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Greentech India Opportunities - overview


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An overview of Greentech Opportunities in India

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Greentech India Opportunities - overview

  1. 1. GreenTech - Opportunities India Overview, Nov,2008 http://
  2. 2. Greentech Defined Greentech or Cleantech encompasses broad range of sectors like agriculture, water , materials , fuels, energy , food , transport , logistics etc where environment friendly technologies, products and processes can be deployed and commercialized
  3. 3. Greentech Opportunities (India) <ul><ul><li>Distributed Energy (DE) </li></ul></ul><ul><ul><ul><li>India doesn’t have grid, is increasingly energy deficient and every unit of energy generated is energy gained. DE energy encompasses technologies like Solar, ,wind, biomass etc on smaller to medium scale put up at point of use or very near to it. </li></ul></ul></ul><ul><ul><ul><li>Opportunities in Solar Panels, Cell manufacturing. Solar cell is biggest market. Demand is more than supply. </li></ul></ul></ul><ul><ul><ul><li>Opportunities in BoS side of Solar PV supply chain. System integration, product development etc. </li></ul></ul></ul><ul><ul><ul><li>Rural electrification is huge market (around 50% of rural households don’t have access to electricity). The opportunities exist in form of Solar, biomass installations on community levels to micro-utility projects. As per IFC (International Finance Corporation) study rural households in India are most reliable in paying for services. Rural India is commercially viable as shown by telecom sector (30% of new phone connections in India are in rural areas) </li></ul></ul></ul><ul><ul><ul><li>Rural cooking products. 76% of rural households uses wood based choolahs for cooking. </li></ul></ul></ul>
  4. 4. Greentech Opportunities (India) <ul><ul><li>Energy Efficiency </li></ul></ul><ul><ul><ul><li>Any technology which can improve energy efficiency would be in huge demand. This includes things like EIS (energy Information system), Smart metering to efficient energy storage technologies. </li></ul></ul></ul><ul><ul><ul><li>Energy Information systems (EIS) , real time information systems would be required in Utilities to commercial and residential complexes. </li></ul></ul></ul><ul><ul><ul><li>Technologies like LED would be in demand for energy saving. The cost barriers have to be lowered by economy of scale. </li></ul></ul></ul><ul><ul><ul><li>Smart and carbon neutral buildings. </li></ul></ul></ul><ul><ul><ul><li>Energy efficiency would be necessitated in many countries for compliance reasons , opening up market for new innovative solutions for energy saving. </li></ul></ul></ul><ul><ul><ul><li>ICT would be heavily used for energy efficiency and carbon monitoring, creating opportunity in these sectors. </li></ul></ul></ul><ul><ul><ul><li>Carbon capture and reuse (CCR) solutions , carbon trading and financing, energy audits etc are other opportunities </li></ul></ul></ul>
  5. 5. Greentech Opportunities (India) <ul><ul><li>Water Management </li></ul></ul><ul><ul><ul><li>Water and Energy are interrelated. </li></ul></ul></ul><ul><ul><ul><li>Water is biggest problems in India waiting to be solved. 70% of Indian don’t have access to safe drinking water. Rural India uses ponds and bore well. Rural India can pay for safe drinking water. Setting up of micro-water plants in villages. </li></ul></ul></ul><ul><ul><ul><li>De-salination is big-ticket area </li></ul></ul></ul><ul><ul><ul><li>Water Supply efficiency (30-40% water in urban areas lost in distribution ) and building water infrastructure in urban and semi-urban areas. </li></ul></ul></ul><ul><ul><ul><li>Rain water harvesting </li></ul></ul></ul><ul><ul><ul><li>Waste water treatment , recycling in industries, towns and cities. </li></ul></ul></ul><ul><ul><ul><li>Smart agriculture, micro irrigation systems. </li></ul></ul></ul>
  6. 6. Greentech Opportunities (India) <ul><ul><li>Materials and Bio-fuels </li></ul></ul><ul><ul><ul><li>Eco-friendly and clean materials would be in demand. Example is IIT Mumbai incubated startup EnNature which has developed a carbon-free bio-ink for print industry. (potential market 800crore/year Indian ink market) </li></ul></ul></ul><ul><ul><ul><li>Building materials. </li></ul></ul></ul><ul><ul><ul><li>Packaging materials </li></ul></ul></ul><ul><ul><ul><li>Bio-fuels like bio-diesel. (example is RegenaStar which is integrated generator system on bio-oils) </li></ul></ul></ul><ul><ul><ul><li>Big emerging market in Jetropa plantation on marginal land. The model can be scaled up in India and re-deployed in African countries. </li></ul></ul></ul>
