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IDEAS for impact Case Study Compendium of Social Enterprises From India’s Low-Income States Bhushan Agro Claro Energy Eco Tasar Silks Frontier Markets Gram Tarang GREENLIGHT PLANET Greenway Grameen INFRA GV Meditech Kanungo Institute Kautilya Phytoextracts

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ABOUT SANKALP FORUM-SAMRIDHI SOCIAL ENTERPRISE RECOGNI- TION & REGIONAL SUMMIT 2012

The Sankalp Forum-Samridhi initiative for India's low-income states has been established in collaboration with the Sankalp Forum; the Department for International Development (DFID, UK); and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH under the framework of Indo-German Cooperation funded by the German Ministry of Economic Cooperation and Development (BMZ). The initiative aims to bring forth sustainable and scalable businesses in eight low-income states - Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh and West Bengal. It is also supported by Samridhi, a social venture capital fund, managed by SIDBI Venture Capital Limited, and launched with contributions from DFID and SIDBI to invest in pro-poor enterprises in the eight states. The initiative focuses on strengthening the ecosystem and aid support services for small businesses that want to create social impact in underserved regions of the country.

The Sankalp Forum is holistic ecosystem designed to catalyze impact investments into sustainable and scalable social enterprises globally. The Forum provides year-round access to investment opportunities, capacity building, knowledge and crucial networks to small and medium enterprises. Sankalp Forum connects over 400 social enterprises, over 400 investors and funders, and 10,000 other stake- holders from across the world. Sankalp Forum is an initiative of Intellecap, an advisory firm that works in underserved markets.www.sankalpforum.com contents

From the Sankalp Forum Pit Stop ...... 4

Bhushan Agro Technologies ...... 6

Claro Energy ...... 10

Eco Tasar Silk ...... 14

Frontier Markets ...... 18

Gram Tarang Inclusive Development Services ...... 23

Greenlight Planet India ...... 27

Greenway Grameen Infra ...... 31

GV Meditech ...... 35

Kanungo Institute of Diabetes SPECIALITY ...... 39

Kautilya Phytoextracts ...... 43 currently earn aggregated revenues of just over INR 46 crores, but plan exponential growth over the From the Sankalp Forum Pit Stop... next 3 years to project aggregate revenues in excess of INR 378 crores.

India has a veritable tapestry of models aimed at improving the lives of the underserved. Of these, Engaging with the Sankalp-Samridhi finalists has been an intensive learning experience. Although social enterprises that blend sustainability and social impact have been taking centerstage in the last from different sectors with a kaleidoscope of different products and services, these enterprises showed decade. There is emerging recognition that this model could achieve inclusive growth and a palpable up some interesting similarities that could spur future research: increase in research and knowledge efforts to understand how these social enterprises achieve impact. Motivated by some support ecosystem and a lot of passion, these social entrepreneurs have gone on to • Home state advantage: Most entrepreneurs set up their enterprises in their native or home states. create and adopt innovative solutions to India’s unique challenges and build what we see as the social They have an innate understanding on how the market works in these states and it makes business enterprise sector today. sense to work from a position of strength. More than that though, entrepreneurs shared that they felt an emotional need to help improve conditions back home. While social entrepreneurship in India grew exponentially, some geographies became more visible than others. Some well-known success stories of scalable social enterprises include Aravind Eye Care, • Low-income states are a focus: For the finalists, the LIS are not just additional states to add to the Narayan Hrudayalaya, BASIX India, and SELCO from South India, SEWA from Western India, and enterprise’s India footprint. Five of the ten enterprises earn 100% of their revenues from Fab India and Sulabh International in Delhi. In contrast, there are very few visible examples of such low-income states. Seven out of the ten enterprises have over 80% revenues from the LIS. Five of scalable enterprises from the Low-Income States (LIS) comprising Bihar, Chhattisgarh, Jharkhand, the ten enterprises operate in Bihar, while four operate in Odisha and West Bengal. Every finalist Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh and West Bengal. entrepreneur saw huge opportunities and limited competition in the LIS, and invested in a vision.

Yet, there are some very interesting and successful models that are achieving significant impact in • The hub and spoke model for scale: Most finalists look to scale up and into remote villages in the these states. They make up with passion and intent where they lack enabling infrastructure such as LIS using the hub and spoke model – hubs in cities with spokes reaching out into the district and access to information, financing, capacity building opportunities and peer learning. A case in point - village levels. The model is clearly scalable across sectors, especially when technology – the nine of the 37 Sankalp enterprises in the LIS have received investments ranging from USD 1-20Mn. internet and mobile telephony – aid communication and interface. More than half of India's population resides in these states; yet these are the poorest ranking in terms of many development indicators such as provision of energy, healthcare clean water and sanitation. • Local Partnerships for rapid and deep dive: Closely linked to the above is the focus on building Poverty is ubiquitous. Of the 27 functional incubators in India, only 4 are located in the LIS. Despite local partnerships that spur deeper penetration. Co-creation or leveraging local and user generated this, 13% of the enterprises sourced since 2010 have operations in one or more LIS. Clearly, there is knowledge and feedback that feeds product design, pricing and marketing strategy is another interest from social entrepreneurs and impact to be achieved - enabling support infrastructure could feature of these winning enterprises. catalyze these upcoming social enterprises to a similar growth story as in say, South India, and make a significant difference to the lives of people in these states. Taking the Sankalp Forum to the LIS • Government is an important stakeholder: Most finalists work with State Government departments therefore, was a natural next step to foster in these states an enabling environment that recognizes to varying extents, and are advisors to the State Government. They seek to build bridges and business models capable of transformative impact on society. collaborate to reach common development goals.

Sankalp Forum – Samridhi Regional Summit • Deep on-ground experience and skill sets: Finally, start-ups they may be – but these social In the LIS, Sankalp Forum-Samridhi aims to build greater awareness for and amongst social enterprises are led by serious talent and experience – most founders are highly educated, often at entrepreneurs, through its year-round activities and the awards recognition as its culmination. Along prestigious Indian and international institutes, and are backed by a core management team that has the way, it hopes to contribute, together with partner organizations, towards capacity building and deep roots and experience in rural development, program management, working with Government engender deeper impact investor and private sector engagement in the LIS. It also seeks to increase departments and India’s tough rural terrain. policy understanding of social enterprise, with the intention of fostering collaborations. The Sankalp Forum-Samridhi initiative is proud to showcase these innovative pioneers who work in This compendium of case studies showcases the ten finalists at the Sankalp Forum-Samridhi Social difficult conditions to take their vision to fruition. We hope you are inspired by these stories as we Enterprise Recognition 2012, in the hope that these stories will inspire many more in the coming were. Our endeavor is to follow up with more research and knowledge content in the future. This is but years. Operating in tough geographies has not held these enterprises back. These ten enterprises a brief pit stop before we move on to the next lap…..

4 currently earn aggregated revenues of just over INR 46 crores, but plan exponential growth over the From the Sankalp Forum Pit Stop... next 3 years to project aggregate revenues in excess of INR 378 crores.

5 IDEAS for impact Bhushan Agro

Bhushan Agro can increase farming area to 250 acres over the next 3 years. the Business Model training for us to master the last mile implementa- Year of Establishment: 2010 Sparking the next green revolution in India tion of modern methods.” Having spent more than Promoters: Chandra Dubey, R Madhavan and Vinay Dubey through aggregation of landholdings three years on the field now, Bhushan Agro has moved up the learning curve and can confidently implement new techniques on farms anywhere in Bhushan Agro aggregates fragmented landhold- Pradesh, and has improved productivity by 25% Bhushan Agro’s model is pegged on leasing land the country. ings by leasing it from farmers for a fixed rent, on 50-60 acres of land in the state. Additionally, it from small and marginal farmers and improving and uses scientific methods of farming on the has increased incomes of small and marginal productivity by using modern methods of farm- Apart from productivity improvements, the enter- leased land to improve productivity. It aims to farmers by providing risk-free fixed rent, and ing. By aggregating landholdings through the prise also aims to improve the overall farming contribute towards food security in India, strengthened the overall farming ecosystem in the lease model, the enterprise makes it technically ecosystem in villages and build a healthy and promote modern methods of farming, improve villages by improving groundwater level. They and economically feasible to implement modern long-term relationship with farmers. As part of farm productivity on a sustainable basis, and also provided farmers with direct market access farming practices. During the lease period, farm- this larger endeavor, it suggests cost effective and increase income of the farmers. and have successfully introduced corn as a third ers earn a fixed rent of INR 10,000 (US$ 190) per practical ways to improve the groundwater level crop. acre per year for irrigated land (INR 5,000 for for agriculture purposes. Other initiatives include Highly fragmented land holdings, low productiv- expand operations to other parts of MP, aiming to Bhushan Agro currently operates in Madhya non-irrigated land), an amount that is almost 30% the introduction of corn as an additional crop ity and low availability of water made farming develop more than 250 acres by 2013, followed higher than the market rates for leased land in the option in MP and provision of direct market link- difficult and non-remunerative for farmers. While by 500 acres and 1000 acres in subsequent years. area. As Bhushan Agro is building buy-in for its ages to farmers that enable them to secure better many farmers migrated to other states in search of The long term plan is to be the largest grains, The agriculture sector in India is marred by model, it pays a higher fixed rent as an incentive Setting up prices for their produce. These efforts to system- non-farming jobs, some resorted to an extreme fruits and vegetables producer in MP over the several inefficiencies which impact the productiv- to encourage farmers to lease out their land. Exploring the potential for improved farming atically build broader ecosystem networks in the step of ending their lives. A native of MP, Dubey next two decades, by expanding operations to ity and income realization of farmers. One of the Using methods such as soil testing, chiseling, techniques villages helps the team win the trust of farmers, had strong foothold in his home state - he had a almost 25% of cultivable land in MP. Dubey is key issues is high fragmentation of landholding - fertilizer placement, systematic crop selection and get them to lease their land and work with the good understanding of the market and knew also looking at expanding operations to Gujarat. 80% of the landholdings in India are less than 2 and management, it improves productivity per enterprise in the long term. relevant people - which made it easier for him to hectares in size. High fragmentation coupled with Before his foray into agriculture, Dubey spent acre. The quality of the produce also improves as start operations in the state. To facilitate this growth, Bhushan Agro plans to limited understanding of farmers about scientific more than 15 years working with large companies a result of better farming techniques, resulting in Operations in Low-Income States (LIS) train farm supervisors who can manage and oper- techniques, brings down the productivity per acre in India. According to Dubey, his interest in agri- overall higher realizations per acre than before. Today, Dubey has managed to more than double ate 100 acres individually, thereby helping it significantly. It is believed that the productivity culture began more than 40 years ago with the Improving the support ecosystem for the income per acre from leased land. For achieve rapid scale through replication of its per acre for most crops in India is around 25-30% first green revolution, when India witnessed the Currently, Bhushan Agro operates on around agriculture instance, a small farmer growing soybean in MP farming techniques in other villages. Dubey also potential of improved farming techniques. The 50-60 acres of leased land from small and earned around INR 10,000 (~USD 190) per acre plans to leverage in-house research and develop- tipping point for him, however, was when he marginal farmers in MP. Implementing the lease using traditional farming methods. The same plot ment to innovate and develop tools and practices attended a workshop conducted by R Madhavan, model, however, was an uphill task for the team. of land earned an income of INR 35,000 (~USD that support scientific farming. Tie-ups with food the ‘IIT Farmer’ from IIT Madras. Dubey was Says Dubey, “It was very difficult to convince 669) per acre using modern methods promoted by processing units for quality farm produce are inspired by the improved productivity that Mad- farmers to lease their land to us. We realized that Bhushan Agro. The enterprise has also contrib- another milestone in the future. havan had achieved in two years by employing we will have to win the trust of farmers and over- uted to the villages by improving the quality and scientific methods. Recognizing the immense come their resistance by demonstrating improved fertility of the soil, improving the groundwater These initiatives should help Bhushan Agro meet potential in agriculture, Dubey set up Bhushan productivity and benefits.” Over time, Bhushan level, providing on-the-field jobs and reducing its ambitious revenue target of INR 3 crores Agro in 2010 personally investing INR 20 lakhs Agro was able to achieve productivity gains in a food inflation. These encouraging developments (~USD 0.57 million) in 2015, from the topline of of that in developed countries. Chandra Dubey, an (US$ 37,880) in the venture. He decided to pilot sustainable manner using improved and practical Madhya Pradesh is primarily an agrarian state, in MP’s villages have created a positive ecosys- INR 10 lakhs (~USD 19,000) in 2011-12. More engineer from the Indian Institute of Technology operations in his hometown, Sagar in Madhya farming techniques. As farmers witnessed these with agriculture accounting for more than 30% of tem that helps in reducing migration of labor to importantly, this will help realize Dubey’s vision (IIT Kharagpur) with a management degree from Pradesh (MP). He convinced Santosh Shukla, a benefits across multiple cropping cycles, it the state GDP and over 70% of employment1. the cities. of achieving food security for the country and the Indian Institute of Management (IIM big farmer owning 200 acres of land, to lease him became easier for them to trust and engage with Despite being naturally endowed with diverse improving farmers’ incomes. Dubey says, “I Lucknow), realized that there is a tremendous 10 acres for a year to start his operations. Interest- the enterprise. climatic and crop zones, Madhya Pradesh has believe a second green revolution is now needed opportunity to increase incomes of farmers if key ingly, Madhavan and Shukla, who played a The Road Ahead been amongst the top five states in terms of in a growing India to ensure food security and constraints like fragmentation and outdated farm- significant role in jump-starting Bhushan Agro, Another early challenge Dubey faced was in Building bench strength for scaling to other farmer suicides over the last decade. enable sustainable rural transformation.” He ing techniques were taken care of. Dubey formed are now part of the core management team. While ground-level implementation of modern farming geographies hopes that his success will inspire and motivate Bhushan Agro with a plan to aggregate landhold- Madhavan provides technology support to devel- techniques. Says Dubey, “The gap between tradi- many more educated professionals like him to ings, use modern scientific methods to increase oping farming solutions, Shukla, with his strong tional farming and scientific farming is so wide, Bhushan Agro’s operations are currently concen- contribute to agriculture and impact more than farm productivity, and thereby improve the connect and goodwill in the neighboring villages that it was extremely difficult to implement trated around a single city in MP. Dubey plans to 70% of the population in the country. income realization for farmers. is involved in business development. modern techniques. It took a lot of learning and

7 the Business Model training for us to master the last mile implementa- Sparking the next green revolution in India tion of modern methods.” Having spent more than through aggregation of landholdings three years on the field now, Bhushan Agro has moved up the learning curve and can confidently implement new techniques on farms anywhere in Bhushan Agro’s model is pegged on leasing land the country. from small and marginal farmers and improving productivity by using modern methods of farm- Apart from productivity improvements, the entering. By aggregating landholdings through the prise also aims to improve the overall farming lease model, the enterprise makes it technically ecosystem in villages and build a healthy and and economically feasible to implement modern long-term relationship with farmers. As part of farming practices. During the lease period, farm- this larger endeavor, it suggests cost effective and ers earn a fixed rent of INR 10,000 (US$ 190) per practical ways to improve the groundwater level acre per year for irrigated land (INR 5,000 for for agriculture purposes. Other initiatives include Highly fragmented land holdings, low productiv- expand operations to other parts of MP, aiming to non-irrigated land), an amount that is almost 30% the introduction of corn as an additional crop ity and low availability of water made farming develop more than 250 acres by 2013, followed higher than the market rates for leased land in the option in MP and provision of direct market link- difficult and non-remunerative for farmers. While by 500 acres and 1000 acres in subsequent years. area. As Bhushan Agro is building buy-in for its ages to farmers that enable them to secure better many farmers migrated to other states in search of The long term plan is to be the largest grains, The agriculture sector in India is marred by model, it pays a higher fixed rent as an incentive Setting up prices for their produce. These efforts to system- non-farming jobs, some resorted to an extreme fruits and vegetables producer in MP over the several inefficiencies which impact the productiv- to encourage farmers to lease out their land. Exploring the potential for improved farming atically build broader ecosystem networks in the step of ending their lives. A native of MP, Dubey next two decades, by expanding operations to ity and income realization of farmers. One of the Using methods such as soil testing, chiseling, techniques villages helps the team win the trust of farmers, had strong foothold in his home state - he had a almost 25% of cultivable land in MP. Dubey is key issues is high fragmentation of landholding - fertilizer placement, systematic crop selection and get them to lease their land and work with the good understanding of the market and knew also looking at expanding operations to Gujarat. 80% of the landholdings in India are less than 2 and management, it improves productivity per enterprise in the long term. relevant people - which made it easier for him to hectares in size. High fragmentation coupled with Before his foray into agriculture, Dubey spent acre. The quality of the produce also improves as start operations in the state. To facilitate this growth, Bhushan Agro plans to limited understanding of farmers about scientific more than 15 years working with large companies a result of better farming techniques, resulting in Operations in Low-Income States (LIS) train farm supervisors who can manage and oper- techniques, brings down the productivity per acre in India. According to Dubey, his interest in agri- overall higher realizations per acre than before. Today, Dubey has managed to more than double ate 100 acres individually, thereby helping it significantly. It is believed that the productivity culture began more than 40 years ago with the Improving the support ecosystem for the income per acre from leased land. For achieve rapid scale through replication of its per acre for most crops in India is around 25-30% first green revolution, when India witnessed the Currently, Bhushan Agro operates on around agriculture instance, a small farmer growing soybean in MP farming techniques in other villages. Dubey also potential of improved farming techniques. The 50-60 acres of leased land from small and earned around INR 10,000 (~USD 190) per acre plans to leverage in-house research and develop- tipping point for him, however, was when he marginal farmers in MP. Implementing the lease using traditional farming methods. The same plot ment to innovate and develop tools and practices attended a workshop conducted by R Madhavan, model, however, was an uphill task for the team. of land earned an income of INR 35,000 (~USD that support scientific farming. Tie-ups with food the ‘IIT Farmer’ from IIT Madras. Dubey was Says Dubey, “It was very difficult to convince 669) per acre using modern methods promoted by processing units for quality farm produce are inspired by the improved productivity that Mad- farmers to lease their land to us. We realized that Bhushan Agro. The enterprise has also contrib- another milestone in the future. havan had achieved in two years by employing we will have to win the trust of farmers and over- uted to the villages by improving the quality and scientific methods. Recognizing the immense come their resistance by demonstrating improved fertility of the soil, improving the groundwater These initiatives should help Bhushan Agro meet potential in agriculture, Dubey set up Bhushan productivity and benefits.” Over time, Bhushan level, providing on-the-field jobs and reducing its ambitious revenue target of INR 3 crores Agro in 2010 personally investing INR 20 lakhs Agro was able to achieve productivity gains in a food inflation. These encouraging developments (~USD 0.57 million) in 2015, from the topline of of that in developed countries. Chandra Dubey, an (US$ 37,880) in the venture. He decided to pilot sustainable manner using improved and practical in MP’s villages have created a positive ecosys- INR 10 lakhs (~USD 19,000) in 2011-12. More engineer from the Indian Institute of Technology operations in his hometown, Sagar in Madhya farming techniques. As farmers witnessed these Madhya Pradesh is primarily an agrarian state, tem that helps in reducing migration of labor to importantly, this will help realize Dubey’s vision (IIT Kharagpur) with a management degree from Pradesh (MP). He convinced Santosh Shukla, a benefits across multiple cropping cycles, it with agriculture accounting for more than 30% of 1 the cities. of achieving food security for the country and the Indian Institute of Management (IIM big farmer owning 200 acres of land, to lease him became easier for them to trust and engage with the state GDP and over 70% of employment . improving farmers’ incomes. Dubey says, “I Lucknow), realized that there is a tremendous 10 acres for a year to start his operations. Interest- the enterprise. Despite being naturally endowed with diverse believe a second green revolution is now needed opportunity to increase incomes of farmers if key ingly, Madhavan and Shukla, who played a climatic and crop zones, Madhya Pradesh has The Road Ahead in a growing India to ensure food security and constraints like fragmentation and outdated farm- significant role in jump-starting Bhushan Agro, Another early challenge Dubey faced was in been amongst the top five states in terms of Building bench strength for scaling to other enable sustainable rural transformation.” He ing techniques were taken care of. Dubey formed are now part of the core management team. While ground-level implementation of modern farming farmer suicides over the last decade. geographies hopes that his success will inspire and motivate Bhushan Agro with a plan to aggregate landhold- Madhavan provides technology support to devel- techniques. Says Dubey, “The gap between tradi- many more educated professionals like him to ings, use modern scientific methods to increase oping farming solutions, Shukla, with his strong tional farming and scientific farming is so wide, Bhushan Agro’s operations are currently concen- contribute to agriculture and impact more than farm productivity, and thereby improve the connect and goodwill in the neighboring villages that it was extremely difficult to implement 1Madhya Pradesh: New Benchmarks In Agriculture Sector trated around a single city in MP. Dubey plans to 70% of the population in the country. income realization for farmers. is involved in business development. modern techniques. It took a lot of learning and For Small Farmers, CII, 2012

