Project Checklist and Approval Template
updated on 29 Jan 08
http://docs.google.com/Doc?id=dft8hdgq_83wnb3jf7
Tuesday, January 29, 2008
Saturday, January 26, 2008
Wednesday, January 23, 2008
A118c. Expansion of Hawker light point in Peenya, Bangalore, Karnataka
Project dates:
Implementation start: January 2007
Project Financial:
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKcBTLQB5kScg
Project details:
This is a hawker’s light point business for vendors in Dasarahalli and Malleshwaram in Bangalore. The entrepreneur, Mr. Jayakumar, started operations in September 2006. Mr. Jayakumar began his business supplying about 30 hawkers in Dasarahalli with batteries and light fixtures for Rs. 15 per day.
From July 2007, S3IDF has helped Mr. Jayakumar to purchase 95 batteries from Sakthi Electronics to increase his customer base and expand his operations to Malleshwaram market along with assistance in procuring a three wheeler and shifting his charging station. (Project 118a, Project 118b and Project 170)
Mr. Jayakumar is going for further expansion with 20 more batteries.
Project Size Details
Project A118c involves the purchase of 20 additional batteries at Rs. 2306 each from Sakthi in January 2008 along with other accessories such as light points.
Project Impact Details
Because of the expansion, Mr. Jayakumar’s income will further increase by Rs. 6000.
The project will in turn impact new hawkers availing the services of Mr. Jayakumar in Bangalore’s Peenya Industrial Area in Dasarahalli and Malleshwaram.
Estimated Pre-investment Costs
Total Costs – Rs. 2170
S3IDF costs
Personnel costs – Rs. 1670
Other costs – Rs. 500
Total S3IDF costs – Rs. 2170
Returns for S3IDF Revolving Fund
Actual returns of 15%
Project Indicators
Investment indicators:
Investment size : Rs. 60125
S3IDF Revolving Fund: Rs. 60125
RF to investment size: 100%
Cost Indicators
Total pre investment costs – Rs. 2170
Pre-investment cost to investment ratio – 4%
Impact indicators
Number of direct beneficiaries – 20
Investment size per beneficiary – Rs. 3006
Project Risks
Project Owner/Operator Risk:
Jayakumar has been reliably running the hawker light points business enterprise for more than a year. Hence there is no risk.
Market risks:
There are no market risks as Jayakumar is expanding due to increase in demand for lights.
Technology Performance risks:
Our experience shows that Sakthi batteries are more reliable than those from informal suppliers. The batteries come with a 2-year warranty. Hence the technology risk is minimal.
Portfolio risks:
Since it is an expansion of an existing hawker light points project, there is no portfolio risk.
Mission/Regulator’s perception risk:
The project is adequately pro-poor to pose no significant mission/regulator risk.
Partners:
Sakthi Electronics, Mr. Jayakumar
Implementation start: January 2007
Project Financial:
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKcBTLQB5kScg
Project details:
This is a hawker’s light point business for vendors in Dasarahalli and Malleshwaram in Bangalore. The entrepreneur, Mr. Jayakumar, started operations in September 2006. Mr. Jayakumar began his business supplying about 30 hawkers in Dasarahalli with batteries and light fixtures for Rs. 15 per day.
From July 2007, S3IDF has helped Mr. Jayakumar to purchase 95 batteries from Sakthi Electronics to increase his customer base and expand his operations to Malleshwaram market along with assistance in procuring a three wheeler and shifting his charging station. (Project 118a, Project 118b and Project 170)
Mr. Jayakumar is going for further expansion with 20 more batteries.
Project Size Details
Project A118c involves the purchase of 20 additional batteries at Rs. 2306 each from Sakthi in January 2008 along with other accessories such as light points.
Project Impact Details
Because of the expansion, Mr. Jayakumar’s income will further increase by Rs. 6000.
The project will in turn impact new hawkers availing the services of Mr. Jayakumar in Bangalore’s Peenya Industrial Area in Dasarahalli and Malleshwaram.
Estimated Pre-investment Costs
Total Costs – Rs. 2170
S3IDF costs
Personnel costs – Rs. 1670
Other costs – Rs. 500
Total S3IDF costs – Rs. 2170
Returns for S3IDF Revolving Fund
Actual returns of 15%
Project Indicators
Investment indicators:
Investment size : Rs. 60125
S3IDF Revolving Fund: Rs. 60125
RF to investment size: 100%
Cost Indicators
Total pre investment costs – Rs. 2170
Pre-investment cost to investment ratio – 4%
Impact indicators
Number of direct beneficiaries – 20
Investment size per beneficiary – Rs. 3006
Project Risks
Project Owner/Operator Risk:
Jayakumar has been reliably running the hawker light points business enterprise for more than a year. Hence there is no risk.
Market risks:
There are no market risks as Jayakumar is expanding due to increase in demand for lights.
Technology Performance risks:
Our experience shows that Sakthi batteries are more reliable than those from informal suppliers. The batteries come with a 2-year warranty. Hence the technology risk is minimal.
Portfolio risks:
Since it is an expansion of an existing hawker light points project, there is no portfolio risk.
Mission/Regulator’s perception risk:
The project is adequately pro-poor to pose no significant mission/regulator risk.
Partners:
Sakthi Electronics, Mr. Jayakumar
Tuesday, January 22, 2008
A69 & A136 Hawkers Light point in Dasarahalli and Madiwala, Bangalore
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcJQrIr0YKmvPg
Project loan repayment excel file (revised).
THis is the latest updated loan repayment file
Project loan repayment excel file (revised).
