Submitted by Group 4

Submitted to
Dr. M R Suresh

Prakhar Sharma-14103
Satish kumar- 14139
Nisheet Bagaria- 14092
Sachin S- 14130
Yashasvi S- 14183

INTRODUCTION
According to World Bank Development Indicators (2008), close to half of the
worlds population live on less than US$ 2.50 a day and about 1.4 billion live
under US$ 1.25. Reduction and removal of poverty has been identified as a
critical challenge of this century. Nation states, institutions, organisations and
individuals have started to get engaged with this problem at multiple levels.
One important landmark of this global engagement was the declaration of
Millennium Development Goals (MDGs) in 2000, where 192 member nations of
UN and several international organisations agreed to make a time-bound effort to
eradicate extreme poverty and hunger by 2015.
While there is scepticism about whether any of the MDGs would be achieved by
2015, the declaration has somehow managed to bring to the fore the magnitude
of the problem and possibly greater awareness and sensitivity among the
economically well-off about the plight of the poor and underdeveloped.

Harnessing sunlight to create livelihood

Pic: SELCO lightening a house

SELCO solar lightening system empowering a house with no electricity and like
this many villages across the Globe.

SELCO Solar Pvt. Ltd, established by Dr. H Harish Hande (Managing Director) in
1995, has sold sun oriented lighting to more than 1,10,000 country homes and to
4,000 foundations in Karnataka. An effect appraisal study by World Resources
Institute in 2007 noticed that 86% of SELCO's poor clients showed noteworthy

investment funds in vitality costs as their essential advantage of utilizing SELCO

items, while the rest indicated their kids' instruction.
For a dominant part of SELCO's clients, sun oriented lights are the most costly
gear that they ever buy. Despite the fact that they may be spending identical
measure of cash in purchasing lamp oil to meet their vitality needs, making a
forthright speculation of a couple of products of their month to month pay was
past their methods.

Subsidizing alternatives

SELCO understood that to offer sun powered lights the poor should have been be
furnished with financing, where the credit payback calendar was synchronized
with their pay designs. Getting account for buy of sunlight based lights, even
from country banks, was troublesome, in light of the fact that home lights were
not specifically connected to any salary producing exercises.
SELCO had an arrangement. They sorted out field trips for the bank authorities to
show to them the reasonability of sun powered lights and how it can have any
kind of effect to the occupation of the country poor. While a percentage of the
bank authorities were thoughtful to the thought and were sufficiently adaptable
to authorize credits, others were anxious. In this manner, SELCO even began
following the exchange of thoughtful authorities inside of the rustic managing an
account framework and arranged its own extensions in like manner.

Operationalizing

Today, SELCO administrations its clients from 25 focuses spread all over rustic
Karnataka. While sunlight based lights are the standard item, lighting
arrangements have been deliberately designed remembering the necessities of
the clients and their ability to pay credit portions.
Their administration designers are urged to communicate intimately with the
clients and the neighborhood group, stay and live with them so they have a
profound comprehension of the issues that the general population face.
SELCO charges Rs 250 as yearly support contract for a four-light framework,
which qualifies the client for two upkeep administrations and one crisis
administration accessible if the need arises. Their experts check each sunlight
based establishment twice every year to guarantee that they are in appropriate
working condition.
The organization has been instrumental in making a few business people in rustic
Karnataka. Other than home lights, SELCO makes sun powered lights that can be
utilized by road merchants amid nights. Since road merchants won't require the
lights for the whole day, SELCO recognized business people who might purchase
the lights from SELCO and leased them to the sellers every day.

Road ahead

About 15 years after it was established, SELCO might have accomplished its key
targetof building up a suitable business concentrating on vitality needs of poor
people. In any case, achievement raises desires, and Hande and the initiative at
SELCO are gotten some information about their arrangements to scale their
business.
After profound contemplation and thinking about their fizzled explore different
avenues regarding business relates, the administration has chosen that a little
plan of action is perfect for the sort of work that SELCO does. Scaling up
necessities institutionalization, which is contradictory to SELCO's business theory
where arrangements are modified remembering the setting and substances of
the end client.

The necessities of the poor are exceptionally differing, calling for customisation
on various measurements, including item arrangement, upkeep and backing and
also complimentary administrations, for example, money. Associations creating
items for poor clients regularly need to go about as facilitators for advancement
of the whole esteem chain.

Alternative

SELCO has settled on two approaches to make more prominent effectto begin
with, by supporting business people why should spurred begin organizations
concentrated on giving vitality answers for poor people, and second, by going
about as exploration accomplices for associations who need to make items and
answers for poor people.
The association is currently setting up an advancement lab, which can be utilized
by different associations for creating, testing and refining their items. In this way,
SELCO is making a progressive move from being a sun based lights organization
to a supplier of vitality answers for the country poor.
What stays to be seen is the manner by which SELCO can adjust the exchange
off between making expansive scale sway for a differing set of clients and
meeting the vitality needs of those that need it the most.
C K Prahalad hypothesised that the best way to deal with this seemingly
intractable problem of global poverty was to motivate the private sector to
consider 4 billion poor people in the world as a potential market to whom they
can sell their goods and services. While individually they are poor, collectively,
the bottom of pyramid (BoP) wields a lot of purchasing power.
Prahalad hoped that the private sector, by means of its efficiency and innovation,
will achieve what government support, philanthropists donations and efforts of

developmental organisations could not, a view that appealed to most corporate

stakeholders.