8 SocialSocial ImpactImpact the Business Model training for us to master the last mile implementation of modern methods.” Having spent more than Sparking the next green revolution in India Small and marginal farmers are the key beneficia- and risk-free income. They also have the option of three years on the field now, Bhushan Agro has through aggregation of landholdings ries, as they own 80-90% of the land leased to working on the leased land for Bhushan Agro and moved up the learning curve and can confidently Bhushan Agro. The enterprise has successfully earn additional income in the form of daily wages implement new techniques on farms anywhere in demonstrated direct positive impact on this of INR 120-150 (~USD 3). Bhushan Agro’s model is pegged on leasing land the country. marginalized section through improved produc- from small and marginal farmers and improving tivity and income levels. Bhushan Agro also plans to share earnings from productivity by using modern methods of farm- Apart from productivity improvements, the enter- incremental land productivity with the farmers in ing. By aggregating landholdings through the prise also aims to improve the overall farming The model ensures that the farmers earn a high the future. lease model, the enterprise makes it technically ecosystem in villages and build a healthy and rent for their land, providing them fixed, secure and economically feasible to implement modern long-term relationship with farmers. As part of farming practices. During the lease period, farm- this larger endeavor, it suggests cost effective and ers earn a fixed rent of INR 10,000 (US$ 190) per practical ways to improve the groundwater level acre per year for irrigated land (INR 5,000 for for agriculture purposes. Other initiatives include Highly fragmented land holdings, low productiv- expand operations to other parts of MP, aiming to non-irrigated land), an amount that is almost 30% the introduction of corn as an additional crop ity and low availability of water made farming develop more than 250 acres by 2013, followed higher than the market rates for leased land in the option in MP and provision of direct market link- difficult and non-remunerative for farmers. While by 500 acres and 1000 acres in subsequent years. area. As Bhushan Agro is building buy-in for its ages to farmers that enable them to secure better many farmers migrated to other states in search of The long term plan is to be the largest grains, The agriculture sector in India is marred by model, it pays a higher fixed rent as an incentive Setting up prices for their produce. These efforts to system- non-farming jobs, some resorted to an extreme fruits and vegetables producer in MP over the several inefficiencies which impact the productiv- to encourage farmers to lease out their land. Exploring the potential for improved farming atically build broader ecosystem networks in the step of ending their lives. A native of MP, Dubey next two decades, by expanding operations to ity and income realization of farmers. One of the Using methods such as soil testing, chiseling, techniques villages helps the team win the trust of farmers, had strong foothold in his home state - he had a almost 25% of cultivable land in MP. Dubey is key issues is high fragmentation of landholding - fertilizer placement, systematic crop selection and get them to lease their land and work with the good understanding of the market and knew also looking at expanding operations to Gujarat. 80% of the landholdings in India are less than 2 and management, it improves productivity per enterprise in the long term. relevant people - which made it easier for him to hectares in size. High fragmentation coupled with Before his foray into agriculture, Dubey spent acre. The quality of the produce also improves as start operations in the state. To facilitate this growth, Bhushan Agro plans to limited understanding of farmers about scientific more than 15 years working with large companies a result of better farming techniques, resulting in Operations in Low-Income States (LIS) train farm supervisors who can manage and oper- techniques, brings down the productivity per acre in India. According to Dubey, his interest in agri- overall higher realizations per acre than before. Today, Dubey has managed to more than double ate 100 acres individually, thereby helping it significantly. It is believed that the productivity culture began more than 40 years ago with the Improving the support ecosystem for the income per acre from leased land. For achieve rapid scale through replication of its per acre for most crops in India is around 25-30% first green revolution, when India witnessed the Currently, Bhushan Agro operates on around agriculture instance, a small farmer growing soybean in MP farming techniques in other villages. Dubey also potential of improved farming techniques. The 50-60 acres of leased land from small and earned around INR 10,000 (~USD 190) per acre plans to leverage in-house research and develop- tipping point for him, however, was when he marginal farmers in MP. Implementing the lease using traditional farming methods. The same plot ment to innovate and develop tools and practices attended a workshop conducted by R Madhavan, model, however, was an uphill task for the team. of land earned an income of INR 35,000 (~USD that support scientific farming. Tie-ups with food the ‘IIT Farmer’ from IIT Madras. Dubey was Says Dubey, “It was very difficult to convince 669) per acre using modern methods promoted by processing units for quality farm produce are inspired by the improved productivity that Mad- farmers to lease their land to us. We realized that Bhushan Agro. The enterprise has also contrib- another milestone in the future. havan had achieved in two years by employing we will have to win the trust of farmers and over- uted to the villages by improving the quality and scientific methods. Recognizing the immense come their resistance by demonstrating improved fertility of the soil, improving the groundwater These initiatives should help Bhushan Agro meet potential in agriculture, Dubey set up Bhushan productivity and benefits.” Over time, Bhushan level, providing on-the-field jobs and reducing its ambitious revenue target of INR 3 crores Agro in 2010 personally investing INR 20 lakhs Agro was able to achieve productivity gains in a food inflation. These encouraging developments (~USD 0.57 million) in 2015, from the topline of of that in developed countries. Chandra Dubey, an (US$ 37,880) in the venture. He decided to pilot sustainable manner using improved and practical in MP’s villages have created a positive ecosys- INR 10 lakhs (~USD 19,000) in 2011-12. More engineer from the Indian Institute of Technology operations in his hometown, Sagar in Madhya farming techniques. As farmers witnessed these Madhya Pradesh is primarily an agrarian state, tem that helps in reducing migration of labor to importantly, this will help realize Dubey’s vision (IIT Kharagpur) with a management degree from Pradesh (MP). He convinced Santosh Shukla, a benefits across multiple cropping cycles, it with agriculture accounting for more than 30% of 1 the cities. of achieving food security for the country and the Indian Institute of Management (IIM big farmer owning 200 acres of land, to lease him became easier for them to trust and engage with the state GDP and over 70% of employment . improving farmers’ incomes. Dubey says, “I Lucknow), realized that there is a tremendous 10 acres for a year to start his operations. Interest- the enterprise. Despite being naturally endowed with diverse believe a second green revolution is now needed opportunity to increase incomes of farmers if key ingly, Madhavan and Shukla, who played a climatic and crop zones, Madhya Pradesh has The Road Ahead in a growing India to ensure food security and constraints like fragmentation and outdated farm- significant role in jump-starting Bhushan Agro, Another early challenge Dubey faced was in been amongst the top five states in terms of Building bench strength for scaling to other enable sustainable rural transformation.” He ing techniques were taken care of. Dubey formed are now part of the core management team. While ground-level implementation of modern farming farmer suicides over the last decade. geographies hopes that his success will inspire and motivate Bhushan Agro with a plan to aggregate landhold- Madhavan provides technology support to devel- techniques. Says Dubey, “The gap between tradi- many more educated professionals like him to ings, use modern scientific methods to increase oping farming solutions, Shukla, with his strong tional farming and scientific farming is so wide, Bhushan Agro’s operations are currently concen- contribute to agriculture and impact more than farm productivity, and thereby improve the connect and goodwill in the neighboring villages that it was extremely difficult to implement trated around a single city in MP. Dubey plans to 70% of the population in the country. income realization for farmers. is involved in business development. modern techniques. It took a lot of learning and

9 IDEAS for impact Claro Energy

Claro Energy has been able to reduce 25 tonnes of CO2 annually through its projects on ground is the key to success of his enterprise as the pumps efficiently, as they are able to monitor Year of Inception: 2011 they are the ones directly responsible for pump each pump and correct defects, as and when they Promoters: Kartik Wahi, Soumitra Mishra and Gaurav Kumar installations, servicing and also business develop- arise. These technological innovations have ment efforts. He elaborates, “In the last one year, helped Claro be a leader in the space. we have learnt our lessons and now the focus is to Claro Energy has developed a solution to use Claro works in four low-income states (LIS), viz. not only on recruiting people with the right skills, solar energy to operate water pumps which run Bihar, Jharkhand, Madhya Pradesh and Uttar but also with the right temperament to work in a irrigation tube-wells and water purification Pradesh. A majority of Claro’s work is concen- start-up.” systems. Its solar energy solutions aim to increase trated in the LIS, and in the last fiscal year, 95% agriculture productivity and improve the of its revenue was generated from these states. The Product – Solar-Powered Water economic condition of farmers in remote, rural India. Pumping Solution Using solar energy to help farmers irrigate their fields electricity. The purifiers are designed such that conditions that are ideally suited for small and Agriculture is the mainstay of the Indian Gaurav Kumar, also an engineer, is an equal part- The Business Model they can be carried manually. low-cost solar pumps. According to Claro’s economy, as it is the principal means of livelihood ner in Claro and joined the company six months Claro has developed a solution to run solar- estimates, Bihar alone offers a market potential of for over 58.4%1 of the population. Agricultural after its inception. Says Wahi, “While in business powered water pumps to help farmers irrigate Partnering with Government and private While competition is expected to increase in the USD 10 million. In fact, the biggest customers of productivity largely depends on groundwater school, we wanted to go the start-up path. Waste their fields. It has developed a system to integrate players to provide irrigation solutions to future, Claro is confident of maintaining its domi- Claro are the various Government departments in irrigation for which electricity is required. management and clean technology were two solar modules and centrifugal pumps that is farmers nant position in the space with continuous solu- Bihar such as agriculture and animal husbandry. Currently, grid power and diesel power are the options that we were looking at.” He adds that enabled through a power electronics middleware. tion improvisations as well as effective after sale two major sources of electricity for irrigation. they chose to start an enterprise focused on clean Claro customizes its solutions as per the require- Claro has developed expertise to offer off-grid services. Currently, small players in the solar The Road Ahead Grid connectivity, however, is either unavailable technology as the market looked more promising. ments of each customer. It offers both, AC and solar solutions in remote, rural parts of India. In pumping space do not have adequate technology Exploring ways to become an end-to-end or unreliable in large parts of rural India, and Solar-powered water pumping solutions had a DC solar pumping solutions, that cover all types order to deliver quality and efficient services it and business development competencies. In farmers primarily rely on expensive diesel power direct bearing on the income of the farmer, and fit of irrigation needs. agriculture solution company partners with specialized firms (domestic and contrast, large players such as Kirloskar and Jain for their irrigation needs. Claro Energy (Claro) well with their larger goal of “creating a venture international) for product development, solution Irrigation have not paid the requisite attention to provides a low-cost and pollution-free solution to with a lasting significance.” AC solar pumps require a high amount of power improvisations and financial investments. this space due to their diverse and large portfo- Claro Energy plans to consolidate and deepen its this problem – its solar-powered water pump sets supply in a burst to start and Claro was one of the Currently, Claro primarily sells to the public lios. These players also lack last-mile connectiv- penetration in the four states that it is currently are designed to meet irrigation needs of off-grid few companies that had developed technology Starting Out sector, as solar-powered irrigation pumps are ity. Wahi feels that this gives Claro a significant operating in and also plans to expand to other rural populations in India. which ensures they started smoothly. In order to Creating awareness about using solar power economical when compared to the cost of advantage over large players. Indian states. Claro has recently undertaken proj- stay ahead of competition, Claro also developed to run irrigation pumps connecting remote villages to the grid. ects in Karnataka and Tamil Nadu. It also aims to Claro, set up in 2011 as a Private Limited Com- an intelligent solar controller with inbuilt MPPT partner with other organizations to provide solu- pany, aims to improve agriculture productivity (Multiple Power Point Tracking). In order to reduce reliance on public sector proj- Operations in Low-Income States (LIS) tions to Bangladesh, South East Asian and Afri- and the economic condition of farmers in India In addition to the huge market potential, the ects and ensure last mile connectivity, Claro has Leveraging local conditions to drive long- can countries. Wahi says, “We have set some through its solar energy solutions. In the short policy initiative of including solar water pumping To avoid the resource intensive task of physically innovated with different business models. It will ambitious targets for ourselves. At present we are time in operation, it has emerged as one of the system as a focus area in the Jawaharlal Nehru monitoring each and every pump in remote loca- term adoption of solar irrigation pumps soon start pay-per-use business models in Bihar growing at 500% annually. In the near term, by dominant players in the solar pumping space, and National Solar Mission (JNNSM) also encour- tions, Claro has developed an online remote and Bundelkhand in Uttar Pradesh. With this, 2013-2014, we aim to have sold 5,000 pumps. has one of the highest number of installations of aged the promoters to solely concentrate on this monitoring and control system that facilitates farmers will avoid the high installation cost and Claro works in four low-income states, viz., The long term goal is to sell around 1 million solar pumping systems in India. space. Initially, Claro had to undertake a few real-time monitoring of the solar pump through an only pay for the pump usage. Claro has also facili- Bihar, Jharkhand, Uttar Pradesh and Madhya pumps in the next 7 to 10 years.” demonstration projects on its own to educate the online portal. The system allows monitoring on tated bank linkages between Regional Rural Pradesh. It started its work in Bihar and com- Government and create market awareness on the key parameters of power output, water discharge The Founding Team Banks (RRBs) and farmers so that the banks can mands 90% of the market share in the state. Claro’s total income in its first year of operation feasibility of solar power to run agriculture and energy savings. It was first implemented by Improving irrigation facilities to increase finance the high cost of solar pump installation. Kartik Wahi believes that the state has huge (2011-2012) stood at INR 2.6 crores (~USD pumps. One such demonstration project involved Claro for the Department of Minor Water potential as a market for solar irrigation pumps, 502,464), the company sees it increasing to INR agriculture productivity installing a 7.5hp solar pump, which till date is Resources, Government of Bihar. Under this proj- In addition to solar-powered irrigation solutions, given that most of Bihar’s economy is dependent 45 crores (~USD 8.6 million) in this fiscal year. the largest pump in Bihar. Such successes in solar ect, Claro installed solar powered pumps for 34 Claro provides a wide range of portable and on agriculture. The high deficit of grid power in According to Wahi, “Our aim is to become an Claro was founded in 2011 by two engineers and energy in Bihar helped Claro become an advisor tubewells which were non-functional for some stationary solar-powered water purification the region means that farmers rely on expensive end-to-end agriculture solution company that will graduates of the Kellogg School of Management – to the State Government. time. The remote online monitoring system has systems. These systems have been targeted at diesel-powered generators. Finally, as Bihar is on catalyze agriculture productivity, natural resource Kartik Wahi and Soumitra Mishra. helped the Government department and Claro run remote villages that lack clean water and the Indo-Gangetic plains, the water-table is low conservation and sustainable development in the Talent acquisition and retention was a big prob- and the average size of landholdings is small – regions where it operates.” 1 Government of India Portal, October 4, 2012 http://india.gov.in/sectors/agriculture/index.php lem. Wahi believes that a competent project team

11 on ground is the key to success of his enterprise as the pumps efficiently, as they are able to monitor they are the ones directly responsible for pump each pump and correct defects, as and when they installations, servicing and also business develop- arise. These technological innovations have ment efforts. He elaborates, “In the last one year, helped Claro be a leader in the space. we have learnt our lessons and now the focus is to not only on recruiting people with the right skills, but also with the right temperament to work in a start-up.” The Product – Solar-Powered Water Pumping Solution Using solar energy to help farmers irrigate their fields electricity. The purifiers are designed such that conditions that are ideally suited for small and Agriculture is the mainstay of the Indian Gaurav Kumar, also an engineer, is an equal part- The Business Model they can be carried manually. low-cost solar pumps. According to Claro’s economy, as it is the principal means of livelihood ner in Claro and joined the company six months Claro has developed a solution to run solar- estimates, Bihar alone offers a market potential of for over 58.4%1 of the population. Agricultural after its inception. Says Wahi, “While in business powered water pumps to help farmers irrigate Partnering with Government and private While competition is expected to increase in the USD 10 million. In fact, the biggest customers of productivity largely depends on groundwater school, we wanted to go the start-up path. Waste their fields. It has developed a system to integrate players to provide irrigation solutions to future, Claro is confident of maintaining its domi- Claro are the various Government departments in irrigation for which electricity is required. management and clean technology were two solar modules and centrifugal pumps that is farmers nant position in the space with continuous solu- Bihar such as agriculture and animal husbandry. Currently, grid power and diesel power are the options that we were looking at.” He adds that enabled through a power electronics middleware. tion improvisations as well as effective after sale two major sources of electricity for irrigation. they chose to start an enterprise focused on clean Claro customizes its solutions as per the require- Claro has developed expertise to offer off-grid services. Currently, small players in the solar The Road Ahead Grid connectivity, however, is either unavailable technology as the market looked more promising. ments of each customer. It offers both, AC and solar solutions in remote, rural parts of India. In pumping space do not have adequate technology Exploring ways to become an end-to-end or unreliable in large parts of rural India, and Solar-powered water pumping solutions had a DC solar pumping solutions, that cover all types order to deliver quality and efficient services it and business development competencies. In farmers primarily rely on expensive diesel power direct bearing on the income of the farmer, and fit of irrigation needs. agriculture solution company partners with specialized firms (domestic and contrast, large players such as Kirloskar and Jain for their irrigation needs. Claro Energy (Claro) well with their larger goal of “creating a venture international) for product development, solution Irrigation have not paid the requisite attention to provides a low-cost and pollution-free solution to with a lasting significance.” AC solar pumps require a high amount of power improvisations and financial investments. this space due to their diverse and large portfo- Claro Energy plans to consolidate and deepen its this problem – its solar-powered water pump sets supply in a burst to start and Claro was one of the Currently, Claro primarily sells to the public lios. These players also lack last-mile connectiv- penetration in the four states that it is currently are designed to meet irrigation needs of off-grid few companies that had developed technology Starting Out sector, as solar-powered irrigation pumps are ity. Wahi feels that this gives Claro a significant operating in and also plans to expand to other rural populations in India. which ensures they started smoothly. In order to Creating awareness about using solar power economical when compared to the cost of advantage over large players. Indian states. Claro has recently undertaken proj- stay ahead of competition, Claro also developed to run irrigation pumps connecting remote villages to the grid. ects in Karnataka and Tamil Nadu. It also aims to Claro, set up in 2011 as a Private Limited Com- an intelligent solar controller with inbuilt MPPT partner with other organizations to provide solu- pany, aims to improve agriculture productivity (Multiple Power Point Tracking). In order to reduce reliance on public sector proj- Operations in Low-Income States (LIS) tions to Bangladesh, South East Asian and Afri- and the economic condition of farmers in India In addition to the huge market potential, the ects and ensure last mile connectivity, Claro has Leveraging local conditions to drive long- can countries. Wahi says, “We have set some through its solar energy solutions. In the short policy initiative of including solar water pumping To avoid the resource intensive task of physically innovated with different business models. It will ambitious targets for ourselves. At present we are time in operation, it has emerged as one of the system as a focus area in the Jawaharlal Nehru monitoring each and every pump in remote loca- term adoption of solar irrigation pumps soon start pay-per-use business models in Bihar growing at 500% annually. In the near term, by dominant players in the solar pumping space, and National Solar Mission (JNNSM) also encour- tions, Claro has developed an online remote and Bundelkhand in Uttar Pradesh. With this, 2013-2014, we aim to have sold 5,000 pumps. has one of the highest number of installations of aged the promoters to solely concentrate on this monitoring and control system that facilitates farmers will avoid the high installation cost and Claro works in four low-income states, viz., The long term goal is to sell around 1 million solar pumping systems in India. space. Initially, Claro had to undertake a few real-time monitoring of the solar pump through an only pay for the pump usage. Claro has also facili- Bihar, Jharkhand, Uttar Pradesh and Madhya pumps in the next 7 to 10 years.” demonstration projects on its own to educate the online portal. The system allows monitoring on tated bank linkages between Regional Rural Pradesh. It started its work in Bihar and com- Government and create market awareness on the key parameters of power output, water discharge The Founding Team Banks (RRBs) and farmers so that the banks can mands 90% of the market share in the state. Claro’s total income in its first year of operation feasibility of solar power to run agriculture and energy savings. It was first implemented by Improving irrigation facilities to increase finance the high cost of solar pump installation. Kartik Wahi believes that the state has huge (2011-2012) stood at INR 2.6 crores (~USD pumps. One such demonstration project involved Claro for the Department of Minor Water potential as a market for solar irrigation pumps, 502,464), the company sees it increasing to INR agriculture productivity installing a 7.5hp solar pump, which till date is Resources, Government of Bihar. Under this proj- In addition to solar-powered irrigation solutions, given that most of Bihar’s economy is dependent 45 crores (~USD 8.6 million) in this fiscal year. the largest pump in Bihar. Such successes in solar ect, Claro installed solar powered pumps for 34 Claro provides a wide range of portable and on agriculture. The high deficit of grid power in According to Wahi, “Our aim is to become an Claro was founded in 2011 by two engineers and energy in Bihar helped Claro become an advisor tubewells which were non-functional for some stationary solar-powered water purification the region means that farmers rely on expensive end-to-end agriculture solution company that will graduates of the Kellogg School of Management – to the State Government. time. The remote online monitoring system has systems. These systems have been targeted at diesel-powered generators. Finally, as Bihar is on catalyze agriculture productivity, natural resource Kartik Wahi and Soumitra Mishra. helped the Government department and Claro run remote villages that lack clean water and the Indo-Gangetic plains, the water-table is low conservation and sustainable development in the Talent acquisition and retention was a big prob- and the average size of landholdings is small – regions where it operates.” lem. Wahi believes that a competent project team

