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.
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