THis is the latest updated loan repayment file
Saturday, January 19, 2008
A 180b- Hawker Light Point in KR Market, Bangalore, Karnataka (Expansion)
Implementation Start: December 2007
Project Financials
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKRgSgCgDalcQ
Project Concept
This project concept involves the expansion 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 charging is being done by full grid charging. The charging station is at a distance of 1 km from the market and the capacity for the charging station was designed to be for 50 hawkers. However, the entrepreneur who initially gave the lights to the hawkers as demonstration on December 25 2007, found many more hawkers asking for the lights in the next few days. Faced with such a huge demand, he has approached S3IDF for financing of 50 more batteries along with 50 light points, 1 charger and other equipments.
Project size
The entrepreneur had decided to initially start with 50 hawkers but seeing the demand he is planning to service 50 more hawkers.
Project Impact Details
The project will benefit the entrepreneur, currently an auto rickshaw driver and his two younger brothers who are assisting him in the project. Additionally, the hawkers will also benefit from access to convenient and clean lighting.
Estimated Pre-investment cost
Total cost- Rs. 3840
S3IDF costs
Personnel Costs – Rs. 3340
Other costs - Rs. 500
Total S3IDF costs – Rs. 3840
Returns for S3IDF Revolving Fund
17 % average returns for three years
Project Indicators
Investment Indicators:
Investment size – Rs. 1,67,063
Revolving fund – Rs. 1,67,063
RF to investment size – 100%
Cost Indicators
Total pre investment cost – Rs. 3840
Pre investment cost/Investment Ratio – 2%
Impact indicators
Number of direct beneficiaries – 50
Investment size/no. of beneficiaries – Rs. 3341
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:
There is no market risk as after the initial connections, the entrepreneur is flooded with demands from other hawkers. 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.
Project Financials
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKRgSgCgDalcQ
Project Concept
This project concept involves the expansion 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 charging is being done by full grid charging. The charging station is at a distance of 1 km from the market and the capacity for the charging station was designed to be for 50 hawkers. However, the entrepreneur who initially gave the lights to the hawkers as demonstration on December 25 2007, found many more hawkers asking for the lights in the next few days. Faced with such a huge demand, he has approached S3IDF for financing of 50 more batteries along with 50 light points, 1 charger and other equipments.
Project size
The entrepreneur had decided to initially start with 50 hawkers but seeing the demand he is planning to service 50 more hawkers.
Project Impact Details
The project will benefit the entrepreneur, currently an auto rickshaw driver and his two younger brothers who are assisting him in the project. Additionally, the hawkers will also benefit from access to convenient and clean lighting.
Estimated Pre-investment cost
Total cost- Rs. 3840
S3IDF costs
Personnel Costs – Rs. 3340
Other costs - Rs. 500
Total S3IDF costs – Rs. 3840
Returns for S3IDF Revolving Fund
17 % average returns for three years
Project Indicators
Investment Indicators:
Investment size – Rs. 1,67,063
Revolving fund – Rs. 1,67,063
RF to investment size – 100%
Cost Indicators
Total pre investment cost – Rs. 3840
Pre investment cost/Investment Ratio – 2%
Impact indicators
Number of direct beneficiaries – 50
Investment size/no. of beneficiaries – Rs. 3341
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:
There is no market risk as after the initial connections, the entrepreneur is flooded with demands from other hawkers. 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.
Friday, January 18, 2008
A165a-A165d Provision of infrastructure services at branches in Nayakanahatti, Siriguppa, Jaglur and Kanahosalli
Projects:
a. A165a - Siruguppa, Bellary District, Karnataka
b. A165b –Nayakanahatti, Chitradurga District, Karnataka
c. A165c – Jaglur, Davengere District, Karnataka
d. A165d – Kanahosalli, Bellary District, KarnatakaOctober 07
Project
Photo 1: Our Siriguppa office
Photo 2: Sankarappa, who runs the Siriguppa office
wRdPi0mYDcLnhlr4VqVABw
S3IDF costs
a. A165a - Siruguppa, Bellary District, Karnataka
b. A165b –Nayakanahatti, Chitradurga District, Karnataka
c. A165c – Jaglur, Davengere District, Karnataka
d. A165d – Kanahosalli, Bellary District, Karnataka
Project Dates
October 07
Project
Photos
Photo 1: Our Siriguppa office
Photo 2: Sankarappa, who runs the Siriguppa office
Project Financials
http://spreadsheets.google.com/pub?key=pProject Details
This project concept is to provide very Small Household Energy/Infrastructure Devices such as pressure cookers, water filters, solar lanterns etc. to rural households through S3IDF run infrastructure shops. Another variant of supplying these devices is to develop entrepreneurs through working capital support who will sell these devices to poor customers. The S3IDF run infrastructure shop concept started when S3IDF’s partner organization, CRWCWS (Chaitanya) completed several multiple projects of selling lights, pressure cookers and coin phones. The infrastructure shop started in the month of July 07 in Nayakanahatti. The earlier sales were considered as individual projects (A75j – telecom Chitradurga, A75k – pressure cookers in Nayakanahatti, A75l – mobile phones in Nayakanahatti, A75m – telecom Nayakanahatti).
In addition to doing sales of infrastructure devices, these infrastructure shops will also do LPG connection financing and also get other local S3IDF projects, such as A164-Siriguppa lighting).
