Power back-up solution provider Su-Kam is actively considering foray into consumer financing to facilitate lower income group households as well as small shops in urban areas purchase its inverter-battery combos keeping their budget and needs in mind.
Stating that the company was looking to set up a non-banking finance company (NBFC), Su-Kam Power Systems Ltd Kunwer Sachdev explained how it was important to tap the potential existing among LIG consumers, both households and small shops such as those of tailors and hair-dressers.
Changing aspiration levels, need for more comforts and improved income levels are behind such customers looking at power back-up solutions. Su-Kam has come out with lower capacity inverter-battery combos priced at Rs.6,000 onwards. “We are in the process of applying for an NBFC licence” he said, adding the investment on the venture exclusively to finance LIG consumers would be Rs.20 crore. Su-Kam would be bringing Rs.10 crore and for the rest approach banks.
Mr. Sachdev, who was in the city recently, said the company’s emphasis is on coming out with products for specific customer segments. It has already launched such combos for petrol bunks, soft drink and coffee dispensing kiosks and even lifts. Apart from LIG consumers, the focus is also on growing the business by tapping the opportunities for higher capacity inverters. For the consumer finance, which it hopes to get into in a few months, the company would be making use of its existing network of around 1,200 distributors and 25,000 dealers.
Hinting that the rate of growth in inverter sale to other consumer segments was expected to be slower, he said solar power, particularly rooftop, was another area of focus for Su-Kam. It was, however, not interested in getting into large solar energy projects where the power generated is sold to the government. The company, he added, was setting up a solar panel manufacturing unit in Baddi, Himachal Pradesh.
