Imperium 2010

presents

Schneider Case Study Competition

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About the company
From 1836 to today, Schneider Electric has transformed itself into the global specialist in energy
management. Starting from its roots in the iron and steel industry, heavy machinery, and ship
building, it moved into electricity and automation management. After 170 years of history,
Schneider Electric has become today the solution provider that will help you make the most of your
energy.

As a global specialist in energy management with operations in more than 100 countries, Schneider
Electric offers integrated solutions across multiple market segments, including leadership positions
in energy and infrastructure, industrial processes, building automation, and data centres/networks,
as well as a broad presence in residential applications. Focused on making energy safe, reliable, and
efficient, the company's 100,000+ employees achieved sales of more than 15.8 billion euros in 2009,
through an active commitment to help individuals and organisations “Make the most of their
energy”.

Schneider Electric India Pvt. Ltd (SEI) is a 100% subsidiary of Schneider Electric Industries SAS, a
global specialist in energy management. With a strong force of over 8400 employees, the company is
well known for its unique vision, progressive management and above all, its exemplary Quality. (See
Exhibit A)

Energy and climate change

The energy dilemma: Achieving more while reducing carbon emissions and using fewer resources

The fact is, we have to cut the world’s CO2 emissions in half by 2050. However, energy demand – a
major source of CO2 emissions – will double by that date. Renewable energy sources are mandatory
but not enough to change the energy mix today.

Energy demand by 2050,

Electricity demand by 2030,
(Source IEA 2009)

CO2 emissions to avoid

dramatic climate changes by
2050
(Source IPCC)
To find out, let’s take a look at the world in 2030

 8 billion inhabitants, 60% will live in cities

 2 billion will join the middle class
 Demand for electricity will be 76% higher than in 2007
 China and India alone will represent over 50% of incremental energy demand
 1.3 billion people will not have access to electricity, mostly in Africa and India
 Electric vehicles will represent 60% of world share in passenger vehicle sales
 Renewable energies will have a 22% share in the global energy mix
(Sources Robert Garner - Trends compendium -2008, World Energy Outlook 2009 - AIE / OCDE)
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Access to Energy is a pre-requisite for growth and human well-being.

Access to Energy not only improves quality of life in terms of education and family well-being, but also
facilitates better access to economic development. Energy has a determinant influence on Human
Development Index (HDI) as its goals rely on Energy for their fulfilment.

1.6 billion people the world over are classified as Energy Poor*. Out of these, 500 (31%) million
people live in India alone. (UNDP Report)

Schneider Electric’s unique position as the global specialist in Energy Management provides the
opportunity to influence and consequently improve the lives of these millions by providing them
access to Safe, Reliable and Green energy.

*energy poverty is a term for lack of access to electricity, heat or other forms of Power

Schneider Electric’s BipBop Program

Schneider Electric launched a global initiative in 2008 to provide access to Safe, Reliable and Clean
electricity to the Energy Poor. This initiative builds upon a sustainable and responsible vision called
BIPBOP, an acronym for Business, Innovation and People at the Base of the Pyramid.

With a strong commitment to involve and empower local communities and stake holders in each
country, BIPBOP addresses the three key challenges which are major barriers for access to energy:

Challenge Solution

Access to financial resources for entrepreneurs  Funding

Appropriate products & services  Innovative products and services

Skills and expertise  Technical and business trainings

BIPBOP aims to create a brighter future by increasing income levels, reducing health concerns and
promote usage of renewable energy.
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BIPBOP – A Market based approach to provide safe, reliable and clean electricity to BOP

Business:

Schneider Electric has created a global, socially responsible venture capital fund called Schneider
Electric Energy Access, with an initial capital of €3 million.

The fund’s mission is to support the development of entrepreneurial initiatives worldwide with a goal to
help people obtain Access to Energy.

Created with the backing of Crédit oopératif, Schneider Electric Energy Access will finance projects
designed to:

- help jobless individuals create businesses in electrical space

- promote the development of businesses that provide access to energy in rural or suburban
areas,
support the deployment of innovative solutions that use renewable sources in order to increase
access to energy for the Base of the Pyramid

The Product of innovation

Schneider Electric India launched In-Diya; a highly energy-efficient LED based Home Lighting
System, to provide access to light for people living without reliable electricity supply in India.

In-Diya operates on grid/solar supply, and provides backup ranging from 8 – 15 hours. In-Diya is
available in nine variants, starting with a basic 45 LED light which can be powered by an externally
charged battery to an independent 90 LED Solar Home Lighting System compatible with grid.