Initially, the plan was to run the shops through S3IDF’s SPV, S3IDF Infraserve. However, since this was not possible, the sales are being planned to be done through a contract with S3IDF’s partner, Chaitanya. Chaitanya has got the necessary tax clearances (VAT) to do sales of the products. Chaitanya is doing this through a separate legal entity called as Chaitanya Enterprises which is a partnership firm. The contract between S3IDF and Chaitanaya is such that, Chaitanya’s contract employees will run the infrastructure shops. The expenses for running the shops will come from S3IDF. All profits that come from the shops will come to S3IDF.
To make the centers profitable, the centers will also sell other household kitchen items such as electric mixers etc. The required financing for conducting the sales will be given through a contract agreement to Chaitanya enterprises. Chaitanya will return all the monies with profit to S3IDF.
Project Size Details
The total sales from three months of operations (October, November and December 07) are expected to be Rs. 75,000
Project Impact Details
The project is expected to impact 60 households
Estimated Pre-investment Costs
Total Costs – Rs. 40850
S3IDF costs
Personnel costs – Rs.8350
Other costs – Rs. 2500
Total S3IDF costs – Rs. 10850
Partner costs
Personnel costs –
Other costs -
Total Partner costs – Rs. 30000
Returns for S3IDF Revolving Fund
Project Indicators
Investment indicators:
Investment size – Rs. 75000
Revolving fund – Rs. 58000
RF to investment size – 77%
Cost Indicators
Pre investment cost/Investment Ratio – 54%
Impact indicators
No. of expected direct beneficiaries - 60
Investment size /no. of beneficiaries – Rs. 1250
Project Risks
Project Owner/operator risk:
The project operator is Chaitanya who has done several projects with S3IDF and has an excellent track record. Based on this, the operator risk is minimal
Market risk:
This is the biggest risk of this project. The risk is that for the costs incurred the sales cannot be made and the shops do not reach sustainability. However, sales of pressure cookers, water filters done through projects earlier at Nayakanhatti indicates that there is demand for these projects and a sustainable business can be run.
Technology risk:
There is no technology risk as the products that will be sold will be standard products
Portfolio risk:
There is no portfolio risk
Mission risk:
There is no mission risk
Partners
Chaitanya, local suppliers of Energy/Infrastructure Devices.
A171 - Working capital assistance for manufacturing of drip irrigation products, Alur, Hassan District, Karnataka
Project Financials
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKj0JF80sjcXA
Project Details
This project is to develop entrepreneur Mr Arun kumar proprietor of M/s Boomika irrigation systems, vijayanagar extension, 1st stage, B M road, Hassan. He is into manufacturing and marketing of drip irrigation spare parts. The customers of the product will be farmers and drip irrigation dealers. To stock and sell the products, the entrepreneur will be given working capital support from canara bank. S3IDF will facilitate working capital support for the entrepreneur from canara bank by providing security in the bank in the form of fixed deposit. Wherever possible, the entrepreneur will sell their products on a cash basis and where required financing for the products will be provided through local banks and micro finance institutions. In addition to providing the entrepreneur financial support, S3IDF will provide business development assistance to the selected end users/customers.
Project Size Details
The working capital loan provided to entrepreneur from Canara bank is Rs 50,000.So the project size is Rs 50,000.
Project Impact Details
This project will provide employment to Mr. Arun Kumar
Project Risks
Since the business is existing one the risk factor is low.
Project Owner/operator risk:
The risk of the entrepreneur who will be the project owner is the biggest risk of this project. The risk is that the entrepreneur misuses the support provided to him or proves to be incapable to deliver as per expectations. To reduce this, we will be following a rigorous selection process for selecting entrepreneurs. This will ensure only the most suitable are selected. Additionally, the support provided to the entrepreneur will be backed up by necessary legal documents so that immediate legal action can be taken if the entrepreneur does not go as per the agreed terms and conditions. Also, the performance of the entrepreneurs will be closely monitored on a regular basis (weekly).
Market risk:
Since we will be focusing on the bottom of the pyramid market, which is largely untapped, this risk will be less. In case at a particular location, such a risk arises, the products will be shifted to another location.
Technology risk:
No technology risk.
Portfolio risk:
No portfolio risk
Mission risk:
No mission risk
Partners
Mr. Arun Kumar, Canara Bank
Tuesday, January 15, 2008
A75v. Provision of transportation vehicle for transporting goods and milk in Chitradurga district
Name of the Project
A75v. Provision of transportation vehicle for transporting goods and milk in Chitradurga district
Project Photos
Project Dates
January 15, 2008
Project Financials
http://spreadsheets.google.com/pub?key=p
Project Details
This is a replication of an earlier transportation project, A75t. The 4 wheeler bought by S3IDF in the project A75t is now delivering milk from villages to Chitradurga on a daily basis. The truck takes the “Chandravali” route which covers 15 villages in Chitradurga district. The distance traveled by the truck in one route is 88km. The truck covers this route twice a day. Once in the morning and once in the evening. This route is being run from January 08.
Based on the success of the first truck, a second truck is planned. The second truck is planned to provide transportation facilities for agricultural goods from the villages to the cities. Since, the transportation of milk is critical, the second truck will act as a back up for the first truck in case the first truck is under repairs.
Loan from Bank: S3IDF has had a discussion with PGB on getting a loan for the two vehicles. The Chairman of the bank has in principle agreed to provide a loan for the two vehicles. The process of getting a loan will be proceeded with immediately
Project Size Details
The vehicle, which will be bought, is a TATA 407. This has a capacity of around 5.5 tons. The price of the vehicle is around Rs. 5,35,000 with registration.
Project Impact Details
The project will benefit multiple farmers who have to transport their agricultural produce from their villages to the city markets. The number of farmers benefited will easily be in the 100’s.
