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