12 SocialSocial ImpactImpact on ground is the key to success of his enterprise as the pumps efficiently, as they are able to monitor they are the ones directly responsible for pump each pump and correct defects, as and when they Solar powered irrigation pump-sets prevent air have to take the risk of irrigating their fields at installations, servicing and also business develop- arise. These technological innovations have pollution due to diesel combustion and emissions night, which often exposed them to dangers such ment efforts. He elaborates, “In the last one year, helped Claro be a leader in the space. of greenhouse gases. as snake bites. we have learnt our lessons and now the focus is to not only on recruiting people with the right skills, Claro clocked its first sale in August 2011. Since The net incremental benefits to farmers as a result but also with the right temperament to work in a then, its solar powered pumps have assured irriga- of Claro’s projects is estimated to be INR 64.94 start-up.” tion to 1600 acres of agricultural land. This has lakh (~USD 125,500).Claro has also created 105 helped farmers increase agriculture productivity, direct and indirect employment opportunities in The Product – Solar-Powered Water and in turn, their income. Moreover, by having 2011-12. Pumping Solution access to irrigation during the day, farmers do not Using solar energy to help farmers irrigate their fields electricity. The purifiers are designed such that conditions that are ideally suited for small and Agriculture is the mainstay of the Indian Gaurav Kumar, also an engineer, is an equal part- The Business Model they can be carried manually. low-cost solar pumps. According to Claro’s economy, as it is the principal means of livelihood ner in Claro and joined the company six months Claro has developed a solution to run solar- estimates, Bihar alone offers a market potential of for over 58.4%1 of the population. Agricultural after its inception. Says Wahi, “While in business powered water pumps to help farmers irrigate Partnering with Government and private While competition is expected to increase in the USD 10 million. In fact, the biggest customers of productivity largely depends on groundwater school, we wanted to go the start-up path. Waste their fields. It has developed a system to integrate players to provide irrigation solutions to future, Claro is confident of maintaining its domi- Claro are the various Government departments in irrigation for which electricity is required. management and clean technology were two solar modules and centrifugal pumps that is farmers nant position in the space with continuous solu- Bihar such as agriculture and animal husbandry. Currently, grid power and diesel power are the options that we were looking at.” He adds that enabled through a power electronics middleware. tion improvisations as well as effective after sale two major sources of electricity for irrigation. they chose to start an enterprise focused on clean Claro customizes its solutions as per the require- Claro has developed expertise to offer off-grid services. Currently, small players in the solar The Road Ahead Grid connectivity, however, is either unavailable technology as the market looked more promising. ments of each customer. It offers both, AC and solar solutions in remote, rural parts of India. In pumping space do not have adequate technology Exploring ways to become an end-to-end or unreliable in large parts of rural India, and Solar-powered water pumping solutions had a DC solar pumping solutions, that cover all types order to deliver quality and efficient services it and business development competencies. In farmers primarily rely on expensive diesel power direct bearing on the income of the farmer, and fit of irrigation needs. agriculture solution company partners with specialized firms (domestic and contrast, large players such as Kirloskar and Jain for their irrigation needs. Claro Energy (Claro) well with their larger goal of “creating a venture international) for product development, solution Irrigation have not paid the requisite attention to provides a low-cost and pollution-free solution to with a lasting significance.” AC solar pumps require a high amount of power improvisations and financial investments. this space due to their diverse and large portfo- Claro Energy plans to consolidate and deepen its this problem – its solar-powered water pump sets supply in a burst to start and Claro was one of the Currently, Claro primarily sells to the public lios. These players also lack last-mile connectiv- penetration in the four states that it is currently are designed to meet irrigation needs of off-grid few companies that had developed technology Starting Out sector, as solar-powered irrigation pumps are ity. Wahi feels that this gives Claro a significant operating in and also plans to expand to other rural populations in India. which ensures they started smoothly. In order to Creating awareness about using solar power economical when compared to the cost of advantage over large players. Indian states. Claro has recently undertaken proj- stay ahead of competition, Claro also developed to run irrigation pumps connecting remote villages to the grid. ects in Karnataka and Tamil Nadu. It also aims to Claro, set up in 2011 as a Private Limited Com- an intelligent solar controller with inbuilt MPPT partner with other organizations to provide solu- pany, aims to improve agriculture productivity (Multiple Power Point Tracking). In order to reduce reliance on public sector proj- Operations in Low-Income States (LIS) tions to Bangladesh, South East Asian and Afri- and the economic condition of farmers in India In addition to the huge market potential, the ects and ensure last mile connectivity, Claro has Leveraging local conditions to drive long- can countries. Wahi says, “We have set some through its solar energy solutions. In the short policy initiative of including solar water pumping To avoid the resource intensive task of physically innovated with different business models. It will ambitious targets for ourselves. At present we are time in operation, it has emerged as one of the system as a focus area in the Jawaharlal Nehru monitoring each and every pump in remote loca- term adoption of solar irrigation pumps soon start pay-per-use business models in Bihar growing at 500% annually. In the near term, by dominant players in the solar pumping space, and National Solar Mission (JNNSM) also encour- tions, Claro has developed an online remote and Bundelkhand in Uttar Pradesh. With this, 2013-2014, we aim to have sold 5,000 pumps. has one of the highest number of installations of aged the promoters to solely concentrate on this monitoring and control system that facilitates farmers will avoid the high installation cost and Claro works in four low-income states, viz., The long term goal is to sell around 1 million solar pumping systems in India. space. Initially, Claro had to undertake a few real-time monitoring of the solar pump through an only pay for the pump usage. Claro has also facili- Bihar, Jharkhand, Uttar Pradesh and Madhya pumps in the next 7 to 10 years.” demonstration projects on its own to educate the online portal. The system allows monitoring on tated bank linkages between Regional Rural Pradesh. It started its work in Bihar and com- Government and create market awareness on the key parameters of power output, water discharge The Founding Team Banks (RRBs) and farmers so that the banks can mands 90% of the market share in the state. Claro’s total income in its first year of operation feasibility of solar power to run agriculture and energy savings. It was first implemented by Improving irrigation facilities to increase finance the high cost of solar pump installation. Kartik Wahi believes that the state has huge (2011-2012) stood at INR 2.6 crores (~USD pumps. One such demonstration project involved Claro for the Department of Minor Water potential as a market for solar irrigation pumps, 502,464), the company sees it increasing to INR agriculture productivity installing a 7.5hp solar pump, which till date is Resources, Government of Bihar. Under this proj- In addition to solar-powered irrigation solutions, given that most of Bihar’s economy is dependent 45 crores (~USD 8.6 million) in this fiscal year. the largest pump in Bihar. Such successes in solar ect, Claro installed solar powered pumps for 34 Claro provides a wide range of portable and on agriculture. The high deficit of grid power in According to Wahi, “Our aim is to become an Claro was founded in 2011 by two engineers and energy in Bihar helped Claro become an advisor tubewells which were non-functional for some stationary solar-powered water purification the region means that farmers rely on expensive end-to-end agriculture solution company that will graduates of the Kellogg School of Management – to the State Government. time. The remote online monitoring system has systems. These systems have been targeted at diesel-powered generators. Finally, as Bihar is on catalyze agriculture productivity, natural resource Kartik Wahi and Soumitra Mishra. helped the Government department and Claro run remote villages that lack clean water and the Indo-Gangetic plains, the water-table is low conservation and sustainable development in the Talent acquisition and retention was a big prob- and the average size of landholdings is small – regions where it operates.” lem. Wahi believes that a competent project team

13 IDEAS for impact Eco Tasar Silks

Eco Tasar Silks will employ 3,500 women silk yarn makers over next 3 years livelihood for these communities. Tasar cocoons Fair Trade Original and Asian Eye. Year of Inception: 2007 are available only once a year, and there were no Promoters: Masuta Producers Co and Khitish Kumar Pandya systematic interventions to ensure the health of Leveraging the strengths of hand weaving the worms and moths, or to improve their quality and contemporary designs in order to produce the best possible silk. Further, Eco Tasar aims to operate a sustainable business Eco Tasar operates in Assam, Bihar, and West there was a need for appropriate technology to Eco Tasar has operations in Assam, Bihar and in the textiles value chain, and create a large Bengal. It provides livelihood directly to 300 speed up the yarn reeling process, and control the West Bengal, and picks up the tasar value chain number of livelihood opportunities for women families through fabrics and weaving, and indi- quality of the finished yarn. Moving along the where Masuta leaves off. The company sources and artisans. It leverages the handloom sectors’ rectly to 1,100 more families through cocoon value chain to finished products, demand needed yarn from Masuta and other sources that provide ability to make small customized lots to produce sourcing and yarn reeling. These families come to be sustained through regular design interven- hand-reeled silk. This yarn is then given to hand- exclusive and well-designed products. Frequent largely from tribal areas and from the economi- tions in line with current fashion to cater to the loom weavers who weave it into silk fabric. new design releases ensure the continued interest cally disadvantaged sections of society. urban retail and export markets. of target clientele. Eco Tasar works in an established market, and is PRADAN created self-help groups; supported also affected by changes in the global industry. them with know-how for tasar yarn reeling and “The market dictates our margins, and we com- formed a producer’s company, Masuta, in 2005. pete with powerloom products. Irrespective of Yarn reeling and fabric weaving were managed as as suppliers. At present, much of their fabric Eco Tasar aims to reach out to 2000-5000 weavers Silk is the queen of fabrics, and the ultimate creates and implements programs to enhance how much production has cost, you will only get two separate divisions. In October 2007, Masuta’s weaving takes place in Bhagalpur in Bihar, with in 5-7 weaving clusters across the country, while symbol of luxury. Ironically, the raw material for livelihood capabilities of the poor and give them paid the market rate,” says Pandya. He adds, fabric division was spun off as Eco Tasar, a some weaving efforts being initiated at Phulia, targeting to reach a turnover of INR 20 crores silk is traditionally produced by the economically access to sustainable income generating opportu- “Hand-reeling and weaving is geared for small for-profit company. Pandya explains Eco Tasar’s West Bengal. In addition, it also sources eri yarn (~USD 3.8 mn) by 2015. Sourcing yarn, though, underprivileged in India. Tasar culture is a signifi- nities. Most of the families that PRADAN works lots and quality control is a challenge, whereas in business philosophy, “We prefer everything to be from Assam. Eco Tasar’s LIS operations account is its biggest challenge. Given the volume of yarn cant source of supplementary income for many with are from scheduled tribes and scheduled power reeling and powerloom quality control is done by hand. If we have a choice between hand- for around 45% of the turnover. that it will need to meet planned targets, Eco tribal communities in Jharkhand, Chhattisgarh castes. MASUTA Producers Company Limited easier, and volumes are larger.” Eco Tasar is turn- reeled yarn and mechanized yarn, we prefer the Tasar is clear that it will also have to create a and Odisha, besides Maharashtra, West Bengal (Masuta) was set up in 2005. Masuta, an acronym ing handloom’s limitation of smaller lots into its hand-reeled product. If we had a choice between Future plans include diversification from yard- cadre of hand yarn reelers to feed this growing and Andhra Pradesh. Over one lakh tribal families derived from Mahila (woman), Suta (thread) and strength. Pandya elaborates, “We have a lot of weaving on a power loom versus weaving on a age, home furnishings and non-tailored fabrics demand. It is already taking steps in this direction are involved in tasar culture in these areas. Tasar, works in four districts of Jharkhand, boutique customers who give us orders for a small hand loom, we prefer the hand loom.” into tailored apparel. Eco Tasar also wants to by working across geographies with other agen- namely Hazaribagh, Dumka, Godda and number of pieces. We can make changes to increase value addition to the fabrics through cies involved in sericulture, and diversifying into Income from tasar culture, however, is low, since Koderma. designs faster on handlooms, and are using this to Products using Tasar Silk block printing, and would like to move these other silks, such as eri. the cocoons and yarn that these families produce our advantage.” production and value addition activities away are not aggregated, and often sold in small lots to Khitish Kumar Pandya joined PRADAN in 2000, Adding value to tasar fabric by creating from cities to smaller towns and rural areas with Eco Tasar is also exploring opportunities to middlemen. The real value in tasar culture as a and was put in charge of creating a market for the aesthetic products for retail chains Eco Tasar prefers to outsource design to reputed weaving clusters. Pandya says, “We have a integrate skilled weavers who can create unique livelihood option is unlocked only if an entity yarn reeled by Masuta. In 2007, Masuta’s fabric designers, mainly based in Delhi, and spends garment unit in Noida. But all the people working products, given the opportunity. Eco Tasar’s operates across the value chain - from cocoon division was further spun off into Eco Tasar, in close to INR 6-7 lakhs (~USD 11,000 - USD Eco Tasar currently produces yardage, cushion there are from eastern UP, Odisha, Bihar and operations in Phulia, West Bengal help in sourc- rearing to fabric weaving. Eco Tasar (ET), along which Pandya holds equity along with Masuta. 14,000) per annum on sourcing designs. Since the covers, dupattas, sarees, stoles and scarves for the neighboring areas. Why do they have to move so ing Jamdani sarees from the weavers there. In with its parent entity, Masuta, has stepped in to do bulk of Eco Tasar’s orders are commissioned, domestic as well as export markets. “When we far away from their home states to find work? ET order to further widen the pool of skilled weavers, just that. While Masuta plays the role of aggrega- their customers also provide specifications of The Silk Route started, there was nobody who had done such is trying to bring them the same jobs closer to it plans to move into weaving clusters in Andhra tor of tasar yarn, Eco Tasar plays the role of the design and color for the products. Eco Tasar Making tasar culture remunerative by intensive and exclusive work in tasar, and we their home.” Pradesh (for unique products such as Pocham- forward integrator, by adding value to the yarn to provides opportunities for design student interns were very soon known by the unique look and feel pally and Venkatagiri), Madhya Pradesh produce fabric and products, and then, taking improving technology and market linkages too. Each year, students from design and fashion of our products” says Pandya. (Chanderi) and Uttar Pradesh (Varanasi) in the these to market. schools such as NIFT and NID work with them to The Road Ahead coming years. Pandya signs off on an optimistic PRADAN experienced certain challenges in develop new designs for their product lines. Eco Planning for future demand by creating In 2009, Eco Tasar started sourcing eri hand- note, “There was a time when we had to hire just promoting tasar silk cultivation. Although there Tasar sees this initiative as an investment for THE FOUNDING TEAM reeled yarn as it faced a shortage of tasar yarn. As clusters of hand yarn reelers and skilled about anyone who came our way. But our busi- was a high demand for tasar silk, and investment popularizing tasar silk. eri silk is spun after the moth leaves the cocoon, weavers ness is establishing itself, and we are slowly find- Creating enterprises along the silk value needed for tasar culture was low, traditional com- Eco Tasar was able to add an ‘Ahimsa’ (meaning ing the right people now.” chain munities that undertook tasar rearing were losing non-violence) line of products,. Eco Tasar has a Developing weaving clusters for artisans interest in the activity. sizable client base of Indian and international closer home Eco Tasar was spun off from two organizations fabric and apparel retailers including Fab India, namely, PRADAN and Masuta. PRADAN, a Tasar culture, because it was fragmented, did not Trifed, Nalli’s, Utsav, West Elm, World of Good, Eco Tasar views the rural people based in the LIS voluntary organization established in 1983, translate into a viable source of sustainable

15 livelihood for these communities. Tasar cocoons Fair Trade Original and Asian Eye. are available only once a year, and there were no systematic interventions to ensure the health of Leveraging the strengths of hand weaving the worms and moths, or to improve their quality and contemporary designs in order to produce the best possible silk. Further, there was a need for appropriate technology to Eco Tasar has operations in Assam, Bihar and speed up the yarn reeling process, and control the West Bengal, and picks up the tasar value chain quality of the finished yarn. Moving along the where Masuta leaves off. The company sources value chain to finished products, demand needed yarn from Masuta and other sources that provide to be sustained through regular design interven- hand-reeled silk. This yarn is then given to hand- tions in line with current fashion to cater to the loom weavers who weave it into silk fabric. urban retail and export markets.

Eco Tasar works in an established market, and is PRADAN created self-help groups; supported also affected by changes in the global industry. them with know-how for tasar yarn reeling and “The market dictates our margins, and we com- formed a producer’s company, Masuta, in 2005. pete with powerloom products. Irrespective of Yarn reeling and fabric weaving were managed as as suppliers. At present, much of their fabric Eco Tasar aims to reach out to 2000-5000 weavers Silk is the queen of fabrics, and the ultimate creates and implements programs to enhance how much production has cost, you will only get two separate divisions. In October 2007, Masuta’s weaving takes place in Bhagalpur in Bihar, with in 5-7 weaving clusters across the country, while symbol of luxury. Ironically, the raw material for livelihood capabilities of the poor and give them paid the market rate,” says Pandya. He adds, fabric division was spun off as Eco Tasar, a some weaving efforts being initiated at Phulia, targeting to reach a turnover of INR 20 crores silk is traditionally produced by the economically access to sustainable income generating opportu- “Hand-reeling and weaving is geared for small for-profit company. Pandya explains Eco Tasar’s West Bengal. In addition, it also sources eri yarn (~USD 3.8 mn) by 2015. Sourcing yarn, though, underprivileged in India. Tasar culture is a signifi- nities. Most of the families that PRADAN works lots and quality control is a challenge, whereas in business philosophy, “We prefer everything to be from Assam. Eco Tasar’s LIS operations account is its biggest challenge. Given the volume of yarn cant source of supplementary income for many with are from scheduled tribes and scheduled power reeling and powerloom quality control is done by hand. If we have a choice between hand- for around 45% of the turnover. that it will need to meet planned targets, Eco tribal communities in Jharkhand, Chhattisgarh castes. MASUTA Producers Company Limited easier, and volumes are larger.” Eco Tasar is turn- reeled yarn and mechanized yarn, we prefer the Tasar is clear that it will also have to create a and Odisha, besides Maharashtra, West Bengal (Masuta) was set up in 2005. Masuta, an acronym ing handloom’s limitation of smaller lots into its hand-reeled product. If we had a choice between Future plans include diversification from yard- cadre of hand yarn reelers to feed this growing and Andhra Pradesh. Over one lakh tribal families derived from Mahila (woman), Suta (thread) and strength. Pandya elaborates, “We have a lot of weaving on a power loom versus weaving on a age, home furnishings and non-tailored fabrics demand. It is already taking steps in this direction are involved in tasar culture in these areas. Tasar, works in four districts of Jharkhand, boutique customers who give us orders for a small hand loom, we prefer the hand loom.” into tailored apparel. Eco Tasar also wants to by working across geographies with other agen- namely Hazaribagh, Dumka, Godda and number of pieces. We can make changes to increase value addition to the fabrics through cies involved in sericulture, and diversifying into Income from tasar culture, however, is low, since Koderma. designs faster on handlooms, and are using this to Products using Tasar Silk block printing, and would like to move these other silks, such as eri. the cocoons and yarn that these families produce our advantage.” production and value addition activities away are not aggregated, and often sold in small lots to Khitish Kumar Pandya joined PRADAN in 2000, Adding value to tasar fabric by creating from cities to smaller towns and rural areas with Eco Tasar is also exploring opportunities to middlemen. The real value in tasar culture as a and was put in charge of creating a market for the aesthetic products for retail chains Eco Tasar prefers to outsource design to reputed weaving clusters. Pandya says, “We have a integrate skilled weavers who can create unique livelihood option is unlocked only if an entity yarn reeled by Masuta. In 2007, Masuta’s fabric designers, mainly based in Delhi, and spends garment unit in Noida. But all the people working products, given the opportunity. Eco Tasar’s operates across the value chain - from cocoon division was further spun off into Eco Tasar, in close to INR 6-7 lakhs (~USD 11,000 - USD Eco Tasar currently produces yardage, cushion there are from eastern UP, Odisha, Bihar and operations in Phulia, West Bengal help in sourc- rearing to fabric weaving. Eco Tasar (ET), along which Pandya holds equity along with Masuta. 14,000) per annum on sourcing designs. Since the covers, dupattas, sarees, stoles and scarves for the neighboring areas. Why do they have to move so ing Jamdani sarees from the weavers there. In with its parent entity, Masuta, has stepped in to do bulk of Eco Tasar’s orders are commissioned, domestic as well as export markets. “When we far away from their home states to find work? ET order to further widen the pool of skilled weavers, just that. While Masuta plays the role of aggrega- their customers also provide specifications of The Silk Route started, there was nobody who had done such is trying to bring them the same jobs closer to it plans to move into weaving clusters in Andhra tor of tasar yarn, Eco Tasar plays the role of the design and color for the products. Eco Tasar Making tasar culture remunerative by intensive and exclusive work in tasar, and we their home.” Pradesh (for unique products such as Pocham- forward integrator, by adding value to the yarn to provides opportunities for design student interns were very soon known by the unique look and feel pally and Venkatagiri), Madhya Pradesh produce fabric and products, and then, taking improving technology and market linkages too. Each year, students from design and fashion of our products” says Pandya. (Chanderi) and Uttar Pradesh (Varanasi) in the these to market. schools such as NIFT and NID work with them to The Road Ahead coming years. Pandya signs off on an optimistic PRADAN experienced certain challenges in develop new designs for their product lines. Eco Planning for future demand by creating In 2009, Eco Tasar started sourcing eri hand- note, “There was a time when we had to hire just promoting tasar silk cultivation. Although there Tasar sees this initiative as an investment for THE FOUNDING TEAM reeled yarn as it faced a shortage of tasar yarn. As clusters of hand yarn reelers and skilled about anyone who came our way. But our busi- was a high demand for tasar silk, and investment popularizing tasar silk. eri silk is spun after the moth leaves the cocoon, weavers ness is establishing itself, and we are slowly find- Creating enterprises along the silk value needed for tasar culture was low, traditional com- Eco Tasar was able to add an ‘Ahimsa’ (meaning ing the right people now.” chain munities that undertook tasar rearing were losing non-violence) line of products,. Eco Tasar has a Developing weaving clusters for artisans interest in the activity. sizable client base of Indian and international closer home Eco Tasar was spun off from two organizations fabric and apparel retailers including Fab India, namely, PRADAN and Masuta. PRADAN, a Tasar culture, because it was fragmented, did not Trifed, Nalli’s, Utsav, West Elm, World of Good, Eco Tasar views the rural people based in the LIS voluntary organization established in 1983, translate into a viable source of sustainable

