Presentation Transcript

1. Innovativeness in Solar products Manufacturing & Marketing Tuesday, 13 March 2012 1
2. Agenda Power Scenario in India Challenges –distributed Solar Power Distribution and Service Innovation Product and Design Innovation Building Inclusive Eco-system Capability Building About Us Summary 2
3. Power Scenario in India 3
4. Power Scenario in India Challenging Energy Scenario India's peak power shortage is projected to worsen 12.9% peak deficit in 2010 India will need more than  doubling of its current generating capacity of about 187GW to meet its power requirements by 2017. Estimated 300 million people (~55 million households) do not have access to grid power Solar Power - an emerging solution Off - grid Solar Energy (distributed) is best suited to meet the demands of peak supply shortage Distributed Solar power based on SHLSs and SHSs is the quickest to deploy with least technical and financial execution challenges However, distributed Solar power products continue to have significant distribution and service delivery related challenges 4
5. Challenges: Distributed Solar Power Creation of sustainable, scalable deep distribution Rural Distribution Robust Products Developing easy to use, simple to service, reliable at affordable cost Inclusive Eco-system Availability of product financing at the grass-root level Distributed Solar Power Market Service network Human Capital Providing arm’s reach service network Attracting cross industry skill sets and capability building in remote areas The opportunity is large ....need to address challenges in tandem 5
6. Distribution and Service Innovation 6
7. Rural Distribution: Challenges Early stage of product life cycle Difficult reach Societal factors Long distances Higher cost of travel Low Awareness Status quoist mind set Low population density Fewer calls per day Unexpressed need Low trust in new technology Lower conversion percentage Perceived complexity Value extracting attitude Low acceptability Lack of Pull factor High cost of selling Low profitability and viability Slow movement from retail shelves Sluggish adoption rate 7
8. Rural Distribution: Challenges Early stage of product life cycle Difficult reach Societal factors Long distances Higher cost of travel Low Awareness Status quoist mind set Low population density Fewer calls per day Unexpressed need Low trust in new technology Lower conversion percentage Perceived complexity Value extracting attitude Lack of Pull factor High cost of selling Low acceptability Low profitability and viability Slow movement from retail shelves Sluggish adoption rate 7
9. Distribution Model Innovation Located closer to the target market in 20-30k population Towns, covering 40-100 villages in 20km radius. Duron Brand Partner (Distributor) Taluk/block level Appoints Dealers in the feeder market Distributor Sales Officer (DSO) Duron Point (Dealer) Located in the feeder market, covering 8-10 villages, stocks and sells. Demos & Sells at village level Village wise demos help in seeding the product. V 3 V 2 V 1 V n Dealer in the nearest feeder market covering 8 to 10 villages Duron Advisors is a freelancing commission agent, sells and services. A trusted key influencer. Appoints Advisors DA 3 DA N DA 2 DA 1 Duron agent covers 1 or 2 villages Hybrid distribution model combining benefits of direct and mass distribution 8
10. Service Model Innovation Customer/ Duron Advisor Customer Contact via Distributor Contact via Distributor Distributor Directly Placing Service Call Distributor Directly Placing Service Call Placing Service Call Placing Service Call Customer Care Number # Service Modal Transitioning to Customer Care Number # Zone 2 Zone 3 Zone N Zone 1 Central Desk Central Desk Service Technician Service Technician Service Technician Service Technician Duron Advisor Duron Advisor Duron Advisor Duron Advisor Zone 1 Zone 2 Zone 3 Zone N Building up a scalable and arm’s reach service infrastructure 9
11. Market place innovations Distributor/Advisor/Dealer Demos being given Rural marketing activities 10
12. Product and Design Innovation 11
13. Product Innovation Plug-in connectors for lights Handle to carry it anywhere Switches with Caps to avoid dust Varied usage and environmental conditions Strap option for on the go usage Products to withstand various conditions like – dusty, corrosive, cloudy, high temperature. Easy- to- install and use USB port for mobile charging Weather and impact proof ABS casing Harvesting and Storage of Solar power Maximizing harvesting of available solar power Accurate measurement of state of charge of batteries, Minimizing system losses Extended life and low cost of ownership Maintaining high quality in production, creation of manufacturing eco-system, effective battery management 12
14. Product Innovation Key features • Portable: Multi–purpose usage • Plug-and-play: Ease-of-use and service • Microcontroller Based: Higher efficiency & long battery life • Rural market centric design- Robust ABS casing, dust proof switches • Energy efficient& long lasting LED lights Cutting edge features for institutional customers Breeze Lite Mini Mega Mobile charger is a standard feature in all the products 13
15. Innovation delivering superior value Consumption Product Cost / Litre (INR) Cost / Day (INR) Wicker Lamp Kerosene Lamp Clean, Smoke free light at lesser cost 14
16. Building Inclusive Eco-system 15
17. Inclusive Eco-system Significant percentage of rural people require product financing facility to buy a SHLS Duron Brand Partner The majority of these prospects are unbanked and the banks don’t reach out to these remote areas Distributor Sales Officers (DSO) Duron Points (Dealers) Duron Advisors Local lenders charges extortionist interest rates Customer acquisition through sustained focus on demo based selling Customers with Cash sales Creating an Inclusive Eco-system to provide access to product financing is a critical must for ensuring solar power for all Tie ups with NGOs Customers needing product finance Tie ups with DCBs Duron solar has tied up with various MFIs /DCBs to extend product financing scheme for the rural customers Tie ups with MFIs Inclusion of MFIs critical to ensure deeper and faster penetration of solar products 16
18. Capability Building 17
19. Capability Building Area Sales Managers & Territory Sales Managers Monthly review meeting & training Capability Building DSO training & Field coaching Brand Partners (Distributors ) & Duron Point ( Dealers) Training & interactions Advisors training & Field visits 18
20. Summary 21
21. Summary Concerted (Industry wide) efforts needed to enhance awareness about benefits of distributed Solar Power products MFIs can play a vital role in ensuring reliable ,clean power for all. Availability of servicing network and spares is critical for making SHLSs popular. Spare parts for Solar products need to have concessional taxes Companies engaged in setting up high cost distribution and service network for distributed solar products needs support. Creation of a fund like USO in telecom can be considered 22
22. About Us 19
23. About Us DURON Solar designs, makes and sells Off-grid Solar Power products for retail and institutional markets Founded by Idealab in 2008 Founded in 2008 with the mission to bring power to millions that live without adequate power Started India operations in 2009 Headquartered in Bangalore with offices in three other major cities On-ground retail distribution in two states – UP and Karnataka Expanded into institutional market in 2010, specifically addressing power needs for ICT (Information & Communications Technology) solutions DURON Solar is partnering with Intel for its World Ahead Program – an ambitious 70-country programme DURON Solar is an Intel capital portfolio company About Idealab Idealab headed and founded by Bill Gross, started and operated more than 75 pioneering companies since 1996. Entered solar in 2001 and founded companies such as eSolar and EI Solutions. Some of the other Idealab companies with breakthrough technologies - Ubermedia, Evolution Robotics, eToys, PICASA, Volly About DURON Solar 20
24. Ajay Kumar Awasthi (ajay@duronenergy.com) www.duronsolar.com Thank You 23