A75r.Enterprise support transaction for manufacturing of efficient and smokeless clay stoves in and around Nayakanahatti village, Chitradurga District

Project Dates
Second Draft - April 28, 2008
First time draft – August 18, 2007

Project Details
The initial project was conceived to support Musturappa, a potter in the manufacture of mud stoves. However, in spite of a lot of persuasion Musturappa did not show the required commitment for extending the support. This being the case, the project is being modified where 5 new entrepreneurs will be trained in TIDE Sarala Ole.

Name of the Project: Training Entrepreneurs for Construction of Fuel-Efficient Smokeless Mud Stoves, Nayakanahatti, Chitradurga District (A75r)

Project Dates:

Training: 5^th – 9^th May, 2008

Project Details:

This project concept involves identifying and training six prospective entrepreneurs in Nayakanahatti in the construction of fuel-efficient, smokeless, wood-burning mud stoves. The entrepreneurs will be trained in the construction of the Sarala Ole stove, a design developed by the Centre for Sustainable Technologies, Indian Institute of Science, Bangalore. The Sarala stove is built using a mould (made of MS) and uses locally available materials like mud, bricks and an AC chimney pipe. The design is inexpensive, promotes fuel efficiency in the use of biomass, and reduces indoor air pollution, which responsible for much of the disease burden on women and children in rural India.

S3IDF, along with CRWCWS in Nayakanahatti, will arrange for the training of prospective entrepreneurs interested in running enterprises for the construction of Sarala stoves. The entrepreneurs will be from the Nayakanahatti area, and will be identified by CRWCWS. The training will be conducted in Nayakanahatti.

To conduct the training, S3IDF is contracting with TIDE (Technology Informatics Design Endeavor), a Bangalore-based NGO devoted to promoting sustainable development through technological interventions. TIDE has been engaged in training mostly rural women to build fuel efficient smokeless stoves for themselves and in their neighbourhoods and to create smoke free kitchens in rural Karnataka for the last 4-5 years. The five-day training process will consist of theory and practical sessions. Focus, however will be on hands-on training to the trainees. TIDE will provide trainers and detailed manuals and supervise each trainee in the construction of five stoves in local households.

Project Financials:

http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKQxg8KNDgHJw

Project Size Details:

Training will be imparted to six local prospective entrepreneurs from the Nayakanahatti area.

Project Impact Details:

Six rural entrepreneurs will be trained in constructing the stoves, which they can in turn market in the region through microenterprises (either with or without further support from S3IDF). During the training itself, approximately 30 households in the Nayakanahatti area will receive the Sarala stove as part of the test exercises for the trainees.

Estimated Pre-investment Costs:

S3IDF costs

Personnel Costs – Rs. Total Costs- 32 hours(4 days times 8 hrs) of Naveen’s time @ 165 Rs./hr. A total cost of Rs. 5280.

Other costs – approx. Rs. 500 (Naveen travel to Tiptur to see stoves)

Total S3IDF costs – Rs. 6000 (approx)

Returns for S3IDF Revolving Fund:

NA

Project Indicators:

NA

Project Risks:

Project owner/operator risk

none

Market risk

Lack of availability of materials and lack of demand for the Sarala stove could both be risks in ensuring the trainees can leverage the skills training for the establishment of successful microenterprises. However, the Sarala stove has received good feedback with regard to consistency with household cooking preferences in rural areas, as well as ease of use, and has been in demand by rural households throughout Karnataka since it was originally developed. In addition, the materials for construction are all generally locally available, even in most rural areas, minimizing these risks.

Technology risk

See above regarding feedback on Sarala stove.

Portfolio risk

none

Mission risk

none

Partners:

TIDE, CRWCWS, and local entrepreneurs in Nayakanahatti

Project Photos

Musturaapp, the stove maker

A 2 vessel clay stove in use

Project Financial Details
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcIRci0hbVUlXw


Project Details
Musturappa(age - around 40) and Nagendrama(age - around 30) live in Donehalli village which is on the road connecting Challakere town and Davengere city. Donehalli is around 20 km from Nayakanahatti. Musturappa and his wife (the couple) come from the potter community with a family history of doing clay items for over 400 years.

Supply side issues: The couple does clay pots and various types of simple mud stoves, including three stone stoves, single and two vessel chulla stoves for households. In the exisiting supply chain, traders come from the larger towns of Chitradurga and Davengere and purchase stoves in wholesale and sell it in the large cities. The couple currently works for 20 days in a month and stop work during the rains as they are not able to burn the clay stoves due to the wet conditions. They augment their income by running a petty shop near the bus stand at Donehalli. They do not have a bank account. Simple investments such as an overhead covering where they burn the clay stoves and additional working capital could help them to increase their production.