Priced in the range of INR 550 to INR 4,500, In-Diya LED based Home Lighting System is set to be
available on retail counters. (See Exhibit B)

In-Diya can also be accessed in a pay-per-use variant. Customers can buy the basic variant for INR
550 and rent a battery at a nominal charge from an entrepreneur who manages a Battery Charging
Station. (See Exhibit D)

The battery charging model creates employment opportunity for unemployed youth in rural areas and
slums. Schneider Electric has completed pilot projects for Battery Charging Station in Orissa and
West Bengal and has successfully improved the lives of 200 families so far. Schneider Electric has
enabled the children to continue their education and adults to remain economically productive after
sunset

Schneider Electric In-Diya is helping people shift from Kerosene Lamps to Electric Lights at reduced
operating costs thus benefitting the health of the people and the environment

To further improve reach to the rural market, Schneider Electric is following an innovative business
model that involves partnering with NGOs, microfinance institutions and local entrepreneurs.

For the People

By 2012, Schneider Electric India aims to provide vocational electrician training to 4,000 young
unemployed school and college dropouts, and support 300 new entrepreneurs from “The base of
the Pyramid” to start their own business in electrical market. (See Exhibit C)

This initiative is aimed at developing the people at the Base of Pyramid by providing them the
opportunity to be self-reliant. It also resolves the issue of availability of skilled manpower in the
electrical market.
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In 2009, Schneider Electric India Foundation trained 300 unemployed youth in 11 training centres
spread across six states in India i.e TamilNadu, Karnataka, Andhra Pradesh, Orissa, Bihar and Delhi.
Schneider Electric India foundation will start 10 new training centres during 2010.

The duration of the training program is four months and it is provided free of cost to school and
college dropout students from poor families. Apart from technical training, the candidates are also
trained on entrepreneurship to start their business in providing access to electricity to Bop. Schneider
Electric provides all necessary support to the trained candidates to start their business

Problem Statement
Analysing the above mentioned scenario and product, develop a Go-to-Market Strategy and
distribution channel structure for the product In-Diya. The solution should concentrate on the Place,
Promotion, Channel, and Communication.

Exhibits
Exhibit A
The history of Schneider Electric in India

 2010 - Acquisition of Zicom's electronic security systems integration business

 2009 - Launch of Bip Bop Sustainable Development Programme

Acquisition of Conzerv (leader in Metering & Energy audits)
Acquisition of Meher Capacitors (leader in Power Factor Correction)

 2007 - Introduction of APC and Pelco

 2006 - Establishing Projects and Services, For turnkey solution, Hyderabad factory

 2005 - Introduction of TAC and VDI

 2004 - Integration of Clipsal business

 2003 - Inauguration of Baroda factory, SISC / GTCI, entering into residential market with UT offer

 2002 - Establishment of Solution and Application Centre for Automation Projects

 2000 - S & S Switchgear & CGLV acquisition

 1995 - Schneider Electric : 100% subsidiary

 1984 - J V With TMC

 1963 - J V With Tata MG

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Exhibit B
Product: In-diya
Features
• 8 Hours backup with 5AH
Battery
• Light output is more than
11W CFL
• Consumes 50% of power
compared to 11 Watt CFL
• Can illuminate a room of
12’ x 12’ for all normal
activity
• Can operate on very low
voltage -90V-250 Volt AC
• 50000Hrs of LED life
•Can operate on AC and/or
Solar
•Light powered by AC can
be upgraded to a solar
powered or vice versa
Application: Home lighting, Shops, Hospital / Hostels / Hotels
Benefits
•No need of candle or
kerosene lamp
•Free from darkness due to
power cut
• No need of emergency
lamp
• No requirement of inverter
for lighting
•Saving in electricity bill
•Same brightness at lower
voltages
•Lower cost compared to
CFL based solar home
lighting system
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Product Range

Name Price Use Graphical Representation

LED Lamp with MRP: 900 People who cannot afford grid
Externally charged connection or solar
battery :GN11J-4 home light system can buy
this light and take the battery
on rent from a local
charging station

LED Lamp - AC MRP: 1600 In-Diya will help to reduce

Input :GN11J-2 energy bill by 50%
People having inverter can
use In-Diya for more back up
time

LED Lamp with MRP: 2300 •Can illuminate 12’ X 12’

backup - AC Input : room
GN11J-3 uniformly for all normal
activity
in house including reading
and writing
•Can provide 8 hrs of back up
during failure of supply from
grid
•Not affected low voltage
supply
LED Lamp with MRP: 4100 •Can provide better light
backup - Solar Input output than
:GN11J-5 CFL based solar home
lighting system
•Lower cost compared to CFL
based
home lighting system
•Better light output than high
power
LED based system available
in market
LED Lamp with MRP: 4500 •Powered by both solar and
backup - AC and AC
Solar Input :GN11J-1 • When both source are
available light
is powered by solar ,helping
people to
reduce energy bill
• Automatic changeover to
solar
incase of failure of supply
from grid
• 8 Hrs of back up ,when
power from
grid and solar is not available.
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Exhibit C
Raghu – The Entrepreneur

