Project Eco Green

ECOPRENEURSHIP PROJECT WORK

KUNAL DHOOPER MBA(MARKETING), NIEC , IP UNIVERSITY Delhi POOJA SHARMA MBA(INFRASTRUCTURE), UPES Dehradoon

CERTIFICATE With sheer dedication we here by certify that this project is done on the basis of secondary data and we are liable if there is some feedback in the project. We acknowledge if there is some opportunity for change. The project is available online and soft copy can be obtained only on request. Thanks!!!

WHAT IS ECOPRENUERSHIP? The term ecopreneurship has been derived from two different words ECOLOGICAL and ENTREPRENEURSHIP. So we can say that it is the process of managing a business keeping in mind the responsibility towards the environment. Ecopreneurship is management of resources essential for conducting a business along with understanding the need of protecting and preserving the nature. There is growing interest among the consumers regarding saving the environment and this is influencing the corporate world. Even though environmental issues affect all the activities of human life, very less attention has been paid to address them. We should now wake up to modify our behavior in order to address some of the environmental concerns. As the world becomes increasingly concerned with „green‟ issues, companies, organizations and governments are gradually moving towards more sustainable business practices - and India is no exception. India is also becoming environmental conscious and many companies are working towards the environment friendly part of business.

PROCESS OF ECOPRENEURSHIP The process of ecopreneurship is composed of various stages. These stages are as follows:GREEN PROJECTS

REQUIREMENTS FOR GREEN PROJECTS

GREEN PRODUCT

GREEN MARKETING

Now we will discuss each stage of the process of ecopreneurship in detail along with live examples both from Indian and global corporate world.

GREEN PROJECTS: Green Projects can also be termed as Green Business. This is the stage from where the process of Ecopreneurship is initiated. In this stage, the prospective Ecopreneur finds out the business idea implementation of which does not affect the environmental balance. It is the process of finding, implementing and conducting environment friendly business. In other words, this is the stage of development of a green concept. It is concerned with development of products which are environment friendly, have minimal of detriment effects on the environment and safe from health hazards. Other stages in the process depend on this stage to a large extent. The importance of Green Projects can be listed down as follows: It generates a new environment friendly business idea or modification of existing ideas to turn them environment friendly.  The second stage i.e. requirements, depends entirely upon the business idea generated.  Green Projects provides a direction as to what products are to be produced to keep the environment safe and conserved.  The success of the entire process of Ecopreurship depends upon the feasibility of the business idea generated in this stage. For example: 1. The idea of producing SANTRO-ECO by HYUNDAI is a Green Project as it will produce cars that can run on LPG thus, helping in saving of petrol and diesel. 2. The idea of producing CFL and other energy conserving electrical devices by PHILIPS is a Green Project. 3. The idea of producing notebooks with recycled paper can be regarded as a green project. The notebook brand CLASSMATE introduced by ITC is the result of a green concept developed to produce notebooks from recycled paper.

REQUIREMENTS FOR GREEN PROJECT

Financing

Green technology

Policies

R&D

FINANCING: Finance is a very important requirement in any organization. Knowing that a green project may be very risky, it might become difficult to accumulate funds. Since finance helps in pumping blood in the working of the enterprise, it is to be acquired from various prospective sources and should also be utilized in the most efficient manner. Though not many banks may be interested in investing in break through projects but still some of the financial institutions understand their social responsibility and provides funds for green projects. EXAMPLE:

ADB FUNDS GREEN PROJECTS IN INDIA

The Asian Development Bank (ADB) is to help set up a fund that will mobilize financing for energy efficiency projects in the Indian state of Madhya Pradesh. The name of this fund is Energy Conservation Fund(ECF). ADB will provide US$1.7 Million in the form of technical assistance to the Madhya Pradesh‟s power sector which will help in bridging the gap between the power demand and supply in the state.