16 livelihood for these communities. Tasar cocoons Fair Trade Original and Asian Eye. are available only once a year, and there were no systematic interventions to ensure the health of Leveraging the strengths of hand weaving SocialSocial ImpactImpact the worms and moths, or to improve their quality and contemporary designs in order to produce the best possible silk. Further, Eco Tasar currently provides livelihoods directly have created close to 6000 Ha of plantations of there was a need for appropriate technology to to 300 people, including 18 employees. Pandya Arjuna (Terminalia arjuna).” Pandya explains. Eco Tasar has operations in Assam, Bihar and speed up the yarn reeling process, and control the estimates that they have helped each person to West Bengal, and picks up the tasar value chain quality of the finished yarn. Moving along the earn at least INR 3,000 (~USD 57) per month. As the plantations are raised on wastelands, and where Masuta leaves off. The company sources value chain to finished products, demand needed Indirectly, Eco Tasar impacts a further 1,100 the trees are very hardly. This aids afforestation yarn from Masuta and other sources that provide to be sustained through regular design interven- people engaged in activities like cocoon sourcing. and also replenishes groundwater. When the trees hand-reeled silk. This yarn is then given to hand- tions in line with current fashion to cater to the “The model promoted by us encourages sericul- are pruned at the end of each season, it gives the loom weavers who weave it into silk fabric. urban retail and export markets. turists to have captive plantations of trees on tribals firewood, which they would otherwise

which the tasar worm feeds. Our interventions have gathered by cutting other trees in the forest. Eco Tasar works in an established market, and is PRADAN created self-help groups; supported also affected by changes in the global industry. them with know-how for tasar yarn reeling and “The market dictates our margins, and we com- formed a producer’s company, Masuta, in 2005. pete with powerloom products. Irrespective of Yarn reeling and fabric weaving were managed as as suppliers. At present, much of their fabric Eco Tasar aims to reach out to 2000-5000 weavers Silk is the queen of fabrics, and the ultimate creates and implements programs to enhance how much production has cost, you will only get two separate divisions. In October 2007, Masuta’s weaving takes place in Bhagalpur in Bihar, with in 5-7 weaving clusters across the country, while symbol of luxury. Ironically, the raw material for livelihood capabilities of the poor and give them paid the market rate,” says Pandya. He adds, fabric division was spun off as Eco Tasar, a some weaving efforts being initiated at Phulia, targeting to reach a turnover of INR 20 crores silk is traditionally produced by the economically access to sustainable income generating opportu- “Hand-reeling and weaving is geared for small for-profit company. Pandya explains Eco Tasar’s West Bengal. In addition, it also sources eri yarn (~USD 3.8 mn) by 2015. Sourcing yarn, though, underprivileged in India. Tasar culture is a signifi- nities. Most of the families that PRADAN works lots and quality control is a challenge, whereas in business philosophy, “We prefer everything to be from Assam. Eco Tasar’s LIS operations account is its biggest challenge. Given the volume of yarn cant source of supplementary income for many with are from scheduled tribes and scheduled power reeling and powerloom quality control is done by hand. If we have a choice between hand- for around 45% of the turnover. that it will need to meet planned targets, Eco tribal communities in Jharkhand, Chhattisgarh castes. MASUTA Producers Company Limited easier, and volumes are larger.” Eco Tasar is turn- reeled yarn and mechanized yarn, we prefer the Tasar is clear that it will also have to create a and Odisha, besides Maharashtra, West Bengal (Masuta) was set up in 2005. Masuta, an acronym ing handloom’s limitation of smaller lots into its hand-reeled product. If we had a choice between Future plans include diversification from yard- cadre of hand yarn reelers to feed this growing and Andhra Pradesh. Over one lakh tribal families derived from Mahila (woman), Suta (thread) and strength. Pandya elaborates, “We have a lot of weaving on a power loom versus weaving on a age, home furnishings and non-tailored fabrics demand. It is already taking steps in this direction are involved in tasar culture in these areas. Tasar, works in four districts of Jharkhand, boutique customers who give us orders for a small hand loom, we prefer the hand loom.” into tailored apparel. Eco Tasar also wants to by working across geographies with other agen- namely Hazaribagh, Dumka, Godda and number of pieces. We can make changes to increase value addition to the fabrics through cies involved in sericulture, and diversifying into Income from tasar culture, however, is low, since Koderma. designs faster on handlooms, and are using this to Products using Tasar Silk block printing, and would like to move these other silks, such as eri. the cocoons and yarn that these families produce our advantage.” production and value addition activities away are not aggregated, and often sold in small lots to Khitish Kumar Pandya joined PRADAN in 2000, Adding value to tasar fabric by creating from cities to smaller towns and rural areas with Eco Tasar is also exploring opportunities to middlemen. The real value in tasar culture as a and was put in charge of creating a market for the aesthetic products for retail chains Eco Tasar prefers to outsource design to reputed weaving clusters. Pandya says, “We have a integrate skilled weavers who can create unique livelihood option is unlocked only if an entity yarn reeled by Masuta. In 2007, Masuta’s fabric designers, mainly based in Delhi, and spends garment unit in Noida. But all the people working products, given the opportunity. Eco Tasar’s operates across the value chain - from cocoon division was further spun off into Eco Tasar, in close to INR 6-7 lakhs (~USD 11,000 - USD Eco Tasar currently produces yardage, cushion there are from eastern UP, Odisha, Bihar and operations in Phulia, West Bengal help in sourc- rearing to fabric weaving. Eco Tasar (ET), along which Pandya holds equity along with Masuta. 14,000) per annum on sourcing designs. Since the covers, dupattas, sarees, stoles and scarves for the neighboring areas. Why do they have to move so ing Jamdani sarees from the weavers there. In with its parent entity, Masuta, has stepped in to do bulk of Eco Tasar’s orders are commissioned, domestic as well as export markets. “When we far away from their home states to find work? ET order to further widen the pool of skilled weavers, just that. While Masuta plays the role of aggrega- their customers also provide specifications of The Silk Route started, there was nobody who had done such is trying to bring them the same jobs closer to it plans to move into weaving clusters in Andhra tor of tasar yarn, Eco Tasar plays the role of the design and color for the products. Eco Tasar Making tasar culture remunerative by intensive and exclusive work in tasar, and we their home.” Pradesh (for unique products such as Pocham- forward integrator, by adding value to the yarn to provides opportunities for design student interns were very soon known by the unique look and feel pally and Venkatagiri), Madhya Pradesh produce fabric and products, and then, taking improving technology and market linkages too. Each year, students from design and fashion of our products” says Pandya. (Chanderi) and Uttar Pradesh (Varanasi) in the these to market. schools such as NIFT and NID work with them to The Road Ahead coming years. Pandya signs off on an optimistic PRADAN experienced certain challenges in develop new designs for their product lines. Eco Planning for future demand by creating In 2009, Eco Tasar started sourcing eri hand- note, “There was a time when we had to hire just promoting tasar silk cultivation. Although there Tasar sees this initiative as an investment for THE FOUNDING TEAM reeled yarn as it faced a shortage of tasar yarn. As clusters of hand yarn reelers and skilled about anyone who came our way. But our busi- was a high demand for tasar silk, and investment popularizing tasar silk. eri silk is spun after the moth leaves the cocoon, weavers ness is establishing itself, and we are slowly find- Creating enterprises along the silk value needed for tasar culture was low, traditional com- Eco Tasar was able to add an ‘Ahimsa’ (meaning ing the right people now.” chain munities that undertook tasar rearing were losing non-violence) line of products,. Eco Tasar has a Developing weaving clusters for artisans interest in the activity. sizable client base of Indian and international closer home Eco Tasar was spun off from two organizations fabric and apparel retailers including Fab India, namely, PRADAN and Masuta. PRADAN, a Tasar culture, because it was fragmented, did not Trifed, Nalli’s, Utsav, West Elm, World of Good, Eco Tasar views the rural people based in the LIS voluntary organization established in 1983, translate into a viable source of sustainable

17 IDEAS for impact Frontier Markets

Frontier Markets impacts 50 million households across 4 Indian states experience through his work with MFIs, NGOs, ers, the hub and spoke model for sales and distri- Year of Establishment: 2009 and Government initiatives across India. bution offices that could parallel or complement Promoters: AJAITA SHAH AND DANIEL TOMLINSON the microfinance network. While working in the microfinance space with SKS, Shah and Kumar were struck by the fact that Shah adds, “every rural household has a cell inquiries are directed to the manufacturers of the Frontier Markets provides rural households a their product. while MFIs offered microloans, the poor were not phone, if not two. They understand the nuances of with TERI for technical certifications. The last products, they revert back saying they want the basket of efficient and affordable choices for Frontier Markets replaces traditional cooking and offered a basket of financial products to choose cell phone usage and why they have the phone was critical as the implication of the FM service FM model of multi-product process in their state, lighting and cooking products. It contributes lighting practices with clean energy options, from. No one really explained the different prod- they have. Once they see the value in the service meant that they brought in assessment, and rather than deal with individual manufacturers. towards reducing pollution and inefficient use of reducing indoor air pollution and chronic ucts available to them. “Unless you gave them or understand how it meets their needs, finance worked for and with their rural buyers to put This is validation of the premise the FM team fuel, and helps innovative, clean energy product illnesses related to noxious fumes emitted during choice, it didn’t seem like long term impact. becomes secondary. To me that is the baseline for together an effective basket of choices. started out with – the need to provide rural audi- manufacturers reach remote customers. Frontier use. Rajasthan contributes 100% of Frontier Mar- When you educated them of the other interven- any product we sell to them – they need to know ences with a basket of choices, assess the prod- Markets utilizes feedback from retailers and kets’ current LIS operations. There are plans to tions, and explained why this product was better the why and how of their decision for the inter- Road Ahead ucts and inform them about the products features customers to provide manufacturers with feed- scale up to other low-income states such as and enabled them to make an informed choice, vention to be impactful.” With this as the starting Scaling to new geographies to improve access and let them make informed choices – for long back on design, applicability and relevance of Odisha and Jharkhand. impact happened,” says Shah. premise, Shah and Rajesh turned their focus to to clean energy products term impact. one of the two main needs of their target audience Daniel set up the processes and systems and –water and electricity. Energy products were their created the plan for the enterprise take-off. Shah first halt, given that their audience knew the pain FM is exploring opportunities to access grant The power situation in most parts of rural and nels. The enterprise has currently reached 40,000 was the actor on the field; she took charge of of not having this service, they had a fear of kero- money to offer a line of credit to their franchise peri-urban India is grim, with kerosene lamps households in Rajasthan. marketing and selling as well as recruiting and sene and a hatred for chimneys and smoke. entrepreneurs who can stock more products if being the dominant source of light. For the rural creating a field staff for the enterprise. Shah is In terms of its relationship with manufacturers of fluent in the local language. Says Shah “LIS pres- they had this finance. Another plan is to scale poor, cooking is done on traditional cookstoves The Founding Team fluent in Hindi and Marathi and is a Rajasthan There were many products targeted at rural clean energy products, FM helps them with ent us with huge opportunity because there are their model to other LIS. The FM team receives using biomass collected or purchased locally. Creating a business model that empowers native, which helped her in this role. “Initially, markets in the energy space. How was the rural market entry and taking a successful pilot to few other players in these states, and the scale calls from Odisha and Jharkhand, where people This base of the economic pyramid (BoP) market scale. It helps manufacturers build their brands efforts are much larger. Competition is much want FM’s products. Interestingly, when these customers through choice our team functioned on enthusiasm. Two and half audience to decide on which one suited them lacks access to energy and markets to acquire years down, our roles are more defined and best? And how was Frontier Markets to say which through innovative and ethical marketing cam- lower in Rajasthan than say AP.” She found that products. The market opportunity is sizable, at an refined,” says Shah. products they should buy? With the objective of paigns to generate both, consumer education and Rajasthan was a tough market for several “stereo- Ajaita Shah and Daniel Tomlinson are the initial estimated USD 2.1 billion and 600 million making their distribution more honest and trans- brand value creation. Finally, it provides manu- typical reasons”, mostly to do the conservative founders of FM. Shah is the Founder/CEO, and consumers. parent to their beneficiaries, and letting them facturers with vital consumer insights and plays a culture of people in the state. Hiring local was has five years of microfinance experience as a Starting out know that FM cared about what they bought and strategic role in assisting product development for tough and challenging. The one thing that aided Credit Plus Manager at Ujjivan Financial Leveraging rural market insights for distrib- Frontier Markets (FM) focuses on rural house- were not simply talking them into buying a prod- BOP markets. FM and Shah to develop their franchise model in Services, and Director for Swayam Krishi holds in Rajasthan, where “bijli” and “pani” uting non-financial products and services uct, the team created the element of assessment. Rajasthan was the Marwari (local community in Sangam (SKS). Tomlinson is Co-founder and (electricity and water) are huge challenges. FM “Trust and confidence were the major challenges Today, FM has operations across six districts in Rajasthan) sense of business – says Shah, “they Vice President, and has done business develop- targets consumers who have limited access, but Tomlinson and Shah had deep backgrounds in the we wanted to address, and we needed independent Rajasthan. The enterprise has begun generating spot an opportunity and they will run with it.” ment and process design for Drishtee, and was high demand for quality and affordable energy microfinance space, and were especially familiar assessments for this,” says Shah. revenues, and currently, 100% of the 2012 Even with this enthusiasm, the FM team realized formerly a senior consultant for Accenture’s products, reside in rural and semi-urban settings with the plight of rural women. Says Shah: “We revenue of INR 1.4 lakh comes from LIS. The that creating local teams meant that they needed Organization Effectiveness Practice. and live in a households that make incomes rang- realized that finance was important, but these Understanding that the cornerstone for enabling company plans to grow from a 2013 revenue of more assistance. Decentralizing control and scale ing from INR 2,000-3,500 (~USD 43 – USD 76) other products and services were important too.” consumers to make informed choices related to INR 12 lakhs to INR 1.5 crores in 2015, through was tough. per month. FM brings these consumers a basket of Armed with this insight, from 2006 to 2009, the improved health, improved income or better deepening its presence in Rajasthan and diversi- clean energy solutions, which are assessed and team tried pairing health services with microfi- living conditions was building awareness, FM fying to other states. The team estimates that the The LIS also had few energy product manufactur- found suitable for the market by independent nance, energy products with microfinance and so recruited local village retail partners or “Saral LIS will continue to contribute about 75% of ers directly reaching the markets. FM was there- advisors. These include solar lanterns, torches, on. They found the effort challenging and “opera- Jeevan Sayogis”. Since FM was to be the conduit revenues in 2015. fore offering producers access to a whole new home lighting systems, and batteries. tionally flawed.” Their learning was that the to allow low cost, ‘designed for the poor’ prod- market, where there was an established need, and microfinance distribution point was crowded, so ucts to enter the rural market, the team built part- OPERATIONS IN LOW-INCOME STATES (LIS) through FM, there was now a distribution chan- FM educates consumers about these products and trying to sell complicated products using the same nerships with MFIs that created access to finance Building partnerships with local stakehold- nel. FM’s relationship with the state Government, enables them to make informed choices. With an channel would not work. “We naturally veered to for purchasing these products. The model at the which is the other big stakeholder, is evolving as ers for a sustainable business innovative model that customizes solutions for recognizing the need for creating a similar chan- retail end was completed by creating service they start working with different departments Rajesh Kumar, Co-Founder and Vice President of consumers, FM opens new opportunities for nel (to that of microfinance distribution) for non- centers on a block level in each district, and hiring such as the Child and Women Empowerment Field Operations subsequently joined the FM manufacturers to create affordable and relevant financial services in the rural market,” says Shah. local field staff to market and educate people Like many of their fellow social enterprises, FM department or the Forestry department. The founding team. He has over 15 years of rural products for rural markets and helps them with This meant that they had to have the same deep about clean energy products. started operations in Karnataka and Andhra team’s biggest success to date has been with marketing, rural recruitment, training, and field distribution through innovative marketing chan- interaction and interface with their rural custom- Pradesh (AP), finding these states “liberal and drawing women volunteers from Aanganwadis to active”, with a microfinance model already become part of their field sales force. Other link- entrenched in the rural marketing fabric. Shah is ages include those with self-help groups, farmers, originally from Rajasthan, and there were persis- dairy workers and ASHA workers offering 19 tent calls for her to take FM to the state. Further, primary healthcare in the villages. Other partner- energy was a real need in Rajasthan and she was ships include that with dairy cooperatives and experience through his work with MFIs, NGOs, ers, the hub and spoke model for sales and distri- and Government initiatives across India. bution offices that could parallel or complement the microfinance network. While working in the microfinance space with SKS, Shah and Kumar were struck by the fact that Shah adds, “every rural household has a cell inquiries are directed to the manufacturers of the while MFIs offered microloans, the poor were not phone, if not two. They understand the nuances of with TERI for technical certifications. The last products, they revert back saying they want the offered a basket of financial products to choose cell phone usage and why they have the phone was critical as the implication of the FM service FM model of multi-product process in their state, from. No one really explained the different prod- they have. Once they see the value in the service meant that they brought in assessment, and rather than deal with individual manufacturers. ucts available to them. “Unless you gave them or understand how it meets their needs, finance worked for and with their rural buyers to put This is validation of the premise the FM team choice, it didn’t seem like long term impact. becomes secondary. To me that is the baseline for together an effective basket of choices. started out with – the need to provide rural audi- When you educated them of the other interven- any product we sell to them – they need to know ences with a basket of choices, assess the prod- tions, and explained why this product was better the why and how of their decision for the inter- Road Ahead ucts and inform them about the products features and enabled them to make an informed choice, vention to be impactful.” With this as the starting Scaling to new geographies to improve access and let them make informed choices – for long impact happened,” says Shah. premise, Shah and Rajesh turned their focus to to clean energy products term impact. one of the two main needs of their target audience Daniel set up the processes and systems and –water and electricity. Energy products were their created the plan for the enterprise take-off. Shah first halt, given that their audience knew the pain FM is exploring opportunities to access grant The power situation in most parts of rural and nels. The enterprise has currently reached 40,000 was the actor on the field; she took charge of of not having this service, they had a fear of kero- money to offer a line of credit to their franchise peri-urban India is grim, with kerosene lamps households in Rajasthan. marketing and selling as well as recruiting and sene and a hatred for chimneys and smoke. entrepreneurs who can stock more products if being the dominant source of light. For the rural creating a field staff for the enterprise. Shah is In terms of its relationship with manufacturers of fluent in the local language. Says Shah “LIS pres- they had this finance. Another plan is to scale poor, cooking is done on traditional cookstoves The Founding Team fluent in Hindi and Marathi and is a Rajasthan There were many products targeted at rural clean energy products, FM helps them with ent us with huge opportunity because there are their model to other LIS. The FM team receives using biomass collected or purchased locally. Creating a business model that empowers native, which helped her in this role. “Initially, markets in the energy space. How was the rural market entry and taking a successful pilot to few other players in these states, and the scale calls from Odisha and Jharkhand, where people This base of the economic pyramid (BoP) market scale. It helps manufacturers build their brands efforts are much larger. Competition is much want FM’s products. Interestingly, when these customers through choice our team functioned on enthusiasm. Two and half audience to decide on which one suited them lacks access to energy and markets to acquire years down, our roles are more defined and best? And how was Frontier Markets to say which through innovative and ethical marketing cam- lower in Rajasthan than say AP.” She found that products. The market opportunity is sizable, at an refined,” says Shah. products they should buy? With the objective of paigns to generate both, consumer education and Rajasthan was a tough market for several “stereo- Ajaita Shah and Daniel Tomlinson are the initial estimated USD 2.1 billion and 600 million making their distribution more honest and trans- brand value creation. Finally, it provides manu- typical reasons”, mostly to do the conservative founders of FM. Shah is the Founder/CEO, and consumers. parent to their beneficiaries, and letting them facturers with vital consumer insights and plays a culture of people in the state. Hiring local was has five years of microfinance experience as a Starting out know that FM cared about what they bought and strategic role in assisting product development for tough and challenging. The one thing that aided Credit Plus Manager at Ujjivan Financial Leveraging rural market insights for distrib- Frontier Markets (FM) focuses on rural house- were not simply talking them into buying a prod- BOP markets. FM and Shah to develop their franchise model in Services, and Director for Swayam Krishi holds in Rajasthan, where “bijli” and “pani” uting non-financial products and services uct, the team created the element of assessment. Rajasthan was the Marwari (local community in Sangam (SKS). Tomlinson is Co-founder and (electricity and water) are huge challenges. FM “Trust and confidence were the major challenges Today, FM has operations across six districts in Rajasthan) sense of business – says Shah, “they Vice President, and has done business develop- targets consumers who have limited access, but Tomlinson and Shah had deep backgrounds in the we wanted to address, and we needed independent Rajasthan. The enterprise has begun generating spot an opportunity and they will run with it.” ment and process design for Drishtee, and was high demand for quality and affordable energy microfinance space, and were especially familiar assessments for this,” says Shah. revenues, and currently, 100% of the 2012 Even with this enthusiasm, the FM team realized formerly a senior consultant for Accenture’s products, reside in rural and semi-urban settings with the plight of rural women. Says Shah: “We revenue of INR 1.4 lakh comes from LIS. The that creating local teams meant that they needed Organization Effectiveness Practice. and live in a households that make incomes rang- realized that finance was important, but these Understanding that the cornerstone for enabling company plans to grow from a 2013 revenue of more assistance. Decentralizing control and scale ing from INR 2,000-3,500 (~USD 43 – USD 76) other products and services were important too.” consumers to make informed choices related to INR 12 lakhs to INR 1.5 crores in 2015, through was tough. per month. FM brings these consumers a basket of Armed with this insight, from 2006 to 2009, the improved health, improved income or better deepening its presence in Rajasthan and diversi- clean energy solutions, which are assessed and team tried pairing health services with microfi- living conditions was building awareness, FM fying to other states. The team estimates that the The LIS also had few energy product manufactur- found suitable for the market by independent nance, energy products with microfinance and so recruited local village retail partners or “Saral LIS will continue to contribute about 75% of ers directly reaching the markets. FM was there- advisors. These include solar lanterns, torches, on. They found the effort challenging and “opera- Jeevan Sayogis”. Since FM was to be the conduit revenues in 2015. fore offering producers access to a whole new home lighting systems, and batteries. tionally flawed.” Their learning was that the to allow low cost, ‘designed for the poor’ prod- market, where there was an established need, and microfinance distribution point was crowded, so ucts to enter the rural market, the team built part- OPERATIONS IN LOW-INCOME STATES (LIS) through FM, there was now a distribution chan- FM educates consumers about these products and trying to sell complicated products using the same nerships with MFIs that created access to finance Building partnerships with local stakehold- nel. FM’s relationship with the state Government, enables them to make informed choices. With an channel would not work. “We naturally veered to for purchasing these products. The model at the which is the other big stakeholder, is evolving as ers for a sustainable business innovative model that customizes solutions for recognizing the need for creating a similar chan- retail end was completed by creating service they start working with different departments Rajesh Kumar, Co-Founder and Vice President of consumers, FM opens new opportunities for nel (to that of microfinance distribution) for non- centers on a block level in each district, and hiring such as the Child and Women Empowerment Field Operations subsequently joined the FM manufacturers to create affordable and relevant financial services in the rural market,” says Shah. local field staff to market and educate people Like many of their fellow social enterprises, FM department or the Forestry department. The founding team. He has over 15 years of rural products for rural markets and helps them with This meant that they had to have the same deep about clean energy products. started operations in Karnataka and Andhra team’s biggest success to date has been with marketing, rural recruitment, training, and field distribution through innovative marketing chan- interaction and interface with their rural custom- Pradesh (AP), finding these states “liberal and drawing women volunteers from Aanganwadis to active”, with a microfinance model already become part of their field sales force. Other link- entrenched in the rural marketing fabric. Shah is ages include those with self-help groups, farmers, originally from Rajasthan, and there were persis- dairy workers and ASHA workers offering 20 tent calls for her to take FM to the state. Further, primary healthcare in the villages. Other partner- energy was a real need in Rajasthan and she was ships include that with dairy cooperatives and experience through his work with MFIs, NGOs, ers, the hub and spoke model for sales and distri- and Government initiatives across India. bution offices that could parallel or complement the microfinance network. While working in the microfinance space with SKS, Shah and Kumar were struck by the fact that Shah adds, “every rural household has a cell Social Impact Social Impact inquiries are directed to the manufacturers of the while MFIs offered microloans, the poor were not phone, if not two. They understand the nuances of with TERI for technical certifications. The last was critical as the implication of the FM service products, they revert back saying they want the offered a basket of financial products to choose cell phone usage and why they have the phone FM provides sustainable, clean energy products to social impact of replacing kerosene and other meant that they brought in assessment, and FM model of multi-product process in their state, from. No one really explained the different prod- they have. Once they see the value in the service low-income families in rural India, reducing dangerous and toxic practices with solar energy worked for and with their rural buyers to put rather than deal with individual manufacturers. ucts available to them. “Unless you gave them or understand how it meets their needs, finance carbon emissions from traditional fossil fuels. It systems and improved cook stoves. By localizing together an effective basket of choices. This is validation of the premise the FM team choice, it didn’t seem like long term impact. becomes secondary. To me that is the baseline for ensures improved health and quality of life to its initiatives, FM is building solutions for the people started out with – the need to provide rural audi- When you educated them of the other interven- any product we sell to them – they need to know consumers. within their communities. Educating the consum- ences with a basket of choices, assess the prod- tions, and explained why this product was better the why and how of their decision for the inter- ers about different products and the importance of Road Ahead ucts and inform them about the products features and enabled them to make an informed choice, vention to be impactful.” With this as the starting Based on demand for each product and quantity moving over to clean energy products, FM is Scaling to new geographies to improve access and let them make informed choices – for long impact happened,” says Shah. premise, Shah and Rajesh turned their focus to sold, FM calculates a Social Return On Invest- creating lasting impact that reaches beyond its to clean energy products term impact. one of the two main needs of their target audience ment (SROI) for each customer, measuring the focus sector, energy. Daniel set up the processes and systems and –water and electricity. Energy products were their created the plan for the enterprise take-off. Shah first halt, given that their audience knew the pain FM is exploring opportunities to access grant The power situation in most parts of rural and nels. The enterprise has currently reached 40,000 was the actor on the field; she took charge of of not having this service, they had a fear of kero- money to offer a line of credit to their franchise peri-urban India is grim, with kerosene lamps households in Rajasthan. marketing and selling as well as recruiting and sene and a hatred for chimneys and smoke. entrepreneurs who can stock more products if being the dominant source of light. For the rural creating a field staff for the enterprise. Shah is In terms of its relationship with manufacturers of fluent in the local language. Says Shah “LIS pres- they had this finance. Another plan is to scale poor, cooking is done on traditional cookstoves The Founding Team fluent in Hindi and Marathi and is a Rajasthan There were many products targeted at rural clean energy products, FM helps them with ent us with huge opportunity because there are their model to other LIS. The FM team receives using biomass collected or purchased locally. Creating a business model that empowers native, which helped her in this role. “Initially, markets in the energy space. How was the rural market entry and taking a successful pilot to few other players in these states, and the scale calls from Odisha and Jharkhand, where people This base of the economic pyramid (BoP) market scale. It helps manufacturers build their brands efforts are much larger. Competition is much want FM’s products. Interestingly, when these customers through choice our team functioned on enthusiasm. Two and half audience to decide on which one suited them lacks access to energy and markets to acquire years down, our roles are more defined and best? And how was Frontier Markets to say which through innovative and ethical marketing cam- lower in Rajasthan than say AP.” She found that products. The market opportunity is sizable, at an refined,” says Shah. products they should buy? With the objective of paigns to generate both, consumer education and Rajasthan was a tough market for several “stereo- Ajaita Shah and Daniel Tomlinson are the initial estimated USD 2.1 billion and 600 million making their distribution more honest and trans- brand value creation. Finally, it provides manu- typical reasons”, mostly to do the conservative founders of FM. Shah is the Founder/CEO, and consumers. parent to their beneficiaries, and letting them facturers with vital consumer insights and plays a culture of people in the state. Hiring local was has five years of microfinance experience as a Starting out know that FM cared about what they bought and strategic role in assisting product development for tough and challenging. The one thing that aided Credit Plus Manager at Ujjivan Financial Leveraging rural market insights for distrib- Frontier Markets (FM) focuses on rural house- were not simply talking them into buying a prod- BOP markets. FM and Shah to develop their franchise model in Services, and Director for Swayam Krishi holds in Rajasthan, where “bijli” and “pani” uting non-financial products and services uct, the team created the element of assessment. Rajasthan was the Marwari (local community in Sangam (SKS). Tomlinson is Co-founder and (electricity and water) are huge challenges. FM “Trust and confidence were the major challenges Today, FM has operations across six districts in Rajasthan) sense of business – says Shah, “they Vice President, and has done business develop- targets consumers who have limited access, but Tomlinson and Shah had deep backgrounds in the we wanted to address, and we needed independent Rajasthan. The enterprise has begun generating spot an opportunity and they will run with it.” ment and process design for Drishtee, and was high demand for quality and affordable energy microfinance space, and were especially familiar assessments for this,” says Shah. revenues, and currently, 100% of the 2012 Even with this enthusiasm, the FM team realized formerly a senior consultant for Accenture’s products, reside in rural and semi-urban settings with the plight of rural women. Says Shah: “We revenue of INR 1.4 lakh comes from LIS. The that creating local teams meant that they needed Organization Effectiveness Practice. and live in a households that make incomes rang- realized that finance was important, but these Understanding that the cornerstone for enabling company plans to grow from a 2013 revenue of more assistance. Decentralizing control and scale ing from INR 2,000-3,500 (~USD 43 – USD 76) other products and services were important too.” consumers to make informed choices related to INR 12 lakhs to INR 1.5 crores in 2015, through was tough. per month. FM brings these consumers a basket of Armed with this insight, from 2006 to 2009, the improved health, improved income or better deepening its presence in Rajasthan and diversi- clean energy solutions, which are assessed and team tried pairing health services with microfi- living conditions was building awareness, FM fying to other states. The team estimates that the The LIS also had few energy product manufactur- found suitable for the market by independent nance, energy products with microfinance and so recruited local village retail partners or “Saral LIS will continue to contribute about 75% of ers directly reaching the markets. FM was there- advisors. These include solar lanterns, torches, on. They found the effort challenging and “opera- Jeevan Sayogis”. Since FM was to be the conduit revenues in 2015. fore offering producers access to a whole new home lighting systems, and batteries. tionally flawed.” Their learning was that the to allow low cost, ‘designed for the poor’ prod- market, where there was an established need, and microfinance distribution point was crowded, so ucts to enter the rural market, the team built part- OPERATIONS IN LOW-INCOME STATES (LIS) through FM, there was now a distribution chan- FM educates consumers about these products and trying to sell complicated products using the same nerships with MFIs that created access to finance Building partnerships with local stakehold- nel. FM’s relationship with the state Government, enables them to make informed choices. With an channel would not work. “We naturally veered to for purchasing these products. The model at the which is the other big stakeholder, is evolving as ers for a sustainable business innovative model that customizes solutions for recognizing the need for creating a similar chan- retail end was completed by creating service they start working with different departments Rajesh Kumar, Co-Founder and Vice President of consumers, FM opens new opportunities for nel (to that of microfinance distribution) for non- centers on a block level in each district, and hiring such as the Child and Women Empowerment Field Operations subsequently joined the FM manufacturers to create affordable and relevant financial services in the rural market,” says Shah. local field staff to market and educate people Like many of their fellow social enterprises, FM department or the Forestry department. The founding team. He has over 15 years of rural products for rural markets and helps them with This meant that they had to have the same deep about clean energy products. started operations in Karnataka and Andhra team’s biggest success to date has been with marketing, rural recruitment, training, and field distribution through innovative marketing chan- interaction and interface with their rural custom- Pradesh (AP), finding these states “liberal and drawing women volunteers from Aanganwadis to active”, with a microfinance model already become part of their field sales force. Other link- entrenched in the rural marketing fabric. Shah is ages include those with self-help groups, farmers, originally from Rajasthan, and there were persis- dairy workers and ASHA workers offering tent calls for her to take FM to the state. Further, primary healthcare in the villages. Other partner- energy was a real need in Rajasthan and she was ships include that with dairy cooperatives and

