Rising energy costs impacts production costs

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New Delhi, Nov 13 (UNI) Increasing cost of energy has triggered an increase in the cost of production for Indian small businesses over the last two years, according to an IBM global survey released today.

With an increase in energy costs, 64 per cent of the SMBs in India are expressing concern about the environment and have put environmental policies in place. The figure stands at 58 per cent globally.

In India, 54 per cent of the respondents indicated that they would make energy-reducing decisions based on environmental concerns, but only 32 per cent have made or are planning to make changes to help reduce their energy costs compared to 47 per cent globally.

The survey points out that most businesses are concerned about the environment and are taking steps to reduce energy costs.

SMEs in India have begun to make some changes, such as turning off non-essential equipment after hours and using more energy efficient lighting, the survey says.

As per the IBM survey, IT has become a priority for SMEs looking to curb energy costs.

In India, 53 per cent of SMBs were taking active steps toward reducing the energy consumption of their IT, including purchasing more energy efficient technology, consolidating servers or evaluating server usage and performance.

IDC estimates that for every dollar spent on IT, 50 per cent of the same is spent on related energy costs.

''The alignment of business interests and environmental interests underscores this important point: green business has become good business,'' a respondent said.

The survey interviewed 1,373 businesses, with 50-500 employees in eight countries.

UNI

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