  7. 7. Greentech drivers in India <ul><ul><li>Investors View </li></ul></ul><ul><ul><ul><li>India’s has large untapped market in energy, water , most of which doesn’t depend upon government regulations </li></ul></ul></ul><ul><ul><ul><li>Unlike west, India has energy/water deficit, creating opportunities to plug the gap through greentech. </li></ul></ul></ul><ul><ul><ul><li>Creating Superior technology or superior access to customers is going to be the key. </li></ul></ul></ul><ul><ul><ul><li>Cleantech entrepreneurs have to think of scale. 20* 5 MW plants not 1 MW plant. </li></ul></ul></ul><ul><ul><ul><li>Currently there are very few greentech entrepreneurs in India (7 investor/3enterpreneurs). </li></ul></ul></ul><ul><ul><ul><li>Rural market is very attractive. Think of delivery networks for electrification and water supply and other such services. </li></ul></ul></ul>
  8. 8. Investor (VC) focus <ul><ul><li>Many VC and seed funds are looking for IPR and Technology startups in any of above mentioned areas (example bio-ink, smart fuel injection system like Sedemac (IIT startup)) </li></ul></ul><ul><ul><li>Most Private equities are looking to invest growth capital in products and technologies which have proven in market place </li></ul></ul><ul><ul><li>Growth funds look for model which can scale up , like Jetropha plant based bio-diesel production </li></ul></ul><ul><ul><li>RnD to customer deployment and Demo before commercialization should be done in collaboration with a potential customer . VC do not usually invest at that stage. </li></ul></ul><ul><ul><li>For execution based projects (like Solar, Biomass plants), VCs look for scale. 1 MW plant is not good. 200*1 MW is more appealing. </li></ul></ul><ul><ul><li>Rural market is huge and not as risky as many think. India is ideal laboratory for greentech to test ideas like Rural electrification, biomass plants, micro-water utilities. These ideas then can be deployed and commercialized in African countries which have similar rural problems. </li></ul></ul><ul><ul><li>First product to market or first project to execution is ideal time to approach VCs. </li></ul></ul>
  9. 9. Cleantech Investment - view <ul><ul><li>30% of global VC funding last year has been in cleantech startups </li></ul></ul><ul><ul><li>In US, last year, 70% of all VC funds have gone to cleantech industry </li></ul></ul><ul><ul><li>In Europe 19% of investment has gone to cleantech and in Asia it is 8% </li></ul></ul><ul><ul><li>India has garnered 5% of VC funds in cleantech </li></ul></ul><ul><ul><li>Solar continues to be most invested area with 36% of funds , bio-fuels are second with 16% of funds. </li></ul></ul>Based on report by Cleantech Group
  10. 10. Greentech Opportunities in short <ul><ul><li>Cleantech or Greentech is going to be big in future. It is going to make commercial sense than just emotional and environmental sense. There is no way but clean way in future. </li></ul></ul><ul><ul><li>Cost in future would not be just cost as we know today but total cost of ownership </li></ul></ul><ul><ul><li>Anything which we have designed till now, can potentially be redesigned for efficiency - Vinod Khosla </li></ul></ul><ul><ul><li>Carbon foot reduction would mean re-looking at entire supply chain of products. There would be opportunities in chain for efficiency and CC reduction which can translate into commercial gains. </li></ul></ul>
  11. 11. Some Indian Greentech Startups <ul><ul><li>Axon Biogencis - Waste to energy </li></ul></ul><ul><ul><li>Energos technologies – Energy management and Control system </li></ul></ul><ul><ul><li>EnNatura -Clean material Startup </li></ul></ul><ul><ul><li>GridPlex - Internet based smart grid solution </li></ul></ul><ul><ul><li>Mission Biofuels India Ltd .-Jatropha plantation </li></ul></ul><ul><ul><li>Nandan biomatrix Limited - Jatropha based bio-diesel production </li></ul></ul><ul><ul><li>Sedemac Mechtronics – Energy efficient products for automotive business </li></ul></ul><ul><ul><li>Surya ventures - Biomass coogeneration system </li></ul></ul>