Asodariya transitions from fuel to clean energy with impact investment loan

34-year-old Asodariya Ketan Laxmanbhai is the founder and chief executive officer of JK Steel, Rajkot, a company that manufactures products made of steel material like sofa leg, curtain bracket, handles and furniture hardware and located at Rajkot industrial area of India.

The father of one has always wanted to transition to a cleaner source of energy, not only to save cost in the long term, but as a step to his commitment to environmental stewardship as a business owner.

"I have witnessed the environmental degradation and social injustices perpetuated by reliance on fossil fuels," he recalls. "I knew that transitioning to clean energy was not just a business decision, but a responsible thing to do." With the support of Electronica Finance Limited’s (EFL) rooftop solar loans, Asodariya took a bold step to transition from fuel to a renewable energy source.

Electronica Finance Limited is one of the financial institutions that Oxfam Novib Impact Investment Funds supports in India through our fund manager, Tripple Jump. The transition to clean energy brought tangible benefits, both for Asodariya's business and the broader vision of doing good as a business owner.

With 25 years of experience supporting medium and small sized enterprise (MSME) manufacturing companies with access to loan to finance their machinery, Electronica has evolved over the years by helping businesses be more climate resilience in their use of machine to generate energy for their business use. Asodariya is one of the more than 1,000 businesses who have accessed the rooftop solar loans for cleaner energy.

“With our rooftop solar systems loan, we work with MSMEs in India to transition into renewable energy instead of fossil fuels. Clean energy doesn’t just reduce their carbon footprint and saves businesses money, it also helps them stay true to who they are as a business and make it easier than ever to find new customers and investors. However, we recognize investing in rooftop solar panels is an expensive option for MSMEs. This is where we come in as an impact driven financing partner for manufacturing companies," said Schilpa Pophale, the managing director of Electronica Finance Limited.

“We make the process easy for business. Without collateral, we disburse loans typically within 7 days or less and provide personalised services to customers from opt-in to installation and maintenance,” Schilpa added.  

“Since we made this move to clean energy in July 2021, we have saved tremendous cost on energy. Before installing the rooftop solar system, my electricity bill was around Rs 45,000 – Rs 50,000 per month. However, after installing the solar system, my electricity bill dropped down to just Rs 12,000 – Rs 13,000 per month. That is almost 71% less than what I used to pay.” Asodariya shared.

Asodariya is one of the 804,628 MSMEs that Oxfam Novib Fund has provided access to loan indirectly through our financial institutions like Electronica.

With every loan of €1 million that the Oxfam Novib Fund provides to Microfinance Institutions like Electronica, more than 2.500 entrepreneurs like Asodariya receive a loan because we believe strongly that impact investments are critical in creating inclusive, sustainable and fair economies that tackle poverty and inequality.