Name of the Project
A160m Entrepreneur support transaction to provide infrastructure services at Tumkur, Tumkur district, Karnataka.
Project commencement date
Expected to be May 08
Project Photos
Project Financials
http://spreadsheets.google.com/pub?key=pProject Details
This project is to develop entrepreneur Mrs.B C Pushpalatha proprietor of M/s Dinnu enterprises,Sira gate, kalidasnagar,Tumkur. she is planning to market pressure cooker,CFL lights in and around Tumkur .The customers of the product will be households and small businesses (petty shops, roadside hotels and bakeries). To stock and sell the products, the entrepreneur will be given working capital support from vijaya bank. S3IDF will facilitate working capital support for the entrepreneur from vijaya bank by providing security in the bank in the form of fixed deposit. Wherever possible, the entrepreneur will sell their products on a cash basis and where required financing for the products will be provided through local banks and micro finance institutions. In addition to providing the entrepreneur financial support, S3IDF will provide business development assistance to the selected end users/customers.
Telephone number: 9880609148
Project Size Details
The working capital loan provided to entrepreneur from the vijaya bank is Rs 2, 00,000.So the project size is Rs 2 68,000.
Project Impact Details
This project will provide employment to an entrepreneur. There is a scope of employment for 1 or 2 persons. Entrepreneur will reach an average of 20 customers in a month, in a year she will reach around 200 customers.
Estimated Pre-investment Costs
Total Costs – Rs. 32173
S3IDF costs
Personnel costs – Rs. 3173
Other costs – Rs. 5000
Total S3IDF costs – Rs. 8173
Consultant costs
Personnel costs – Rs. 20,000
(two consultants at Rs. 10,000 per month)
Other costs – Rs. 4000
Total Consultant costs -Rs 24000
Returns for S3IDF Revolving Fund
Annual percentage returns for RF –19%
Project Indicators
Investment indicators:
Investment size – Rs 2, 68,000
Revolving fund – Rs. 2, 00,000
RF to investment size – 75%
Cost Indicators
Total pre investment cost – Rs32, 173
Pre investment cost/Investment Ratio –16%
Impact indicators
No. of direct beneficiaries –1(entrepreneur)
No. of indirect beneficiaries –200 customers per year
Investment size /no. of beneficiaries – Rs. 2000/
Project Risks
Since the business is existing one
Project Owner/operator risk:
The risk of the entrepreneur who will be the project owner is the biggest risk of this project. The risk is that the entrepreneur misuses the support provided to him or proves to be incapable to deliver as per expectations. To reduce this, we will be following a rigorous selection process for selecting entrepreneurs. This will ensure only the most suitable are selected. Additionally, the support provided to the entrepreneur will be backed up by necessary legal documents so that immediate legal action can be taken if the entrepreneur does not go as per the agreed terms and conditions. Also, the performance of the entrepreneurs will be closely monitored on a regular basis (weekly).
Market risk:
Since we will be focusing on the bottom of the pyramid market, which is largely untapped, this risk will be less. In case at a particular location, such a risk arises, the products will be shifted to another location.
Technology risk:
No technology risk.
Portfolio risk:
No portfolio risk
Mission risk:
No mission risk
Partners
. MRS B C PUSHPALATHA, VIJAYA BANK
1 comment:
Question for Nataraj: in these kinds of EST projects, we are still putting a RF greater than 50%. When will we move to a lower RD, that is a higher leverage for our money. or is this not possible at all in the near term?
Anand
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