Husk Power Systems: Lightening up the Indian Rural Lives

            
** Won 2nd Prize in OIKOS Global Case Writing Competition on Social Entrepreneurship
 
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Case Details:

Case Code : LDEN085
Case Length : 19 Pages
Period : 2007-2012
Pub Date : 2013
Teaching Note : Not Available
Organization : Husk Power System
Industry : Power, Off-grid Industry
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts Contd...

Social and Environmental Impact

Each HPS plant served around 400 households and helped save on approximately 42,000 liters of kerosene and 18,000 liters of diesel per year which was used to generate electricity. This contributed to, reduced home pollution, and improved the lives as well as health of the villagers, especially the women and children who used to huddle around the kerosene lamps after sunset to work and study. According to a company source, it had already saved 9,244,800 liters of kerosene by August 2012. With HPS plants, the villages had a far better lighting system in the form of CFL lamps which gave out bright white light which helped the children to study and helped women to do their household work better without having to face the problems associated with using kerosene lamps and diesel generators...

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Challenges in the Way

Social entrepreneurs are responsible not only to their shareholders but also to the government (which provides a subsidy) as well as to society (which is impacted positively or negatively by the act of the social entrepreneur). Commenting on the challenges faced by this project, Pandey said, "The biggest challenge always is to get the right people for the right job. Besides, convincing villagers about the need to bring about a change in their lives was tough. We need a continuous supply of machines and manpower to effectively implant our plans."...

The Road Ahead

HPS was looking forward to massive expansion based on its award winning business model and the huge demand for off-grid electricity in its home country as well as in different parts of the world. The company planned to expand its business into other states in India like Maharashtra, West Bengal, Uttar Pradesh, and Tamil Nadu. Outside India, it planned to expand into Bangladesh, Cambodia, Ethiopia, Indonesia Nepal, Tanzania, and Uganda. Pandey said, "We plan to have 2,014 plants by 2014. Besides, electrifying other villages across India, we also plan to make a foray into countries like Nepal, Indonesia, Cambodia, and Ethiopia in the near future."...

Exhibits

Exhibit I: Award and Recognition to Husk Power System
Exhibit II: Time Line of Husk Power Systems Growth
Exhibit III: Management at Husk Power Systems
Exhibit IV: Questions to Assess the Feasibility of HPS Power Plants to Serve the Villages
Exhibit V: Approximate Monthly Revenue and Cost for 35kW Husk Power Plant

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