21 experience through his work with MFIs, NGOs, ers, the hub and spoke model for sales and distri- and Government initiatives across India. bution offices that could parallel or complement the microfinance network. While working in the microfinance space with SKS, Shah and Kumar were struck by the fact that Shah adds, “every rural household has a cell inquiries are directed to the manufacturers of the while MFIs offered microloans, the poor were not phone, if not two. They understand the nuances of with TERI for technical certifications. The last products, they revert back saying they want the offered a basket of financial products to choose cell phone usage and why they have the phone was critical as the implication of the FM service FM model of multi-product process in their state, from. No one really explained the different prod- they have. Once they see the value in the service meant that they brought in assessment, and rather than deal with individual manufacturers. ucts available to them. “Unless you gave them or understand how it meets their needs, finance worked for and with their rural buyers to put This is validation of the premise the FM team choice, it didn’t seem like long term impact. becomes secondary. To me that is the baseline for together an effective basket of choices. started out with – the need to provide rural audi- When you educated them of the other interven- any product we sell to them – they need to know ences with a basket of choices, assess the prod- tions, and explained why this product was better the why and how of their decision for the inter- Road Ahead ucts and inform them about the products features and enabled them to make an informed choice, vention to be impactful.” With this as the starting Scaling to new geographies to improve access and let them make informed choices – for long impact happened,” says Shah. premise, Shah and Rajesh turned their focus to to clean energy products term impact. one of the two main needs of their target audience Daniel set up the processes and systems and –water and electricity. Energy products were their created the plan for the enterprise take-off. Shah first halt, given that their audience knew the pain FM is exploring opportunities to access grant The power situation in most parts of rural and nels. The enterprise has currently reached 40,000 was the actor on the field; she took charge of of not having this service, they had a fear of kero- money to offer a line of credit to their franchise peri-urban India is grim, with kerosene lamps households in Rajasthan. marketing and selling as well as recruiting and sene and a hatred for chimneys and smoke. entrepreneurs who can stock more products if being the dominant source of light. For the rural creating a field staff for the enterprise. Shah is In terms of its relationship with manufacturers of fluent in the local language. Says Shah “LIS pres- they had this finance. Another plan is to scale poor, cooking is done on traditional cookstoves The Founding Team fluent in Hindi and Marathi and is a Rajasthan There were many products targeted at rural clean energy products, FM helps them with ent us with huge opportunity because there are their model to other LIS. The FM team receives using biomass collected or purchased locally. Creating a business model that empowers native, which helped her in this role. “Initially, markets in the energy space. How was the rural market entry and taking a successful pilot to few other players in these states, and the scale calls from Odisha and Jharkhand, where people This base of the economic pyramid (BoP) market scale. It helps manufacturers build their brands efforts are much larger. Competition is much want FM’s products. Interestingly, when these customers through choice our team functioned on enthusiasm. Two and half audience to decide on which one suited them lacks access to energy and markets to acquire years down, our roles are more defined and best? And how was Frontier Markets to say which through innovative and ethical marketing cam- lower in Rajasthan than say AP.” She found that products. The market opportunity is sizable, at an refined,” says Shah. products they should buy? With the objective of paigns to generate both, consumer education and Rajasthan was a tough market for several “stereo- Ajaita Shah and Daniel Tomlinson are the initial estimated USD 2.1 billion and 600 million making their distribution more honest and trans- brand value creation. Finally, it provides manu- typical reasons”, mostly to do the conservative founders of FM. Shah is the Founder/CEO, and consumers. parent to their beneficiaries, and letting them facturers with vital consumer insights and plays a culture of people in the state. Hiring local was has five years of microfinance experience as a Starting out know that FM cared about what they bought and strategic role in assisting product development for tough and challenging. The one thing that aided Credit Plus Manager at Ujjivan Financial Leveraging rural market insights for distrib- Frontier Markets (FM) focuses on rural house- were not simply talking them into buying a prod- BOP markets. FM and Shah to develop their franchise model in Services, and Director for Swayam Krishi holds in Rajasthan, where “bijli” and “pani” uting non-financial products and services uct, the team created the element of assessment. Rajasthan was the Marwari (local community in Sangam (SKS). Tomlinson is Co-founder and (electricity and water) are huge challenges. FM “Trust and confidence were the major challenges Today, FM has operations across six districts in Rajasthan) sense of business – says Shah, “they Vice President, and has done business develop- targets consumers who have limited access, but Tomlinson and Shah had deep backgrounds in the we wanted to address, and we needed independent Rajasthan. The enterprise has begun generating spot an opportunity and they will run with it.” ment and process design for Drishtee, and was high demand for quality and affordable energy microfinance space, and were especially familiar assessments for this,” says Shah. revenues, and currently, 100% of the 2012 Even with this enthusiasm, the FM team realized formerly a senior consultant for Accenture’s products, reside in rural and semi-urban settings with the plight of rural women. Says Shah: “We revenue of INR 1.4 lakh comes from LIS. The that creating local teams meant that they needed Organization Effectiveness Practice. and live in a households that make incomes rang- realized that finance was important, but these Understanding that the cornerstone for enabling company plans to grow from a 2013 revenue of more assistance. Decentralizing control and scale ing from INR 2,000-3,500 (~USD 43 – USD 76) other products and services were important too.” consumers to make informed choices related to INR 12 lakhs to INR 1.5 crores in 2015, through was tough. per month. FM brings these consumers a basket of Armed with this insight, from 2006 to 2009, the improved health, improved income or better deepening its presence in Rajasthan and diversi- clean energy solutions, which are assessed and team tried pairing health services with microfi- living conditions was building awareness, FM fying to other states. The team estimates that the The LIS also had few energy product manufactur- found suitable for the market by independent nance, energy products with microfinance and so recruited local village retail partners or “Saral LIS will continue to contribute about 75% of ers directly reaching the markets. FM was there- advisors. These include solar lanterns, torches, on. They found the effort challenging and “opera- Jeevan Sayogis”. Since FM was to be the conduit revenues in 2015. fore offering producers access to a whole new home lighting systems, and batteries. tionally flawed.” Their learning was that the to allow low cost, ‘designed for the poor’ prod- market, where there was an established need, and microfinance distribution point was crowded, so ucts to enter the rural market, the team built part- OPERATIONS IN LOW-INCOME STATES (LIS) through FM, there was now a distribution chan- FM educates consumers about these products and trying to sell complicated products using the same nerships with MFIs that created access to finance Building partnerships with local stakehold- nel. FM’s relationship with the state Government, enables them to make informed choices. With an channel would not work. “We naturally veered to for purchasing these products. The model at the which is the other big stakeholder, is evolving as ers for a sustainable business innovative model that customizes solutions for recognizing the need for creating a similar chan- retail end was completed by creating service they start working with different departments Rajesh Kumar, Co-Founder and Vice President of consumers, FM opens new opportunities for nel (to that of microfinance distribution) for non- centers on a block level in each district, and hiring such as the Child and Women Empowerment Field Operations subsequently joined the FM manufacturers to create affordable and relevant financial services in the rural market,” says Shah. local field staff to market and educate people Like many of their fellow social enterprises, FM department or the Forestry department. The founding team. He has over 15 years of rural products for rural markets and helps them with This meant that they had to have the same deep about clean energy products. started operations in Karnataka and Andhra team’s biggest success to date has been with marketing, rural recruitment, training, and field distribution through innovative marketing chan- interaction and interface with their rural custom- Pradesh (AP), finding these states “liberal and drawing women volunteers from Aanganwadis to active”, with a microfinance model already become part of their field sales force. Other link- entrenched in the rural marketing fabric. Shah is ages include those with self-help groups, farmers, originally from Rajasthan, and there were persis- dairy workers and ASHA workers offering tent calls for her to take FM to the state. Further, primary healthcare in the villages. Other partner- energy was a real need in Rajasthan and she was ships include that with dairy cooperatives and

22 IDEAS for impact Gram Tarang

Gram Tarang plans to service 15,000 Gram Panchayats in 8 states by 2015 Axis Bank. It operates in ten states in eastern and Exploring opportunities to leverage its CSP Year of Establishment: 2011 north-eastern India. GTIDS’ business model network to offer its customers non-financial prod- Promoter: Venkat Sivananda Kumar includes two key components – the Customer ucts and services, GTIDS undertook distribution Service Provider (CSP) and Information Technol- of solar kits manufactured by Thrive Energy ogy Provider (ITP). The CSP is a local representa- Technologies. Currently, it distributes solar kits Gram Tarang Inclusive Development Services GTIDS has improved financial inclusion in the tive from the village executing ground operations, worth INR 27,000 (~USD 385) to its CSPs, as (GTIDS) works as a Business Correspondent low-income states by opening more than 1.2 and the ITP provides technology infrastructure power cuts are rampant in the villages. The CSP (BC) for banks to provide financial services to million no-frills bank accounts, 50% of which are that facilitates and supports the CSPs. bears 10% of the solar kit cost upfront, 50% in the rural customers in low-income states (LIS) such held by women. In the process, it has provided form of EMIs, while NABARD subsidizes the as, Bihar, West Bengal, Odisha, Chhattisgarh and employment to over 4600 Customer Service remaining 40%. Going forward, GTIDS plans to Uttar Pradesh. The company uses a network of Providers (CSP), more than 60% of which are offer the same products to its rural customers. local customer service providers and technology women. A sister concern, Gram Tarang Employ- infrastructure to provide financial services at the ability Training Services (GTETS), provides tech- Skills Training village level. nical and soft skills training to disadvantaged Building skills for employability in socially youth to make them employable. rates for gathering youth who could be trained. The Road Ahead weaker sections of society Till date, GTETS has trained over 10,000 students Expanding to new geographies, exploring new in collaboration with government departments. In opportunities by leveraging network of CSPs In its quest for inclusive growth, India faces a behalf to rural customers in the LIS. GTIDS GTIDS’ sister concern -- Gram Tarang Employ- addition, more than 400 youth referred by GTIDS huge challenge of mainstreaming 70% of the services include saving accounts, retail loans, GTIDS manages the recruitment and training of ability Training Services (GTETS) – is a skill have been trained and employed with corporates population that resides in rural areas. Lack of cash management products, and cash remittance the CSP in the villages. It employs one CSP per building initiative targeting the socially weaker such as Ashok Leyland Chennai, Cafe Coffee Both GTIDS and GTETS are planning to expand access to formal financial services is a major services. village and equips them with a laptop, biometric sections of society. Millions of young Indians Day, TVS Sundaram Fastners, Jindal Steel etc. in the next few years. GTIDS plans to extend its impediment to achieving this goal. According to device, smart card reader, data card printer etc. drop out of school each year, especially in rural services to about 20,000 villages, by increasing the RBI estimates, more than 60% of the popula- GTIDS was established in 2011 by Venkat Siva- The CSPs provide services such as opening of India. They remain unskilled and are unable to Operations in Low-Income States (LIS) the size and strength of its CSP network. During tion in rural India is unbanked. Banks find it unvi- nand Kumar, an alumnus of Xavier Institute of accounts, personalization and delivery of smart sustain livelihoods or generate incomes. As a Providing financial inclusion and employabil- this time, GTETS aims to expand its training able to set up branches in remote areas due to high Management Bhubaneshwar (XIMB). Before network outside of East India, and to other states cards, cash management, liaising with the base result, they suffer social and economic exclusion, ity to villagers in Naxal-affected areas client acquisition cost, lack of credit history of setting up GTIDS, Kumar worked in the financial branches etc. GTIDS partnered with Atyati Tech- and become prime recruitment targets for extrem- with high school dropout rates such as Jharkhand, clients, geographic distances and sporadic popu- inclusion space for over 5 years, in diverse orga- nologies (recently acquired by Genpact Limited) ist groups, especially in the red corridor districts Chhattisgarh, Bihar, Assam and Meghalaya. lation density. To overcome these barriers and nizations such as ICICI Bank, Intellecap and to provide the technology platform as well as a of East India. At the same time, India faces an GTIDS chose to begin operations in the LIS due bridge the gap between banks and rural popula- MFIs from Andhra Pradesh, Odisha and Karna- fully automated information system for data enormous gap between supply and demand for to their low levels of financial inclusion. Any Realizing the potential of the CSP network, tion, new forms of branchless banking options taka. The core management team at GTIDS has collection and information management. GTIDS skilled human resources to fuel economic growth. effort to provide financial access had potential to GTIDS and Genpact (Information technology have emerged. Banks are leveraging advances in extensive experience in rural development. has already employed more than 4,650 CSPs According to GTETS, 15 million youth need create a significant impact in mainstreaming rural partner) have been jointly exploring new busi- information technology in order to provide finan- Santanu Mohanty, another XIMB alumnus, has across ten states and opened more than 1.2 million initial vocational training every year in India, population from these states. GTIDS opened more nesses opportunities that could use the CSPs as a cial services in remote rural areas through busi- pioneered several self-reliant co-operative initia- no-frills accounts, in less than two years. while the existing private and public training than one million no-frills accounts in states such potential distribution channel. GTIDS also plans ness correspondents (BC) such as NGOs, self- tives as a State Coordinator with the Government capacity can only cater to 3 million youth. as Odisha, West Bengal, Bihar and Uttar Pradesh. to leverage this network to offer multiple non- help groups (SHGs), microfinance institutions of Odisha for over 3 decades. Himansu Sahoo, Under the financial inclusion umbrella, GTIDS GTETS was established to meet this demand- MNREGA and Pension Payments are currently financial products and services to rural popula- (MFIs), non-banking financial companies also from XIMB, has more than a decade of expe- also distributes payments to beneficiaries of supply gap and improve employability of youth in provided in West Bengal, with plans to extend tion. One such opportunity is the distribution of (NBFCs). rience in livelihoods promotion, specializing in welfare schemes such as the Mahatma Gandhi East India. them to other low-income states by the end of solar kits through its CSPs. GTIDS plans to earn tribal livelihoods and capacity building. National Rural Employment Guarantee Act 2012. about INR 1.5 crores (USD 0.2 mn) in this finan- setting up (MGNREGA), Social Security Pension payments GTETS provides technical, soft skills and indus- cial year through sales of solar kits to its CSPs. It Providing financial inclusion to rural and others. Till date, GTIDS has distributed more try specific skills training to disadvantaged youth GTETS began its training operations in the Paral- plans to scale this activity up, by reaching rural akhemundi district of Gajapati, one of the customers through their growing network of customers in the low-income states the business model than INR 2 billion (USD 38.29 millions) through a hub-and-spoke model, where ten satel- Building an infrastructure of using local earmarked for MGNREGA and Social Security lite centers are established around one hub. Cen- extremist-affected districts of Odisha with a CSPs. By extending financial access and liveli- Pensions in West Bengal. While this payment turion Group’s educational institutes serve as the machinist training program for school dropouts. hood opportunities to India’s rural populations, Gram Tarang Inclusive Development Services customer service providers and information service is currently offered only in Tripura and hub at the city level while GTETS establishes Over 75% of GTETS-trained candidates are from GTIDS is eliminating key barriers to rural devel- (GTIDS) is has setup operations in Assam, Bihar, technology West Bengal, GTIDS plans to expand it to other satellite centers at the district level. scheduled castes, scheduled tribes and other back- opment and supporting the movement with inclu- West Bengal and Uttar Pradesh. It works as a states by the end of 2012. GTIDS is also working ward castes originating from disadvantaged sive growth. Business Correspondent for banks such as Andhra GTIDS currently has a mandate to work as a BC with United Bank of India to implement the GTETS has entered into partnerships with districts of Odisha and Andhra Pradesh. Bank, Punjab National Bank, and Union Bank of for 5 banks - Andhra Bank, Punjab National Bank, UIDAI’s Aadhaar Project in West Bengal. government authorities, NGOs, SHGs and corpo- India, and provides financial services on their United Bank of India, Union Bank of India and

