Abstract
Solar Electric Lighting Company (SELCO) was established in 1995 to serve the energy needs of people living at the base of the pyramid in Karnataka, India. The CEO, Dr Satish Hande, focused on developing need-based customized solar energy products for off-grid customers. During the initial years, the company faced financial problems to meet its operational needs, which was eventually overcome. Solar Electric Lighting Company came up with several innovative products that increased productivity of customers. Though the products sold were priced low, care was taken to ensure that product quality was not compromised. The company subsequently faced several challenges. The appointment of dealers in lieu of its own branches did not deliver desired results. Increase in input costs landed SELCO in losses. Pressure from investors for profits when the company was facing financial crisis was the toughest of them all. Having overcome the obstacles, SELCO became profitable, expanded operations in six states of India and installed 200,000 solar lighting systems in a period of two decades. Several growth options presented themselves to Dr Hande. The most prominent being the need to make a choice of staying focused on customized products for the poor or cater to the upmarket, high-growth and profitable segment.
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