Betting on sunshine industry to make their mark

Even as the current government pushes for shifting the energy mix in India towards renewable energy and is aiming to install 100 gigawatts of solar power by 2022, there are many companies venturing into this sector as it is not only clean and green but also cost-effective when compared to traditional sources of power. One such company which plans to take this ambitious target of the government forward is Fourth Partner Energy Private Limited.

Although it is a start-up, the company — started by three financial experts in 2010 — has completed over 400 installations in about 18 states across India and has a client base of over 50 companies, which include ICICI Bank, Axis Bank, Schiender to name a few.

Elaborating on the venture, executive director, Vivek Subramanian said, “Three of us started the company in 2010 and as all of us come from the financial services industry. We saw a lot of opportunity in the power sector. In this sector, solar power in particular was a great mix of operating business along with bringing finances on the table. So we thought about venturing into this energy source. India has a lot more sun and more need for power. But we also have issues around transmission and distribution of power. We deal with industrial and commercial plants and show them how they can save cost by implementing solar power on their rooftop and offer two options in terms of financing — capex and pay-per-use model.”

However, the six year journey was not a cake walk for the founders. “We had our share troubles. In the first three years, we were not able break into the big corporate world and solar power was prohibitively costly. So we managed run our show by selling solar lanterns, etc. However, our perseverance paid off. After 2013, solar power became cheaper and things changed for us.”

The company currently operates predominantly in the B2B space as Vivek feels setting up solar plants for industrial or commercial units is more viable as they operate on larger scale. “Having said this, we are also looking at the financial viability of the B2C model if the government provides incentive. We have already set up a B2C model in Maharashtra,” Vivek adds.

Fourth Partner raised $2 million from Infuse Ventures and Chennai Angels, which was used to build the capability of the company.

According to Vivek, they plan to raise around $100 million in the next two years for the asset ownership. In terms of revenue per se, the company will be making about Rs 50 crore by this March and by the next financial year, it plans to touch Rs 100 crore revenue with a growth rate of 100 per cent yoy.

The company wants to expand to four more locations in the next 12 months and plans to add 40 more employees to its already 60 plus strength spread across its offices. It is also confident of grabbing a considerable market share of this huge and growing market in the renewable energy sector even as newer and already established companies fight it out to grab a slice of this shining space.