24 Axis Bank. It operates in ten states in eastern and Exploring opportunities to leverage its CSP north-eastern India. GTIDS’ business model network to offer its customers non-financial prod- includes two key components – the Customer ucts and services, GTIDS undertook distribution Service Provider (CSP) and Information Technol- of solar kits manufactured by Thrive Energy ogy Provider (ITP). The CSP is a local representa- Technologies. Currently, it distributes solar kits tive from the village executing ground operations, worth INR 27,000 (~USD 385) to its CSPs, as and the ITP provides technology infrastructure power cuts are rampant in the villages. The CSP that facilitates and supports the CSPs. bears 10% of the solar kit cost upfront, 50% in the form of EMIs, while NABARD subsidizes the remaining 40%. Going forward, GTIDS plans to offer the same products to its rural customers. Skills Training Building skills for employability in socially rates for gathering youth who could be trained. The Road Ahead weaker sections of society Till date, GTETS has trained over 10,000 students Expanding to new geographies, exploring new in collaboration with government departments. In opportunities by leveraging network of CSPs In its quest for inclusive growth, India faces a behalf to rural customers in the LIS. GTIDS GTIDS’ sister concern -- Gram Tarang Employ- addition, more than 400 youth referred by GTIDS huge challenge of mainstreaming 70% of the services include saving accounts, retail loans, GTIDS manages the recruitment and training of ability Training Services (GTETS) – is a skill have been trained and employed with corporates population that resides in rural areas. Lack of cash management products, and cash remittance the CSP in the villages. It employs one CSP per building initiative targeting the socially weaker such as Ashok Leyland Chennai, Cafe Coffee Both GTIDS and GTETS are planning to expand access to formal financial services is a major services. village and equips them with a laptop, biometric sections of society. Millions of young Indians Day, TVS Sundaram Fastners, Jindal Steel etc. in the next few years. GTIDS plans to extend its impediment to achieving this goal. According to device, smart card reader, data card printer etc. drop out of school each year, especially in rural services to about 20,000 villages, by increasing the RBI estimates, more than 60% of the popula- GTIDS was established in 2011 by Venkat Siva- The CSPs provide services such as opening of India. They remain unskilled and are unable to Operations in Low-Income States (LIS) the size and strength of its CSP network. During tion in rural India is unbanked. Banks find it unvi- nand Kumar, an alumnus of Xavier Institute of accounts, personalization and delivery of smart sustain livelihoods or generate incomes. As a Providing financial inclusion and employabil- this time, GTETS aims to expand its training able to set up branches in remote areas due to high Management Bhubaneshwar (XIMB). Before network outside of East India, and to other states cards, cash management, liaising with the base result, they suffer social and economic exclusion, ity to villagers in Naxal-affected areas client acquisition cost, lack of credit history of setting up GTIDS, Kumar worked in the financial branches etc. GTIDS partnered with Atyati Tech- and become prime recruitment targets for extrem- with high school dropout rates such as Jharkhand, clients, geographic distances and sporadic popu- inclusion space for over 5 years, in diverse orga- nologies (recently acquired by Genpact Limited) ist groups, especially in the red corridor districts Chhattisgarh, Bihar, Assam and Meghalaya. lation density. To overcome these barriers and nizations such as ICICI Bank, Intellecap and to provide the technology platform as well as a of East India. At the same time, India faces an GTIDS chose to begin operations in the LIS due bridge the gap between banks and rural popula- MFIs from Andhra Pradesh, Odisha and Karna- fully automated information system for data enormous gap between supply and demand for to their low levels of financial inclusion. Any Realizing the potential of the CSP network, tion, new forms of branchless banking options taka. The core management team at GTIDS has collection and information management. GTIDS skilled human resources to fuel economic growth. effort to provide financial access had potential to GTIDS and Genpact (Information technology have emerged. Banks are leveraging advances in extensive experience in rural development. has already employed more than 4,650 CSPs According to GTETS, 15 million youth need create a significant impact in mainstreaming rural partner) have been jointly exploring new busi- information technology in order to provide finan- Santanu Mohanty, another XIMB alumnus, has across ten states and opened more than 1.2 million initial vocational training every year in India, population from these states. GTIDS opened more nesses opportunities that could use the CSPs as a cial services in remote rural areas through busi- pioneered several self-reliant co-operative initia- no-frills accounts, in less than two years. while the existing private and public training than one million no-frills accounts in states such potential distribution channel. GTIDS also plans ness correspondents (BC) such as NGOs, self- tives as a State Coordinator with the Government capacity can only cater to 3 million youth. as Odisha, West Bengal, Bihar and Uttar Pradesh. to leverage this network to offer multiple non- help groups (SHGs), microfinance institutions of Odisha for over 3 decades. Himansu Sahoo, Under the financial inclusion umbrella, GTIDS GTETS was established to meet this demand- MNREGA and Pension Payments are currently financial products and services to rural popula- (MFIs), non-banking financial companies also from XIMB, has more than a decade of expe- also distributes payments to beneficiaries of supply gap and improve employability of youth in provided in West Bengal, with plans to extend tion. One such opportunity is the distribution of (NBFCs). rience in livelihoods promotion, specializing in welfare schemes such as the Mahatma Gandhi East India. them to other low-income states by the end of solar kits through its CSPs. GTIDS plans to earn tribal livelihoods and capacity building. National Rural Employment Guarantee Act 2012. about INR 1.5 crores (USD 0.2 mn) in this finan- setting up (MGNREGA), Social Security Pension payments GTETS provides technical, soft skills and indus- cial year through sales of solar kits to its CSPs. It Providing financial inclusion to rural and others. Till date, GTIDS has distributed more try specific skills training to disadvantaged youth GTETS began its training operations in the Paral- plans to scale this activity up, by reaching rural akhemundi district of Gajapati, one of the customers through their growing network of customers in the low-income states the business model than INR 2 billion (USD 38.29 millions) through a hub-and-spoke model, where ten satel- Building an infrastructure of using local earmarked for MGNREGA and Social Security lite centers are established around one hub. Cen- extremist-affected districts of Odisha with a CSPs. By extending financial access and liveli- Pensions in West Bengal. While this payment turion Group’s educational institutes serve as the machinist training program for school dropouts. hood opportunities to India’s rural populations, Gram Tarang Inclusive Development Services customer service providers and information service is currently offered only in Tripura and hub at the city level while GTETS establishes Over 75% of GTETS-trained candidates are from GTIDS is eliminating key barriers to rural devel- (GTIDS) is has setup operations in Assam, Bihar, technology West Bengal, GTIDS plans to expand it to other satellite centers at the district level. scheduled castes, scheduled tribes and other back- opment and supporting the movement with inclu- West Bengal and Uttar Pradesh. It works as a states by the end of 2012. GTIDS is also working ward castes originating from disadvantaged sive growth. Business Correspondent for banks such as Andhra GTIDS currently has a mandate to work as a BC with United Bank of India to implement the GTETS has entered into partnerships with districts of Odisha and Andhra Pradesh. Bank, Punjab National Bank, and Union Bank of for 5 banks - Andhra Bank, Punjab National Bank, UIDAI’s Aadhaar Project in West Bengal. government authorities, NGOs, SHGs and corpo- India, and provides financial services on their United Bank of India, Union Bank of India and

25 SocialSocial ImpactImpact Axis Bank. It operates in ten states in eastern and Exploring opportunities to leverage its CSP north-eastern India. GTIDS’ business model network to offer its customers non-financial prod- GTIDS has provided financial inclusion to more Social Security Pensions in West Bengal. includes two key components – the Customer ucts and services, GTIDS undertook distribution than 1.2 million rural customers and about 50% of Service Provider (CSP) and Information Technol- of solar kits manufactured by Thrive Energy these account holders are women. It has provided GTETS has successfully trained more than 10,000 ogy Provider (ITP). The CSP is a local representa- Technologies. Currently, it distributes solar kits employment to more than 4600 local individuals students in eastern India with a strong placement tive from the village executing ground operations, worth INR 27,000 (~USD 385) to its CSPs, as as Customer Service Providers for the company, record of more than 80%. In recognition of its and the ITP provides technology infrastructure power cuts are rampant in the villages. The CSP with more than 60% of them being women. contribution in Naxal-hit states, GTETS was that facilitates and supports the CSPs. bears 10% of the solar kit cost upfront, 50% in the adjudged as the ‘Overall Best Performer’ for the form of EMIs, while NABARD subsidizes the GTIDS has distributed more than INR 2 billion year 2011-12 by National Skill Development remaining 40%. Going forward, GTIDS plans to (USD 38.29 million) under MGNREGA and Corporation. offer the same products to its rural customers. Skills Training Building skills for employability in socially rates for gathering youth who could be trained. The Road Ahead weaker sections of society Till date, GTETS has trained over 10,000 students Expanding to new geographies, exploring new in collaboration with government departments. In opportunities by leveraging network of CSPs In its quest for inclusive growth, India faces a behalf to rural customers in the LIS. GTIDS GTIDS’ sister concern -- Gram Tarang Employ- addition, more than 400 youth referred by GTIDS huge challenge of mainstreaming 70% of the services include saving accounts, retail loans, GTIDS manages the recruitment and training of ability Training Services (GTETS) – is a skill have been trained and employed with corporates population that resides in rural areas. Lack of cash management products, and cash remittance the CSP in the villages. It employs one CSP per building initiative targeting the socially weaker such as Ashok Leyland Chennai, Cafe Coffee Both GTIDS and GTETS are planning to expand access to formal financial services is a major services. village and equips them with a laptop, biometric sections of society. Millions of young Indians Day, TVS Sundaram Fastners, Jindal Steel etc. in the next few years. GTIDS plans to extend its impediment to achieving this goal. According to device, smart card reader, data card printer etc. drop out of school each year, especially in rural services to about 20,000 villages, by increasing the RBI estimates, more than 60% of the popula- GTIDS was established in 2011 by Venkat Siva- The CSPs provide services such as opening of India. They remain unskilled and are unable to Operations in Low-Income States (LIS) the size and strength of its CSP network. During tion in rural India is unbanked. Banks find it unvi- nand Kumar, an alumnus of Xavier Institute of accounts, personalization and delivery of smart sustain livelihoods or generate incomes. As a Providing financial inclusion and employabil- this time, GTETS aims to expand its training able to set up branches in remote areas due to high Management Bhubaneshwar (XIMB). Before network outside of East India, and to other states cards, cash management, liaising with the base result, they suffer social and economic exclusion, ity to villagers in Naxal-affected areas client acquisition cost, lack of credit history of setting up GTIDS, Kumar worked in the financial branches etc. GTIDS partnered with Atyati Tech- and become prime recruitment targets for extrem- with high school dropout rates such as Jharkhand, clients, geographic distances and sporadic popu- inclusion space for over 5 years, in diverse orga- nologies (recently acquired by Genpact Limited) ist groups, especially in the red corridor districts Chhattisgarh, Bihar, Assam and Meghalaya. lation density. To overcome these barriers and nizations such as ICICI Bank, Intellecap and to provide the technology platform as well as a of East India. At the same time, India faces an GTIDS chose to begin operations in the LIS due bridge the gap between banks and rural popula- MFIs from Andhra Pradesh, Odisha and Karna- fully automated information system for data enormous gap between supply and demand for to their low levels of financial inclusion. Any Realizing the potential of the CSP network, tion, new forms of branchless banking options taka. The core management team at GTIDS has collection and information management. GTIDS skilled human resources to fuel economic growth. effort to provide financial access had potential to GTIDS and Genpact (Information technology have emerged. Banks are leveraging advances in extensive experience in rural development. has already employed more than 4,650 CSPs According to GTETS, 15 million youth need create a significant impact in mainstreaming rural partner) have been jointly exploring new busi- information technology in order to provide finan- Santanu Mohanty, another XIMB alumnus, has across ten states and opened more than 1.2 million initial vocational training every year in India, population from these states. GTIDS opened more nesses opportunities that could use the CSPs as a cial services in remote rural areas through busi- pioneered several self-reliant co-operative initia- no-frills accounts, in less than two years. while the existing private and public training than one million no-frills accounts in states such potential distribution channel. GTIDS also plans ness correspondents (BC) such as NGOs, self- tives as a State Coordinator with the Government capacity can only cater to 3 million youth. as Odisha, West Bengal, Bihar and Uttar Pradesh. to leverage this network to offer multiple non- help groups (SHGs), microfinance institutions of Odisha for over 3 decades. Himansu Sahoo, Under the financial inclusion umbrella, GTIDS GTETS was established to meet this demand- MNREGA and Pension Payments are currently financial products and services to rural popula- (MFIs), non-banking financial companies also from XIMB, has more than a decade of expe- also distributes payments to beneficiaries of supply gap and improve employability of youth in provided in West Bengal, with plans to extend tion. One such opportunity is the distribution of (NBFCs). rience in livelihoods promotion, specializing in welfare schemes such as the Mahatma Gandhi East India. them to other low-income states by the end of solar kits through its CSPs. GTIDS plans to earn tribal livelihoods and capacity building. National Rural Employment Guarantee Act 2012. about INR 1.5 crores (USD 0.2 mn) in this finan- setting up (MGNREGA), Social Security Pension payments GTETS provides technical, soft skills and indus- cial year through sales of solar kits to its CSPs. It Providing financial inclusion to rural and others. Till date, GTIDS has distributed more try specific skills training to disadvantaged youth GTETS began its training operations in the Paral- plans to scale this activity up, by reaching rural akhemundi district of Gajapati, one of the customers through their growing network of customers in the low-income states the business model than INR 2 billion (USD 38.29 millions) through a hub-and-spoke model, where ten satel- Building an infrastructure of using local earmarked for MGNREGA and Social Security lite centers are established around one hub. Cen- extremist-affected districts of Odisha with a CSPs. By extending financial access and liveli- Pensions in West Bengal. While this payment turion Group’s educational institutes serve as the machinist training program for school dropouts. hood opportunities to India’s rural populations, Gram Tarang Inclusive Development Services customer service providers and information service is currently offered only in Tripura and hub at the city level while GTETS establishes Over 75% of GTETS-trained candidates are from GTIDS is eliminating key barriers to rural devel- (GTIDS) is has setup operations in Assam, Bihar, technology West Bengal, GTIDS plans to expand it to other satellite centers at the district level. scheduled castes, scheduled tribes and other back- opment and supporting the movement with inclu- West Bengal and Uttar Pradesh. It works as a states by the end of 2012. GTIDS is also working ward castes originating from disadvantaged sive growth. Business Correspondent for banks such as Andhra GTIDS currently has a mandate to work as a BC with United Bank of India to implement the GTETS has entered into partnerships with districts of Odisha and Andhra Pradesh. Bank, Punjab National Bank, and Union Bank of for 5 banks - Andhra Bank, Punjab National Bank, UIDAI’s Aadhaar Project in West Bengal. government authorities, NGOs, SHGs and corpo- India, and provides financial services on their United Bank of India, Union Bank of India and

26 IDEAS for impact Greenlight Planet India

GreenLight's village employees earn incremental income of over USD 45/month In the beginning, talent acquisition, setting up a Greenlight’s India unit had sold over 102,792 Year of Establishment: 2008 distribution channel and handling paperwork units of lamps in the last fiscal year. From Febru- Promoters: Patrick Walsh, Anish Thakkar and Mayank Sekhsaria were some of the main challenges that the enter- ary to August 2012, it has already sold over prise faced. As Sekhsaria puts it, “The biggest 85,000 units. challenge was to do a lot with limited resources.” Greenlight Planet manufactures and distributes King brand solar lanterns with a focus on durabil- Bihar was the first state Greenlight focused on as The Business Model durable, multi-use PV lighting devices targeted at ity and affordability, and distributes the lamps it had one of the lowest electrification levels in Ensuring last mile delivery through an people who do not have access to electricity. through a growing direct-sales force comprised of the country combined with high poverty. Subse- Majority of its customers are farmers and small local community members. It works in three low- quently, they added operations in Odisha and innovative distribution model business owners with earnings of less than INR income states, viz. Bihar, Odisha and Uttar Uttar Pradesh. Currently, Greenlight has 2 million 3,000 per month. Pradesh. These states have contributed 72% to the users with footprints in over 25 countries. Greenlight’s customer base primarily constitutes enterprise’s total revenue in 2011-12. farmers (58%) and small business owners (23%) Greenlight designs its flagship product, the Sun The Products - Sun King Solo and Sun with 52% of its customers earning less than INR 3,000 (~USD 57) per month. Reaching out to such King Pro under-served populations in remote areas is diffi- 2009, and once the model was proven, it was tion networks and forging new partnerships replicated in Odisha and Uttar Pradesh. In the last Over 400 million people in India still lack elec- generator to light their homes. Replacing inefficient, expensive and unsafe cult. Greenlight Planet meets this challenge by to achieve wider impact fiscal year, Greenlight’s LIS operations contrib- tricity and depend on polluting, unsafe and expen- traditional kerosene lanterns with low- adopting a two-fold distribution and partnership strategy: the direct to village (DTV) network and uted 72% to total revenue. LIS operations are sive kerosene lanterns for lighting. These Sekhsaria, one of the co-founders says, “We were cost, efficient solar lamps Greenlight is targeting INR 87.4 crores (USD working with established local partners. expected to contribute towards 88% of total consumers spend more than INR 100 (USD 1.9) quick to realize that centralized grid electrifica- 16.7 million) in revenues in 2013-14, an exponen- revenue by 2013-14. every month on kerosene for lanterns and endure tion could not scale quickly enough to meet the tial growth plan when compared to the INR 8.3 Greenlight Planet manufactures and distributes Through DTV, Greenlight trains and recruits dim, flickering light, unpleasant smoke and a massive needs of people in rural areas who still crores (USD 1.5 million) earned in 2011-12. It multi-use PV lighting devices targeted at people thousands of village level entrepreneurs or ‘saa- The low-income states have some of the lowest constant risk of catastrophic fires. Greenlight live without access to electricity. We felt that a plans to consolidate existing operations and build who do not have access to electricity. Applying this’ (meaning companions) to become educators access to electricity figures in India. These states Planet’s solar-LED lights directly replace kero- scalable solution had to start from the ground up, a pan-India presence for its distribution network. light-emitting diodes (LEDs) and the supply chain and dealers of solar lights. It takes a long-term are also the toughest to penetrate for manufactur- sene lanterns from homes, entirely freeing fami- and it had to adequately meet consumer demand.” It also aims to release an upgraded product every and manufacturing processes used by the broader livelihood approach that assists Saathis in becom- ers. Greenlight, through its DTV network, has lies of the associated recurring expense and risk. The founders had started working on the idea in 4-6 months, as well as expand to additional prod- consumer electronics sector, Greenlight Planet ing microentrepreneurs and earning significant been able to build an arm to reach out to these Registered in 2008, Greenlight Planet designs its 2005, and by 2008, they had the Sun King final- uct lines. manufactures bright, durable lanterns that replace supplementary incomes. This helps Greenlight to remote villages. Sekhsaria explains that even Sun King brand solar lanterns with a focus on ized. The founders left their jobs in the U.S. and the traditional kerosene “hurricane” lamp. effectively and efficiently reach remote and within the LIS there are vast differences and a durability, and distributes them through a growing came back to India to register Greenlight Planet The strategy for horizontal expansion will begin underserved markets. model that has succeeded in Bihar, may not direct sales force comprising local community as a Private Limited company in 2008 and start with add-on products to the Sun King line, before succeed in Odisha unless it has been modified to members. With a 255 member-strong team, it operations in mid-2009. expanding more broadly to encompass product To supplement the DTV network and reach geog- suit the local context. He elaborates, “In Bihar, operates in Bihar, Uttar Pradesh and Odisha. lines that have huge market potential in the BoP raphies where Greenlight does not yet have a due to lack of opportunity, more people were will- space such as efficient cook stoves, clean water direct sales force, it works with established local ing to become saathis. In Odisha, where the The Founding Team systems, agricultural processing equipment, partners. Greenlight’s local partners are NGOs, education level among youth was higher, recruit- thermo-electric generators. Sekhsaria best articu- Introducing life changing technology solu- Corporate Social Responsibility (CSR) programs, ing saathis was more difficult. The NGO network lates Greenlight’s thought process. He says, “Our tions to improve access to energy development sector organizations, distributors, in Odisha, however, is good and we tapped into it foremost goal is to solve the access to energy informal retailers, MFIs etc. These local partners to market our product.” It offers two types of solar lanterns - Sun King problem for the BoP. The magnitude of the prob- Greenlight Planet was founded by three graduates are well-entrenched in their communities, and this Solo and Sun King Pro priced at INR 900 (USD lem is so large that we can never solve the prob- from the University of Illinois - Patrick Walsh, helps the enterprise leverage their knowledge of The Road Ahead 17) and INR1,600 (USD 30.5) respectively. These lem alone; it requires a joint effort by many. We Anish Thakkar and Mayank Sekhsaria. In 2005, the business environment and customer prefer- are respectively 5 and 10 times brighter than kero- Expanding existing product lines, distribu- wish to influence more entrepreneurs to work in on an assignment with an NGO ‘Engineers with- As the product was targeted at the Bottom of the ences. sene lamps and are the lowest priced solar lights this space.” out Borders’, Patrick Walsh spent time setting up Pyramid (BoP) segment, affordability was a big available for appropriately lighting a villager’s a biodiesel generator to operate farm implements concern. In order to keep costs low while retain- entire home. Where alternative products – Nickel Operations in Low-Income States (LIS) in a remote un-electrified village in Odisha. Six ing high quality, Patrick Walsh moved to China, Cadmium or Lead Acid batteries last for 10-12 months later, when he returned to the state to where the company has outsourced its manufac- Leveraging local knowledge to bring elec- months, Greenlight’s solar lanterns were the first track progress of the project, he found that the turing. Walsh is in charge of production and R&D, tricity to underserved areas to use Lithium Ferro Phosphate battery technol- generator was used daily as expected, but not to while Thakkar and Sheksaria in Mumbai concen- ogy, which ensures light for 5 years before requir- power farm implements. Rather, the villagers had trate on marketing and distribution, expansion, ing a battery replacement. Greenlight launched its operations in Bihar in wired the whole village to use the power from the brand building and raising capital.