Estimated Pre-investment Costs
Total Pre investment costs = Rs. 21340
S3IDF costs
Total Costs=Rs. 6340
Personnel costs=Rs. 3340
Other costs=Rs. 3000
Partner costs
Total Costs=Rs. 15000
Personnel costs=Rs. 10000
Other costs=Rs. 5000
Project Returns
The project returns are 14% per annum.
Project Indicators
Investment indicators:
Investment size – Rs. 5,35000
Revolving fund – Rs. 3,34,375
RF to investment size – 63%
Cost Indicators
Total pre investment cost – Rs. 21,340
Pre investment cost/Investment Ratio – 4%. This is very good as our target is 10%.
Impact indicators
No. of direct beneficiaries – 500 farmers
Investment size /no. of beneficiaries – Rs. 1070 per beneficiary
Project Risks
Project Owner/operator risk:
We are dependent on Chaitanya to run the project and Chaitanya in turn is dependent on the drivers and the helpers to run the project. This raises the operator risk. However, since Chaitanya has shown that it is capable to select good operators, we can take this risk. For managing the risk of accident or theft of the vehicle, the vehicle will be insured.
Market risk:
With the experience of the first truck, we realize that there is sufficient market and hence there is little market risk
Technology risk:
No technology risk
Portfolio risk:
No portfolio risk as this is among the few transportation projects
Mission risk:
No mission risk as it is a pro-poor project. The vehicle helps poor households in small and remote villages
Partners
Chaitanya, PGB
Monday, January 14, 2008
Expansion of A165a-A165d Provision of infrastructure services at Nayakanahatti, Jaglur, Kanahosalli and Siriguppa
Expansion of A165a-A165d Provision of infrastructure services at branchs in
a. A165a - Siruguppa, Bellary District, Karnataka
b. A165b –Nayakanahatti, Chitradurga District, Karnataka
c. A165c – Jaglur, Davengere District, Karnataka
d. A165d – Kanahosalli, Bellary District, Karnataka
Project Dates
Expansion Jan 08
Project Photos
Project Details
This project concept is to provide very Small Household Energy/Infrastructure Devices such as pressure cookers, water filters, solar lanterns etc. through S3IDF run infrastructure shops. Another variant of supplying these devices is to develop entrepreneurs through working capital support who will sell these devices to poor customers. The S3IDF run infrastructure shop concept started when S3IDF’s partner organization, CRWCWS (Chaitanya) completed several multiple projects of selling lights, pressure cookers and coin phones. The infrastructure shop started in the month of July 07 in Nayakanahatti. The earlier sales were considered as individual projects (A75j – telecom Chitradurga, A75k – pressure cookers in Nayakanahatti, A75l – mobile phones in Nayakanahatti, A75m – telecom Nayakanahatti). The sales were considered as a A165 project only from the month of October 07. The Nayakanahatti shop was the only shop running till the month of November 07. In the month of December 07, infrastructure shops were setup at three more locations: Jaglur, Kanahosalli and Siriguppa.
In addition to doing sales of infrastructure devices, these infrastructure shops will also do LPG connection financing (A75u) and also get other local S3IDF projects, such as A164-Siriguppa lighting).
Initially, the plan was to run the shops through S3IDF’s SPV, S3IDF Infraserve. However, since this was not possible, the sales are being planned to be done through a contract with S3IDF’s partner, Chaitanya. Chaitanya has got the necessary tax clearances (VAT) to do sales of the products. Chaitanya is doing this through a separate legal entity called as Chaitanya Enterprises which is a partnership firm. The contract between S3IDF and Chaitanaya is such that, Chaitanya’s contract employees will run the infrastructure shops. The expenses for running the shops will come from S3IDF. All profits that come from the shops will come to S3IDF.
The planned sales from January 08 till June 08 is given in the table below. To make the centers profitable, the centers will also sell other household kitchen items such as electric mixers etc. The required financing for conducting the sales will be given through a contract agreement to Chaitanya enterprises. Chaitanya will return all the monies with profit to S3IDF. In this expansion phase, S3IDF will provde Chaitanya with an amount of Rs. 4,04,250.
| Planned Sales from the S3IDF Infrastructure Shops | ||||||
| Jan-08 | Feb-08 | Mar-08 | Apr-08 | May-08 | Jun-08 | Total for 6 months |
| 100000 | 150000 | 175000 | 200000 | 250000 | 275000 | 1150000 |
Products Required
| Sl. No. | Product | No's | Price | Total Value |
| For Nayakanahatti, Kanahosalli and Jaglur centers | ||||
| 1 | Pressure Cookers | 100 | 500 | 50000 |
| 2 | Water filters | 60 | 700 | 42000 |
| 3 | Coin phones | 5 | 4000 | 20000 |
| 4 | Solar lanterns | 5 | 3600 | 18000 |
| 5 | Mud stoves | 50 | 150 | 7500 |
| For Siriguppa center | ||||
| 1 | Electricity mixer | 20 | 1525 | 30500 |
| 2 | Pressure Cookers | 25 | 650 | 16250 |
| 3 | Other Products | 50 | 400 | 20000 |
| | | | | |
| 1 | Other products for all centers | 200000 | ||
| Total | 404250 | |||
Investments required in the branches: Infrastructure is required at the branches. 3 bicycles are required at Nayakanahatti, Jaglur and Kanahosalli. One 2 wheeler is required at Siriguppa. Three tables are required at Jaglur, Kanahosalli and Siriguppa. 12 chairs are required at the above 3 centers.