Among others who have shown interest in investment in this segment in India are IDG Ventures India, Draper Fisher Jurvetson India, Advisory Services, ePlanet Advisors, Global Environment Fund, Aavishkar India Micro Venture, Capital Fund, Lightspeed Venture Partners, Nexus India Capital Advisors, Vinod Khosla (Khosla Ventures), and NEA Indo-US Venture. The ECF will be used to implement programmes through technical and financial assistance, benefiting all stakeholders including the Government of Madhya Pradesh, power sector companies, and consumers. The technical assistance will also include outreach and awareness programmes to create an environment conducive to the ECF and establish credibility among the diverse group of stakeholders whose involvement in energy efficiency is crucial to the success of the ECF including commercial building owners, utilities, industries, policy makers, energy auditors, energy service companies, energy efficient equipment manufacturers, and banks and financial institutions in the state. Barriers to Financing in such projects:Risk aversions Lack of resources High cost of financing To tackle the risks being faced under this project, ADB has been asked to provide a loan of US$5 million as initial seed capital for ECF. The Government of Madhya Pradesh will complement this with funds collected from a special electricity sales levy. ADB‟s technical assistance will support ECF to ensure it has adequate operational resources for its first five years in operation, after which it is expected to become financially independent. With proper planning and control the available funds could be effectively and efficiently utilized and also the problem of shortage of funds for green projects can be easily tackled with.

RESEARCH & DEVELOPMENT R&D plays a key role in helping the entrepreneur in taking various important decisions. When we need to set up a new business for production of green products, Research and Development activities are very important to know the product life cycle and the feasibility of the product in the market. R&D helps in exploitation of internal and external knowledge. The results show that R&D matters for a limited but important set of new high tech and high growth firms, which are key in innovation and entrepreneurship policies. Thus, in the context of ecopreneurship we require R&D for the following purposes: To know the positive effects of green products on environment. To know the productivity of investments to be made in green projects.

To evaluate and utilize the potentials of resources available and plan for additional resources required. To find out new and more efficient ways of procurement, production and distribution. R&D in India:New R&D units are finding its way in India. China and India together accounts almost 31% global R&D staff. R&D growth in India is being driven by access to a low cost skill base and access to market and customers. India is one of the nations that have been accessed by global environmentalists and has been advised to cut down its carbon emissions. This makes the R&D activities for development of green projects a necessity rather then a requirement. Thus, more and more Indian companies are taking the initiative to conduct R&D for production of green products. Maruti Suzuki, the giant car manufacturer utiised its R&D resources to produce its new car A-Star which is a green product as its body is 85% recyclable. Coca-Cola, the popular soft drinks brand in the market is looking towards reviving its operational methods to make them greener (eco-friendly)through its R&D activities.

POLICIES-: For a business venture to be successful the surrounding environment should be supportive. In other words, there must be appropriate policies to encourage the ecopreneurs to start new green projects. “Policies are the guidelines which provides a basis of regulation of activities falling under a particular discipline” An advisory body has been set up under public private partnership between the Government of Andhra Pradesh, Pirojsha Godrej Foundation and the Confederation of Indian Industry (CII), with the technical support of USAID. The name of the organization is CII – Sohrabji Godrej Green business centre. It offers advisory services to the industry in the area of green building, energy efficiency, water management, environment management, Renewable energy, green business incubation and energy conservation activity. The centre is housed in a green building which received the prestigious LEED (Leadership in Energy & Environmental Design) platinum rating in 2003.this was the first Platinum Rated green building outside USA and the third in the world.

GREEN TECHNOLOGY

Another necessity for success as an Ecopreneur is the identification and utilization of green technology. Green Technology can be defined as a technology using which we can produce green products. Also use of Green Technology in the production process leads to modifications in the production processes in such a way that the production methods and procedures become environment friendly. Use of a green technology can be very important and efficient for a lot of reasons. Using a green technology we can do the following things:I. II. III. IV.

Science and technology can be harnessed to convert the urban waste into wealth i.e. something useful can be produced from waste materials. The use of green technology can lead towards energy conservation and might help in development of renewable energy sources. In labor-intensive farm sector, green technology can be used to raise yields and prevent degradation of scarce land and water resources. Demand for private transport is increasing due to inadequate public transport. Green Technology can be used to develop and maintain eco-friendly public transport solutions that are affordable to all.

