A156: Hawkers Light Point Project in Dharwad, Dharwad District, Karnataka

Project Details:
http://docs.google.com/Doc?id=dft8hdgq_20g38crwc7

Project Financials:
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcIoi3cNK_WjFQ

A:200 Energy efficient biomass stoves to women SHG members through NEEDS in Haveri district

Project details & financials
http://docs.google.com/Doc?id=dft8hdgq_19dwtbrzf2&hl=en

A195: Entrepreneur Support Transaction to provide drip irrigation systems to small & marginal farmers at Challakere, Chitradurga district, Karnataka,

Project Details
http://docs.google.com/Doc?id=dft8hdgq_17f87mcndn
Project Financials
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcIRsXrXbJd9Aw

A192-Energy linked Areca plate making unit Ukkunda village, Bhadarvathi taluk, Shimoga district, Karnataka.

Project details
http://docs.google.com/Doc?id=dft8hdgq_17f87mcndn
Project Financials
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcJxuBMy_o5wVg

A147b: Solar lighting Systems for Silk Cocoon Rearing Centers and Homes of farmers at Yelliuyur Village, Devanahalli Taluk, Bangalore Rural District

Project Details
http://docs.google.com/Doc?id=dft8hdgq_15d369sjfc
Project Financials
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKug5d9NI1IMg

A147a: Solar Lighting Systems for Silk Cocoon Rearing Centers and Homes of Farmers at Yelliuyur Village, Devanahalli Taluk, Bangalore Rural District

This document is published on the web. http://docs.google.com/Doc?id=dft8hdgq_13fkgqhcdq
Project financials http://spreadsheets.google.com/pub?key=pwRdPi0mYDcJ9iGV_MmUUIQ

A205 Hawker Light Point Project in Nelamangala, Bangalore, Karnataka

The Project approval document can be found at-

http://docs.google.com/Doc?id=dft8hdgq_12fc4g3xsk


The project financials can be found at-

http://spreadsheets.google.com/pub?key=pwRdPi0mYDcI42Cu3i6ZMfA

A70: Hawkers’ Light Point Expansion at Belgaum, Belgaum district, Karnataka

Project Details
A70 is the expansion of A39, which has been in operations from April 2005. The project has been running successfully on hybrid system and has been catering to 40 hawkers. The enterprise consists of 34 Sakthi batteries, 6 Supreme batteries, 40 Selco light Units, 8 TTT light units, 3 panels of 34 watts and 2 chargers (1 solar and 1 grid charger). However, the entrepreneur Srinath Aital is now shifting his base to Udupi and hence the need for transferring the enterprise to a new entrepreneur.

Mr. Ravi Vasant Sollapure has come forward to take up the successful enterprise. He has worked with Srinath in his business before (Parimala Traders) and has been a resident of Belgaum for almost 24 years. From the last 3 years, he is in the Electronic Weighing Machine stamping and servicing business.

Srinath Aital had procured a loan of Rs. 1,27,925 in April 2005 for the project with the help of S3IDF’s partial guarantee for 25% of the project cost (Rs 31,982) from Malaprabha Grameen Bank. The loan term is for 5 years. Srinath has quoted a a price of Rs. 1,00,000 for the purchase of the enterprise to Ravi, which includes remaining repayments for the loan. Once Srinath repays the loan, our FD in Malaprabha Grameen Bank will be released.

Since Ravi does not have the capacity to buy the enterprise, State bank of India (Shivbasava Nagar branch, Belgaum) has been approached for the loan. The bank showed willingness to give Ravi a loan of Rs 1,00,000 with partial guarantee by S3IDF for 25% of the loan amount. The loan tenure was to be for 3 years.

However at the last stage of processing of the loan, SBI rejected the loan application citing depreciating equipments and batteries and the risks associated with it. Srinath Aithal and Ravi also approached Malaprabha Grameen Bank to secure transfer of the loan from Srinath to Ravi. However, the bank was not agreeable to the same.