Demand side issues: Informal surveys around villages about the stoves reveal that people are interested in installing the stoves, but there is no enterprise existing to do this. The main attraction to the villagers is the cost of the stove. The cost price of a single vessel stove is around Rs. 120 and is sold in the cities for around Rs. 180. The cost price of a two-vessel stove is around Rs. 180 and sold in the cities at around Rs. 300. Even at these prices there is demand for the stoves.

The project is about creating an enterprise, which will be able to deliver stoves to the surrounding villages at a price less by at least 30% of the existing price being sold in the cities by intervening both in the supply side and demand side. On the supply side, make investments to increase their production. On the demand side, provide transportation infrastructure to make the stoves available in the villages and provide product credit to the villagers to buy the stove.

Project Size Details
On the supply side, investment in a shed where the stoves are burnt, around Rs. 5000. Working capital support of another Rs. 10,000. This should be enough to increase production from the current 500 stoves a year to 1000 stoves a year. This intervention can come from the local bank.

On the demand side, investment is required in a transportation vehicle. The vehicle will used only as and when required to transport the stoves to the villages. So, this can be made available on hire. The poor customers might require credit support such that they pay for the price of the stove in about 3 months. On an average around 50 stoves to 75 stoves can be sold in a month. The working capital support on the selling side will be around Rs. 16000 in the first 3 months.

The first step in doing this project is on the supply. Build an enterprise which can do the selling of the stoves. Once this runs viably, make investments in the supply side to increase production. To understand the demand side issues, this project will be run for 3 months and the returns after 3 months will be observed.

Project Impact Details
The impact of this project will be significant. At an investment size of only Rs. 227 per stove, we will be touching one household and the requirement of this stove is universal. In total in three months time we should be selling this stove to around 180 households.

Estimated Pre-investment Costs

Total Costs – Rs. 22175
S3IDF costs
Personnel costs
Total time of 25 hrs. Cost of this will be Rs. 4175
Other costs
Other costs will be travel costs during implementation. This should be around Rs. 3000
Total S3IDF costs = Rs. 7175

Partner costs
Personnel costs
This should be around Rs. 10000 for 3 months
Other costs
This should be around Rs. 5000 for 3 months
Total Partner costs = Rs. 15000

Returns for S3IDF Revolving Fund
The Project returns will be over 14% for S3IDF RF

Project Indicators
Considering the project for the first 3 months
Investment indicators:
Investment size – Rs. 40791
Revolving fund – Rs. 16,000
RF to investment size – 39%

Cost Indicators
Total pre investment cost – Rs. 22175
Pre investment cost/Investment Ratio – 54% (the target for this is 10%, this is high as this is the first project)

Impact indicators
No. of direct beneficiaries - 180
Investment size /no. of beneficiaries – Rs. 227 (This is very low and is one of the biggest benefits of the project)

Project Risks

Project Owner/operator risk: On the supply side the risk is that the clay stove manufacturer does not make use of the support provided. The chances of this are remote as the manufacturer is there in business from a long time and has expressed his interest for financial support
On the demand side the selling will be done by CRWCWS, who has been a good partner and hence the chances of CRWCWS failing is less

Market risk: There is currently no competition and at this price range, any kind of competition is not expected

Technology risk: The location where the stove has been installed has been studied. The stove is smokeless and the customers are satisfied with the performance of the stove. There is little technology performance risk

Portfolio risk: No portfolio risk


Mission risk: No mission risk

Partners
CRWCWS, Musturappa(the stove maker), Pragathi Gramin Bank

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

A185a Productive end use single phase flour mill machines with Pragathi Gramin Bank for small enterprises, Hiryur, Chitradurga district

A185a Productive end use single phase flour mill machines with Pragathi Gramin Bank for small enterprises, Hiryur, Chitradurga district

Project Dates

First draft 28 Feb 08

Project Photos

Project Financials

Project Details

This project is a replication of A150a Single Phase Flour Mill machines at Shimoga District, Karnataka at Chitradurga district. The customers will be located in Chitradurga and its surroundings. The main dealer (Mr. Satish, M/s.Anand Associates) for this Flour mill in Karnataka is located in Shimoga and provides no credit for purchase of these machines. The dealer in Shimoga is the main dealer for this product in Karnataka.Mr. A Sangamesh M/sNandi enterprises who is situated in tiptur is the sub-dealer for the product. The concept will therefore provide financial assistance to poor customers (willing to purchase the flour mill) through the local bank, Pragathi grameen bank (PGB).