Investments required at the infrastructure shops
| Item | No. | Price | Total |
| Bicycle | 3 | 2500 | 7500 |
| 2 wheeler(TVS 2nd hand) | 1 | 5000 | 5000 |
| Tables | 3 | 1500 | 4500 |
| Plastic chairs | 12 | 300 | 3600 |
| Total | 20,600 | ||
Project Cash Flows
http://spreadsheets.google.com/pub?key=p
Project Size Details
The centers will start with sales of Rs. 25,000 a month from January 08, which is a total of 1,00,000 from 4 centers. Out of the total sales, atleast 20% of the sales will be S3IDF products in the first month. This will gradually increase to 40% in the 6th month, when the infrastructure shops will be profitable. The total sales value for the first six months is expected to be Rs. 11,50,000 and the total value of S3IDF products is expected to be Rs. 3,90,000.
Project Impact Details
In the six months, the project will impact 675 households
Estimated Pre-investment Costs
Total Costs – Rs. 123,268
S3IDF costs
Personnel costs – Rs. 50,100
Other costs – Rs. 15,000
Total S3IDF costs – Rs. 65,100
Partner costs
Personnel costs –
Other costs
Total Partner costs - Rs. 58,168
The total partner costs is lower as part of the partner costs is covered from profits from the sale of non S3IDF products.
Returns for S3IDF Revolving Fund
Project Indicators
Investment indicators:
Investment size – Rs. 390000
Revolving fund – Rs. 390000
RF to investment size – 100%
Cost Indicators
Total pre investment cost – Rs. 123268
Pre investment cost/Investment Ratio – 32%
Impact indicators
No. of direct beneficiaries - 675
Investment size /no. of beneficiaries – Rs. 578
Project Risks
Project Owner/operator risk:
The project operator is Chaitanya who has done several projects with S3IDF and has an excellent track record. Based on this, the operator risk is minimal
Market risk:
This is the biggest risk of this project. The risk is that for the costs incurred the sales cannot be made and the shops do not reach sustainability in the planned 6 months. This concept has been tested in Nyaakanahatti shop for around 6 months and based on this expanded to 4 centers. The expansion is based on this learnings. Also, the concept will be tested for 6 months. At the end of six months it will be reviewed and continue if the performance is satisfactory
Technology risk:
There is no technology risk as the products that will be sold will be standard products
Portfolio risk:
There is no portfolio risk
Mission risk:
There is no mission risk
Partners
Chaitanya, local suppliers of Energy/Infrastructure Devices.Tuesday, January 8, 2008
A118a, A118b and A170- Hawker Light points in Peenya and Malleshwaram
A118a. Expansion of Hawker light point in Peenya, Bangalore, Karnataka
A118b. Three-wheeler for hawker lighting project in Peenya, Bangalore, Karnataka
A170. Hawker lighting in Malleshwaram, Bangalore, Karnataka
A170. Hawker lighting in Malleshwaram, Bangalore, Karnataka
Project dates:
Implementation start: July 2007
Project details:
This is a hawker’s light point business for vendors in Dasarahalli and Malleshwaram in Bangalore. The entrepreneur, Mr. Jayakumar, started operations in September 2006. Mr. Jayakumar began his business supplying about 30 hawkers in Dasarahalli with batteries and light fixtures for Rs. 15 per day. His business had dropped down to 18 customers in April 2007 due to competition. At that point, he began supplying lights to 6 hawkers in Malleshwaram as well.
Jayakumar obtained about 40 batteries from a small supplier in Bangalore (Vishal). Because of the low quality of these batteries and the fact that they only hold a charge for up to two hours, Mr. Jayakumar had to provide each customer with two batteries. Vishal has not provided a warranty on the batteries, as he claims the batteries have been damaged by current fluctuations. The light fixtures, provided by Mr. Vijaykumar (proprietor of S3IDF-supported light point business in Bomanahalli), were of similarly poor quality, with internal circuitry corroding and burning out.
In July 2007, S3IDF purchased 30 batteries for Mr. Jayakumar from Sakthi Electronics, a well-established supplier. This was followed by an expansion where 25 more batteries were bought in August 2007 to replace faulty batteries and expand customer base (A118 a). Mr. Jayakumar also solved the issue of the light fixtures by producing the light fixtures on his own using better quality raw materials for the fixtures, even though it has meant increase in the cost of the lights as compared to the previous ones.
S3IDF procured 20 batteries each in November and December 2007 from Sakthi Electronics to aid Jayakumar to establish his business in Malleshwaram, along with a loan to transfer his charging station to a more spacious place (A170). Further, S3IDF helped Jayakumar with down payment for his three wheeler vehicle, to enable him to transport batteries to his expanding customer base efficiently (A118b).
Implementation start: July 2007
Project details:
This is a hawker’s light point business for vendors in Dasarahalli and Malleshwaram in Bangalore. The entrepreneur, Mr. Jayakumar, started operations in September 2006. Mr. Jayakumar began his business supplying about 30 hawkers in Dasarahalli with batteries and light fixtures for Rs. 15 per day. His business had dropped down to 18 customers in April 2007 due to competition. At that point, he began supplying lights to 6 hawkers in Malleshwaram as well.
Jayakumar obtained about 40 batteries from a small supplier in Bangalore (Vishal). Because of the low quality of these batteries and the fact that they only hold a charge for up to two hours, Mr. Jayakumar had to provide each customer with two batteries. Vishal has not provided a warranty on the batteries, as he claims the batteries have been damaged by current fluctuations. The light fixtures, provided by Mr. Vijaykumar (proprietor of S3IDF-supported light point business in Bomanahalli), were of similarly poor quality, with internal circuitry corroding and burning out.