Any corporate world is now focusing on green business because not only it is getting more margins from government side but also getting more customers and investments and in this competitive era technology plays a crucial role. Thus, development of clean technology which reduces emissions and harness maximum efficiency The Green Technology Institute at UCLA, is assisting US-based green, clean and environmental companies to explore and invest in India's growing economy. A recent fact finding business tour of India by a client of the institute, APTO, Inc, was able to initiate the development of a multi-million dollar Integrated Biorefinery Complexes to be established in three Indian States. Technical expertise and business experience is offered for organizational development, business re-engineering, technical consulting and capital formation, with special emphasis on green technologies and organizational development. The institute works with various US and International local, state and federal level initiatives to showcase viable solutions, innovative entrepreneurs and their green technology development companies. Science and technology should be harnessed to convert urban waste into wealth, Prime Minister Manmohan Singh said while advocating the use of affordable eco-friendly technologies to sustain the growth momentum.

GREEN PRODUCTS Green product can be defined as the output of a green business. When green materials are processed with the help of green technology, the result is green product. The utilization of green products make a customer more environment conscious and also helps in finding environment friendly alternatives of existing products in the market. This is the stage where the very basis of starting the process of ecopreneurship is realized and it is something which is of immense importance as all the activities in the process of ecopreneurship is directed towards producing green products. Companies like Philips, Hyundai, Maruti Suzuki, Deloitte, IBM etc. are continuously engaged in producing green products and at the same time encouraging its competitors to do more and better in the same field. The concept and essence of Green products will be more clear in our next section- green marketing with the strategies that companies have followed to prioritize preservation of environment and conservation of energy.

GREEN MARKETING

Definition: Green Marketing is the marketing of the products that are presumed to be environmentally safe for the consumers. It includes a wide range of activities viz. product modification, changes in production processes, modification of the advertising messages, changes in the packaging of the products, etc. In other words Green Marketing can be defined as something which involves developing and promoting products and services, which the consumer desires, for quality, performance, affordability and convenience, without having a detriment effect on the environment. Evolution of Green Marketing: The evolution of Green Marketing can be divided into following three phases:First Phase: The first phase was termed as “Ecological” Green Marketing. This concept was developed in the 1970s and was concerned with all the marketing activitiesi.

That have served to help cause environmental problems, and

ii.

That may serve to provide a remedy for the environmental problems.

It dealt with positive and negative aspects of marketing activities, which were related to pollution control and resource diminution. The characteristics features of this phase are following:1. It focused only on the environmental problems like air pollution, soil pollution, water pollution, oil spillovers, etc. 2. It targeted the companies or units that were causing the environmental problems

Second Phase: This phase is termed as “Environmental” Green Marketing. It developed in the late 1980s and a series of disasters, viz., the Bhopal Gas tragedy (1984), the Chernobyl (1986) and the oil spill at Exxen-Veldez (1989) led this phase to come into prominence. The characteristics features of this phase were as follows:1. Focus on clean technology that involved the designing of innovative new products, which took care of the pollution and the waste issues. 2. Green consumers were concerned about the impact of their consumption and purchasing habits on the environment. 3. It considered the issues relating to physical environment, society, and economy. 4. It held a global perspective by recognizing unsustainable production and consumption system as the causes for most of the environmental problems.

Third phase: This phase was termed as “Sustainable” Green Marketing and it came into existence in the late 1990s and early 2000. Sustainable green marketing can be defined as a process of planning, implementing and controlling the development, pricing, promotion and distribution of products in a manner that satisfies the following three criterions:Meeting of customer needs. Achieving organizational goals. The process-compatibility with eco-systems. To make production process of products and consumption more sustainable, a number of elements of market and marketing have to be modified. These are following:1. 2. 3. 4. 5.

