BanyanTree takes stake in GEI’s heat transfer tech
Indian company’s air-cooled heat exchangers and steam condensers offer water reduction potential that’s attracting private equity interest.
SPX, Thermax to control power plant emissions in new JV
New collaboration aimed at India and Southeast Asia’s power industry is expected to produce emissions-control equipment for power plants.
Inside cleantech India: Kal, Aaj aur Kal!
Gujarat government approves $2.4 billion in solar projects, while Electrotherm Renewables looks to invest more than $145 million in solar thermal.
Monday, August 31, 2009
Sunday, August 23, 2009
CleanTech News this week
India to go toe-to-toe with cleantech VCs
The government plans to launch a new venture fund focused on research of green technologies, according to a new report.
Will cleantech mobilize to prevent water shortages in India?
Two new reports this week gave urgency to efforts to reduce water use in India’s agriculture sector.
Zebasolar wins 10 MW Gujarat power station bid
The Indian unit of a U.S.-based solar company said it plans to spend €35 million on a new solar PV station, expected to come online in mid-2010.
Inside cleantech India: Kal, Aaj aur Kal! [premium]
Manoj
Courtesy - CleanTech Forum
The government plans to launch a new venture fund focused on research of green technologies, according to a new report.
Will cleantech mobilize to prevent water shortages in India?
Two new reports this week gave urgency to efforts to reduce water use in India’s agriculture sector.
Zebasolar wins 10 MW Gujarat power station bid
The Indian unit of a U.S.-based solar company said it plans to spend €35 million on a new solar PV station, expected to come online in mid-2010.
Inside cleantech India: Kal, Aaj aur Kal! [premium]
Manoj
Courtesy - CleanTech Forum
Thursday, August 20, 2009
Top 5 challenges - top 5 related costs
What I have experienced is that unless cost of goods is 25% of MRP, it is difficult to build a decent profitable business by selling cleantech products to rural customers. Since 50% of MRP will go in channel and distribution costs which leaves rest 50% for the gross margin and cost of goods. Hence on a Rs. 1000 product in market, you can expect to have a gross margin of Rs. 250 if the cost of product is Rs. 250. If the cost of product goes up, the margin will squeeze accordingly (if Rs. 400 is the cost, Rs. 100 will be margin). Here are top 5 cost items:
1. New category of products : technology and marketing cost - Solar for example have a large technology cost which makes it tougher to build a cheaper product.
2. Ability to pay : cost of financing - MFI will usually charge the company some money to support the product. Also the customer is paying interest on the loan
3. Geographic diversity : Increases logistics and channel cost which becomes a large portion of the cost of the company
4. Cultural diversity : Business development cost increases since it becomes harder to build relationship
5. Product positioning : It is hard for companies to know which price will work for customers and which products will fly. This increases the marketing, R&D and product development costs.
It is important to be aware of magnitude of all these costs and make sure you know these costs before you enter this market.
Manoj
1. New category of products : technology and marketing cost - Solar for example have a large technology cost which makes it tougher to build a cheaper product.
2. Ability to pay : cost of financing - MFI will usually charge the company some money to support the product. Also the customer is paying interest on the loan
3. Geographic diversity : Increases logistics and channel cost which becomes a large portion of the cost of the company
4. Cultural diversity : Business development cost increases since it becomes harder to build relationship
5. Product positioning : It is hard for companies to know which price will work for customers and which products will fly. This increases the marketing, R&D and product development costs.
It is important to be aware of magnitude of all these costs and make sure you know these costs before you enter this market.
Manoj
CleanTech products for rural markets - Top five challenges on the field
Lot of cleantech products companies are targeting rural customers today in India. CleanTech products like solar lights, clean cooking stoves, water filters etc have following challenges:
1. New category of products: Because they are new category of products, their is lot of customer education which needs to be done. This means that these products require "High-touch" marketing which means that there needs to be physical demonstration of the product functioning before these companies can convince the customer to buy. This marketing cost is usually is the least understood but most critical challenge for companies in this space.
2. Product positioning: What I have seen is that only products which enhance income (like BT cotton seeds) or which are critical for income generation (like drip irrigation, pumps etc) will be sold in rural areas or have aspirational value (like phones etc). All the products which claim long term cost savings (with upfront capital investments) and health benefits will have tough time communicating that to the customers. It is important to target income enhancing products/service therefore rather than rely too much on cost savings/health benefit aspect.
3. Wide geographical distribution: A wide geographical distribution setup along with a robust after sales network is the third biggest killer for cleantech products companies targeting rural customers. This increases their distribution cost a lot and makes it very tough to manage it. Therefore important to take a portfolio of products to the rural customers rather than take a single product.
4. Ability to pay: The lack of ability to pay for cleantech products (which usually are not very cheap) is the fourth challenge. Price therefore becomes critical in selling the product. Also how a company can leverage MFI relationship for financing can be important in this context. Relying too much on MFI for selling your products may not be good for the company since MFI have their own set of challenges in marketing and financing such products.
5. Cultural diversity: Managing language barriers and cultural diversity is one of the challenges which one usually understands only once when you are start selling on the field. This increases the complexity since you will need to hire local people and usually the challenge then becomes how to communicate and manage these employees. Also usually these companies need to build local relationships for example with local NGOs, dairy cooperativecs, coop banks, sugar cooperatives etc. Language and cultural barriers effect that too.
