Radha Jalan and ElectroChem, Inc.: energy for a cleanplanet.

ElectroChem, Inc. was a global supplier of fuel cell technology for government and commercial applications. When the founder unexpectedly died in 1992, the firm had not yet achieved profitability and was burdened with a high level of debt. Without any formal technical training or business experience, his wife, Radha Jalan, became president. Her primary challenges included increasing ElectroChem's market share and reputation, technology development, generating sufficient revenues and cash flows, and securing external sources of capital. This case illustrates some of the challenges faced by a woman entrepreneur as well as issues associated with growth in an emerging market for energy source alternatives.

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In January 2002, Radha Jalan sat in her office in Woburn, Massachusetts, reflecting on the latest news about global oil prices. She shivered slightly as she looked up from her newspaper to gaze out the window at snow-filled streets and ice-covered trees and utility lines. That winter the northeastern United States was hit hard with record-breaking snowfalls. After shortages of oil and natural gas through the fall, energy prices escalated further with crude oil approaching $30 per barrel. Moreover, the Organization of Petroleum Exporting Countries (OPEC) announced its plans to reduce petroleum production. Normally taciturn Yankees complained out loud about high oil prices at church suppers and high school basketball games. Across the country, California was nearly in a state of emergency as its power grid proved to be woefully inadequate for energy demand, and sporadic blackouts created economic losses in the billions.

Since taking over the helm of ElectroChem, Inc. in 1992 after her husband's abrupt and tragic death, Radha felt that the prospects for fuel cell development and commercial use had become increasingly bright. Indeed, news headlines about escalating energy costs provided opportunities for producers of alternative energy sources such as fuel cells, photovoltaic, solar, and wind. In spite of that, however, the last 10 years had not been easy. Although ElectroChem had revenues of $400,000 in 1991, the company had not yet achieved profitability. Radha's leadership after the death of her husband led to a turnaround that positioned ElectroChem as a small, but important player in fuel cell research and manufacturing--one that generated a profit for four consecutive years from 1996 to 1999 and achieved over $2 million in revenues by the year 2001.