Srinath Aithal and Ravi next approached S3IDF for direct financing. However, seeing the risks and efforts involved in the same, S3IDF suggested that Srinath continues the project and the loan while slowly transferring the project to Ravi. Therefore, Srinath Aithal has decided to continue the project as well as the loan.

Therefore, the project details remain the same. Meanwhile, Srinath’s payments will be monitored so that our FD is released at the earliest.

A204 Lighting services for Hawkers in Jagalur, Davengere District, Karnataka

Project Dates

Implementation Start: October 2008

Project Details

Jaglur already has an infrastructure shop being run by CRWCWS. Plus there are close to 30 plus hawkers in jaglur.

CRWCWS tested Flexitron 1 watt-LED lights for more than 15 days and after finding the light to be satisfactory, gave the light to one family in a hamlet in Nayakanahatti on a trial basis. The family found the light to be better than the candles and kerosene lanterns that they were currently using. 10 more families in the hamlet evinced interest in the lights and more were expected to follow once the project is in operations. As CRWCWS found the numbers to be low for the project, they had also decided to target petty shops near the hamlet which are also not connected to the grid. There are 10 such shops in the area, and after seeing the lights, they too are willing to use the lights.

However, the households differed on the pricing of the light (Rs. 4/day) and refused to take the light. Therefore, CRWCWS shifted the project to Jagalur and started giving the lights to the hawkers for a price of Rs. 5/day. The hawkers are very happy with the lights and more are expected to follow suit.

The 1 watt-LED lights by Flexitron have a good potential for such rural areas with sizeable hawkers without connection to grid and using inefficient lighting. However, they are new in the market and would have to be adequately tested. Therefore, this project has been designed for a period of 2 months to understand the issues involved with the lights per se (technical) and response of the customers to the same. A rental model has been agreed upon along with CRWCWS and the customers have agreed to pay Rs 5/light/day. At the end of 2 month period, the business model will be transferred to an entrepreneur either through a loan from the bank or S³IDF.

Project Financials

http://spreadsheets.google.com/pub?key=pwRdPi0mYDcJKWMhnE9Q9YQ

Project Size Details

The size of the customers will be limited to not more than 20 customers, which might increase after the 2 month period if the lights do well.

Project Impact Details

The project will impact petty shops who will gain access to clean, cheaper and brighter lighting. Candles and kerosene lanterns do not give adequate light and cast a shadow as well. And with the daily expenditure on lights being more than Rs 5 for households and petty shops, the rental of Rs 5 will enable them to save unnecessary expenditure on not so efficient sources of lights.

Estimated Pre-investment Costs

Total Costs- Rs. 6510

S3IDF costs

Personnel Costs – Rs. 5010

Other costs - Rs. 1500

Total S3IDF costs – Rs. 6510

Returns for S3IDF Revolving Fund

11% average annual returns

Project Indicators

Investment Indicators:

Investment size – Rs. 17000

Revolving fund – Rs. 17000

RF to investment size – 100%

Cost Indicators

Total pre investment cost – Rs. 6510

Pre investment cost/Investment Ratio – 38%

Impact indicators

Number of direct beneficiaries – 20 (at the start of the project)

Investment size/no. of beneficiaries – Rs. 850

Project Risks

Project owner/operator risk:

CRWCWS have been involved in a lot of projects before. Even after the two months period, CRWCWS is planning to transfer it to a woman entrepreneur and keep monitoring the enterprise.

Market risk:

The market risk seems to be less as there are more than 20 shops in Jagalur. Initial response by the hawkers seem to be positive towards the light. Moreover, the rental of Rs 5 is a good rate for such good quality of light for the hawkers.

Technology risk:

There is a technology risk as Flexitron lights are relatively untested in the market. However, a period of 2 months should be good enough testing time for us to ascertain the quality and impact of the technology.

Portfolio risk:

There is no portfolio risk.

