SELCO : Harnessing

Sunlight to Create
Livelihood

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By:
Abhinav Sharma 33061
Daphne Albuquerque 33072
Kriti Kaushal 33081
Mridul Kumar Dhaniwala 33089
Sunakshi Agarwal 33113
Sushant Bhatia 33115

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 Case Summary
• SELCO is a for profit social enterprise
which has been providing sustainable
energy solutions to the poor and
underserved regions of India for the
past 15 years
• It has managed to maintain strong
linkages between its end users,
energy services, technology and
financing as each one is
interdependent on the other.
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 Situation Analysis
• SELCO has reached a stage in the
business where they want to spread
their objective of bringing solar
energy solutions to other parts of the
country. At the same time, there is a
change in the top management of
the company, and SELCO is looking
for ways to replicate their business
model.
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 External Environment-
PESTEL Analysis
• Political: JNNSM was launched by GoI
which favoured large centralized
production- SMEs were unable to
influence policy makers
• Economic: Subsidies available in
Foreign markets because of which
big suppliers divert to such markets.
Financing method- Customers find
it difficult to get loans through existing
channels.
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 Industry Analysis
• Relatively untapped industry
• Alternative energy interventions,
only by the government
• Very few small and medium
enterprises

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 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
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though more expensive in long run)
 Internal Analysis

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 Objectives
• Long Term: Sustainable business.
Create opportunities for lower
income groups of society to access
alternate energy sources.

• Middle Term: Rural electrification on

a large scale(2 Lakhs rural
households in 4 years)

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 CRITERIA
• Identifying new leadership and ideas
• Social objective
• Financial viability

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 Alternatives
• Expand SELCO geographically
• Diversify products to address other
energy related needs
• Create a franchise model
• Invest and incubate the potential
entrepreneurs to replicate SELCO’s
business model.

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 Evaluation of Alternatives
• Expand SELCO geographically
- New employment will be provided
but potential leaders won’t be
identified
-Social objective will get
compromised.
-More financial burden on SELCO as
innovative financing will become
difficult for customers.
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 Diversify products to
address other energy
related needs
• Increase in cost due to R&D
• Leadership problem not addressed

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 Create a Franchise model
- Bitter past experience in AP
-Target pressure on franchise to
increase sales, making objective purely
commercial
-Effective leadership not identified

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• 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

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 Best Alternative
• Invest and incubate the potential
entrepreneurs to replicate SELCO’s
business model

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 Implementation
• 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
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• SELCO will continue to support and