In the picture:

Mr. Raghunath Behra, with his parents

A trained electrician from the First Batch if Schneider

Electric Electrician Training Program at Bhubaneshwar

Background:
th
-Raghunath studied till 10 standard
-Age: 28 yrs
-Family consists of 8 members
-Monthly income of family: INR 8000
-Younger brother enrolled for Electrician
training program
Schneider Electric Foundation trained him and then
supported his entrepreneurial venture of setting up a
Battery Charging Station

Raghu’s training and business coupled with his hardwork have

helped him and his family see hope and increase his family’s
standard of living. His entrepreneurial venture is now enabling
others in his village to light up their lives.

Raghu’s In-diya helps people to do income generating activities at

night.

- Fish seller uses In-Diya instead of a Kerosene lamp

- Housewives have become economically productive by doing tailoring work at night
- Barbers keep their shops open in the evening

Children can continue to study even after the night falls.

Thanks to Raghu, life does not come to a standstill after the sun
sets.

Schneider Electric endeavors to produce more such

entrepreneurs who help themselves and others gain access to
energy in a sustainable manner without adversely
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Exhibit D
The battery charging station consists of a battery chargers which can charge 10 number of 12V , 5AH
SMF batteries in parallel .It can be powered by Solar Panel /Grid Supply or both . In remote areas
where grid power is not available it can powered by 100% solar power. A single 12v, 5Ah SMF battery
can power the Schneider Electric LED based light for 8 hours.

Business Model:
This battery charging station will be run by an entrepreneur, who can supply the batteries to people on
rent. A local entrepreneur has to own the battery charging station. The local entrepreneur need to
invest for the battery charging station. Schneider Electric will provide the complete technical solution
and after sales support. The local entrepreneur needs to collect daily rent and manage the charging
station.

Scalability and Reliability of the system:

The charging station is a scalable system. The battery charging station consists of independent
battery charging modules, which can charge 10 batteries in parallel mode. So the battery charging
station can be scalable to charge batteries in multiple of 10 (i.e 10, 20, 30 …..100) by adding an
additional battery charging module. As each battery charging module is independent, the system is
highly reliable .In case of fault in one system; it does not affect operation of other charging systems.
Space Requirement:
Grid Powered Charging Station
The battery charging station require space to keep the charger and batteries .The charger and
batteries need to be placed indoors, where as the solar panel will be installed outdoor . A typical 100
battery charging station will require a rack of size ( 2ft X 5ft X 5 ft ) to keep the charger and batteries .
Solar Powered Charging Station
Solar powered charging station will require solar panel in addition to charger and batteries. The solar
panels will be mounted outside. A typical 100 battery charging station, will require a rack of size ( 2 ft
X 5ft X 5ft ) to keep the charger and batteries . For installation of solar panel, there is requirement of
outdoor area of 200 sq ft .
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Benefits of Battery Charging Station Project
1. The battery charging station project will help in providing light to those people who
a) do not have access to light today because they live in no-grid area
b) live near to the grid, however, cannot afford to connect to it
2. The battery charging station is owned by an individual entrepreneur or a self help group who will
run the project in a profitable manner and can earn their livelihood by renting the charged batteries at
the charging station.
3. People who cannot afford the initial investment for individual solar home lighting system or grid
connection can buy only a LED light .They can take battery on rent daily to power the LED light.
4. Through this project people will get better light which does not cause health hazards during the
rainy season or cloudy weather there is a provision to charge the batteries through Diesel Generator
or from Grid.
6. This project supports socio-economic activities like:
a) School and college going children can read and write during the night.
b) Income generating activities like handicrafts, weaving, selling in market late evening etc.
c) Lighting up during festivals, marriage, late evening/night functions etc and enjoy a quality life

Conclusion
• The proposed battery charging station will help people to have reliable lighting source. This will also
create employment opportunity in rural area.
• In grid connected area, we recommend to use Battery Charging Station powered by Grid Supply.
This will help to reduce the initial investment .If the grid power is available for 6-7 hrs. , the batteries
can be charged . In areas where grid power is not available, the solar powered charging station can
be installed.
• To minimize risk, a entrepreneur can start with battery charging station with 10/ 20 batteries and
then increase the system capacity based on customer requirement.
• The entrepreneur can also make additional income by selling the LED based light. and solar home
system.