Mission risk:

There is no mission risk.

Partners

CRWCWS and Flexitron

A201 Chilli Powder Unit with woman entrepreneur through NGO NEEDS, Nukapur, Haveri District, Karnataka

Project Dates:

Implementation Start: September 2008

Project Details:

This project involves investment in a 1HP chili pounding machine for an entrepreneur, Ms. Channabasamma Somanakatti, in the village of Nukapur in Haveri District. The project was identified by the NGO NEEDS (Navodaya Educational and Environment Development Service) in Ranebennur, Haveri District. The project will be implemented and monitored jointly by S³IDF and NEEDS.

The Entrepreneur is a member of Sri Krishnadeveray SHG, which was formed in 2006. She does weekly savings of Rs. 10/-. She has completed SSLC, is the first representative of her SHG, and has an active interest in taking up this micro enterprise. She approached NEEDS with her request earlier this year and NEEDS has connected her with S3IDF for business development support.

The entrepreneur is deeply familiar with the village of Nukapur and surrounding villages of Hnaumapur, Kuragund, and Madavarayapur, an area which is home to approximately 1500 families. Through informal surveys, the entrepreneur has determined that there is a lack of chili powder grinding infrastructure in the local area. Villagers who grow or purchase chilis must travel relatively long distances to have those chilis ground into powder. Thus, as a primary line of business, she plans to provide chili pounding services to local households. Households will bring their raw material, and she will provide grinding services at a rate of Rs. 10/kg. She will be able to work six hours in a day and can process 15 to 20 kgs per day.

As a secondary line of business, the entrepreneur will process and market her own branded chili powder. She plans to purchase chilis in wholesale from Ranebennur and/or Byadgi and grind powder to market to local schools as well as shops and hotels in the village and nearby Ranebennur. Initially, she will market 200kgs of her own chili powder per month at Rs. 80/kg, a competitive retail price.

Project Financials:

http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKvgmcfOIibQA

Project Size Details:

The chili pounding enterprise will service the approximately 1500 families living in the area of Nukapur and surrounding villages. 15 to 20 kgs will be ground per day. Additionally, the entrepreneur will manufacture and market approximately 200kgs of branded chili powder per month.

Project Impact Details:

The project will benefit the entrepreneur, as well as families in the local area who will now have the convenience of producing chili powder from their own chilis locally for a reasonable service fee. .

Estimated Pre-investment Costs:

Total Costs- Rs. 9785

S3IDF costs

Personnel Costs – Rs. 9185

Other costs - Rs. 600

Total S3IDF costs – Rs. 9785

Returns for S3IDF Revolving Fund:

12% returns on a reducing balance basis

(By mutual agreement, 8% of the total project cost will go to NEEDS to cover their preinvestment and monitoring work for this particular project and to cement a positive relationship with S3IDF.)

Project Indicators:

Investment Indicators

Investment size – Rs. 34,265

Revolving fund – Rs. 27,412

RF to investment size – 80%

Cost Indicators

Total pre investment cost – Rs.9785

Pre investment cost/Investment Ratio – 29%

Impact indicators

Number of direct beneficiaries – 1

Investment size/no. of beneficiaries – Rs.27,412

Project Risks:

Project owner/operator risk

Ms. Somanakatti is a new entrepreneur and is establishing a brand-new business, rather than expanding on an existing one. However, she has been recommended after a rigorous selection process from NEEDS (i.e., of the 60+ SHG groups that NEEDS works with, she is one of the most active and responsible members of one of the best-performing SHG groups). She is active and consistent in her savings and is the first representative of her SHG group. After conducting the necessary market survey, Ms. Somanakatti came to NEEDS herself seeking support for the new business, and was intent on establishing the enterprise in any way possible, demonstrating her ambition to make the enterprise a success. For those reasons, we believe the entrepreneur risk is minimized.

