Thursday, December 20, 2007

A 180- Hawker Light Point in KR Market, Bangalore, Karnataka







Project Dates

Implementation Start: December 2007

Project Details

This project concept involves the creation of a new micro enterprise investment, which, located in the un-electrified/under-electrified Hawker’s (street sellers) community in KR Market, Bangalore, will provide lighting to the Hawkers. The hawkers are mostly situated in the parking lot outside the main KR Market and on the pavements near KR Market. Most hawkers currently do not have any source of light with few using kerosene based petromax lanterns, emergency lights and candles. There are more than 200 hawkers in the market within 1 km stretch. The hawkers either work in the dark or close their business after dark, incurring losses as a result of early closure and customers preferring well-lit shops inside the KR Market building.

In this specific instance, the charging will be done by full grid charging. The charging station is at a distance of 1 km from the market and the current capacity for the charging station is designed to be for 50 hawkers. The entrepreneur Mr. Srinivas N has been identified through an existing entrepreneur – Peenya Hawker Light points entrepreneur, Mr. Jayakumar N. Mr. Srinivas is currently an auto driver, and has earlier assisted Bommanhalli Hawker Light points entrepreneur Mr. R Vijayakumar to distribute and maintain his batteries. After assisting Vijayakumar, he decided to set up his own business, surveyed KR Market and chose it as the area of operation due to the large size of the market.

Mr. Srinivas has been provided a loan for 55 batteries, 50 light systems and advance for the charging station by S3IDF.

Project Financials

http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKQPDRqobwJKg


Project Size Details

The entrepreneur will initially start servicing 50 hawkers, expanding the business once the demand for the lights increase.

Project Impact Details

The project will benefit the entrepreneur, currently an auto rickshaw driver and his younger brother who is assisting him in the project. Additionally, the hawkers will also benefit from access to convenient and clean lighting.

Estimated Pre-investment Costs

Total Costs- Rs. 5510

S3IDF costs

Personnel Costs – Rs. 5010

Other costs - Rs. 500


Total S3IDF costs – Rs. 5510



Returns for S3IDF Revolving Fund

8% flat annual returns

Actual returns will be much higher


Project Indicators

Investment Indicators:

Investment size – Rs. 2,46,879

Revolving fund – Rs. 1,96,879

RF to investment size – 80%

Cost Indicators

Total pre investment cost – Rs. 5510

Pre investment cost/Investment Ratio – 2%

Impact indicators

Number of direct beneficiaries – 52 (at the start of the project)

Investment size/no. of beneficiaries – Rs. 4748


Project Risks

Project owner/operator risk:

Mr. Srinivas had been involved with another hawker light points project for more than a year and is familiar with the dynamics of the enterprise. Hence, the risk is less.

Market risk:

Most of the hawkers do not own any source of light at present and the risk might be that they may not be open to new source of light. The hawkers are not using lights because they find the cost prohibiting. However, Mr. Srinivas is confident of targeting those who own candles and petromax lanterns, and the others through them. The lights will also find favour with the hawkers as they are being offered convenient and efficient lighting for the first time. As the market is also very huge, there is less risk of the entrepreneur not finding enough customers. There might be competition risk at a later stage, which can be overcome with superior servicing on the part of the entrepreneur.

Technology risk:

There is no technology risk as the batteries (Shakti batteries) and the light points designed by another entrepreneur, Mr. Jayakumar are being used in his own project without any problems.

Portfolio risk:

There is no portfolio risk.

Mission risk:

There is no mission risk.

Partners

The entrepreneur, Mr. Srinivas N and the battery supplier, Shakti batteries.

Monitoring
Monitoring report done by Arpana in Jan 08
http://docs.google.com/Doc?id=dft8hdgq_0fg7b4nkp

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