A Spark Ignites: Behind the Scenes at Su-Kam Manufacturing

I’ve always been a voracious reader, and books  have played a pivotal role in shaping my journey. One particular book, read around 2001 or 2002, left an indelible mark on me: Made in Japan by Akio Morita.A Spark Ignites: Behind the Scenes at Su-Kam Manufacturing
At the time, I was embarking on my entrepreneurial journey and starting to manufacture products. The prevailing sentiment was that exporting Indian goods was a daunting task. But Made in Japan offered a different perspective. It chronicled how Japan, once a nation in ruins, rose to become a global manufacturing powerhouse, largely thanks to the vision and determination of individuals like Akio Morita.

http://lithiuminverter.in/inverter/the-rise-of-india-as-the-export-hub-for-lithium-inverters/
I was captivated by Morito’s story. He envisioned creating Sony products and selling them worldwide, even when faced with overwhelming odds. This book, which I read three times, taught me that the thought process is paramount. It’s about having a clear vision and holding onto it, even when faced with challenges.

A Spark Ignites: Behind the Scenes at Su-Kam Manufacturing
Inspired by Morito’s example, I began to question why I couldn’t create a successful brand and innovative products in the inverter UPS field. Su-Kam was born out of this belief. While I was motivated by various books at different stages of my journey, Made in Japan was a particularly influential force in shaping my manufacturing, branding, and export strategies.
In those days, access to books was limited, and digital versions were nonexistent. I had to physically visit bookstores or libraries to find the books I wanted. This added a layer of challenge and appreciation for the written word.
Made in Japan was more than just a book; it was a catalyst that ignited a spark within me. It provided the inspiration and the belief that I could achieve extraordinary things.

• By Kunwer Sachdev, Founder of Su-Kam

Exploring Su-kam’s Distribution Strategy: Beyond the Product

Su-kam’s remarkable success can be attributed in large part to its unwavering commitment to product training. While many competitors focused on offering discounts and securing orders, Su-kam recognized the power of educating its dealer network about the intricacies of its products.

A Journey from Selling Pens to Empowering Industries

My entrepreneurial journey began in the most unlikely of places: selling pens. As a teenager, alongside my brother Kamal, I embarked on a journey that would shape my life and career. Little did I know then that those humble beginnings would lead me to become a pioneer in the inverter industry.

Our venture started as a simple means to support our family. With no prior experience in sales or business, we hit the streets, peddling pens to stationary dealers across various cities. The challenges were immense. Convincing shopkeepers, collecting payments, and dealing with the uncertainties of the market were all part of the learning curve. Kunwer Sachdev story 

A Journey from Selling Pens to Empowering Industries

In the midst of these early struggles, we stumbled upon a unique opportunity. The pens we were selling were unmarked, and we decided to brand them ourselves. The Datsun brand, inspired by the popular car company of the time, became our first foray into branding. This seemingly small step was a significant turning point.

As we continued to sell branded pens, I began to appreciate the power of a strong brand identity. It was during this time that the idea for Su-kam, a brand that would eventually become synonymous with inverters, first took shape.

Our early experiences selling pens taught me invaluable lessons about sales, distribution, and customer relationships. I learned the importance of persistence, adaptability, and understanding the needs of my customers. These skills would prove to be invaluable as I transitioned into other industries without much struggle for sales.

The Evolution of Su-Kam’s Export Operations: From Local to Global

• The First Export Order: The Evolution of Su-Kam’s Export Operations: From Local to Global “The export of inverters and UPS from India was a novel venture. Historically, India had been an importer of these products, with imported goods dominating the market. However, the country was also making strides in inverter technology as we kept improving the technology at Su-kam with constant innovation, and I was dedicated to improving the domestic industry. With a clear vision of global expansion, I seized the opportunity of an inquiry from Sri Lanka in the year 2003. Despite the challenges of a politically volatile environment and a lack of internal export expertise, I secured the first-ever export order for Indian inverters to Sri Lanka. This achievement marked a significant milestone for the industry and demonstrated the potential for Indian-made electronic products to compete on the international stage.” This was our first entry into the International Market and my first experience of exporting.

• “Overcoming the ‘Imported’ Mindset: A significant hurdle was convincing the company’s team, accustomed to the prevailing perception of India as an importer rather than an exporter, that we could successfully compete in the global market. To foster this belief, I encouraged team members to expand their horizons through international travel. This involved providing opportunities for them to visit potential markets, showcase our products, and navigate the complexities of customs procedures. Addressing the logistical challenges of transportation, which were particularly daunting at the time, was another crucial step in establishing our export capabilities.”

