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GSMC 2014

Global Summit on
Management Cases

SELCO INDIA: A CASE ON EMPOWERING RURAL


LIVELIHOODS THROUGH VALUE CREATION*
ABSTRACT
This case is about an eighteen-year-old Bangalore based social enterprise SELCO India, which caters to
the energy need of the economically impoverished sections of society. It was established by Mr. Harish
Hande with the financial help of Solar Electric Light Fund (SELF), a U.S. based non-profit organization. It
is a for-profit organization which has created over time, a unique business model with customized products,
doorstep financing, and a strong service network, which is uncommon to a market primarily consisting of
the poor. Till date it has provided solar lighting to 1, 25,000 homes in the remote regions of Karnataka,
Gujarat, Kerala, and recently Tamil Nadu. It sells tailor-made solar products and services at an affordable
price to cater to the needs of the consumers at the bottom of the pyramid (BoP). In addition to explaining
the nuances of BoP market, this case describes how the rural people benefitted enormously by participating
in income generating activities through SELCO. The case also highlights Handes innovative ideas,
unconventional thinking, visionary power, and well integrated approach to build an ecosystem in the BoP
market which makes it sustainable and also helps them in leading their life independently and gracefully.
Research based on secondary data has been carried out to investigate the sustainability and viability of SELCOs
business model in the context of BoP.

Pedagogical Objectives

To understand the importance of decentralized energy distribution systems for resolving the energy
crisis of un-electrified remote regions and also the other sub urban areas of rural India

To analyze the business strategies that organizations have to develop to sustain in the energy generation
businesses and the elements that need to be factored to draw the future possibility of electricity driven
growth for building the roadmap of sustainable energy solutions

To explore the nuances of bottoms of the pyramid (BoP) innovations and entrepreneurships by
interpreting new dimensions for value creation

To analyze the prospects of efficiency and efficacy of the business model of any organization

Case Positioning and Setting


The case can be taught to MBA and Executive MBA for the following courses:
To explain the nuances of BoP market - To demonstrate how a successful BOP strategy can be formulated
and implemented To understand the importance of building ecosystem for the BOP and the complexities
associated with it.
* GSMC 2014, IIM Raipur

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