Innovative Investment into Renewable Energy and Innovative Bio Fuels

Murali felt claustrophobic in his UK based consulting job and was looking to do something earthier, relaxing and hands on and active then advising his global clients.  An MBA from  INSEAD France, Murali found a good partner in K Dinesh, a MBA from Institute of Rural Management and an expert in Micro Hydel Projects. The two decided to convert Tide Technocrats Private Limited from a consulting company on renewable energy to a pioneering initiative in executive projects in renewable energy space.

The Business: Energy is a major concern for all Indian entrepreneurs, rural or urban. Tide Technocrats has identified solutions in energy sector as a major area of business opportunity. In the first phase the company is looking to exploit the vast untapped potential in the micro Hydel electricity generation and processed bio mass as bio fuel as its revenue model and intends to move on to more technological intense interventions such as biogas fired boilers for Industrial units.

The Services: TTPL provides end to end solution for micro Hydel installations and the alternative fuel need for power plants. Micro Hydel project is expected to provide electrification in rural and far flung remote areas while bio mass processing creates avenues of employment and entrepreneurship for village poor as also create value from waste products.

TTPL has already bagged an order form a Independent Power Plant to supply processed bio mass while it has developed a direct sales agent based strategy for reaching out to population interested in Micro Hydel Installations.

AMVCF and TTPL: AIMVCF found TTPL business line interesting as it not only was eco friendly but impacted the live of the poorest of the poor. The investment by Aavishkaar would be in three tranches and would help TTPL buy chipping and drying equipment and strengthen its man power position.

Aavishkaar has leveraged its equity with debt being provided by Winrock International, an international agency that provides soft debt to enterprises operating in energy space.

AIMVCF Role after Investment:  Aavishkaar has rights to a single nomination to the board of TTPL. The project manager of Aavishkaar works closely with TTPL to ensure that the company meets the business plan projections. Monthly and quarterly reviews are performed and board meetings held regularly.

Exit: AIMVCF intends to exit from TTPl in around 5 years. Aavishkaar is looking for an acquisition or management buy back as the two major options to exit.