Right from the word ‘Go’, it has been a Mission-Driven company. And the trigger was not that difficult to understand. Couple of aspiring entrepreneurs—all with army background came together and naturally wanted to contribute back to the society. And they wanted to do it by way of creating brands inspired by virtues of Indian Army. Thus came into being-Def Mart—in 2012-13.
From a modest beginning, the Gurgaon-headquartered MSME organisation now has 25-odd professionals notching up an annual turnover of close to Rs 5 crore. And mind you it is co-promoted by four seasoned campaigners: Major Biju Balakrishnan, CEO and founder, Lt Gen Sudhir Sharma (Retd), co-founder and creative director, Col Sudhir Kumar (Retd), Director and S M Kumar, Director.
Speaking to Baishali Mukherjee of SMEpost.com, an IIM Kolkata alumnus-Biju Balakrishnan explains the problems and prospects of Indian solar sector in the SME segment and how they are gearing up to take on competition from abroad.
Q : Why solar in the first place?
A : That’s not without reasons and logic. Solar energy has been used for over 2700 years; in 700 BC, glass lenses were used to make fire by magnifying the sun’s rays. Only 0.01 per cent of the energy produced by nuclear fusion in the sun PER SECOND would be needed to satisfy the entire population of the earth’s energy requirements. Renewable energy (RE) sources contribute only 7.7 per cent of the total installed power capacity of 167,077 MW in India.
Q : How do you see the prospects of SME sector solar companies like yours in India and the reasons?
A : The prospects are indeed bright. There is an immense opportunity to do good under a very pro-active and forward-looking government. And also the fact it will be local companies who can address the problems which in India varies from place to place.
Q : Do you think that after the new government assumed office, things have started looking up for the solar sector in the country? If so why do you think so?
A : Yes indeed! The solar energy targets have been revised upwards – foreign investment as well as local manufacturing is being aggressively promoted, and industry-friendly legislations are being enacted at federal as well as state government levels. Off-grid as well as grid-connected generation is receiving attention and with a capable minister at the helm, the government is working overtime to create a conducive regulatory environment. The government is rightly acting as the facilitator and regulator, leaving it for the industrialists and entrepreneurs to deliver.
Q : Are you banking on the domestic segment or commercial/ institutional segment for future growth?
A : We are at present more focused on off-grid segment. Our priority areas would be villages & places where there is no / limited access to safe & reliable electricity over the next few years. We are also looking at promoting energy efficiency and responsible usage across cities.
Q : What are the problems faced by the small and medium sector solar companies in India and what would you like the government to do address and solve the problems?
A: Access to good quality finance, particularly for smaller entrepreneurs and start-ups remains a prime concern. The entrepreneurial eco-system is not developed. Infrastructural bottlenecks and bureaucratic delays are still frustrating; however, there is cause for optimism.
Q : What are the areas where Indian solar companies (in SME segment) can collaborate with those of Europe and US and other developed countries?
A : India is a huge consumption market. Using the Western Technological and Project Management Capabilities and Indian Entrepreneur’s understanding of the ground realities, and their ability to innovate and deliver frugally, we can have a win-win situation. Singapore and West-based NRIs could emerge as a key source of funding for this socially-relevant sector with adequate opportunity to generate good, steady return on investment.
Q : Is the Indian solar sector ready to take on competition from transnational companies?
A: Competition (and opening up in a systematic manner) is always good for the customer. However, the domestic manufacturers still need some protection; otherwise they could just be swamped away by cheap Chinese exports.
