A 187- Hawker Light Point in Banashankari, Bangalore, Karnataka

Project Dates

Implementation Start: March 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 Banashankari, Bangalore, will provide lighting to the Hawkers. The hawkers are mostly situated in and around Banashankari Temple. Most hawkers are using kerosene based petromax lanterns, gas lanterns and street lights. There are more than 60 hawkers in the market within 1 km stretch. The entrepreneur, Srinivas, has already surveyed the area and is looking to tap nearby markets in Jayanagar as well.

In this specific instance, the charging will be done by full grid charging. The charging station is at a distance of 2 kms from the market and the current capacity for the charging station is designed to be for 100 hawkers. The entrepreneur Mr. Srinivas N was doing the business in KR Market. However due to rampant corruption faced by the Municipal Officials and other organizations, he has decided to shut down in KR Market and shift to Banahashankari Temple Market. He has brought his two brothers to help him in the business, who were helping him handle batteries and maintain the charging station in KR Market. He plans to employ them in Banashankari, and in this way expand to more areas.

Mr. Srinivas will be utilizing the 105 batteries, 2 chargers, lightpoints and new three wheeler (from KR Market) for Banashankari. However, he will be taking an additional loan to pay for the advance for the charging station from S³IDF. The previous loan that he had taken to pay for the advance of the charging station in KR Market will be returned back in 3 months as the house owner will only give back the advance after he finds another customer for rent.

Project Financials

http://spreadsheets.google.com/pub?key=pwRdPi0mYDcLzmIADNOfUKw

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 an auto rickshaw driver and his 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 Costs

Total Costs- Rs. 2505

S3IDF costs

Personnel Costs – Rs. 3006

Other costs - Rs.

Total S3IDF costs – Rs. 3006

Returns for S3IDF Revolving Fund

10% annual returns

Project Indicators

Investment Indicators:

Investment size – Rs. 60,000

Revolving fund – Rs. 60,000

RF to investment size – 100%

Cost Indicators

Total pre investment cost – Rs. 3006

Pre investment cost/Investment Ratio – 5%

Impact indicators

Number of direct beneficiaries – 53

Investment size/no. of beneficiaries – Rs. 1132

Project Risks

Project owner/operator risk:

Mr. Srinivas was running the business enterprise in KR Market and has handled issues with the traffic police and KR Market stakeholders well so far. Hence, the risk is less.

Market risk:

Most of the hawkers are finding the cost of maintaining petromax/gas lanterns to be high. Srinivas is confident that the lights will find favour with the hawkers as they are being offered convenient and efficient lighting for the first time. He will also be able to target nearby markets in Jayanagar, therefore the risk of not having enough customers is less. 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 have been used in other projects and KR Market 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.

A75s. Enterprise support for Chaithainya-MFI’s Women Group’s Chilli and Sambar powder making Enterprise in Nayakanahatti village, Chitradurga District

Project Photos










Sambar powder being prepared












Chilli’s being dried before grinding

Project Dates First time draft – September 9, 2007
Second time draft – March 19, 2008

Project Financials
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKdVTrrGh2aNw

Project Details

The earlier project of assisting five women to set up the enterprise is being modified. This is because of complexities in the project. The enterprise needs to worry about procuring material, manufacturing it, packing it, marketing it and selling it. Due to all these activities, Chaitanya will initially do all the necessary activities other than the preparation of the powder, whereas the women will focus on the preparation of the powders. Once the other aspects of the project are set, the enterprise will be transferred to the women.

The enterprise will from the beginning make both chilli and sambar powder. The enterprise will not invest a great deal of money in fixed assets in the beginning to minimize the risks. The grinding, which is a large investment will be outsourced to a nearby mill.

The finished product will be packaged in attractive packets so as to help in the sales. Some of the initial investment has gone into making the necessary dies for packing. The initial sales will be to wholesale shops in Nayakanahatti and Challakere towns. If this does not go through, the sales will then be made to schools.

Project Size Details

Investment in the fixed assets will be for a electronic weighing scale, sealing machine and dies for making the covers. This investment will be Rs 8516.

Investment required for working capital will be for raw material sourcing, for grinding and for packing material. The investment required to be made will be as follows. The total investment here will be Rs.80000.

In total, the project cost will be Rs. 88516.

Calculating working capital support
	Raw material for Chilli		27700
	Raw material for Sambar		29770
	for packing material		12000
	for grinding and others		10530
	Total		80000

Project Impact Details
The project will give employment to atleast 2 women(for preparation and for packing). It will also give employment to one person who will do the grinding at the grinding mill. There will be additional employment as people will be engaged in selling the packets.

Estimated Pre-investment Costs

Total Costs – Rs.31350.