Fostering a Global Mindset: Su-kam’s Team Transformation”

“As a mentor and innovator within Su-kam, I recognized the need to cultivate a global mindset among my team. To counter the monotony of traditional motivational techniques, I consistently experimented with fresh approaches to keep them engaged and inspired. My direct involvement in export operations and technological advancements served as a catalyst for the team’s market success. They knew they could rely on my unwavering support, both domestically and during their international travels. While instilling the same level of passion in everyone was challenging, I was gratified by the team’s accomplishments and the lessons learned in motivating them effectively.”

• “Expanding into Bangladesh and Nepal: Su-kam’s Strategic Growth”

“With a forward-thinking approach, I developed a two-year vision for Su-kam that emphasized market expansion and risk-taking. Drawing from my experience in the cable TV industry and international exhibitions, I envisioned showcasing our products on a global stage. Following the success of our Sri Lankan exports, we turned our attention to Bangladesh and Nepal. Despite the challenges faced by our inexperienced sales representative, including visa delays and unfamiliarity with international travel, we successfully entered the Bangladesh market. Despite initial setbacks due to packaging issues, our unwavering commitment and timely service ensured the acceptance of our products. The subsequent order of 100 units marked the beginning of Su-kam’s operations in Bangladesh in 2004, followed by a similar expansion into Nepal in 2005. To support these ventures, we assembled dedicated teams from our existing sales and service personnel and allocated a budget for market entry activities, including travel, samples, and training.”

• “Conquering Africa: Su-kam’s Triumph Over Challenges”: Africa, particularly Nigeria, presented unique challenges due to its underdeveloped infrastructure. Navigating the region’s transportation networks, from buses to planes, was a novel experience for our team. Establishing trust was paramount in Nigeria, a nation with a reputation for corruption. The initial hurdle involved bribing customs officials to import product samples. However, once this barrier was overcome, we discovered a receptive market with a stark contrast between the wealthy and impoverished, and a desperate need for reliable power solutions. Despite security concerns and the dominance of generators, we believed in the potential of inverters. Starting with a modest order and investing in local training, we witnessed a rapid surge in inverter acceptance. As our business grew, we transitioned to new distributors who were more aligned with our expansion goals. The introduction of solar-powered inverters further solidified our position in the market. Nigeria’s success paved the way for Su-kam’s expansion into other African countries, where our innovative products, including the solar PCU, met with increasing demand.”

• “Su-kam’s South African Triumph: A Testament to Global Reach“
• “Su-kam’s journey of expansion culminated in a significant presence in South Africa, where we competed head-to-head with European powerhouses. During the late 2008s, a period when the South African market was largely dominated by European players rather than Chinese competitors, Su-kam’s innovative products and reliable performance gained significant traction. The country’s persistent power challenges created a favourable environment for our solutions. By this time, Su-kam had established a robust network across Africa, and our South African operations were a testament to our global reach and market penetration. I take immense pride in the fact that many of the individuals who have contributed to the success of the South African inverter, solar panel, and battery industries were trained and mentored by Su-kam.”

• “A Strategic Approach: Su-kam’s Competitive Edge”
• “To differentiate Su-kam in a market dominated by Chinese competitors, I focused on value-added services. While Chinese products offered aggressive pricing, they often lacked adequate service support. Su-kam’s strategy involved providing comprehensive support, including product installation and training for distributors. This personalized approach helped build trust and loyalty. Despite the bulkier size and higher weight of our products compared to Chinese alternatives, our focus on durability and ruggedness positioned us well for challenging environments. Technological advancements, such as the integration of microcontrollers and the transition from analog to digital technology, further enhanced our product performance. To address the logistical challenges of exporting lead-acid batteries, we partnered with Chinese vendors for Sealed Maintenance Free VRLA batteries, branded under the Su-kam name. This strategic move allowed us to maintain a competitive edge in the battery market, even as counterfeit products emerged. The legal battles that ensued in certain countries served as valuable lessons in protecting our brand and intellectual property.”

• “A Brand Battle: Su-kam’s Legal Challenges”
• “One of the most significant challenges we encountered was the unauthorized registration of the Su-kam brand by certain distributors. These individuals leveraged their position to hinder our market expansion, preventing us from appointing additional distributors in their territories and openly engaging in counterfeit activities. The legal battles that ensued were both arduous and instructive, providing valuable insights into brand protection and intellectual property rights.”