28 In the beginning, talent acquisition, setting up a Greenlight’s India unit had sold over 102,792 distribution channel and handling paperwork units of lamps in the last fiscal year. From Febru- were some of the main challenges that the enter- ary to August 2012, it has already sold over prise faced. As Sekhsaria puts it, “The biggest 85,000 units. challenge was to do a lot with limited resources.” Bihar was the first state Greenlight focused on as The Business Model it had one of the lowest electrification levels in Ensuring last mile delivery through an the country combined with high poverty. Subse- quently, they added operations in Odisha and innovative distribution model Uttar Pradesh. Currently, Greenlight has 2 million users with footprints in over 25 countries. Greenlight’s customer base primarily constitutes farmers (58%) and small business owners (23%) The Products - Sun King Solo and Sun with 52% of its customers earning less than INR 3,000 (~USD 57) per month. Reaching out to such King Pro under-served populations in remote areas is diffi- 2009, and once the model was proven, it was tion networks and forging new partnerships replicated in Odisha and Uttar Pradesh. In the last Over 400 million people in India still lack elec- generator to light their homes. Replacing inefficient, expensive and unsafe cult. Greenlight Planet meets this challenge by to achieve wider impact fiscal year, Greenlight’s LIS operations contrib- tricity and depend on polluting, unsafe and expen- traditional kerosene lanterns with low- adopting a two-fold distribution and partnership strategy: the direct to village (DTV) network and uted 72% to total revenue. LIS operations are sive kerosene lanterns for lighting. These Sekhsaria, one of the co-founders says, “We were cost, efficient solar lamps Greenlight is targeting INR 87.4 crores (USD working with established local partners. expected to contribute towards 88% of total consumers spend more than INR 100 (USD 1.9) quick to realize that centralized grid electrifica- 16.7 million) in revenues in 2013-14, an exponen- revenue by 2013-14. every month on kerosene for lanterns and endure tion could not scale quickly enough to meet the tial growth plan when compared to the INR 8.3 Greenlight Planet manufactures and distributes Through DTV, Greenlight trains and recruits dim, flickering light, unpleasant smoke and a massive needs of people in rural areas who still crores (USD 1.5 million) earned in 2011-12. It multi-use PV lighting devices targeted at people thousands of village level entrepreneurs or ‘saa- The low-income states have some of the lowest constant risk of catastrophic fires. Greenlight live without access to electricity. We felt that a plans to consolidate existing operations and build who do not have access to electricity. Applying this’ (meaning companions) to become educators access to electricity figures in India. These states Planet’s solar-LED lights directly replace kero- scalable solution had to start from the ground up, a pan-India presence for its distribution network. light-emitting diodes (LEDs) and the supply chain and dealers of solar lights. It takes a long-term are also the toughest to penetrate for manufactur- sene lanterns from homes, entirely freeing fami- and it had to adequately meet consumer demand.” It also aims to release an upgraded product every and manufacturing processes used by the broader livelihood approach that assists Saathis in becom- ers. Greenlight, through its DTV network, has lies of the associated recurring expense and risk. The founders had started working on the idea in 4-6 months, as well as expand to additional prod- consumer electronics sector, Greenlight Planet ing microentrepreneurs and earning significant been able to build an arm to reach out to these Registered in 2008, Greenlight Planet designs its 2005, and by 2008, they had the Sun King final- uct lines. manufactures bright, durable lanterns that replace supplementary incomes. This helps Greenlight to remote villages. Sekhsaria explains that even Sun King brand solar lanterns with a focus on ized. The founders left their jobs in the U.S. and the traditional kerosene “hurricane” lamp. effectively and efficiently reach remote and within the LIS there are vast differences and a durability, and distributes them through a growing came back to India to register Greenlight Planet The strategy for horizontal expansion will begin underserved markets. model that has succeeded in Bihar, may not direct sales force comprising local community as a Private Limited company in 2008 and start with add-on products to the Sun King line, before succeed in Odisha unless it has been modified to members. With a 255 member-strong team, it operations in mid-2009. expanding more broadly to encompass product To supplement the DTV network and reach geog- suit the local context. He elaborates, “In Bihar, operates in Bihar, Uttar Pradesh and Odisha. lines that have huge market potential in the BoP raphies where Greenlight does not yet have a due to lack of opportunity, more people were will- space such as efficient cook stoves, clean water direct sales force, it works with established local ing to become saathis. In Odisha, where the The Founding Team systems, agricultural processing equipment, partners. Greenlight’s local partners are NGOs, education level among youth was higher, recruit- thermo-electric generators. Sekhsaria best articu- Introducing life changing technology solu- Corporate Social Responsibility (CSR) programs, ing saathis was more difficult. The NGO network lates Greenlight’s thought process. He says, “Our tions to improve access to energy development sector organizations, distributors, in Odisha, however, is good and we tapped into it foremost goal is to solve the access to energy informal retailers, MFIs etc. These local partners to market our product.” It offers two types of solar lanterns - Sun King problem for the BoP. The magnitude of the prob- Greenlight Planet was founded by three graduates are well-entrenched in their communities, and this Solo and Sun King Pro priced at INR 900 (USD lem is so large that we can never solve the prob- from the University of Illinois - Patrick Walsh, helps the enterprise leverage their knowledge of The Road Ahead 17) and INR1,600 (USD 30.5) respectively. These lem alone; it requires a joint effort by many. We Anish Thakkar and Mayank Sekhsaria. In 2005, the business environment and customer prefer- are respectively 5 and 10 times brighter than kero- Expanding existing product lines, distribu- wish to influence more entrepreneurs to work in on an assignment with an NGO ‘Engineers with- As the product was targeted at the Bottom of the ences. sene lamps and are the lowest priced solar lights this space.” out Borders’, Patrick Walsh spent time setting up Pyramid (BoP) segment, affordability was a big available for appropriately lighting a villager’s a biodiesel generator to operate farm implements concern. In order to keep costs low while retain- entire home. Where alternative products – Nickel Operations in Low-Income States (LIS) in a remote un-electrified village in Odisha. Six ing high quality, Patrick Walsh moved to China, Cadmium or Lead Acid batteries last for 10-12 months later, when he returned to the state to where the company has outsourced its manufac- Leveraging local knowledge to bring elec- months, Greenlight’s solar lanterns were the first track progress of the project, he found that the turing. Walsh is in charge of production and R&D, tricity to underserved areas to use Lithium Ferro Phosphate battery technol- generator was used daily as expected, but not to while Thakkar and Sheksaria in Mumbai concen- ogy, which ensures light for 5 years before requir- power farm implements. Rather, the villagers had trate on marketing and distribution, expansion, ing a battery replacement. Greenlight launched its operations in Bihar in wired the whole village to use the power from the brand building and raising capital.

29 SocialSocial ImpactImpact In the beginning, talent acquisition, setting up a Greenlight’s India unit had sold over 102,792 distribution channel and handling paperwork units of lamps in the last fiscal year. From Febru- Greenlight Planet has reached 4 million custom- Access to light also increases the villagers’ were some of the main challenges that the enter- ary to August 2012, it has already sold over ers in 4 years of operations. Some of its customers productivity and available hours for work. The prise faced. As Sekhsaria puts it, “The biggest 85,000 units. are in the most under-developed parts of India. impact study also revealed that Sun King house challenge was to do a lot with limited resources.” The company has promoted over 1,000 microen- holds have reduced their kerosene usage by 50%, Bihar was the first state Greenlight focused on as The Business Model trepreneurs or ‘saathis’. A third party impact lowering their contribution to air pollution. it had one of the lowest electrification levels in Ensuring last mile delivery through an study found that the Saathis earn a monthly incre- According to Greenlight, Sun King families the country combined with high poverty. Subse- mental income of over USD 45 by selling reported that their children were motivated to quently, they added operations in Odisha and innovative distribution model Greenlight products. learn and add 2 productive hours to their day. Uttar Pradesh. Currently, Greenlight has 2 million users with footprints in over 25 countries. Greenlight’s customer base primarily constitutes farmers (58%) and small business owners (23%) The Products - Sun King Solo and Sun with 52% of its customers earning less than INR 3,000 (~USD 57) per month. Reaching out to such King Pro under-served populations in remote areas is diffi- 2009, and once the model was proven, it was tion networks and forging new partnerships replicated in Odisha and Uttar Pradesh. In the last Over 400 million people in India still lack elec- generator to light their homes. Replacing inefficient, expensive and unsafe cult. Greenlight Planet meets this challenge by to achieve wider impact fiscal year, Greenlight’s LIS operations contrib- tricity and depend on polluting, unsafe and expen- traditional kerosene lanterns with low- adopting a two-fold distribution and partnership strategy: the direct to village (DTV) network and uted 72% to total revenue. LIS operations are sive kerosene lanterns for lighting. These Sekhsaria, one of the co-founders says, “We were cost, efficient solar lamps Greenlight is targeting INR 87.4 crores (USD working with established local partners. expected to contribute towards 88% of total consumers spend more than INR 100 (USD 1.9) quick to realize that centralized grid electrifica- 16.7 million) in revenues in 2013-14, an exponen- revenue by 2013-14. every month on kerosene for lanterns and endure tion could not scale quickly enough to meet the tial growth plan when compared to the INR 8.3 Greenlight Planet manufactures and distributes Through DTV, Greenlight trains and recruits dim, flickering light, unpleasant smoke and a massive needs of people in rural areas who still crores (USD 1.5 million) earned in 2011-12. It multi-use PV lighting devices targeted at people thousands of village level entrepreneurs or ‘saa- The low-income states have some of the lowest constant risk of catastrophic fires. Greenlight live without access to electricity. We felt that a plans to consolidate existing operations and build who do not have access to electricity. Applying this’ (meaning companions) to become educators access to electricity figures in India. These states Planet’s solar-LED lights directly replace kero- scalable solution had to start from the ground up, a pan-India presence for its distribution network. light-emitting diodes (LEDs) and the supply chain and dealers of solar lights. It takes a long-term are also the toughest to penetrate for manufactur- sene lanterns from homes, entirely freeing fami- and it had to adequately meet consumer demand.” It also aims to release an upgraded product every and manufacturing processes used by the broader livelihood approach that assists Saathis in becom- ers. Greenlight, through its DTV network, has lies of the associated recurring expense and risk. The founders had started working on the idea in 4-6 months, as well as expand to additional prod- consumer electronics sector, Greenlight Planet ing microentrepreneurs and earning significant been able to build an arm to reach out to these Registered in 2008, Greenlight Planet designs its 2005, and by 2008, they had the Sun King final- uct lines. manufactures bright, durable lanterns that replace supplementary incomes. This helps Greenlight to remote villages. Sekhsaria explains that even Sun King brand solar lanterns with a focus on ized. The founders left their jobs in the U.S. and the traditional kerosene “hurricane” lamp. effectively and efficiently reach remote and within the LIS there are vast differences and a durability, and distributes them through a growing came back to India to register Greenlight Planet The strategy for horizontal expansion will begin underserved markets. model that has succeeded in Bihar, may not direct sales force comprising local community as a Private Limited company in 2008 and start with add-on products to the Sun King line, before succeed in Odisha unless it has been modified to members. With a 255 member-strong team, it operations in mid-2009. expanding more broadly to encompass product To supplement the DTV network and reach geog- suit the local context. He elaborates, “In Bihar, operates in Bihar, Uttar Pradesh and Odisha. lines that have huge market potential in the BoP raphies where Greenlight does not yet have a due to lack of opportunity, more people were will- space such as efficient cook stoves, clean water direct sales force, it works with established local ing to become saathis. In Odisha, where the The Founding Team systems, agricultural processing equipment, partners. Greenlight’s local partners are NGOs, education level among youth was higher, recruit- thermo-electric generators. Sekhsaria best articu- Introducing life changing technology solu- Corporate Social Responsibility (CSR) programs, ing saathis was more difficult. The NGO network lates Greenlight’s thought process. He says, “Our tions to improve access to energy development sector organizations, distributors, in Odisha, however, is good and we tapped into it foremost goal is to solve the access to energy informal retailers, MFIs etc. These local partners to market our product.” It offers two types of solar lanterns - Sun King problem for the BoP. The magnitude of the prob- Greenlight Planet was founded by three graduates are well-entrenched in their communities, and this Solo and Sun King Pro priced at INR 900 (USD lem is so large that we can never solve the prob- from the University of Illinois - Patrick Walsh, helps the enterprise leverage their knowledge of The Road Ahead 17) and INR1,600 (USD 30.5) respectively. These lem alone; it requires a joint effort by many. We Anish Thakkar and Mayank Sekhsaria. In 2005, the business environment and customer prefer- are respectively 5 and 10 times brighter than kero- Expanding existing product lines, distribu- wish to influence more entrepreneurs to work in on an assignment with an NGO ‘Engineers with- As the product was targeted at the Bottom of the ences. sene lamps and are the lowest priced solar lights this space.” out Borders’, Patrick Walsh spent time setting up Pyramid (BoP) segment, affordability was a big available for appropriately lighting a villager’s a biodiesel generator to operate farm implements concern. In order to keep costs low while retain- entire home. Where alternative products – Nickel Operations in Low-Income States (LIS) in a remote un-electrified village in Odisha. Six ing high quality, Patrick Walsh moved to China, Cadmium or Lead Acid batteries last for 10-12 months later, when he returned to the state to where the company has outsourced its manufac- Leveraging local knowledge to bring elec- months, Greenlight’s solar lanterns were the first track progress of the project, he found that the turing. Walsh is in charge of production and R&D, tricity to underserved areas to use Lithium Ferro Phosphate battery technol- generator was used daily as expected, but not to while Thakkar and Sheksaria in Mumbai concen- ogy, which ensures light for 5 years before requir- power farm implements. Rather, the villagers had trate on marketing and distribution, expansion, ing a battery replacement. Greenlight launched its operations in Bihar in wired the whole village to use the power from the brand building and raising capital.

30 IDEAS for impact Greenway Grameen Infra

Greenway Grameen's product is projected to impact 14 lakh women ally finalized the current design. Juneja says, “We similarly or slightly higher than the GSS. Year of Establishment: 2010 kept the prototypes in around 50 shops and final- Promoters: Neha Juneja and Ankit Mathur ized the product on the basis of the prototype that GSS employs a patent-pending reducer cone people were willing to buy.” She elaborates, mechanism that induces air flow into the stove “Engaging with consumers not only helped us without the use of a fan. Given the user’s indi- Greenway Grameen Infra (GGI) develops innova- feedback along with state-of-the-art technological design a better product but also provided critical cated requirements, the stove automatically tive solutions for rural consumers based on their tools. Interacting with consumers helps them in inputs in pricing points and other consumer adjusts air intake. This provides clean combustion unique heat transfer technology. The Greenway capturing design inputs as well as pricing and related knowledge”. through proper self-regulation of air flow. The Smart Stove emits less smoke and uses a smaller consumer-related insights. GGI works in six low- design also shuns conventional ceramics, thus amount of fuel as compared to the traditional mud income states (LIS), viz. Jharkhand, Bihar, Rajas- The prototype was ready, but marketing the smart providing long-term durability. stove or ‘chulha’, thereby reducing indoor pollu- than, UP, Odisha and West Bengal. These states stove was not easy. Some of the main challenges grocery shops, retail outlets, utensil stores and Faridabad as compared to Palakkad. Despite these tion. represent over 50% of their target market and that Juneja and Mathur faced include creating a GGI is working on three other products - a waste- hardware shops in addition to putting up indepen- obstacles, Juneja and Mathur believe that given have contributed 41% to the enterprise’s annual strong distribution network, talent acquisition and heat electricity generator, point-of-use water puri- dent booths and doing live selling. Besides rural the lack of other viable options in these areas, the GGI’s product design process combines user revenue in 2011-2012. retention, and overcoming registration and fiers and sanitary napkins. The GSS and other households, the company has expanded its LIS present the opportunity for developing paperwork-related complexities for smooth upcoming products are based on GGI’s propri- customer base to include government agencies, distinct product categories and enabling huge inter-state trade within the country. etary heat and air-flow transfer simulation tech- Fuel usage in rural India tends to be inefficient. A Setting Up NGOs and other community development initia- impact. niques. large number of rural Indian households use kero- Solving energy problems of rural consumers tives. sene for lighting hurricane lanterns, and biomass The Greenway Smart Stove through a unique heat transfer technology for cooking on traditional mud stoves. Given the The Business Model The Road Ahead Creating an efficient alternative to tradi- Operations in Low-Income States (LIS) poorly ventilated kitchens in most households, Co-creating innovative products with users Developing new products, setting up better tional mud stoves Developing innovative solutions to mitigate this energy usage is not only wasteful, but also GGI was started by Neha Juneja and Ankit and state-of-the-art technology supply chains and entering new markets harmful to health. Indoor air pollution from tradi- Mathur, who both have engineering and MBA unique challenges in the LIS tional cooking stoves is alone responsible for degrees. Their first startup idea, aisapaisa.com, a Around 160 million rural households in India use By fiscal year 2012-13, GGI is targeting INR 4 300,000 deaths per year1. futures and options portal offering insights and mud stoves to cook. Although rural households The product co-creation process helps the GGI At present GGI supplies the GSS to six LIS states, crores (USD 760,000) in revenues, an exponential advice to retail investors failed. After have increasingly acquired assets such as televi- team develop an in-depth understanding of their namely, Jharkhand, Bihar, Rajasthan, Uttar growth plan when compared to the INR 53.76 GGI, a Mumbai-based social enterprise, focuses aisapaisa.com, they started Greenway Ecodevel- sions, motorcycles and cell phones, women customers. This feeds back into product design Pradesh, Odisha and West Bengal. In the last lakhs (USD 102,000) earned in 2011-2012. In on developing products for the base of the opment, which offered consultancy services for continue to cook on traditional mud stoves. This and improvement. Their knowledge of the agri- fiscal year, GGI’s LIS operations contributed 41% addition to catering to the high demand for GSS, economic pyramid (BoP) market and creating a natural resource management, carbon finance and adversely impacts the health of the entire house- culture cycle and cash flow in rural India has to total revenue. This share is projected to Juneja and Mathur plan to focus more on the robust distribution channel for disseminating carbon credits. These consultancy assignments hold. Created as an efficient alternative, the GSS helped them design appropriate marketing strate- increase to 65% by 2014-2015. research and development of new products and these products. Registered in 2010 as a private gave them a better understanding of rural is competitively priced and is fuel agnostic, as it gies for each segment of their clientele. For creating networks for marketing. GGI also plans limited company, it developed its first successful consumers and markets. The income that came works on any type of biomass fuel. example, larger landowners tended to have GGI’s experience in these states has led them to to develop a better version of the GSS. Its pipe- product, a portable metallic stove called the from Greenway Ecodevelopment cross- disposable income during the harvest period, believe that they require newer and innovative line of innovations includes a community stove Greenway Smart Stove (GSS) in late 2011.The subsidized the travel and product development while farm laborers tended to have disposable ways to work as compared to some of the other which can cook for 50-100 people and a product GSS is targeted at the rural and urban poor who do cost for GGI. income during the sowing season. Says Juneja, states. Juneja says, “In low-income states, the called ‘Jugnu’ (meaning ‘firefly’) that will not have or cannot afford an LPG connection. “Our biggest strength is knowledge of the average gestation period is much longer as com- convert waste heat generated during cooking into Currently, GGI supplies its products to 12 Indian At GGI, their first product was a low-cost modu- consumer that we have built up.” This knowledge pared to high-income states such as Karnataka electricity. “Jugnu will capture this heat and states, six of which are LIS. It has 11 full time lar roofing project targeted at slum dwellers, who not only boosts sales of their present product, but and Kerala.” She elaborates, “When we started transfer it as electric charge to a battery. Essen- employees and has earned INR 0.5 crores (USD use tarpaulin to build their roofs. Even though the also serves to guide GGI in future product devel- working in Jharkhand, we had to first link tially, the device will act as a battery charger,” 102,000) in the 10 months that its sales operations product was technically sound, it did not generate opment. customers to Regional Rural Banks to enhance says Juneja. have been active. As of September 2012, GGI had much consumer interest. Juneja says, “We learned product affordability and only then the distribu- sold over 12,000 GSS units impacting 48,000 from the failure of our first product- it was The GSS burns 70% less fuel and produces GGI has partnered with NGOs and other commu- tors got interested in marketing and selling the GGI intends to raise capital from venture capital people with better savings, health and conve- designed in the lab and then taken to the consum- significantly lower emission. It is the only com- nity development initiatives to spread awareness 2 product.” Moreover, goods transportation costs to funds to set up robust supply chains for their nience. ers and it didn’t work”. mercially available portable and fuel-agnostic about the GSS, but does not engage them as distri- LIS states like Bihar is higher and the paperwork upcoming products. They aim to expand logistics stove in India which complies with and exceeds bution partners. The distribution model relies on required (road permits) to transport goods is also and taluka-level distribution capability in 16 For their next idea of designing efficient cook the Bureau of Indian Standards’ (BIS) prescribed developing four to five points of sale at every more complex and elaborate. For instance, the Indian states. As Juneja states, “Our immediate stoves for the BoP market, Juneja and Mathur efficiency and emissions (health) criteria. The taluka or block level, primarily through existing cost of transporting the stoves from GGI’s factory target is to be India’s largest biomass stove com- 1 Rajvanshi, A.K. 2009. “Energy R&D for Rural Development.” decided to co-create the product with the target GSS is priced at INR 1,250 (USD 24) per stove - in Faridabad, Haryana to Patna in Bihar is more pany by the end of the year.” In the long term, the National Technology Day and Professor B.D. Tilak Memorial consumers rather than designing it in the labora- most other improved cook stoves (Envirofit, Phil- Lecture at National Chemical Laboratory (NCL), Pune. 1 October. than transporting the goods to Palakkad in Kerala, GGI team has set their sights on being rural tory. After nine distinct prototypes, they eventu- ips Design, First Energy) in India are either priced http://www.nariphaltan.org/ncl.pdf though Patna is almost half the distance from India’s largest consumer goods company.

