Currently, energy costs account for around 25-40% of operational expenses. However, after adopting sustainable measures, efficient technologies can cut these costs by up to 30% which automatically becomes savings for enterprises, Primus Partners VP Munish Vaid explained
Sustainability is not a choice for businesses now, it’s a necessity. However, many MSMEs (micro, small and medium enterprises) still view it as an added cost rather than an investment. Primus Partners Vice President Munish Vaid said technology makes sustainability profitable, practical, and scalable.
Addressing the masterclass at Outlook Planet C3 Summit and Award in New Delhi today, Vaid said, “Adopting sustainable practices, especially through technology integration, can drive cost savings, improve efficiency, and open doors to new markets. The sooner SMEs adopt it, the more competitive they will become.”
He also clarified that technology is not only for large corporations, even it’s an enabler for MSMEs that makes sustainability scalable and profitable. “One should ask himself if sustainability is a cost or an investment,” Vaid suggested.
Currently, energy costs account for around 25-40% of operational expenses. However, after adopting sustainable measures, efficient technologies can cut these costs by up to 30% which automatically becomes savings for enterprises, he explained.
As per a study, MSMEs in Rajasthan reduced 50% of their energy costs by switching to solar. Citing an example of a textile MSME in Ludhiana, he said the enterprise witnessed a 20% rise in production costs due to water scarcity. However, the MSME could have avoided such increase in costs if it could have invested in water recycling.
“AI-driven energy management systems have helped MSMEs save lakhs annually. Around 75% of Indian consumers now prefer eco-friendly brands. E-commerce giants like Amazon and Flipkart are prioritising sellers with sustainable packaging. But MSMEs hesitate to adopt technology ---- be it artificial intelligence, IoT (internet of things) or cloud computing,” he noted.
While advanced technologies like AI is being used in manufacturing, logistics and even farming to reduce wastage, many SMEs still reply on paper-based processes, leading to higher costs and inefficiencies, Vaid added.