• “Navigating Challenges: Su-kam’s Entry into New Markets”
• “To expand our global footprint, Su-kam implemented a strategic approach that involved participating in exhibitions, organizing dealer meetings, and hiring local staff. As market dynamics rapidly evolved, we continuously adapted our strategies to remain competitive. The Middle East, particularly during the Iraq War, presented a significant opportunity. Despite warnings and visa restrictions, I personally visited Iraq to assess market needs. Afghanistan, too, posed its own challenges, but our unwavering determination fueled our expansion efforts. These experiences showcased Su-kam’s resilience and adaptability in navigating complex and volatile markets.”

• “Breaking Barriers: Empowering Su-kam’s Team for Export”
• “Exhibitions and dealer meetings became integral to our export strategy, providing platforms to showcase our products and connect with potential partners. The journey of building Su-kam’s export business has been a profound learning experience filled with countless stories and lessons. Reflecting on the growth and development of our team, I am immensely proud of the role we have played in establishing India as a formidable competitor to China in the global market. Despite the challenges encountered along the way, our unwavering commitment to learning and adapting has been the driving force behind our success.”

From Diesel to Green: The Battery Energy Storage Revolution

From Diesel to Green: The Battery Energy Storage Revolution, India’s burgeoning economy is accompanied by soaring demand for electricity, often met with an overreliance on diesel generators. These noisy, polluting machines contribute significantly to air pollution and exacerbate the power grid’s strain during peak hours. Breaking free from diesel, BESS provides a sustainable solution. A promising solution lies in adopting Battery Energy Storage Systems (BESS).

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A Greener Power Landscape

Diesel generators are notorious for their carbon footprint. Replacing them with BESS, which produces zero emissions, is crucial for a cleaner and healthier environment. This shift can significantly reduce greenhouse gas emissions, improve air quality, and mitigate the impacts of climate change.   

Furthermore, BESS can play a vital role in addressing peak power consumption. By storing excess electricity during off-peak hours and discharging it when demand is high, these systems can help stabilize the grid, reducing the need for additional power plants. This not only saves energy but also lowers costs for consumers.   

https://www.youtube.com/watch?v=GBdg7wLdrGM

Incentivizing the Shift

From Diesel to Green: The Battery Energy Storage Revolution

Government policies are essential to accelerate the adoption of BESS. One effective strategy is to subsidize the initial cost of BESS and diesel generators through reductions in electricity tariffs. This incentive would encourage businesses and individuals to invest in cleaner, more efficient power solutions.   

By offering financial benefits, the government can create a level playing field between diesel generators and BESS, making the latter a more attractive option. Additionally, it would stimulate the growth of the domestic battery manufacturing industry, creating jobs and boosting the economy.

From Diesel to Green: The Battery Energy Storage Revolution

The Road to Net Zero

The transition from diesel generators to BESS is a cornerstone of achieving India’s net zero emissions target. By reducing reliance on fossil fuels and improving grid efficiency, this shift contributes significantly to a sustainable future.

While the initial investment in BESS may be higher, the long-term benefits, including environmental savings, reduced electricity costs, and increased grid stability, make it a compelling choice. As battery technology advances and costs decrease, adopting BESS is expected to accelerate.

India has the potential to become a global leader in clean energy. By embracing Battery Energy Storage Systems, the country can improve air quality and mitigate climate change while creating a more resilient and efficient power grid.

Understanding IBBI Guidelines for COC without Valuation Criteria

IBBI Guidelines for Committee of Creditors: A Step Forward, But Valuation Concerns Remain Critical, Understanding IBBI Guidelines for COC without Valuation Criteria.

The Insolvency and Bankruptcy Board of India (IBBI) has recently unveiled comprehensive guidelines for the conduct of Committee of Creditors (CoC) in insolvency proceedings. This development follows a directive from the Delhi High Court in the case of Kunwer Sachdev founder Su-kam Vs IDBI Bank and others, which mandated the IBBI to establish clear rules for CoC functioning.

The new guidelines aim to enhance transparency, accountability, and efficiency in the insolvency resolution process. They encompass a wide range of aspects, including CoC composition, meeting conduct, decision-making, and information dissemination. By providing a structured framework, the IBBI seeks to strengthen the role of CoCs in maximizing recovery for creditors and ensuring fair treatment of all stakeholders.