Market risk

The entrepreneur is highly familiar with the local market of Nukapur and surrounding villages. She has identified a latent demand for local chili grinding services, as most families must travel a minimum of 15 km to Ranebennur town to grind the chillis they purchase in markets or grow locally. Risk is that demand is either overestimated or highly seasonal, leading to inconsistency in revenues. However, the risk of overestimated demand is mitigated by the fact that the entrepreneur knows the market so well, and the risk of seasonality is mitigated by the fact that the entrepreneur has a secondary line of business in the marketing of her own branded chili powder.

Technology risk

Required machinery for the enterprise is a standard 1HP chili pounding machine, a tried-and-true technology. Machinery will be provided by a reputable technology supplier offering reliable servicing. The machine does require routine maintenance, but the entrepreneur will be instructed on maintenance practices and monitored closely in this regard. Thus, technology risk is low.

Portfolio risk

This is a very small investment, meant to be a trial project to explore potential future collaborations with NEEDS, so portfolio risk is low.

Mission risk

This is without a doubt a pro-poor project, so there is no mission risk.

Partners:

The entrepreneur, Ms. Somanakatti, and NEEDS NGO in Ranebennur.

A70: Restructuring of Hawkers’ Light Point Expansion at Belgaum, Belgaum district, Karnataka

Project Dates
Implementation Start: August 2008

Project Details
A70 is the expansion of A39, which has been in operations from April 2005. The project has been running successfully on hybrid system and has been catering to 40 hawkers. The enterprise consists of 34 Sakthi batteries, 6 Supreme batteries, 40 Selco light Units, 8 TTT light units, 3 panels of 34 watts and 2 chargers (1 solar and 1 grid charger). However, the entrepreneur Srinath Aital is now shifting his base to Udupi and hence the need for transferring the enterprise to a new entrepreneur.

Mr. Ravi Vasant Sollapure has come forward to take up the successful enterprise. He has worked with Srinath in his business before (Parimala Traders) and has been a resident of Belgaum for almost 24 years. From the last 3 years, he is in the Electronic Weighing Machine stamping and servicing business.

Srinath Aital had procured a loan of Rs. 1,27,925 in April 2005 for the project with the help of S3IDF’s partial guarantee for 25% of the project cost (Rs 31,982) from Malaprabha Grameen Bank. The loan term is for 5 years. Srinath has quoted a a price of Rs. 1,00,000 for the purchase of the enterprise to Ravi, which includes remaining repayments for the loan. Once Srinath repays the loan, our FD in Malaprabha Grameen Bank will be released.

Since Ravi does not have the capacity to buy the enterprise, State bank of India (Shivbasava Nagar branch, Belgaum) has been approached for the loan. The bank is willing to give Ravi a loan of Rs 1,00,000 with partial guarantee by S3IDF for 25% of the loan amount. The loan tenure will be for 3 years.

Project Financials
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKkFqsHMA75Dw

Project Size Details
The entrepreneur has a ready-made business of 40 hawkers, with close to 15 more hawkers demanding the lights. He plans to invest in more batteries once the enterprise is transferred to his name.

Project Impact Details
The project will benefit the entrepreneur. The hawkers will benefit from access to convenient and clean lighting. Further, the enterprise will continue to run in Belgaum, providing energy efficient lights to hawkers.

Estimated Pre-investment Costs
Total Costs- Rs. 13680

S3IDF costs
Personnel Costs – Rs. 6680
Other costs - Rs. 7000
Total S3IDF costs – Rs. 13680

Returns for S3IDF Revolving Fund
22% average annual returns

Project Indicators

Investment Indicators:
Investment size – Rs. 100000
Revolving fund – Rs. 25000
RF to investment size – 25%

Cost Indicators
Total pre investment cost – Rs. 13680
Pre investment cost/Investment Ratio – 14%

Impact indicators
Number of direct beneficiaries – 41
Investment size/no. of beneficiaries – Rs. 2439

Project Risks

Project owner/operator risk:
Mr. Ravi has worked under Mr. Srinath in his other business before, and has helped him in the hawkers lighting business too. Since he is already involved in a business, he seems capable enough of running the enterprise. Moreover, Srinath will help Ravi in the running of the business ensuring the successful transfer of the enterprise.