Manoj
1. New category of products: Because they are new category of products, their is lot of customer education which needs to be done. This means that these products require "High-touch" marketing which means that there needs to be physical demonstration of the product functioning before these companies can convince the customer to buy. This marketing cost is usually is the least understood but most critical challenge for companies in this space.
2. Product positioning: What I have seen is that only products which enhance income (like BT cotton seeds) or which are critical for income generation (like drip irrigation, pumps etc) will be sold in rural areas or have aspirational value (like phones etc). All the products which claim long term cost savings (with upfront capital investments) and health benefits will have tough time communicating that to the customers. It is important to target income enhancing products/service therefore rather than rely too much on cost savings/health benefit aspect.
3. Wide geographical distribution: A wide geographical distribution setup along with a robust after sales network is the third biggest killer for cleantech products companies targeting rural customers. This increases their distribution cost a lot and makes it very tough to manage it. Therefore important to take a portfolio of products to the rural customers rather than take a single product.
4. Ability to pay: The lack of ability to pay for cleantech products (which usually are not very cheap) is the fourth challenge. Price therefore becomes critical in selling the product. Also how a company can leverage MFI relationship for financing can be important in this context. Relying too much on MFI for selling your products may not be good for the company since MFI have their own set of challenges in marketing and financing such products.
5. Cultural diversity: Managing language barriers and cultural diversity is one of the challenges which one usually understands only once when you are start selling on the field. This increases the complexity since you will need to hire local people and usually the challenge then becomes how to communicate and manage these employees. Also usually these companies need to build local relationships for example with local NGOs, dairy cooperativecs, coop banks, sugar cooperatives etc. Language and cultural barriers effect that too.
Manoj
2nd Algae Biofuel Summit 2009 - 8 September in Delhi
What is the common among Total, Shell, Indian Oil, Tata Chemicals, NREL, Alexandria Carbon Black Company, Aditya Birla Nuvo, Hi-Tech Carbon, Gridpariti Foundation, Lanka Gasifiers, SDSU, Abellon Clean Energy, Nav Bharat Ventures Limited, K.K.Nag Limited, SJK Biotech Pharma Limited,Indian Agriculture Research Institute, Swinburne University Australia, University of Cambridge, National Centre for Aquatic Animal Health, Cochin University of Science & Technology, Centre for Algal Biotechnology, Mar Athanasios College for Advanced Studies, University of Madras, Central Institute of Agriculture Engineering, Tamilnadu Agricultural University, The University of Georgia, Sardar Vallabh Bhai Patel University of Agriculture & Technology and over 100 other Indian & global organizations? They are all participating at 2nd Algae Biofuel Summit 2009”.
For details about key topics to be covered at 2nd Algae Biofuel Summit 2009 & Confirming your seat, please visit: http://www.algaebiofuelsummit.com or write to the summit secratariat at info@growdieselmail.com or growdieselevents@gmail.com
For details about key topics to be covered at 2nd Algae Biofuel Summit 2009 & Confirming your seat, please visit: http://www.algaebiofuelsummit.com or write to the summit secratariat at info@growdieselmail.com or growdieselevents@gmail.com
Tuesday, August 18, 2009
CleanTech news this week - India
Acme plans to beat eSolar on cost of solar thermal in India
Indian infrastructure developer is using a license from eSolar to build 1 GW of power plants, with the first slated for March.
Buyers go overboard in NHPC’s oversubscribed IPO
India's largest hydropower producer gets more than it bargained for, with investment demand likely to put the deal at the top of its price band.
India hydropower station hits record electricity targets
Hydroelectric power company’s Himachal Pradesh station benefits India’s northern states suffering from power shortages.
Courtesy: CleanTech Forum
Indian infrastructure developer is using a license from eSolar to build 1 GW of power plants, with the first slated for March.
Buyers go overboard in NHPC’s oversubscribed IPO
India's largest hydropower producer gets more than it bargained for, with investment demand likely to put the deal at the top of its price band.
India hydropower station hits record electricity targets
Hydroelectric power company’s Himachal Pradesh station benefits India’s northern states suffering from power shortages.
Courtesy: CleanTech Forum
Monday, August 10, 2009
Cleantech Forum XXIV – Delhi India October 15-16th 2009
This year the Cleantech Group will hold its 2nd Cleantech Forum® event in India, which will take place from October 15-16th in Delhi at the Taj Palace Hotel. The Cleantech Forum is widely recognized as the most influential gathering of the global cleantech investment and entrepreneurial communities - held over two days, the conference brings together the cleantech ecosystem of investors, entrepreneurial companies, corporate policy makers and economic development agencies to access clean technology, market insights, investment opportunities and high-quality networking.
Nexus India Capital is a member of Cleantech Group and sits on the Cleantech Group India Advisory Board.
The theme of the conference is: Cleantech India: Leveraging entrepreneurial innovation for sustainable solutions. The agenda can be viewed at http://cleantech.com/cleantechforum/newdelhi09/agenda.cfm
Please contact Jaswinder at jaswinder@cleantech.com for more information
Manoj
Nexus India Capital is a member of Cleantech Group and sits on the Cleantech Group India Advisory Board.
The theme of the conference is: Cleantech India: Leveraging entrepreneurial innovation for sustainable solutions. The agenda can be viewed at http://cleantech.com/cleantechforum/newdelhi09/agenda.cfm
Please contact Jaswinder at jaswinder@cleantech.com for more information
Manoj
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