Understanding IBBI Guidelines for COC without Valuation Criteria

While these guidelines represent a significant stride in regulating the insolvency process, a crucial oversight persists: the valuation of the insolvent company. This was a focal point of the case that prompted the court’s intervention. The absence of clear and standardized valuation methodologies can undermine the effectiveness of the insolvency resolution process, potentially leading to asset undervaluation and suboptimal outcomes for creditors.
A critical element missing from the new guidelines is the emphasis on the initial valuation conducted by valuers when the Resolution Professional (RP) takes over the company. This valuation serves as a crucial benchmark to assess the entrepreneur’s intentions – whether they managed the company with fraudulent intent or otherwise. By incorporating this initial valuation as a primary consideration for CoCs, the guidelines could mitigate undue blame placed on entrepreneurs for value erosion when they were unable to maintain the original valuation.

Understanding IBBI Guidelines for COC without Valuation Criteria

It is imperative that the IBBI prioritize the development of robust valuation standards to complement these new CoC guidelines. This, coupled with the emphasis on the initial valuation, will ensure that the insolvency framework comprehensively addresses the challenges faced by creditors and other stakeholders, ultimately contributing to a healthier business environment.

IBBI- GUIDELINES FOR COMMITTEE OF CREDITORS- 6.8.2024

[Attach the link to the new IBBI guidelines]

IBC: A Debt Trap for Entrepreneurs Explained

I ran Su-kam Power Systems Ltd for 30 years and gone through the process of liquidation of Su-kam.
A Landmark Judgment on COC Conduct
The Delhi High Court’s verdict in the case of Kunwer Sachdev vs. IDBI Bank and Ors. is indeed a significant development in the Indian insolvency landscape.
Key Points from the Judgment
* Lack of COC Guidelines: The court highlighted the absence of specific guidelines governing the conduct of the Committee of Creditors (COC) under the Insolvency and Bankruptcy Code (IBC).
* Erosion of Company Value: The judgment emphasized the potential for company value erosion during the Corporate Insolvency Resolution Process (CIRP) due to the actions or inactions of the COC.
* Need for COC Guidelines: Recognizing the importance of ensuring fair and efficient insolvency proceedings, the court directed the Insolvency and Bankruptcy Board of India (IBBI) to formulate a code of conduct for COCs.

The Insolvency and Bankruptcy Code (IBC), India’s ambitious attempt at a comprehensive insolvency framework, has, in practice, fallen short of its intended goals.

While designed to balance the interests of investors and borrowers, the code has instead become a labyrinthine process that often ends in despair for entrepreneurs.

A core issue lies in the valuation process.

The code mandates two valuations – fair value and liquidation value – at the outset of insolvency proceedings. Paradoxically, these valuations are irrelevant to the eventual outcome, as the company is either sold or liquidated. The exercise becomes an expensive and time-consuming formality, draining resources from the already stressed company.
The original intent of valuation was likely twofold: to prevent asset erosion by the Committee of Creditors (CoC) and to provide a fair exit value for the entrepreneur.

However, the code fails to operationalize either of these objectives.
The absence of a clear link between valuation and subsequent proceedings has far-reaching consequences.

Without a valuation-based benchmark, the entrepreneur bears the brunt of the entire debt, regardless of the company’s actual worth. This disproportionate burden, coupled with the aggressive tactics often employed by creditors, can lead to mental anguish and even suicide.
The valuation should be pivotal, determining the recoverable debt and halting interest accrual. This would simplify calculations and reduce the scope for arbitrary actions. Furthermore, forensic audits, fraud investigations, and defaulter declarations should be anchored to these valuations, streamlining the process and minimizing harassment.
The IBC, as it stands, is a system in crisis. It has morphed into a tool of oppression rather than a mechanism for recovery. To salvage its purpose, the code must be radically overhauled. The valuation process needs teeth, and the entrepreneur must have a fair chance at redemption.
Having personally endured the harrowing ordeal of insolvency, the author underscores the human cost of these systemic failures. Their experience serves as a stark reminder of the urgent need for reform. The IBC must evolve to prioritize the entrepreneur’s dignity and the sanctity of human life over mere financial considerations.
Only then can India genuinely claim to have a bankruptcy code that fosters entrepreneurship and economic growth.

Kunwer Sachdev
Disclaimer: The views expressed in this article are solely those of the author and do not necessarily reflect the opinions of any organisation.