Indian companies are feeling pressure to adopt green practices from Western customers like Walmart to avoid losing business. Some Indian companies have found success becoming leaders in green industries like wind energy and electric vehicles. Implementing green practices requires a company-wide commitment and incorporating sustainability into product development, supply chain management, and operations can provide cost savings and competitive advantages.

1. 00 OutlookBusiness > June 13, 2009
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NDIAN COMPANIES ARE FEELING THE PRESSURE
to go green, as many of their Western counterparts are
building environmental sustainability into their business
practices. For example, Wal-Mart, which annually imports
over $3 billion in goods from Indian suppliers, recently
asked them to adopt green practices or risk losing the retail giant
as a customer. For Indian companies, there are other compelling
reasons to develop environmentally conscious practices. As lead-
ing companies know, going green, if done right, helps companies
bolster their fortunes. Here are a few instances:
When mounting electricity costs were eating into the profits
of Tulsi Tanti’s textile business, he developed a
wind energy system. Today, his company, Suzlon
Energy, is one of the largest wind-turbine makers
in the world.
Sensing a need in the market, the Maini
Group launched Reva, an electric car that has
an increasing customer adoption in India today.
Reva has had a good response in Europe too.
Rahul Bajaj set up a wind-power generation
system that today provides 90% of his plants’
energy needs, while realising savings of $5
million annually.
Committing To Green
While going green can prove a critical source
of competitive advantage, it’s easier said than
done. To achieve real financial benefits, Indian companies, like
those elsewhere, need to follow certain key practices. Above all,
they must commit to a green philosophy and incorporate envi-
ronmentally sustainable practices into their product lifecycle and
supply chain operations.
In order to go green, a company’s senior management and em-
ployees must believe in the philosophy, and commit themselves
to implementing it. For example, at Cisco, CEO John Chambers
and team are pushing in various green initiatives such as ‘let’s
talk Cisco green’, bike-to-work day, preferred parking for hybrid
cars, educational videos and green websites. These programmes
have helped Cisco build a sustainable culture and formulate a
strong green policy.
Leading companies in India are also committing themselves to
the green cause. For example, Wipro recently launched Eco Eye,
an ecological sustainability initiative that, among other things,
ensures that the firm does not do business at the cost of ecology.
Wipro is increasingly focusing on energy efficiency and effective
e-waste management.
For a company wanting to develop greener products, it’s
important to put on a ‘green cap’ during idea generation and
conception. These decisions affect the carbon footprint of an
entire product lifecycle. Such an approach is far more efficient
and cost-effective than making incremental improvements later.
Nokia is an example. It is making eco-friendly phones with
biodegradable phone covers and recyclable batteries. The company
is also working towards reducing up to 50%
of the energy consumed by mobile chargers.
MRF, one of India’s largest tyre manufacturers,
has created an eco-friendly tubeless rubber
tyre that reduces rolling resistance and
fuel consumption.
Green Supply Chain
For many companies, the supply chain is likely
to be the operational area that impacts the envi-
ronment. And that provides many opportunities
for improvement. Recently, two- thirds of the
300 organisations that responded to our Global
Supply Chain Trends 2008-10 survey have put
environmental sustainability as a key factor in
their global supply chain strategy.
There are many ways to ‘greenify’ a supply chain. Companies
can reconfigure parts of the physical network to locate suppliers,
manufacturing and customers near each other to reduce fuel
consumption and other environmental costs. For greener sourcing,
they can select suppliers with a green mindset. When it comes to
manufacturing, these companies must know that lean often means
green, since eliminating waste can also lead to reduced material
usage and energy bills. For end-use and disposal, companies can
develop after-life product recycling and take-back programmes.
Nokia, for example, has set up ‘green boxes’ across all Nokia
dealers in India, where customers can deposit old mobile phones
for recycling.
All these instances point to a green movement emerging in the
country. And the right approach can turn this into a sustainable
source of competitive advantage.
Toreducefuel con-
sumption,compa-
niescanreconfig-
uretheirphysical
networktolocate
suppliers,
manufacturingand
customerscloseto
eachother.
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BISWAJIT DAS
ASSOCIATE,
PRTM MANAGEMENT CONSULTANTS
MARK HERMANS
PRINCIPAL,
PRTM MANAGEMENT CONSULTANTS
AGreenEvolutionMore and more Indian companies are adopting ‘green practices’. It helps
the environment, of course. It also helps the business.
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