Maheer Arora
Neha Joshi
Goa Institute of Management
Divya Singhal
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Soham Energy International provides comprehensive fuel management solutions to industrial clients, going beyond simple fuel supply to optimize combustion, minimize emissions, and promote energy efficiency. This approach addresses environmental concerns related to fossil fuel use and contributes to sustainable industrial practices.
Soham Energy International's innovation lies in its comprehensive approach to fuel supply, transforming from a simple commodity provider to a "fuel manager" for industrial clients. Operating in Maharashtra, Goa, Ujjain, and parts of Madhya Pradesh for over two decades, they identified a critical gap in the market: customers faced numerous challenges related to fuel quality, efficient combustion, and meeting increasingly stringent environmental regulations. Instead of merely supplying fuel, Soham Energy International developed a holistic solution encompassing quality assurance, technical expertise, and a strong focus on sustainability. This involves ensuring fuel meets required specifications throughout the supply chain, from source to delivery. They go further by providing technical guidance and training to clients on optimizing fuel utilization, maximizing combustion efficiency, and minimizing emissions of harmful pollutants like SPM, NOx, and SOx.
This innovative approach goes beyond simply reducing emissions at the client's site. Soham Energy International actively promotes energy conservation methods and the adoption of more sustainable technologies. A key example is their partnership with another company to facilitate the installation of micro-turbines. These turbines capture waste heat generated in industrial processes and convert it into usable electricity, significantly reducing reliance on additional fossil fuel combustion. This not only benefits the environment by lowering overall emissions but also provides economic benefits to clients through reduced energy costs and access to carbon credits.
By focusing on these integrated solutions, Soham Energy International directly addresses several UN Sustainable Development Goals (SDGs). Their emphasis on efficient energy use and reduced emissions contributes to SDG 7 (Affordable and Clean Energy) by promoting more sustainable utilization of existing energy resources. The reduction of harmful pollutants and the promotion of cleaner energy technologies like micro-turbines directly support SDG 13 (Climate Action) by mitigating the negative environmental impacts of industrial activities. Furthermore, their focus on minimizing waste and maximizing resource utilization aligns with the principles of SDG 12 (Responsible Consumption and Production). Through client education, technical guidance, and community outreach via their website (earthwheel.org), Soham Energy International promotes a broader understanding of sustainability and encourages responsible environmental practices.
Several factors inspired Mr. Upreti to pursue this innovative approach. Early in his career, working with a company that produced fuel additives to improve combustion and reduce emissions sparked an interest in environmental impact. As he transitioned into the petroleum industry and gained technical expertise, he recognized a gap in the market: customers struggled with fuel quality, operational issues, and meeting environmental regulations. This recognition, combined with a desire to differentiate his own business, led him to focus on providing comprehensive solutions rather than simply selling fuel.
As he stated, “We have to do something different. So we thought, okay, if we were just going with the normal commodity offering…we did not have deep pockets…That was the only alternative.” He also expressed a desire to contribute to society and instill “eco-consciousness” in future generations. This was further motivated by a program he participated in, the Landmark Forum's Self-Expression and Leadership Program (SELP), which encouraged him to take on a project related to his area of expertise. He explained, “And through this initiative, we try to bring individual into the forefront. What are the initiatives we can take at individual level. So that it is contributing towards the overall benefit of the society. That is what we started out.” This combination of professional experience, market observation, personal values, and the influence of the SELP program were key drivers behind the company's innovative approach.
The company's innovative approach has had a significant impact on its business, its clients, and the environment. In the short term, the company established itself as a trusted and reliable partner for its clients. By providing solutions to operational and environmental challenges, they built strong relationships and gained a loyal customer base. As Mr. Upreti explained, “Many of the customers…we could get entry of Indian oil through our initiative, when customers found that this is a professional team, which is able to give us the overall solutions…they started entertaining us.” This focus on solutions, rather than just product sales, led to significant business growth. Despite starting with limited resources, they became the number one supplier for Indian Oil in Maharashtra and Goa, demonstrating the effectiveness of their strategy. In the long term, this approach has allowed them to maintain a substantial market share even as the market for traditional fuels has declined. He stated, "Today, we are number one player for Indian oil in Maharashtra and Goa market…And the market is depleting day by day, but despite that, we are able to maintain a substantial good share in the market."
Environmentally, their work has contributed to reduced emissions and increased energy efficiency through optimized combustion and the promotion of micro-turbines. These installations offer clients the benefit of carbon credits, further contributing to a positive environmental impact. Furthermore, their educational outreach through seminars and their website has raised awareness about sustainability and encouraged individual action.
The company's innovative approach of acting as a fuel manager, rather than just a supplier, has demonstrably benefited the business in several ways. Primarily, it has fostered strong customer loyalty. By providing comprehensive solutions to clients' operational and environmental challenges, they have built trust and established themselves as valuable partners. This trust has translated into customer retention, even when competitors offer lower prices. As he explained, customers "generally adhere to us," despite potentially better discounts elsewhere. This loyalty has been crucial for maintaining a strong market presence, especially as the market for traditional fuels has contracted. He emphasizes this by saying, "The market is depleting day by day, but despite that, we are able to maintain a substantial good share in the market."
This suggests that the company's focus on solutions and customer relationships has provided a competitive advantage, allowing them to thrive in a challenging market. The company has also grown from a smaller operation to a 150 crore company with plans to become a 500 crore company in the next three years. This growth can be directly attributed to the success of their innovative business model.
The company's innovation offers several benefits to both society and the environment. Environmentally, their focus on optimizing fuel combustion directly reduces emissions of pollutants like SPM, NOx, and SOx. By promoting energy-efficient practices and technologies, such as micro-turbines that utilize waste heat to generate electricity, they contribute to a reduction in overall fuel consumption and a more sustainable use of resources. Mr. Upreti explains the environmental benefit of the micro-turbines: "Now, customers are able to get the power here…without incurring anything additional. And you are not burning any fossil fuel, for any additional fossil fuel product, from the same resources, you are utilizing it." This not only reduces emissions but also allows clients to benefit from carbon credits, further incentivizing environmentally responsible practices.
By educating future generations about environmental issues, they contribute to a more environmentally conscious society. As Mr. Upreti explains, they aim to instill "eco-consciousness" in younger generations, believing that "tomorrow, any initiative which you can take at the level of the industry, will be definitely dying to achieve it." This focus on education and awareness, combined with their environmentally responsible business practices, demonstrates a commitment to benefiting both the environment and society.
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Soham Energy International, a partnership firm founded in February 2002, specializes in the Petroleum, Petrochemicals, Specialty Chemicals, and Energy sectors. For the past 13 consecutive years, it has held the position of the leading Distributor and Facilitator for Indian Oil Corporation, catering to Furnace Oil, LDO, and LSHS sales across Maharashtra and Goa.