Market risk:
Ravi is taking over an already existing market and hence the risk is less. Moreover, there is demand fro more lights which Ravi is planning to cater to by buying more batteries.

Technology risk:
There is no technology risk as the batteries and light points have been in use for three years now. Moreover, Srinath will be teaching Ravi about maintaining the batteries and where to procure own batteries for future.

Portfolio risk:
There is no portfolio risk.

Mission risk:
There is no mission risk.

Partners
The entrepreneurs, Mr. Srinath and Mr. Ravi, State Bank of India.

A198 Provision of efficient and smokeless clay stoves in Siddehalli and Mustur villages, Chitradurga District, Karnataka

PAD at
http://docs.google.com/Doc?id=dft8hdgq_11f8d5nqch

Financials at
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKY1o10eQZFDw

A75y Provision of transportation service for infrastructure device sales in Chitradurga and Bellary District, Karnataka

PAD available at
http://docs.google.com/Doc?id=dft8hdgq_10dxb35zgp

Financials available at
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcIT2_JNKr6KNQ

A197. Support for Productive end-use and and Livelihood Ventures via NGO Spoorthy at Mysore and Chamrajnagar districts, Karnataka

Project Dates
Implementation Start: July 2008

Project Details
The project concept involves providing financial assistance to 38 individual SHG members who have started/expanded various self employment activities after undergoing training by Entrepreneurship Development Institute of India (EDI). The NGO Spoorthi was responsible for the selection of the candidates and now is involved in monitoring these women entrepreneurs on a constant basis along with EDI.

Verification of the women entrepreneurs has been done through a visit to their places of business in Kollegala and Mysore. The women are highly motivated to expand their businesses and are already seeing profits ranging from Rs. 2000 to Rs. 12000. Only women needing infrastructure services for their busnesses (like machines) and women dealing with infrastructure products/services have been selected for the loan. The details of the entrepreneurs are attached.

About Spoorthi: Spoorthi Janaabhivrudhi Samste (hereafter referred to as “Spoorthi”) has been registered under the Karnataka Societies Registration Act, 1960 in 2006. Spoorthi has been involved in SHG creation and various awareness programs in addition to providing financial assistance to the women’s groups that it has mentored. Right now it has close to 70 SHGs in Mysore District.

State Bank of India, Chamundipuram Branch has come forward to provide loans to these women entrepreneurs. The beneficiaries will give a margin money of 25% of the project cost and S3IDF will have to put in a partial guarantee of 50% of the loan amount. The loan will be given to Spoorthi against the partial guarantee given by S3IDF, which in turn will give the loan to the individual SHG members. The rate of interest levied by the bank will be maximum 15% and that levied by the NGO would be maximum 20%. (The rate of interest will be decided by the bank once a detailed project report is submitted by the NGO. The Manager has assured between 11 to 15%. The NGO is looking at leveraging lesser rate of interest from the bank so as to keep the overall rate of interest to less than 20% for the benefeciaries). The loan period will be 1 year. Details are attached in the excel file.

Project Financials
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcLmZqg4SVCgEA

Project Size Details
The project involves providing loans to 38 individual SHG members (except for 4 non SHG members). The project cost comes upto Rs 10,35,000.

Project Impact Details
The project will impact first and foremost the women entrepreneurs who have been motivated by the EDI training to start/expand their own various enterprises and belong to low income group striving to improve their standard of living.

The NGO will also benefit from the loan as it is still finding its feet and this will enable it to support the women it helped to get trained. This loan will also enable the NGO to train more interested women entrepreneurs under EDI.

