleanTech is still not that hot among young people leading to shortage of talent and lack of people who have experience in running cleantech companies before.
4. CleanTech in India will revolve more around energy efficiency rather than generation because of lower capital intensity.
5. CleanTech has capital intensity issues which can lead to slower growth initially in India on generation side.
6. CleanTech can solve India’s energy problems especially using distributed energy solutions. Entrepreneurs should look at this very seriously.
7. Massive opportunity for entrepreneurs in industrial captive power generation which are early adopters of CleanTech in India (DGs power most of industrial captive power which is ridiculously costly).
8. Cleantech solutions globally need to be localized to Indian conditions before their adoption here. Entrepreneurs have opportunity here.
9. Lot of global technology companies want to partner with Indian companies for deployment. Indian companies should reach out these companies for technology partnerships rather than re-inventing the wheels. There is a need to build that cross-border platform in India. Nexus is trying to become that bridge.
10. CleanTech has longer gestation period but has very highly non-linear scale opportunities which can potentially make a company big in short span of time.
Manoj
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2 comments:
Dear Manoj Gupta,
The "Clean Tech" is at embryonic stage.The fact is globally very small nos of participants involved in the activity.At the same time because of hard-shell technologies, fundings, cleantech enterpreuners, the achievemnt of issue is meagre.
But to count any currency in millions, billions and trillions it is necessary to start with atleast by 1, it cannot be started by Zero. This is what Cleantech deserved for success endeavor which has crossed the Zero and entered into the figures i.e beyond 1.
I couldn't express views on each of your point but my bird-view on this blog is simple as under:
" The Scientists, Researchers and Technologists are the Rushimunies of Sansar" Let me explain you in brief.In our Sanatan-dharma the researchers of God/atma through adhyatma is called Rushimuny. And the research done for the sansarik sukh(maya)i.e car, plane clothes, food, computers,etc by researchers, technologist and scientist are rushimuny of sansar.
The researchers, scientist and technologists generated the issue of Global warming and also the solution by Cleantech, which is an activity that falls under the category of "Rushimuny of sansar" and no doubt beneficial for countless atmas.
Overall we need to participate in holy cause by contributing in Cleantech.
The formation of Resource Group shall be very helpful tool to conceptualize the Cleantech entreprenual ideas.The various and perfect sources of technologies, fundings, executing activity, legal,etc together can have solid nexus to exploit the cleantech entreprunership.
Today only I read an article in TOI-ET in which the word "INTERPREUNER" is elaborated as in any company if some employee generates the fruitful idea and required to conceptualization, the company itself incubates enterpreuneral spirit by funding and creating the whole environment upto the stage of success.The same thing is possible to replicate in Cleantech. The ideas and projects can be identified with thorough detailing and screening for nurturing, grooming and incubation.
As I am always optismetic, I hope for best.
Regards,
MRPrajapati
Hello Manoj,
Agreed with you that opportunities in India lies in deployment, mfg etc. and not in IPR/Innovation (just like any other industry - we follow - and have taken it for granted).
For me Cleantech is more of a financial services industry in India (Just like MacD is a RealEstate business more then burger one). Why? For utilizing dispersed energy like sun, wind etc. by any unit, they need to make a hug upfront cost. Today Silicon Substrate panel of 2.5 KW in US costs about $21,000. In India that will be about Rs. 10 Lacs. Don't expect Indian units/houses to shell out this money for Energy. They are more happy paying 4 Rs per KW hour. Hence, someone has to bear this cost upfront and charge the people month-by-month till the time IRR of the project is sustainable. Its purely a money game! Biggies like Reliance, ICICI Bank won't mind setting up a sustainable money making machine like this in no time.
Most people misunderstand Cleantech as Internet based quick startup. However, Internet where I can make a website sitting at my house and upfront cost is very less - Cleantech is very capital intensive business. Entrepreneur should be ready to accept this hard fact and not just jump into the opportunity.
Secondly, technology in this industry is becoming obsolete faster then they are coming into the picture. Many companies are going to burn millions of dollars setting up Silicon plant for solar energy just to see Thin Film Solar becoming more powerful then hard crystal based solar. Thin film solar again has its own limitations and more experiments in US, Europe etc. just means - you don't know whom to trust for getting the right manufacturing plant set up? Caution!
Thirdly, consider Ethanol which Mr. Khosla proudly presents as the next big thing in moving the vehicles. Corn and Sugarcane - are in limited supply and now again biowaste etc is being experimented upon. Mr. Buffett has gone a step ahead and said that vehicle of future will run on charged batteries and invested $230 mn. in a Chinese listed company for the same (Mr. Khosla Vs. Mr. Buffett - its for time to say who will win the ultimate energy fight).
All said and done, if you are not innovating in this industry then you have to be a very careful follower to someone whom you think will succeed. Else, might just end up burning millions of dollars before you realize Cleantech was not your cup of tea !!! Also, dont expect an overnight stardom in this industry its a pain and labor of 15 yrs to see the light at the end of the tunnel!!!
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