Business Idea:
Samuchit Enviro Tech Pvt Ltd, Pune (SET), was promoted by Dr.A.D.Karve, Mr.R.D.Hanbar Deshmukh and Dr.Priyadarshini Karve in June 2005 to provide environment friendly, energy efficient solutions to satisfy the household energy needs of the rural and semi-urban populations. SET is currently marketing fixed and portable biomass burning cooking devices, compact biogas plants using household organic waste as feedstock, and charcoal briquettes made from agricultural waste. R & D on these products is carried out by Appropriate Rural Technologies Institute (ARTI) a world renowned NGO set up by the promoters. SET has received grants of Rs.5 million from the Shell Foundation.
SET is now capable of reaching its products to about 100,000 households in the states of Maharashtra, Karnataka, Goa & Gujarat over the next 3 years and 1 million household by 2020. The key features of the business model are to focus on distribution and direct sales (using both owned stores and mobile promotional vans, to create a multiplier effect). The emphasis on direct sales is designed to strengthen the market push, reduce the working capital cycle and increase the margins. SET's value enhancement will essentially be through ownership of rural/semi urban channels, strong brand and cost effective & innovative product portfolio.
Social and Environmental Impact:
- Employment generation in rural areas: By 2013 SET is expected to generate employment for about 140 people primarily in the rural areas.
- Health benefits for rural women and children: Use of clean burning biomass fueled stoves marketed by SET lead to reduction in Indoor Air Pollution (IAP) in the rural kitchen. Use of SET's products reduces IAP by at least 40%.
- Protection of environment: The cook stoves manufactured lead to at least 40% saving in fuel wood. The compact biogas system is useful for clean disposal of organic garbage produced in the household and is a partial replacement of LPG (daily at least 25% LPG can be saved), which is a non-renewable fossil fuel.
Current status and Expansion Plans:
During 2009 SET sold a total of 10675 units of cooking devices and 150 units of bio-gas plants earning revenue of INR 7.6 million. In the year 2013, it plans to sell 0.14 million units (15% export) of cooking devices and 2000 units of bio-gas plants with expected earnings of INR 155 million.
Funding Requirements:
SET is seeking INR 39 million over a 3 year period (Equity - INR 23 million, Debt - INR 16 million).