In July 2007, S3IDF purchased 30 batteries for Mr. Jayakumar from Sakthi Electronics, a well-established supplier. This was followed by an expansion where 25 more batteries were bought in August 2007 to replace faulty batteries and expand customer base (A118 a). Mr. Jayakumar also solved the issue of the light fixtures by producing the light fixtures on his own using better quality raw materials for the fixtures, even though it has meant increase in the cost of the lights as compared to the previous ones.
S3IDF procured 20 batteries each in November and December 2007 from Sakthi Electronics to aid Jayakumar to establish his business in Malleshwaram, along with a loan to transfer his charging station to a more spacious place (A170). Further, S3IDF helped Jayakumar with down payment for his three wheeler vehicle, to enable him to transport batteries to his expanding customer base efficiently (A118b).
Project financials
Project Size Details
Project A118a covers the purchase of 25 additional batteries at Rs. 2278 each from Sakthi in August 2007. In order to make use of and pay for the batteries, Mr. Jayakumar agreed to increase his customer base from approximately 30 to at least 50 by October 2007. Project 118b covers the down payment amount (Rs. 45000) loaned to the entrepreneur for Bajaj three wheeler transportation. The total cost of the three wheeler is Rs 1,40,000, of which the remaining Rs. 95000 has been taken as a loan from Ashok Leyland.
Project 170 involves buying 20 batteries in November 2007 at Rs. 2413 each and 20 more in December 2007 at Rs 2355 each from Sakthi Electronics. It also includes the loan given to Mr. Jayakumar for advance towards the new charging station (Rs. 20000).
As a result of these additional investments, the entrepreneur is servicing 90 hawkers at present.
Project Impact Details
Mr. Jayakumar was formerly an auto driver. As his wife does not work, and he has two children in private schools, he has been working to increase his income in order to make ends meet and continue to meet his children’s educational needs. Mr. Jayakumar was earning about Rs. 3000 in profit each month from the lighting enterprise, which increased to Rs. 8000 after expansion (A118a). The additional investments in his lighting business should provide an additional increase of Rs 3000 to Mr. Jayakumar’s income. Moreover, Mr. Jayakumar has hired a relative from his village to help him out in the business and is paying a monthly salary to him.
The project will in turn impact Mr. Jayakumar’s clientele, consisting of petty shopkeepers and hawkers in Bangalore’s Peenya Industrial Area in Dasarahalli and Malleshwaram.
Estimated Pre-investment Costs
Total Costs – Rs. 14690
S3IDF costs
Personnel costs – Rs. 11690
Other costs – Rs. 3000
Total S3IDF costs – Rs. 14690
Returns for S3IDF Revolving Fund
Annual returns of 8% for 3 years
Project Indicators
Investment indicators:
Investment size : Rs. 3,70,608
S3IDF Revolving Fund: Rs. 2,75,608
RF to investment size: 74%
As a result of these additional investments, the entrepreneur is servicing 90 hawkers at present.
Project Impact Details
Mr. Jayakumar was formerly an auto driver. As his wife does not work, and he has two children in private schools, he has been working to increase his income in order to make ends meet and continue to meet his children’s educational needs. Mr. Jayakumar was earning about Rs. 3000 in profit each month from the lighting enterprise, which increased to Rs. 8000 after expansion (A118a). The additional investments in his lighting business should provide an additional increase of Rs 3000 to Mr. Jayakumar’s income. Moreover, Mr. Jayakumar has hired a relative from his village to help him out in the business and is paying a monthly salary to him.
The project will in turn impact Mr. Jayakumar’s clientele, consisting of petty shopkeepers and hawkers in Bangalore’s Peenya Industrial Area in Dasarahalli and Malleshwaram.
Estimated Pre-investment Costs
Total Costs – Rs. 14690
S3IDF costs
Personnel costs – Rs. 11690
Other costs – Rs. 3000
Total S3IDF costs – Rs. 14690
Returns for S3IDF Revolving Fund
Annual returns of 8% for 3 years
Project Indicators
Investment indicators:
Investment size : Rs. 3,70,608
S3IDF Revolving Fund: Rs. 2,75,608
RF to investment size: 74%
Cost Indicators
Total pre investment costs – Rs. 14690
Pre-investment cost to investment ratio – 4%
Total pre investment costs – Rs. 14690
Pre-investment cost to investment ratio – 4%
Impact indicators
Number of direct beneficiaries – 65
Investment size per beneficiary – Rs. 5702
Project Risks
Project Owner/Operator Risk:
Jayakumar has been reliably running the hawker light points business enterprise for more than a year. Initially he was facing the risk of closure due to competition, faulty batteries and poor quality light points. However, with additional investment in good quality batteries and light points and efficient handling, he has increased his customer base successfully and is looking to expand more.
Market risks:
Our key competition is from emergency lights (sold in lease towards purchase model) and street lights. Due diligence on the emergency lights indicates that significant portion of the hawker community have not bought it intentionally because they last for only 6 – 8 months, at most a year + due to the hawkers routine (need to procure vegetables early in the morning), they do not like carry it around as they would need to if they charge it at home. Those under the street light are expected to hire our lights anyway. Also these competitions are one of the reasons full grid is being taken up.
Technology Performance risks: Technology performance risk is a factor. However, one of the primary purposes of selecting Sakthi Batteries is to minimize the chances of technology performance risks that come from less reputable, informal brands. Our experience shows that Sakthi batteries are more reliable than those from informal suppliers. The batteries come with a 2-year warranty
Portfolio risks: Since this is a repeat of the hawkers lighting project, it does represent a portfolio risk. However it is equally designed to capture greater returns.
