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Energy Efficiency Services Ltd (EESL): S...

Maheshwari, Sunil,...

Case

Energy Efficiency Services Ltd (EESL): Shaping the Industry

Maheshwari, Sunil; Agrawal, Atul; Maheshwari, Sudhanshu

IIMA-STR0450 | Published October 24, 2020 | 22 pages Case

Collection: Indian Institute of Management, Ahmedabad

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Learning Objectives

Government of India constituted 'Energy Efficiency Services Limited (EESL)' on 10 December 2009; as a Joint Venture of four Central Public Sector Undertakings (CPSU) of India - NTPC Limited (NTPC), Power Finance Corporation Limited (PFC), Power Grid Corporation of India Limited (POWERGRID) and Rural Electrification Corporation Limited (REC) to improve energy efficiency in the country and helping in mitigating climate change. To achieve these objectives, EESL undertook consultancy and resource centre roles for Central and State Governments. In the initial years, it could get a small number of projects. Mr. Saurabh Kumar who took over as the Managing Director (MD) of the company on 13th May, 2013 realised that the ongoing projects were adequate to let the company sustain itself as a small but important entity in the country but could not ensure fast growth for EESL. He sensed an opportunity in LED bulbs but the prevailing high cost of imported bulb created hurdle in adopting this technology by people of India. He decided to offer product at a price of INR 10 against the imported cost of INR 800 in those days in India. This enabled the large population of the country shift from highly energy inefficient ICL bulbs to LED bulbs. The company has since then diversified into fans, smart meters, electric vehicles and services. The case also opens discussion on the role of Government organizations after having facilitated creation of a dynamic industry.

Role of PSE in Industry Development. Leadership in fast-growth stage of organization. Understanding the need for reviewing corporate strategy.