Reference no: EM133522612

Case Summary:
SELCO started its operations in 1995 to sell solar home lighting systems to the rural population in Karnataka, India. It offered a customized solution through distributors and suppliers. Over the years, the company innovated its product and financing method for the rural populace. It provided solar solutions at an affordable price to the rural poor. Later SELCO expanded to Bihar and Gujrat using partnership models. Here, SELCO partnered with SEWA (Self Employed Women's Association) and SEWA Bharat to implement the energy access activities. The partners provided access to the customer base and finance, while SELCO provided technology and training. Now, SELCO wanted to expand to other parts of India. This expansion required a strategy to deal with many challenges, such as - a diverse consumer profile, getting skilled personnel for installing and servicing the systems, etc. Getting partners like SEWA and SEWA Bharat in all states was not easy. The other alternative that SELCO was considering was the 'Incubatee model'. Entrepreneurs formed the core of the Incubatee model. SELCO would select and groom the incubates, offering the SELCO solution to the rural consumer. The third option was to go the Karnataka way. The question of which of the three models would be a better bet for expansion into the northern, eastern, and northeastern states bothered the founder, Dr Harish Hande, and his team.

Question: What are the risks and benefits of adopting either? What should be the pace of expansion? Was it advisable to take the next leap? If so, how?