S3IDF costs

Personnel costs- Rs. 8350

Other costs- Rs. 3000

Total S3IDF costs- Rs. 11350

Partner costs

Personnel costs- Rs. 15000

Other costs- Rs. 5000

Total Partner costs- Rs. 20000

Returns for S3IDF Revolving Fund

The returns on the working capital support will be 14%

Project Indicators

Investment indicators:

Investment size – Rs. 88,516

Revolving fund – Rs. 88,516

RF to investment size 100%

Cost Indicators (estimated)

Total pre investment cost – 31350

Pre investment cost/Investment Ratio – 35%

Impact indicators

No. of direct beneficiaries – employment to 3

Investment size /no. of beneficiaries – NA

Project Risks

Project Owner/operator risk:

The project owners, the 5 women are currently doing individual businesses such as running petty shops and working as tailors. However, they do not have experience of doing any business such as a chilli making enterprise. So this is a risk. To overcome this, S3IDF and Chaitanya are providing them guidance on how to run the operations. To overcome the financial risk, Chaitanya will initially own the operations and then transfer the operations to the women group.

Market risk:

The risk here is that, the enterprise will not be in a position to sell the product. Survey’s have indicated that there is a sufficient market. Trial runs have been made and the product tested in the market. The product has got good response. Also, the product will be priced lower than competition, which will help to capture the market. To further push the product, marketing will be given focus. Banners will be made and the wholesales will be given incentives for pushing the product. In case, still selling will not be possible, the product will be sold to schools where Chaitanya has a good relationship

Technology risk:

There is no technology risk

Portfolio risk:

There is no portfolio risk

Mission risk:

The owners of the enterprise can be considered to be below the poverty line. Hence there is no mission risk.

Partners

Chaitanya and the women’s group - Annuseamma, Gauramma, Mantamma, Ratnamma and Musturpe

A118. Hawker light point in Peenya, Bangalore, Karnataka (Restructuring)

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.

S3IDF is restructuring the project to enable Jayakumar to recoup his business. S3IDF is purchasing 30 batteries for Mr. Jayakumar from Sakthi Electronics, a well-established supplier to compensate for the faulty batteries bought from Vishal.

Project Financials
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcK4lKzA9Do6Ew

Project Size Details
The restructuring of A118 consists of the amount due from the earlier loan amount and purchase of additional 30 batteries at Rs 1875 each from Sakthi Batteries.

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. With the restructuring, Jayakumar will be able to revive his business and earn profits again.

The project will in turn impact Mr. Jayakumar’s clientele, consisting of petty shopkeepers and hawkers in Bangalore’s Peenya Industrial Area in Dasarahalli.

Estimated Pre-investment Costs

Total Costs – Rs. 5175S3IDF costs
Personnel costs – Rs. 4175
Other costs – Rs. 1000
Total S3IDF costs – Rs. 5175

Returns for S3IDF Revolving Fund
Annual returns of 5% for 3 years

Project Indicators
Investment indicators:
Investment size : Rs. 123907S3IDF
Revolving Fund: Rs. 123907
RF to investment size: 100%

Cost Indicators
Total pre investment costs – Rs. 5175
Pre-investment cost to investment ratio – 4%

Impact indicators
Number of direct beneficiaries – 30
Investment size per beneficiary – Rs. 4130

Project Risks
Project Owner/Operator Risk:
Jayakumar has been running the hawker light points business enterprise for more than a year. At preasent he is 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 is confident of increased his customer base successfully.

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

Project A136- Hawkers’ Light points Expansion at Bangalore (A69), Bangalore District, Karnataka

Project dates
Implementation start: November 2007

Project details
This is a hawker’s light point business for vendors in Bomanahalli and Madiwala in Bangalore. The entrepreneur, Mr. Vijayakumar, started operations in August 2005. Mr. Vijayakumar began his business supplying about 30 hawkers in Bomanahalli with batteries and light fixtures for Rs. 15 per day.

In December 2006, S3IDF helped Mr. Vijayakumar to expand from 80 lights to 120 lights with an improved transportation system (A second hand modified car instead of an autorickshaw). A restructuring of the loan with S3IDF was done in August 2007, along with additional loan to help Vijayakumar repay his bank loan amount. The restructuring was done after Vijayakumar faced losses after investing in faulty batteries and light points to help him recoup his losses and sustain his business.

Mr. Vijayakumar is going for further expansion with 50 more batteries (Sakthi batteries). S3IDF is giving him the required financial assistance, looking at his business performance after the restructuring.

Project Financials
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKWAe1kYH3RTg

Project Size Details
Project A136 involves the purchase of 50 additional batteries at Rs. 2413 each from Sakthi in November 2007.

Project Impact Details
Because of the expansion, Mr. Vijayakumar’s income will further increase by Rs. 6000.
The project will in turn impact new hawkers availing the services of Mr. Vijayakumar.

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
Actual returns of 8%

Project Indicators

Investment indicators:
Investment size : Rs. 128131
S3IDF Revolving Fund: Rs. 128131
RF to investment size: 100%

Cost Indicators
Total pre investment costs – Rs. 5510
Pre-investment cost to investment ratio – 4%

Impact indicators
Number of direct beneficiaries – 50
Investment size per beneficiary – Rs. 2563

Project Risks

Project Owner/Operator Risk:
Vijayakumar has been running the hawker light points business enterprise for more than 2 years. After the losses in between, he is looking to stabilize and expand. With reliable batteries and light points, the risk of the business undergoing losses again seems minimal.

Market risks:
There are no market risks as Vijayakumar 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. Vijayakumar