Estimated Pre-investment Costs
Total Costs- Rs. 18690

S3IDF costs
Personnel Costs – Rs. 11690
Other costs - Rs. 7000
Total S3IDF costs – Rs. 18690

Returns for S3IDF Revolving Fund
17% annual returns for 1 year

Project Indicators

Investment Indicators:
Investment size – Rs. 1035000
Revolving fund – Rs. 388125
RF to investment size – 38%

Cost Indicators
Total pre investment cost – Rs. 18690
Pre investment cost/Investment Ratio – 1.81%

Impact indicators
Number of direct beneficiaries – 44
Investment size/no. of beneficiaries – Rs. 23523

Project Risks

Project owner/operator risk:
There is a risk involved as the NGO Spoorthi has been around for 2 years and has never taken a loan as an NGO. However, the NGO has experience with 70 SHGs and is looking to expand more. Seeing the fact that they did a good job with the first batch of trainees in terms of selection across different SHG groups (many belonging to other NGOs) and are still actively involved in monitoring the entrepreneurs, the NGO seems to be serious about its work. The NGO can be looked at partnership in the same way as CRWCWS. It is training more SHG members under EDI again; hence S3IDF can look into supporting more such women entrepreneurs for them.

With regards to repayment, the NGO has animators constantly on the field in Mysore and Kollegala. The repayment will be collected by them during the monthly meeting of the SHGs, and a system of fines and checks (already developed for SHGs for SHG loans) will ensure timely repayment.

Market risk:
There can be market risk for the entrepreneurs as most are into tailoring and are looking at expanding in that field. However, all of them have been getting orders and materials from merchants, and as such do not act as tailors for their areas. There is a lot of market in Mandya and Mysore and the entrepreneurs are tapping such areas. Moreover, they are into specialized work such as chamki work and embroidery, which is better paying and is still in demand.

Technology risk:
There is no technology risk.

Portfolio risk:
There is no portfolio risk.

Mission risk:
There is no mission risk. Entrepreneurs who were not falling under our mission had to be dropped and only those which came under the purview of infrastructure have been selected.

Partners
Spoorthi, State Bank of India

A187 Hawkers Light Point Project in Banashankari (Restructuring)

New cash flows applicable from June 2008.

http://spreadsheets.google.com/pub?key=pwRdPi0mYDcLy5OLFmU6AWA

A75ac- LPG Connection financing at Jaglur and Kanahosalli

A75ac- LPG Connection financing at Jaglur and Kanahosalli

Project Dates

Project Approval Document – August 4, 2008

Project Photos

Project Details

• The project is an expansion of A75u, A75w, A75ab. Through these three projects, 146 customers have been given connection financing at Nayakanahatti and Jaglur through our infrastructure shops. Another 19 customers are still to be given the connection financing loans, which will be done by end August 08.
• There is a great demand for LPG connection financing. The supply has again opened up and another 100 customers can be given. Most of these new customers have already taken loan from S3IDF for household infrastructure products such as pressure cookers, coin phones etc.
• Since we have the infrastructure for giving and collection in place, this can be done easily.
• There have been no defaults till date. Of the Rs. 595000 repayment that needs to be made to S3, Rs. 2,79,000 has already been repaid by customers, which makes it 46% of the total repayment amount.

Project Size Details

The size of the project will be as follows:

Location	Number	Price of 1 connection	Total Project Cost
Jaglur	60	5300	318000
Kanahosalli	40	5300	212000
Total	100		53000

Project Financials

Main Spreadsheet

http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKbJDsN_ZzDNg

Revised repayment schedule, put on Oct 28, 2008

http://spreadsheets.google.com/pub?key=pwRdPi0mYDcK3pTMds-gdNg

Project Impact Details

The project will provide LPG for cooking to 100 households. The impact of the project will be access of LPG cooking to 100 poor households.

