In September 2011, a introductory industry in the alternative energy business in India, the CEO of First Energy Private Ltd, is confronting a flashpoint. The organization has commercialized the technology of biomass cooking stoves and has been supplying, since affordable, clean and 2007 cooking solutions to customers in rural India. A marginal increase in price of biomass fuel in early 2011 has, however, resulted in an abrupt fall in claim making the persistence in the rural home marketplace unsustainable. The firm does not have a level playing field in the household section as the rival product, liquid petroleum gas (LPG), loves price subsidy provided by the federal government.
The volumes are low while the borders are high in this segment. The company must consequently assemble scale to be able to service the investments in plant capacity, which is being under-utilised. The case scenario facilitate students to come up with approach for market development for the CEO. They will also take a call on whether to exit from where the margins are low or hold on to the household section but the volumes, in the light of the forthcoming de-subsidization of LPG, would not be low.
PUBLICATION DATE: February 17, 2012 PRODUCT #: W12705-HCB-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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