The list of customers are as follows:

Name	m/c capacity	Total amount	Margin money	RF
Subhajaya, s/o Odhorangappa, Halmadenahalli, Hiriyur, Chitradurga	2HP	33,625/	8,406/	12,609/
D Manjunath s/o Dhibaiah Saint ann’s school road, Vedhavathinagar, Hiriyur, Chitradurga	2HP	33,652/	8,406/	12,609/
Lavanya w/o Kumaraswamy Teru beedhi, Hiriyur town, Chitradurga	1HP	16912/	4,228/	6,342/
Vanajakshi w/o Nilakantappa Teru beedhi, Hiriyur town, Chitradurga	2HPwet 1HP	24,787/ 16,912/	6,196/ 4,228/	9,295/ 6,342/
D Manjanna, s/o Dasappa Nayakarakotigge, Yelladakere post Hiriyur, Chitradurga	3HP	45,312/	11,328/	16,992/
Lakshmidevi, w/o Hanmanthappa Krishnappa layout, 1st cross, Vedhavathinagar,Hiriyur, Chitradurga	2HP	33,625/	8,406/	12,609/
Saraswathi, d/o Govindappa #10, 1st cross, Jagjeevanram nagar, A division, Hiriyur, Chitradurga	1HP	16,912/	4,228/	6,342/
Niganna	2HP	33,625/	8,406/	12,609/
Manjula, d/o Thippeswamy Adivala post, Hiriyur, Chitradurga	1HP	16,912/	4,228/	6,342/
Vishwanath, s/o Satyappa Sheshapanahalli, H M halli post Hiriyur, Chitradurga	2HP	33.625/	8,406/	12,609/
Mahalingappa, Huchavanahalli, Hiriyur, Chitradurga	2HP	33,625/	8,406/	12609/

Project Size Details

The project is to provide flour mills to 11 rural customers. The total project cost is Rs 3, 39,497 for 12 flour mills for 11 customers. The total margin money for 11 customers at 25% of the cost of a machine comes to Rs 84,872. Total revolving fund required is Rs 1, 27,311.

Project Impact Details

The project will provide flour mills to 11 rural customers who in turn will provide services to 50 households from each flour mill.

Estimated Pre-investment Costs

A 180a- Three Wheeler for Hawkers Light Points in KR Market, Bangalore, Karnataka

Implementation Start:

February 2008

Project Details

This project concept involves the provision for three wheeler transportation for micro enterprise investment located in KR Market, Bangalore, to provide lighting services to the Hawkers. The entrepreneur has expanded from 50 to 100 hawkers and hence needs a bigger transportation for the transportation of his batteries to and fro from the charging station. The three wheeler transportation will also aid the entrepreneur in expanding his customers and to other markets nearby.

Mr. Srinivas has been provided a loan for the advance payment for a Bajaj 4C Max three wheeler. The rest of the payment will be made by a loan by the entrepreneur from IndusInd Bank.


Project Financials
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcJiSdxLsfY5ZA

Project Size Details

The three wheeler will initially be used to service hawkers in KR market and Kalasipalyam, and later for other areas once the entrepreneur goes for expansion.

Project Impact Details

The project will benefit the entrepreneur, currently an auto rickshaw driver and his younger brother who is assisting him in the project to manage the enterprise efficiently. 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. 2505

Other costs -

Total S3IDF costs – Rs. 2505

Returns for S3IDF Revolving Fund

12% average annual returns for three years.


Project Indicators

Investment Indicators:

Investment size – Rs. 1,38,000

Revolving fund – Rs. 50,000

RF to investment size – 36%

Cost Indicators

Total pre investment cost – Rs. 5510

Pre investment cost/Investment Ratio – 2%

Impact indicators

Number of direct beneficiaries – 3

Investment size/no. of beneficiaries – Rs. 46000


Project Risks

Project owner/operator risk:

Mr. Srinivas had been involved with another hawker light points project for more than a year and is familiar with the dynamics of the enterprise. Hence, the risk is less.

Market risk:

The entrepreneur is already operating the enterprise and is steadily increasing the customer base. There are demands for more from other markets in Gandhi Bazaar and Hanumanth Nagar, and the entrepreneur is planning to expand soon. Hence there is no market risk.

Technology risk:

There is no technology risk as Bajaj Automobiles is a well known company.

Portfolio risk:

There is no portfolio risk.

Mission risk:

There is no mission risk.

Partners

The entrepreneur, Mr. Srinivas N, the Bajaj Dealer and IndusInd Bank.