With over four years in the clean-tech business, Wipro EcoEnergy, is aiming to be among the top-three global players in the energy management space, having built capabilities across verticals.

GK Prasanna, senior vice-president, Wipro EcoEnergy, tells FE’s Debojyoti Ghosh that the $7-billion IT major is investing heavily in developing energy conservation measures and analytics as energy management will potentially become the largest contributor to the eco-energy business.

How well is Wipro prepared to tap into the energy management space? What is the market potential?

Energy management is a key strategic theme for Wipro in the coming few years. We believe that energy efficiency is the first port of call in reducing energy costs and carbon footprint. Wipro has built significant capability in the energy management space across verticals. We will continue building on the same to expand our footprint as this industry becomes more distributed and enterprise oriented.

Energy management also allows Wipro to leverage its capabilities as an IT services major. The market potential runs into trillions of dollars. However, Wipro is concentrating on select market segments in which the market opportunity would be in the $15-20 billion range. We see a very powerful story in this space. It will become the largest part in the overall eco-energy business.

In what areas is Wipro investing to scale-up the energy management business?

We are investing in creating a team of energy management professionals, financial managers, sales and delivery professionals, who together can create, market and execute innovative energy management solutions. We have also invested heavily in R&D to create a smart energy management software platform and proprietary algorithms. We are targeting telecom, retail, public buildings and data centres, and water industries as our focus areas. The energy management business is a more annuity-based proposition compared to the solar generation business.

What are your plans about energy management?

Wipro aims to become one of the top-three leading energy management companies in the world

that provides end-to-end solutions and takes ownership for delivering actual on-ground energy savings

for its customers. We have seen savings anywhere between 10-16% for our customers. Some of our major customers include mobile companies and US-based electronics retail chain.

How do you see the business shaping up in the next 2-3 years?

Rising energy costs, regulatory pressures and a more competitive business space will drive corporates to save energy and directly add to their bottom lines.

The energy management market has tremendous potential and allows Wipro to leverage its capabilities as an IT and systems integration major.

Wipro’s activities involve gathering device-level energy consumption information like air-conditioners, heaters, etc. We are highly optimistic that the energy management business will offer compelling value-creation opportunity for our customers. We see a strong pipeline in this space and long-term contracts in the range of 5-10 years.

What are the initiatives that Wipro is working on with the government?

The government is an important influencer and customer. We continue to have long-standing multi-pronged engagements with the government, spanning across sectoral development and policy advocacy. In India, we are in constant communication with the ministry of new and renewable energy and Bureau of Energy Efficiency. We are also engaged with various Indian and International government forums and bodies like National Association of Energy Service Companies and Alliance for an Energy Efficient Economy.