Estimated Pre-investment Costs

Total Expected Costs – Rs. 7340

S3IDF costs

Personnel costs – Rs. 3340

Other costs –

Total S3IDF costs – Rs. 3340

Partner costs

Personnel costs – 2000

Other costs - 2000

Total Partner costs – 4000

Returns for S3IDF Revolving Fund

10% flat annual returns;

17.75 % returns on a reducing balance method

Project Indicators

Investment indicators:

Investment size – Rs. 530000

Revolving fund – Rs. 400000

RF to investment size – 75%

Cost Indicators

Total pre investment cost – Rs. 7340

Pre investment cost/Investment Ratio – 2%

Impact indicators

No. of direct beneficiaries – 100

Investment size /no. of beneficiaries – Rs. 5300

Project Risks

Project Owner/operator risk:

The operator is Chaitanya microfinance. This is a new microfinance institution. So there is a risk associated with a new comer. However, Chaitanya has done multiple projects with S3IDF and their repayments have had no problems. Hence this is not such a big risk.

Market risk: There is no market risk

Technology risk: There is no technology risk

Portfolio risk: There is no portfolio risk

Mission risk: There is no mission risk

Partners

Chaitanya, local LPG suppliers in Jaglur and Kanahosalli

Running Details of S3IDF Milk Transportation Trucks

This is a link to the milk transportation projects of S3IDF. As of June 08, we have two milk trucks running in Chitradurga. Please see consolidated sheet for summary of the Income Statement.
All expense and income details should be available in the document
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcK3l2dB_ubzaA

A 196- Hawker Light Point Project in Vijayanagar, Bangalore, Karnataka

Project Dates
Implementation Start: June 2008

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 Vijayanagar, Bangalore, will provide lighting to the Hawkers.

Anand, who has been helping Srinivas in Banashankari, approached S3IDF for starting his own enterprise in Vijayanagar market. However, hawkers from KR Market approached Srinivas to restart his business there at about the same time. The project had gone into hiatus due to problems faced by the administration in KR Market and the entrepreneur had consequently shifted to Banashankari market. The hawkers and their leaders came together to demand for the lights again and have asked the entrepreneur to resume his business in KR Market. They have also assured that he will not face any more problems from the administration or any other organization. However as Srinivas is trying to set up in Banashankari, he asked his brother Anand to resume the business in KR Market.

Seeing the risks involved in KR Market, Anand has decided to use the charging station in KR Market but start operations with Vijayanagar market. The distance between the charging station and Vijayanagar market is 2 kms.

In this specific instance, the charging will be done by full grid charging. The current capacity for the charging station is designed to be for 50 hawkers.

For this project, 55 batteries along with 50 light points, 1 charger and other accessories will be used. Initially it was decided that batteries, a charger, lightpoints and other accessories will be shifted from Banashankari. However, Srinivas has increased his customers to close to 70 and is looking to expand more. Therefore, only the charger is being transferred to Vijayanagar project. The charging station which was being used earlier has still not been occupied and will be used by Anand again.

Syndicate Bank, Chikpet branch has been approached for the financing of the project. The Bank Manager has suggested providing the loan under SJSRY and other subsidy schemes under DIC (these schemes require just registration for caste quota or women quota, which Anand’s wife can do). Their targets for these schemes have not been met and they would definitely look at our entrepreneurs under those categories. In case, we are not able to leverage those schemes, he will be providing loan to the entrepreneur provided Anand gets a guarantor and we might have to put partial guarantee too.

The direct loan is being given on a short term basis till the loan with the bank is done. One of the reason is that the hawkers had been using emergency lanterns which are giving away now and the entrepreneur feels that it is the right time to start the project. The modalities of transferring the project have been discussed with the bank manager and they have agreed for the transfer too.

Note: Srinivas gives one battery in a place for 2 days. The usage is from 6:30/7 pm to maximum 10 pm. This means that he charges close to 40 batteries in a day and hence needs only one charger. I have got batteries checked through the altometer (after charging and after usage) by Purushottam and the batteries seem to be well maintained. Srinivas has been informed that he will have to buy a charger on his own in case he needs it in the future.