Product costs Emphasizing cost instead of price A better understanding of environment marketing Industry structures Focus from products to services

6. An emphasis on distribution 7. Moving beyond the niche.

FOUR Ps OF GREEN MARKETING: 1. Product:Companies, which are trying to exploit the Green Market opportunity have to do the following things:  Identify customer‟s environmental needs and hence develop those products which satisfy the needs.  Develop products that are environmentally responsible and have less impact on the environment than the competitor‟s products. The desirable products are the ones that have one of the following characteristics:  Products made from recycled goods, e.g., recycled paper  Products that can be recycled.  Products which save water, energy, or oil and which have less harm on the environment  Products with environment friendly packaging  Products which are organic in nature.

2. Price:Price is a critical component of the green marketing mix. Consumers are often ready to pay a premium price if they perceive the value in a product. This perceived value could come from taste, function, design, quality and performance. Ecologically concerned consumers are not always willing to pay a higher price for environmentally compassionate products. On the contrary, environmentally accountable products are often less costly when product life cycle is considered. Some examples include fuel-efficient vehicles, energy-efficient lamps, and non-toxic products.

3. Promotion:Promotion here can be defined as a vehicle for expanding the demand for ecological products, while encouraging conservation of scarce resources as well as a vehicle, by which consumers and producers can be taught to modify their attitudes towards the environment. For promotion of ecological products, neutral sources such as television documentaries must be used. Nowadays, E-marketing is gaining ground in place of traditional marketing methods but while promoting the green credentials and achievements, it is necessary to build the trust of the consumers and stakeholders.

4. Place:Distribution management in the light of our environment problems involves emphasis on mass-transportation, containerization, unit trains and other goods handling technologies. Availability of the product at the right time and right place is of great importance to the marketer because it has an impact on the customers. Marketers, who are looking for introducing their green products in the market, must position them well in the marketplace to make green products available to a wider section of the society. The location must differentiate itself from the competitor‟s by way of in-store promotions and display of environmental benefits in addition to other benefits of the products.

REASONS FOR GROWTH OF GREEN MARKETING: Environmental “green marketing” is seen by organizations as an opportunity to fulfill their objectives.  Competitive pressure is another important factor, which forces some companies to go green.  Modifications in the production processes or other business processes may be costly at the beginning, but it pays in the long run

EXAMPLES OF GREEN MARKETING:-

 CFL lamps introduced by Phillips leading towards reduction in energy consumption.  Green Motherboards introduced by KOBIAN ltd. Are small in size, releases less carbon into the environment and consumes less power.  Dell has implemented a worldwide product recycling program, as well as a 'Tree for Me' scheme where customers pay to offset their carbon emissions. The company has also launched a competition for engineers to design the world's most environmentally responsible computing system  COKE uses ozone-friendly vizi-coolers which are supplied by companies like Whirlpool, Godrej and Rockwell. About four per cent of Coca-Cola's investment per project is set aside for environment-friendly technology.  Data compression software and smart archiving introduced by IBM helps in use of less computer systems and thus resulting in less carbon emissions and conservation of electricity  Deloitte product of data storage is a green product.

 Maruti Suzuki practicing 3R- 3R defined as reduce, reuse, and recycle. The company is in continuous process of promoting 100% recyclable and reusable car parts. It also targets reducing fresh water consumption and implement rain water harvesting. The newly launched Maruti Suzuki A-Star is a good example of company‟s green policies. This new car is designed to meet the European ELV (End-of-Life Vehicle) norms which confirm that car is around 85% recyclable and is also devoid of toxic materials like Lead, Mercury, and Chromium.

CONCLUSION Through our study, we have found out that: Ecopreneurship is an essence and not just a concept. The problem of global warming can be solved if ecopreneurs brings use of green products in our daily routine. Though awareness of green products among people is there, but still we need more initiatives to spread awareness about the same. It is a challenge for the managers to implement the green ideas efficiently. More support in the form favorable policies, more financial assistors and institutions developing green technology is required for success of Ecopreneurship

By doing what is required, we can set an example in India too by encouraging many upcoming companies, industries & factories to turn green, by creating innovative ideas to develop our country along with the development of greener environment to save our earth for next generation. This is a issue that every management should focus on to implement the product which is environmentally viable and helps in sustaining our mother earth.