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How can your engineering business save cost through green manufacturing

  • Highlights

  • Reduce utility bills with renewable energy sources

  • Opt for simpler packaging with recycled materials

  • Benefit from government incentives and subsidies

  • Save on waste disposal costs

With growing environmental consciousness among individuals, there has been a rise in adoption of green practices. Consumers are preferring bio-degradable or recyclable products with the government providing subsidies to eco-friendly businesses.

Your engineering business can go green too by adopting green manufacturing. This is not only environmentally sustainable, but also offers several economic benefits to your firm too. Green Manufacturing entails having a sustainable manufacturing process that has the least adverse impact on the environment. This can be done by reducing exploitation of exhaustible resources, utilising recycled raw materials, waste exchange and controlling emissions.

However, many businesses in India are hesitant of undertaking green manufacturing processes due to the high setup cost involved. As in the long run, the benefits derived from it outweighs its cost, it is surely a sound decision to switch to green manufacturing processes. With Bajaj Finserv Engineer Loans, your engineering firm can easily meet the initial cost of adopting such a process, without worrying of the capital requirements. Let’s take a look at the benefits

1. Cut back on electricity costs

The primary area of focus in green manufacturing is the reduced usage of non-renewable energy. Adoption of renewable energy sources like solar power cuts back on utility costs thereby boosting your bottom-line. Setting up an off-the grid rooftop Photo-voltaic (PV) system can cost you Rs.1,00,000/kilowatt.

This set-up cost can be funded with an Engineer Loan from Bajaj Finserv. You can avail the loan in flexi format and lower your EMIs by up to 45%; thereby, reducing your out-of-pocket investment.

With pre-approved offers on your engineer loan, there are no queues, no forms and no details required. To know your offer, click here.

Energy-efficient lighting is an important aspect of green manufacturing, enabling you to control electricity costs and also attract government subsidies. The Jawaharlal Nehru National Solar Mission (2011) provides up to 40% capital subsidy for setting up solar powered lights and low capacity PV systems. Capital subsidy of 90% of the unit cost is available in certain north-eastern and north Indian states.

2. Simpler packaging

Green manufacturing approach suggests utilizing recycled packaging materials and opting for simpler packaging. Encourage your customers to recycle the packaging material by choosing sustainable packaging material and easy deconstruction. Utilize a computer-aided packaging software enabling you to create 3-dimensional package design preventing excessive packing while ensuring proper cushioning for fragile products.

3. Incentives and subsidies

The Indian government is promoting businesses adopting sustainable development. Businesses setting up rooftop PV systems enjoy accelerated depreciation at 80% on solar panels and related machinery and also enjoy a 30% subsidy on the total set-up cost.

Under the Make In India initiative, engineering firms manufacturing tools, equipment or machinery to reduce pollution, control energy consumption and enable water conservation, enjoy 10% capital subsidy and 5% interest reimbursement. An additional 10% capital subsidy is provided to businesses practicing zero water discharge, along with a rebate on setting up water recycling facilities. Green buildings are also eligible for a Rs.2,05,307 incentive from the government.

4. Save on waste management and raw material cost

Green manufacturing actively promotes the use of non-toxic chemicals throughout the production process thereby reducing the occurrence of hazardous waste. This method also cuts back on raw material cost by promoting the use of recyclable goods and also reduces water requirement. Utilizing recycled water is a viable alternative to fresh water. Recycled water can be utilized for waste disposal. You can also save on waste management service fees and applicable taxes.

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The material contained in this site and on associated web pages is general information and it is not intended to be advice on any particular matter. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. The decision with respect to any financial product or opportunity or nature or suitability or choice or the viability of any product or service shall always be sole responsibility and decision of the subscriber and user.

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