This project is a replication of an earlier project of supplying pressure cookers to poor households in Nayakanahatti village, Chitradurga. Pressure cookers are energy saving cooking devices and hence using them will reduce the consumption of LPG and kerosene. Laggare is a low income suburb in Bangalore city with a population of around 50,000. A large number of women in Laggare are employed in garment factories in Bangalore. A survey conduced with households at Laggare indicated a desire among the households with LPG and kerosene stoves to go in for pressure cookers. The households, although aware of pressure cookers were constrained by the initial investment necessary for owning pressure cookers. This concept is to help make pressure cookers accessible to the households by solving their first cost constraint by making it possible for the households to pay for the pressure cookers in monthly installments.
Project Financials
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Specific Investment Site
The project is for households at Laggare, a low income suburb in Bangalore city with a population of around 50,000 .. The distribution of pressure cookers and the collection of monthly installments will be done by a women entrepreneur, P H Manjula who does business of selling sarees for a living.
Partners Stakeholders
P H Manjula is the main partner for the project. The supplier of Nandi pressure cookers at Bangalore is another partner for the project.
Benefits and Beneficiaries
The direct beneficiaries of this project will be the women of Laggare. Using the pressure cooker will reduce the time taken to cook and also reduce the fuel consumption and hence fuel costs. Reduction in GHG emissions will be another benefit of the project.
Final costs and Financing Arrangements
The cost of a five liter pressure cooker is INR five hundred and seventy five. The project involves providing ten households with pressure cookers. The households pay an initial amount of INR seventy five and the remaining amount in four installments. The total cost of the project is INR five thousand seven hundred and fifty.
Various Risks
Market Risk: The market risk is for a lower cost pressure cooker coming in. This is highly remote as the sourcing of the pressure cooker has been done directly from the manufacturer. Also, it is very unlikely for any other provider to provide pressure cooker on a lease to purchase basis.
Organisational risks: This risk is that the entrepreneur, P H Manjula will not be able to run the business of selling pressure cookers and collect the installments. Due deligence of Manjula has been done and only then she has been supported. Also, in the first phase of the project the size of the project has been kept low to minimize the risk.
Portfolio risks: S3IDF has few such projects providing pressure cookers. Therefore, the portfolio risks for S3IDF is minimal from this project.
Conclusion
Operator’s Perspective: Since the Manjula knows the customers, the risk of non repayment of the lease is minimal. For manjula this is additional income and a potentially new business opportunity.
The Beneficiaries Perspective: Although the beneficiaries were aware of pressure cookers, they were not in a position to pay the full amount in one go. Providing lease finance helped them to afford the cookers.
S3IDF’s Perspective: For S3IDF, through this project, poor households are being provided with pressure cookers which are energy efficient and reduce the time it takes to cook. In this way the project fits S3IDF’s mission of providing infrastructure services to the poor.
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