Changing climate and growing concern over carbon emissions have led to immense focus on the development of Green/Clean technologies. It is well understood that these clean/green technologies posses the key for the future growth and developments.
Clean/Green technology includes any energy, water, transportation, manufacturing or production technologies that keep the environment clean by making emissions less toxic, or by reducing waste. Options like Wind, Bio-Fuels, Solar Photo-Voltaic, waste generated power, water waste management etc. are being explored by Indian companies.
It is clear that Companies that come up with new sustainable green technologies will be better placed to exploit the market opportunities created by the shift towards efficient technological processes. Indian companies have recognized this phenomenon and are venturing into development of such technologies to tap the huge business potential. With a population of well over one billion, green businesses in India could alter its economy as well as its ecology.
We have listed down a few Indian companies, which have successfully developed or are in the process of developing Green/Clean technologies. Their unique technology driven growth also offer good investment opportunities for investors interested in Green technologies
Suzlon Energy
Suzlon Energy Ltd is India’s largest and world’s 3rd largest wind power equipment manufacturer. It has more than 12% of global wind turbine market share. The company offers full spectrum of services including the development, manufacturing, marketing, EPC (Engineering, Procurement and Construction), Project delivery and operations and maintenance of wind turbine generators around the world. Suzlon has the first mover advantage in the field of wind energy technology. In a very short span of time, Suzlon has grown from a single product, single market Company to a corporation spanning five continents.
Wind power is a close substitute of liquid based power and a greener source of energy. As the liquid fuels becoming costlier, the wind power industry is expected to grow with more than 20% in coming decade. Being one of the world’s largest player and with the strong brand and vast infrastructure & geographical reach, Suzlon Energy is well poised to garner the full advantage of this growth opportunity in coming years.
Praj Industries Ltd
Praj Industries Ltd offers innovative solutions in the field of bio-fuels (bio-ethanol, bio-diesel) and process equipment & systems for customers, worldwide. Praj has been creating innovative technology platforms to make bio-fuels a sustainable and attractive choice for the past 25 years. Praj’s R&D centre, Matrix, has developed several patented technologies. Its cellulose-to-ethanol project is likely to achieve a commercial level of production in coming quarters.
Bio-fuels have been acknowledged as proven alternatives to fossil fuels like petrol (gasoline) and diesel for transportation. Also, the future of bio fuel is expected to be robust because of favourable government policies and good demand from Europe and South-East Asian countries. Bio-fuel consumption is expected to increase by almost five times in net ten years. Rising fossil fuels costs and changing environment norms together offer immense future growth opportunities for Praj Industries.
Moser Baer Limited
Moser Baer is the world’s second largest manufacturer of optical storage media and has also ventured into manufacturing of Photo-voltaic cells, with the primary objective of providing reliable solar power as a competitive non-subsidized source of energy. In the wake of rising demand for solar energy, the company is planning to expand its current capacity from 125 MW to 315 MW by the end of FY2010. It is entering into big overseas solar market like USA and expanding its European business to countries like France, Italy, Bulgaria and Czech Republic and Greece.
Solar power is one of the cheapest and greenest sources of renewable energy and said to be the most reliable source of energy in future. Indian solar market is expected to grow by more than 43% CAGR in coming years. The current demand projections translate to a market value of $50-70 billion by 2010, according to certain estimates. Besides that, the demand from Europe — particularly Spain, Italy and Germany — has been very growing rapidly. The growing demand in developing nations such as India and South Korea is expected to drive the market further. Being pioneer in this segment, Moser Baer is well placed to grab these opportunities and is expected to benefit the most from rising demand for solar power.
These companies have the potential and capabilities to bring a massive technological shift and to bring economic as well as ecological benefits to the world. They are worth studying closely for investment purpose. If caught at attractive prices, your bank balance may just make you smile wide, in future.
We will explain few more green companies that offer great future growth opportunities in our next post.