State-run EESL aims to triple revenue to Rs 10,000 crore in three years

The company is leaning on its bulk procurement strategy, grants, and absense of branding and supply-chain cost to achieve this goal

State-run company, Energy Efficiency Services Limited (EESL), is targeting a revenue of around Rs 10,000 crore over the next three years from the current figure of Rs 2,800 crore. The target comes on the backdrop of company's plan to expand its revenue stream in both consumer and industrial segments. The firm plans to deploy around Rs 20,000 crore capital during the same period.

EESL is now expanding into geysers, induction cook tops, centralised ACs and other household durables. 

Speaking to Business Standard on the sidelines of the company's launch of a new air conditioner in Chennai, S P Garnaik, CGM (technical), EESL said, his company distributes various products including LED bulbs, tube lights and fans at subsidised rates, as it procures in bulk before selling to customers.

EESL receives grants and its operations entail no branding or retail and supply chain cost, which enables it to sell products at competitive rates. For example, the new AC is priced at Rs 41,300, while with the same specification would otherwise cost Rs 55,000 in the market.

EESL plans to procure around 50,000 ACs to address the festival season at a cost of around Rs 180 crore, funded by borrowings and grants and by 2021 it plans to sell around 200,000 units. Manufactured by Voltas the 50,000 units are exclusively sold through EESL’s e-commerce portal, EESLmart.in.

The bulk procurement energy has helped product prices to drop even as demand is generated, claims Garnaik. EESL started supplying LED bulbs under Unnat Jyoti by Affordable LEDs for All (UJALA) programme. Since its launch in 2015 January, nearly 360 million LEDs were distributed. After that, the LED procurement rates have dropped from Rs 310 to Rs 65. EESL has earned revenues of nearly Rs 3,000 crore via UJALA, since its launch.