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.