Driving Energy Efficiency and Sustainable Growth Across India's MSME Sector
A CSR initiative supported by Kotak Mahindra Bank Ltd.
The Challenge
Micro, Small and Medium Enterprises (MSMEs) form the backbone of India's manufacturing economy, yet many continue to operate with inefficient energy systems due to limited awareness, technical expertise, and financial preparedness. This results in higher operating costs, increased carbon emissions, and reduced competitiveness. The Kotak IITM Save Energy Mission (KISEM) was launched to bridge this gap by helping MSMEs identify and implement practical energy conservation measures that improve productivity while advancing India's sustainability goals.
The Initiative
Led by IIT Madras in collaboration with six IIT partner institutions, KISEM established a nationwide network spanning Tamil Nadu, Maharashtra, Madhya Pradesh, Punjab, Gujarat, Assam, and Telangana. During Phase II, the programme expanded with two new regional centres at IIT Hyderabad and IIT Guwahati, strengthening its outreach across India. Through detailed energy audits, expert technical guidance, and implementation support, the initiative enables MSMEs to adopt energy-efficient technologies and operational improvements that deliver measurable economic and environmental benefits.
Transforming Industrial Energy Performance
The project surpassed its targets by completing 244 detailed energy audits across 25 manufacturing sectors, including textiles, engineering, chemicals, pharmaceuticals, ceramics, plastics, paper, aluminium, FMCG, rubber, and cold storage. These assessments identified 2,670 Energy Conservation Measures (ECMs) with potential annual savings of ₹185.6 crore. To date, 958 energy-saving measures have been implemented, achieving ₹61.23 crore in annual cost savings while significantly improving operational efficiency across participating industries.
Creating Measurable Environmental Impact
Beyond reducing energy costs, KISEM is delivering substantial environmental benefits. The recommended interventions have the potential to reduce 1,99,546 metric tonnes of CO₂ emissions annually, with 71,610 metric tonnes already mitigated through implemented measures. By combining engineering expertise with sustained industry engagement, the programme demonstrates how energy efficiency can simultaneously improve industrial competitiveness and contribute to India's climate commitments.
A Partnership for Sustainable Manufacturing
The partnership between Kotak Mahindra Bank and IIT Madras showcases how corporate social responsibility can create long-term national impact. By enabling MSMEs to reduce energy consumption, lower operating costs, and adopt sustainable manufacturing practices, KISEM is building a more resilient, competitive, and environmentally responsible industrial ecosystem—one that supports economic growth while accelerating India's transition towards a low-carbon future.