Project Financials
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKOkRUsCEagCg

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 assisting Srinivas in Banashankari. 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
11% average annual returns

Project Indicators

Investment Indicators:
Investment size – Rs. 222779
Revolving fund – Rs. 222779
RF to investment size – 100%

Cost Indicators
Total pre investment cost – Rs. 5510
Pre investment cost/Investment Ratio – 2%

Impact indicators
Number of direct beneficiaries – 51 (at the start of the project)
Investment size/no. of beneficiaries – Rs. 4368

Project Risks

Project owner/operator risk:
Mr. Anand had been involved with another hawker light points project and is familiar with the dynamics of the enterprise. Hence, the risk is less.

Market risk:
The hawkers in Vijayanagar market use a combination of gas and kerosene lanterns. Some of them have started using emergency lanterns while others use the street light available to them. The entrepreneur is confident of targeting the hawkers using kerosene and gas lanterns initially, slowly covering others when their emergency lanterns give away. The entrepreneur is confident of getting close to 30 customers in the market after the demonstration of the lights.

Technology risk:
There is no technology risk as the batteries (Shakti batteries) and the light points designed are being used by other entrepreneurs in their own project without any problems.

Portfolio risk:
There is no portfolio risk.

Mission risk:
There is no mission risk.

Partners
The entrepreneur, Mr. Anand and the battery supplier, Sakthi batteries.

A75u-I. LPG Connection financing in Nayakanahatti, Chitradurga District, Karnataka

Project Dates

Implementation start: Oct 07

Project Photos

Project Details

This project is to provide LPG connection financing to the members of Chaitanya MFI. Till the end of October 07, Chaitanya had 105 members. Of this 30 members require LPG connection financing as of end October 07. This need is expected to rise. Although there is a huge demand for LPG, supply of new connections is not always available. The local dealer releases small no. of connections once in a while. For customers to avail this window of opportunity they need to have the financing readily available to pay and get it. Loans from banks are generally slow and within the time the loan is sanctioned, the window of opportunity is lost.

Chaitanya MFI will give its customers, individual loans of size Rs. 3000 for a period of 50 weeks charging an interest of 15% flat. As of end October 30 customers are already existing. Within the next one month, another 20 are expected to be given LPG loans. In the next year another 50 are expected to be given LPG loans.

List of first 30 customers:

Project Financials
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcLvojJJovlZOQ

put this spreadsheet again on 26 June 08

Project Size Details

This project is LPG connection financing for 50 customers in the first year and another 50 customers in the second year

Project Impact Details

The project will provide LPG for cooking to 100 households in 2 years. For the 100 households they will get a clean and convenient option for cooking.

Estimated Pre-investment Costs

Total Costs – Rs. 4835

S3IDF costs

Personnel costs – Rs. 835

Other costs – Rs. 2000

Total S3IDF costs – Rs. 2835

Partner costs

Personnel costs – Rs. 2000

Other costs

Total Partner costs – Rs. 2000

Returns for S3IDF Revolving Fund

8% flat annual returns;

15% actual returns

Project Indicators

Investment indicators:

Investment size – Rs. 150000

Revolving fund – Rs. 150000

RF to investment size –1

Cost Indicators

Total pre investment cost – Rs. 4835

Pre investment cost/Investment Ratio – 3%

Impact indicators

No. of direct beneficiaries – 100 (over 2 years)

Investment size /no. of beneficiaries –Rs. 1500

Project Risks

Project Owner/operator risk:

The operator is Chaitanya microfinance. This is a new microfinance institution. So there is a risk associated with a new comer. However, Chaitanya has done multiple projects with S3IDF and their repayments have had no problems. Hence this is not such a big risk.

Market risk: There is no market risk

Technology risk: There is no technology risk

Portfolio risk: There is no portfolio risk

Mission risk: There is no mission risk

Partners

Chaitanya Foundation, Indane dealer at Chalakere