Mission/Regulator’s perception risk: The project is adequately pro-poor to pose no significant mission/regulator risk.
Partners:
Number of direct beneficiaries – 65
Investment size per beneficiary – Rs. 5702
Project Risks
Project Owner/Operator Risk:
Jayakumar has been reliably running the hawker light points business enterprise for more than a year. Initially he was facing the risk of closure due to competition, faulty batteries and poor quality light points. However, with additional investment in good quality batteries and light points and efficient handling, he has increased his customer base successfully and is looking to expand more.
Market risks:
Our key competition is from emergency lights (sold in lease towards purchase model) and street lights. Due diligence on the emergency lights indicates that significant portion of the hawker community have not bought it intentionally because they last for only 6 – 8 months, at most a year + due to the hawkers routine (need to procure vegetables early in the morning), they do not like carry it around as they would need to if they charge it at home. Those under the street light are expected to hire our lights anyway. Also these competitions are one of the reasons full grid is being taken up.
Technology Performance risks: Technology performance risk is a factor. However, one of the primary purposes of selecting Sakthi Batteries is to minimize the chances of technology performance risks that come from less reputable, informal brands. Our experience shows that Sakthi batteries are more reliable than those from informal suppliers. The batteries come with a 2-year warranty
Portfolio risks: Since this is a repeat of the hawkers lighting project, it does represent a portfolio risk. However it is equally designed to capture greater returns.
Mission/Regulator’s perception risk: The project is adequately pro-poor to pose no significant mission/regulator risk.
Partners:
Sakthi Electronics, Mr. Jayakumar
Monitoring Reports
Monitoring Report done By Ms. Surekha in Nov 07
http://docs.google.com/Doc?id=dft8hdgq_79dsfdvhq
Monitoring Reports
Monitoring Report done By Ms. Surekha in Nov 07
http://docs.google.com/Doc?id=dft8hdgq_79dsfdvhq
Friday, January 4, 2008
A42. Hawkers Light Point Project in Hiryur, Chitradurga District, Karnataka
Project Dates:
Implementation Start: January 2008
Project Details:
This project concept involves reinvestment in an existing microenterprise unit for hawkers lighting in the town of Hiryur in Chitradurga District. In early 2007, S3IDF partner NGO Chaitanya set up a hawkers light point business in Hiryur and identified a local entrepreneur to run the project. Unfortunately, within three months, due to the entrepreneur’s problems with alcoholism, the project had to be shifted to a new entrepreneur, Mr. Basavaraj, in September 2007. Furthermore, because the batteries initially purchased for the project had been purchased cheaply from the informal market and had been improperly maintained by the first entrepreneur, they began to fail shortly after Mr. Basavaraj took over the project. Due to the loss in battery backup, this required Mr. Basavaraj to have to provide two—and sometimes three—batteries per night to each customer and required him to reduce his customer base (and turn away new potential customers) in the months of November and December.
The hawkers are situated along the main road in Hiryur, between the Ganesha Temple and main KSRTC bus stand, with several located on smaller streets and passages set off from the main road. There are approximately 40-50 hawkers along that stretch of road, selling prepared foods, fruits, vegetables, and flowers. About half use kerosene lanterns, while the other half relies on ambient lighting.
Charging of batteries is done by full grid charging. The charging station is located near the Ganesha Temple. Because the entrepreneur does not own or rent a vehicle of any sort, he must hail an auto rickshaw each night to make battery deliveries and pickups at a cost of Rs. 30 per night. Additionally, he uses his bicycle to check on customers and deliver replacement batteries during the course of the night. The entrepreneur, Mr. Basavaraj, was identified by Chaitanya, and is a relation of Mr. Chandrappa, a Chaitanya employee. Mr. Basavaraj supports his wife and four daughters, who range in age from 7 to 18 years. He is employed by day making deliveries for a local pharmacy on his bicycle, a job for which he earns Rs. 2500 per month.
Mr. Basavaraj has been given 20 new Shakti batteries, one new Digitech grid charging unit, and 15 new light points to be provided by Mr. Jayakumar, an S3IDF hawkers’ light entrepreneur in the Peenya area of Bangalore. In addition to this new equipment, the loan also covers 12 existing light points, one existing dry battery, and other equipment such as wires. Mr. Basavaraj is signing a hire-purchase agreement in which he will pay S3IDF for the cost of the equipment at a 14% rate of interest over a period of 36 months.
Project Financials:
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKWN6g-cGchCw
Project Size Details:
The entrepreneur will initially start servicing 15 hawkers. Mr. Basavaraj plans to expand the business to other hawkers and sections of Hiryur once the demand for the lights increases.
Project Impact Details:
The project will benefit the entrepreneur, who supports four children and currently holds a low-wage day job. Additionally, the hawkers will also benefit from access to convenient, affordable, and clean lighting.
Estimated Pre-investment Costs:
Total Costs- Rs. 6678
S3IDF costs
Personnel Costs – Rs. 4676
Other costs - Rs. 2002
Total S3IDF costs – Rs. 6678
Returns for S3IDF Revolving Fund:
14% returns on a reducing balance basis
Project Indicators:
Investment Indicators
Investment size – Rs. 71,050
Revolving fund – Rs. 71,050
RF to investment size – 100%
Cost Indicators
Total pre investment cost – Rs. 6678
Pre investment cost/Investment Ratio – 9%
Impact indicators
Number of direct beneficiaries – 16 (at the start of the project)
Investment size/no. of beneficiaries – Rs.3550 (71,000/20 beneficieries)
Project Risks:
Project owner/operator risk
Mr. Basavaraj has been operating the light point business under extremely adverse conditions (i.e., rapidly failing equipment) for three months. He has developed an understanding of the importance of customer relationships and has demonstrated responsibility and work ethic, thereby minimizing the risk.
