solar power pv pumpset_a way forward irrigation solution

FARM MECHANISATION : Whitespace

Saurav Paul Page 1

Objectives Description

Background Farm Mechanisation has been a backbone of Agriculture value chain.

More than 60% of net sown area of Indian agriculture being a rainfall

dependent the productivity gets marred with the erratic rainfall.

Thus irrigation becomes a important aspect for crop productivity. The

source of irrigation becomes an important for cost of production and

the productivity output of the crop.

As per an estimate Indian farmer uses 21 million pumpsets in their

field for irrigation.

These pump sets are diesel or grid connected electric powered.

Although the grid electricity in India is provided at subsidized rate but

due to scarcity in rural electrification and insufficient power supply

there is strong need of alternative source of power which can cater to

this short and ensure a continuous and timely supply.

The Theme A solar powered photo voltic pump set for irrigation could be a

economically viable proposition in comparison to conventional

pumps.

Although initial capex is high due to photovoltaic modules but in long

run ROI is positive owing to lower operating cost/ lower

maintenance/enviro friendly/convenience.

“Constraint” thus

an “Opportunity”

High initial cost of investment therefore requires a targeted

positioning of the product.

Innovative delivery models

Competition Tata Power solar System/Kirloskar/Jain Irrigation/Sunedision/Topsun energy etc

Strength of

competition:

All these companies have a strong dealer channels for distribution of

their various product.

They have the first mover advantage as well as captive customers.

Weakness:

Due to high initial cost of investment all customers cannot be

converted.

Lack of any financing models, thus currently all companies targeting

high net worth farmers.

The Company for

investment

A company which sells the product with an offering of a solution which

integrates electric and solar solutions in pumps with a future planning to

increase sales by evaluating direct sales, distributor models as well rural

distribution through collectives.

Initial higher cost of investment and sales to be taken care by Targeted

Positioning:

Targeted area basis high value crop cultivation (cash crop areas),

individual farmers’ landholding (Large farmers), progressiveness,

annual rainfall area.

FARM MECHANISATION : Whitespace

Saurav Paul Page 2

Targeted customer base basis farmers’ prosperity, literacy, early

adaptors.

Providing this solution through collectives like Farmer producer

companies, Co-operatives, Farmers clubs, SHGs, JLGs etc basis

outright purchase the leasing model to farmer members.

Through tripartite arrangements which includes Govt Grant/Bank

loans /Farmers margin Money

Leaderships team: One which has understanding technical, rural markets,

inquisitiveness, perseverance & passion