Market risk
Many of the hawkers in Hiryur 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 prohibitive or may find the ambient light adequate. However, the lights are likely to find favour with more and more hawkers as they observe others around them making use of a new convenient, inexpensive, and non-polluting light source. In the current area covered by the entrepreneur, there may not be a large enough market to get the required number of customers to generate an adequate surplus in cashflows. However, at present, the entrepreneur only covers a small section of Hiryur, and will be able to expand to nearby markets relatively easily.
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 other projects without any problems.
Portfolio risk
There is no portfolio risk.
Mission risk
There is no mission risk.
Partners:
The entrepreneur, Mr. Basavaraj, equipment suppliers (Shakti batteries, Mr. Jayakumar, Digitech) and partner NGO Chaitanya.
Implementation Start: January 2008
Project Details:
This project concept involves reinvestment in an existing microenterprise unit for hawkers lighting in the town of Hiryur in Chitradurga District. In early 2007, S3IDF partner NGO Chaitanya set up a hawkers light point business in Hiryur and identified a local entrepreneur to run the project. Unfortunately, within three months, due to the entrepreneur’s problems with alcoholism, the project had to be shifted to a new entrepreneur, Mr. Basavaraj, in September 2007. Furthermore, because the batteries initially purchased for the project had been purchased cheaply from the informal market and had been improperly maintained by the first entrepreneur, they began to fail shortly after Mr. Basavaraj took over the project. Due to the loss in battery backup, this required Mr. Basavaraj to have to provide two—and sometimes three—batteries per night to each customer and required him to reduce his customer base (and turn away new potential customers) in the months of November and December.
The hawkers are situated along the main road in Hiryur, between the Ganesha Temple and main KSRTC bus stand, with several located on smaller streets and passages set off from the main road. There are approximately 40-50 hawkers along that stretch of road, selling prepared foods, fruits, vegetables, and flowers. About half use kerosene lanterns, while the other half relies on ambient lighting.
Charging of batteries is done by full grid charging. The charging station is located near the Ganesha Temple. Because the entrepreneur does not own or rent a vehicle of any sort, he must hail an auto rickshaw each night to make battery deliveries and pickups at a cost of Rs. 30 per night. Additionally, he uses his bicycle to check on customers and deliver replacement batteries during the course of the night. The entrepreneur, Mr. Basavaraj, was identified by Chaitanya, and is a relation of Mr. Chandrappa, a Chaitanya employee. Mr. Basavaraj supports his wife and four daughters, who range in age from 7 to 18 years. He is employed by day making deliveries for a local pharmacy on his bicycle, a job for which he earns Rs. 2500 per month.
Mr. Basavaraj has been given 20 new Shakti batteries, one new Digitech grid charging unit, and 15 new light points to be provided by Mr. Jayakumar, an S3IDF hawkers’ light entrepreneur in the Peenya area of Bangalore. In addition to this new equipment, the loan also covers 12 existing light points, one existing dry battery, and other equipment such as wires. Mr. Basavaraj is signing a hire-purchase agreement in which he will pay S3IDF for the cost of the equipment at a 14% rate of interest over a period of 36 months.
Project Financials:
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKWN6g-cGchCw
Project Size Details:
The entrepreneur will initially start servicing 15 hawkers. Mr. Basavaraj plans to expand the business to other hawkers and sections of Hiryur once the demand for the lights increases.
Project Impact Details:
The project will benefit the entrepreneur, who supports four children and currently holds a low-wage day job. Additionally, the hawkers will also benefit from access to convenient, affordable, and clean lighting.
Estimated Pre-investment Costs:
Total Costs- Rs. 6678
S3IDF costs
Personnel Costs – Rs. 4676
Other costs - Rs. 2002
Total S3IDF costs – Rs. 6678
Returns for S3IDF Revolving Fund:
14% returns on a reducing balance basis
Project Indicators:
Investment Indicators
Investment size – Rs. 71,050
Revolving fund – Rs. 71,050
RF to investment size – 100%
Cost Indicators
Total pre investment cost – Rs. 6678
Pre investment cost/Investment Ratio – 9%
Impact indicators
Number of direct beneficiaries – 16 (at the start of the project)
Investment size/no. of beneficiaries – Rs.3550 (71,000/20 beneficieries)
Project Risks:
Project owner/operator risk
Mr. Basavaraj has been operating the light point business under extremely adverse conditions (i.e., rapidly failing equipment) for three months. He has developed an understanding of the importance of customer relationships and has demonstrated responsibility and work ethic, thereby minimizing the risk.
Market risk
Many of the hawkers in Hiryur 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 prohibitive or may find the ambient light adequate. However, the lights are likely to find favour with more and more hawkers as they observe others around them making use of a new convenient, inexpensive, and non-polluting light source. In the current area covered by the entrepreneur, there may not be a large enough market to get the required number of customers to generate an adequate surplus in cashflows. However, at present, the entrepreneur only covers a small section of Hiryur, and will be able to expand to nearby markets relatively easily.
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 other projects without any problems.
Portfolio risk
There is no portfolio risk.
Mission risk
There is no mission risk.
Partners:
The entrepreneur, Mr. Basavaraj, equipment suppliers (Shakti batteries, Mr. Jayakumar, Digitech) and partner NGO Chaitanya.
Subscribe to:
Posts (Atom)