32 ally finalized the current design. Juneja says, “We similarly or slightly higher than the GSS. kept the prototypes in around 50 shops and finalized the product on the basis of the prototype that GSS employs a patent-pending reducer cone people were willing to buy.” She elaborates, mechanism that induces air flow into the stove “Engaging with consumers not only helped us without the use of a fan. Given the user’s indi- design a better product but also provided critical cated requirements, the stove automatically inputs in pricing points and other consumer adjusts air intake. This provides clean combustion related knowledge”. through proper self-regulation of air flow. The design also shuns conventional ceramics, thus The prototype was ready, but marketing the smart providing long-term durability. stove was not easy. Some of the main challenges grocery shops, retail outlets, utensil stores and Faridabad as compared to Palakkad. Despite these that Juneja and Mathur faced include creating a GGI is working on three other products - a waste- hardware shops in addition to putting up indepen- obstacles, Juneja and Mathur believe that given strong distribution network, talent acquisition and heat electricity generator, point-of-use water puri- dent booths and doing live selling. Besides rural the lack of other viable options in these areas, the retention, and overcoming registration and fiers and sanitary napkins. The GSS and other households, the company has expanded its LIS present the opportunity for developing paperwork-related complexities for smooth upcoming products are based on GGI’s propri- customer base to include government agencies, distinct product categories and enabling huge inter-state trade within the country. etary heat and air-flow transfer simulation tech- Fuel usage in rural India tends to be inefficient. A Setting Up NGOs and other community development initia- impact. niques. large number of rural Indian households use kero- Solving energy problems of rural consumers tives. sene for lighting hurricane lanterns, and biomass The Greenway Smart Stove through a unique heat transfer technology for cooking on traditional mud stoves. Given the The Business Model The Road Ahead Creating an efficient alternative to tradi- Operations in Low-Income States (LIS) poorly ventilated kitchens in most households, Co-creating innovative products with users Developing new products, setting up better tional mud stoves Developing innovative solutions to mitigate this energy usage is not only wasteful, but also GGI was started by Neha Juneja and Ankit and state-of-the-art technology supply chains and entering new markets harmful to health. Indoor air pollution from tradi- Mathur, who both have engineering and MBA unique challenges in the LIS tional cooking stoves is alone responsible for degrees. Their first startup idea, aisapaisa.com, a Around 160 million rural households in India use By fiscal year 2012-13, GGI is targeting INR 4 300,000 deaths per year1. futures and options portal offering insights and mud stoves to cook. Although rural households The product co-creation process helps the GGI At present GGI supplies the GSS to six LIS states, crores (USD 760,000) in revenues, an exponential advice to retail investors failed. After have increasingly acquired assets such as televi- team develop an in-depth understanding of their namely, Jharkhand, Bihar, Rajasthan, Uttar growth plan when compared to the INR 53.76 GGI, a Mumbai-based social enterprise, focuses aisapaisa.com, they started Greenway Ecodevel- sions, motorcycles and cell phones, women customers. This feeds back into product design Pradesh, Odisha and West Bengal. In the last lakhs (USD 102,000) earned in 2011-2012. In on developing products for the base of the opment, which offered consultancy services for continue to cook on traditional mud stoves. This and improvement. Their knowledge of the agri- fiscal year, GGI’s LIS operations contributed 41% addition to catering to the high demand for GSS, economic pyramid (BoP) market and creating a natural resource management, carbon finance and adversely impacts the health of the entire house- culture cycle and cash flow in rural India has to total revenue. This share is projected to Juneja and Mathur plan to focus more on the robust distribution channel for disseminating carbon credits. These consultancy assignments hold. Created as an efficient alternative, the GSS helped them design appropriate marketing strate- increase to 65% by 2014-2015. research and development of new products and these products. Registered in 2010 as a private gave them a better understanding of rural is competitively priced and is fuel agnostic, as it gies for each segment of their clientele. For creating networks for marketing. GGI also plans limited company, it developed its first successful consumers and markets. The income that came works on any type of biomass fuel. example, larger landowners tended to have GGI’s experience in these states has led them to to develop a better version of the GSS. Its pipe- product, a portable metallic stove called the from Greenway Ecodevelopment cross- disposable income during the harvest period, believe that they require newer and innovative line of innovations includes a community stove Greenway Smart Stove (GSS) in late 2011.The subsidized the travel and product development while farm laborers tended to have disposable ways to work as compared to some of the other which can cook for 50-100 people and a product GSS is targeted at the rural and urban poor who do cost for GGI. income during the sowing season. Says Juneja, states. Juneja says, “In low-income states, the called ‘Jugnu’ (meaning ‘firefly’) that will not have or cannot afford an LPG connection. “Our biggest strength is knowledge of the average gestation period is much longer as com- convert waste heat generated during cooking into Currently, GGI supplies its products to 12 Indian At GGI, their first product was a low-cost modu- consumer that we have built up.” This knowledge pared to high-income states such as Karnataka electricity. “Jugnu will capture this heat and states, six of which are LIS. It has 11 full time lar roofing project targeted at slum dwellers, who not only boosts sales of their present product, but and Kerala.” She elaborates, “When we started transfer it as electric charge to a battery. Essen- employees and has earned INR 0.5 crores (USD use tarpaulin to build their roofs. Even though the also serves to guide GGI in future product devel- working in Jharkhand, we had to first link tially, the device will act as a battery charger,” 102,000) in the 10 months that its sales operations product was technically sound, it did not generate opment. customers to Regional Rural Banks to enhance says Juneja. have been active. As of September 2012, GGI had much consumer interest. Juneja says, “We learned product affordability and only then the distribu- sold over 12,000 GSS units impacting 48,000 from the failure of our first product- it was The GSS burns 70% less fuel and produces GGI has partnered with NGOs and other commu- tors got interested in marketing and selling the GGI intends to raise capital from venture capital people with better savings, health and conve- designed in the lab and then taken to the consum- significantly lower emission. It is the only com- nity development initiatives to spread awareness 2 product.” Moreover, goods transportation costs to funds to set up robust supply chains for their nience. ers and it didn’t work”. mercially available portable and fuel-agnostic about the GSS, but does not engage them as distri- LIS states like Bihar is higher and the paperwork upcoming products. They aim to expand logistics stove in India which complies with and exceeds bution partners. The distribution model relies on required (road permits) to transport goods is also and taluka-level distribution capability in 16 For their next idea of designing efficient cook the Bureau of Indian Standards’ (BIS) prescribed developing four to five points of sale at every more complex and elaborate. For instance, the Indian states. As Juneja states, “Our immediate stoves for the BoP market, Juneja and Mathur efficiency and emissions (health) criteria. The taluka or block level, primarily through existing cost of transporting the stoves from GGI’s factory target is to be India’s largest biomass stove com- 1 Rajvanshi, A.K. 2009. “Energy R&D for Rural Development.” decided to co-create the product with the target GSS is priced at INR 1,250 (USD 24) per stove - 2 in Faridabad, Haryana to Patna in Bihar is more pany by the end of the year.” In the long term, the National Technology Day and Professor B.D. Tilak Memorial consumers rather than designing it in the labora- most other improved cook stoves (Envirofit, Phil- Fuel agnostic stoves run on all types of biomass Lecture at National Chemical Laboratory (NCL), Pune. 1 October. than transporting the goods to Palakkad in Kerala, GGI team has set their sights on being rural tory. After nine distinct prototypes, they eventu- ips Design, First Energy) in India are either priced fuel, such as wood, cow-dung and agro-waste. http://www.nariphaltan.org/ncl.pdf though Patna is almost half the distance from India’s largest consumer goods company.

33 SocialSocial ImpactImpact ally finalized the current design. Juneja says, “We similarly or slightly higher than the GSS. kept the prototypes in around 50 shops and final- The Greenway Smart Stove (GSS) delivers lifestyle, particularly that of women who are ized the product on the basis of the prototype that GSS employs a patent-pending reducer cone significant fuel savings and smoke reduction. The primarily responsible for cooking. Women are people were willing to buy.” She elaborates, mechanism that induces air flow into the stove fuel it uses is fully combusted, increasing thermal often forced to spend hours collecting wood and “Engaging with consumers not only helped us without the use of a fan. Given the user’s indi- efficiency and releasing less harmful emissions of other forms of biomass for cooking, resulting in design a better product but also provided critical cated requirements, the stove automatically carbon monoxide, carbon dioxide, particulate considerable pressure on local resources. GSS’ inputs in pricing points and other consumer adjusts air intake. This provides clean combustion matter and other greenhouse emissions. GSS lower and more efficient fuel use alleviates this related knowledge”. through proper self-regulation of air flow. The usage has a direct bearing on consumer health and situation. design also shuns conventional ceramics, thus The prototype was ready, but marketing the smart providing long-term durability. stove was not easy. Some of the main challenges grocery shops, retail outlets, utensil stores and Faridabad as compared to Palakkad. Despite these that Juneja and Mathur faced include creating a GGI is working on three other products - a waste- hardware shops in addition to putting up indepen- obstacles, Juneja and Mathur believe that given strong distribution network, talent acquisition and heat electricity generator, point-of-use water puri- dent booths and doing live selling. Besides rural the lack of other viable options in these areas, the retention, and overcoming registration and fiers and sanitary napkins. The GSS and other households, the company has expanded its LIS present the opportunity for developing paperwork-related complexities for smooth upcoming products are based on GGI’s propri- customer base to include government agencies, distinct product categories and enabling huge inter-state trade within the country. etary heat and air-flow transfer simulation tech- Fuel usage in rural India tends to be inefficient. A Setting Up NGOs and other community development initia- impact. niques. large number of rural Indian households use kero- Solving energy problems of rural consumers tives. sene for lighting hurricane lanterns, and biomass The Greenway Smart Stove through a unique heat transfer technology for cooking on traditional mud stoves. Given the The Business Model The Road Ahead Creating an efficient alternative to tradi- Operations in Low-Income States (LIS) poorly ventilated kitchens in most households, Co-creating innovative products with users Developing new products, setting up better tional mud stoves Developing innovative solutions to mitigate this energy usage is not only wasteful, but also GGI was started by Neha Juneja and Ankit and state-of-the-art technology supply chains and entering new markets harmful to health. Indoor air pollution from tradi- Mathur, who both have engineering and MBA unique challenges in the LIS tional cooking stoves is alone responsible for degrees. Their first startup idea, aisapaisa.com, a Around 160 million rural households in India use By fiscal year 2012-13, GGI is targeting INR 4 300,000 deaths per year1. futures and options portal offering insights and mud stoves to cook. Although rural households The product co-creation process helps the GGI At present GGI supplies the GSS to six LIS states, crores (USD 760,000) in revenues, an exponential advice to retail investors failed. After have increasingly acquired assets such as televi- team develop an in-depth understanding of their namely, Jharkhand, Bihar, Rajasthan, Uttar growth plan when compared to the INR 53.76 GGI, a Mumbai-based social enterprise, focuses aisapaisa.com, they started Greenway Ecodevel- sions, motorcycles and cell phones, women customers. This feeds back into product design Pradesh, Odisha and West Bengal. In the last lakhs (USD 102,000) earned in 2011-2012. In on developing products for the base of the opment, which offered consultancy services for continue to cook on traditional mud stoves. This and improvement. Their knowledge of the agri- fiscal year, GGI’s LIS operations contributed 41% addition to catering to the high demand for GSS, economic pyramid (BoP) market and creating a natural resource management, carbon finance and adversely impacts the health of the entire house- culture cycle and cash flow in rural India has to total revenue. This share is projected to Juneja and Mathur plan to focus more on the robust distribution channel for disseminating carbon credits. These consultancy assignments hold. Created as an efficient alternative, the GSS helped them design appropriate marketing strate- increase to 65% by 2014-2015. research and development of new products and these products. Registered in 2010 as a private gave them a better understanding of rural is competitively priced and is fuel agnostic, as it gies for each segment of their clientele. For creating networks for marketing. GGI also plans limited company, it developed its first successful consumers and markets. The income that came works on any type of biomass fuel. example, larger landowners tended to have GGI’s experience in these states has led them to to develop a better version of the GSS. Its pipe- product, a portable metallic stove called the from Greenway Ecodevelopment cross- disposable income during the harvest period, believe that they require newer and innovative line of innovations includes a community stove Greenway Smart Stove (GSS) in late 2011.The subsidized the travel and product development while farm laborers tended to have disposable ways to work as compared to some of the other which can cook for 50-100 people and a product GSS is targeted at the rural and urban poor who do cost for GGI. income during the sowing season. Says Juneja, states. Juneja says, “In low-income states, the called ‘Jugnu’ (meaning ‘firefly’) that will not have or cannot afford an LPG connection. “Our biggest strength is knowledge of the average gestation period is much longer as com- convert waste heat generated during cooking into Currently, GGI supplies its products to 12 Indian At GGI, their first product was a low-cost modu- consumer that we have built up.” This knowledge pared to high-income states such as Karnataka electricity. “Jugnu will capture this heat and states, six of which are LIS. It has 11 full time lar roofing project targeted at slum dwellers, who not only boosts sales of their present product, but and Kerala.” She elaborates, “When we started transfer it as electric charge to a battery. Essen- employees and has earned INR 0.5 crores (USD use tarpaulin to build their roofs. Even though the also serves to guide GGI in future product devel- working in Jharkhand, we had to first link tially, the device will act as a battery charger,” 102,000) in the 10 months that its sales operations product was technically sound, it did not generate opment. customers to Regional Rural Banks to enhance says Juneja. have been active. As of September 2012, GGI had much consumer interest. Juneja says, “We learned product affordability and only then the distribu- sold over 12,000 GSS units impacting 48,000 from the failure of our first product- it was The GSS burns 70% less fuel and produces GGI has partnered with NGOs and other commu- tors got interested in marketing and selling the GGI intends to raise capital from venture capital people with better savings, health and conve- designed in the lab and then taken to the consum- significantly lower emission. It is the only com- nity development initiatives to spread awareness 2 product.” Moreover, goods transportation costs to funds to set up robust supply chains for their nience. ers and it didn’t work”. mercially available portable and fuel-agnostic about the GSS, but does not engage them as distri- LIS states like Bihar is higher and the paperwork upcoming products. They aim to expand logistics stove in India which complies with and exceeds bution partners. The distribution model relies on required (road permits) to transport goods is also and taluka-level distribution capability in 16 For their next idea of designing efficient cook the Bureau of Indian Standards’ (BIS) prescribed developing four to five points of sale at every more complex and elaborate. For instance, the Indian states. As Juneja states, “Our immediate stoves for the BoP market, Juneja and Mathur efficiency and emissions (health) criteria. The taluka or block level, primarily through existing cost of transporting the stoves from GGI’s factory target is to be India’s largest biomass stove com- 1 Rajvanshi, A.K. 2009. “Energy R&D for Rural Development.” decided to co-create the product with the target GSS is priced at INR 1,250 (USD 24) per stove - in Faridabad, Haryana to Patna in Bihar is more pany by the end of the year.” In the long term, the National Technology Day and Professor B.D. Tilak Memorial consumers rather than designing it in the labora- most other improved cook stoves (Envirofit, Phil- Lecture at National Chemical Laboratory (NCL), Pune. 1 October. than transporting the goods to Palakkad in Kerala, GGI team has set their sights on being rural tory. After nine distinct prototypes, they eventu- ips Design, First Energy) in India are either priced http://www.nariphaltan.org/ncl.pdf though Patna is almost half the distance from India’s largest consumer goods company.

34 IDEAS for impact GV Meditech

GV Meditech plans to create a micro-clinic per 50,000 of rural population Apollo Group for a franchisee in Varanasi, and set pregnancies. Year of Establishment: 1992 up her first hospital, Apollo Clinic, in 2005. Promoters: Dr. Indu Singh At the village level, the company has organized Dr. Singh, a gynaecologist, has done pioneering more than 100 health camps that provide health work in the field of research focused on maternal check-ups and preventive health care services. GV Meditech provides world class healthcare micro-clinics, telemedicine centres, health camps care, child care and in-vitro treatment. Her core These help increase local awareness about health services at a reasonable cost to cater to every established as spokes in the villages. It annually management team comprises qualified doctors and reduce the incidence of malpractice. Dr. strata of society. It seeks to reduce wrongful achieves more than a million outpatient visits, (Dr V.P Singh and Dr. Himansu Rai) and experi- Singh says, “Awareness of the rural population medical practices in rural areas by providing 25,000 deliveries, 32,000 surgeries and 64,000 enced management professionals (Chandra Shek- about diseases and healthcare in general is very access to quality healthcare services. prescriptions. A majority of GV Meditech’s har and Ashish Chellaya). She is also guided and low. This lack of knowledge makes them victims operations are in eastern Uttar Pradesh, focusing advised on strategic decisions by members of the of bad healthcare practices offered by unqualified GV Meditech has a hub and spoke model, with on six districts surrounding Varanasi, viz. GV Meditech Board including S K Rai (Managing and inexperienced doctors.” multi-speciality hospitals as hubs in cities and Azamgarh, Chandoli, Mirzapur, Sonebhadra, Director Works, Hero Cycles Limited), Arun Ghazipur and Jaunpur. Kumar Singh (Managing Director at a real estate firm) and Ajay Maniar (a banking professional). The Business Model Access to basic healthcare is a big challenge in Varanasi. It has established three 25-55 bed rural India where 70% of the country’s population secondary hospitals in Varanasi, which caters to Leveraging the hub-and-spoke model, with resides. The primary issue in healthcare delivery the semi-urban and rural population of eastern micro-clinics in villages Conditions are especially bleak in the rural areas open more secondary hospitals with modern of the state. Having lived in UP for a large part of facilities in UP, as well as expand the existing to rural areas is lack of basic infrastructure - India UP, western Bihar and parts of Jharkhand. GV her life, Dr. Singh was keen to bring about a ones. To facilitate this growth, the company has has 0.8 beds per 1,000 people and 0.6 doctors per Meditech also plans to establish small clinics at GV Meditech operates on a hub-and-spoke model With a view to have a more permanent set up in change in healthcare delivery within the state, and managed to secure investments from Aavishkar, a 1,000 people – amongst the lowest in the world. the village level, as Dr. Singh says, “The main to deliver healthcare services in UP, with the hubs villages with high population density, GV Medi- shares, “I have studied and practiced medicine in Mumbai-based private equity fund focused on Even this limited healthcare infrastructure has a impact of setting up centres in rural areas is the being multi-specialty hospitals set up at the city tech plans to have at least one micro clinic for UP for decades now. I know that healthcare deliv- rural and social enterprises. heavy urban bias, as 80% of doctors, 75% of reduction in time and money spent by rural popu- level. These hospitals provide secondary and every 50,000 people, and one in every five micro ery in this state is in a poor condition and I was dispensaries and 60% of hospitals are situated in lations in travelling to bigger cities to access tertiary healthcare services to people living in and clinics will include pharmacy and ambulance keen to change this. I always knew my focus will Another initiative that Dr. Singh is spearheading urban areas of the country. Rural populations in healthcare.” around the city. The spokes offer basic healthcare services. It is also working towards creating be UP, especially in and around Varanasi.” is training local people to provide basic health- India have to travel more than 30 kms on an aver- services at the village level through telemedicine telemedicine centers, which will provide special- care services to overcome the talent crunch in age to access some basic health care services. For Dr. Singh, establishing GV Meditech was a centers, health camps, micro-clinics and ambu- ized healthcare services to rural population in an Currently, GV Meditech’s operations focus on six these areas. According to Dr. Singh, “Availability This often makes healthcare access more time natural progression from providing maternity and lance services. economically viable way. The telemedicine districts surrounding Varanasi, namely Azamgarh, of qualified doctors, nurses and paramedic staff in consuming and expensive for them. Further, there child healthcare services in Varanasi. In 1992, she centres are rural touch points, which will connect Chandoli, Mirzapur, Sonebhadra, Ghazipur and the rural areas is a big challenge. So we decided to are serious concerns about the quality of drugs started a small maternity and child healthcare Currently, there are three secondary/tertiary patients in the villages to the specialized doctors Jaunpur. It has built the first layer of hubs with train local talent who that can provide basic available in rural areas. A study conducted by center with just seven medical staff and two healthcare facilities operated by GV Meditech at in cities, using information and communication bigger facilities at the district level, which offer healthcare and support services to people in their National Rural Health Mission indicates that support staff. In the first year, the center clocked the city level - the Apollo Clinic, GV Meditech technology (ICT). Dr. Singh says, “This is neces- secondary or tertiary treatment at a reasonable own villages.” The Government will provide seven out of ten drugs in rural areas were found to a turnover of INR 3 lakhs (~USD 5800). With the Hospital, and Surya Meditech Hospital. The sary to successfully reach the population at the cost. Going forward, it will open smaller clinics assistance to GV Meditech under Swarnjayanti be substandard or counterfeit. Having lived and addition of new facilities and staff, the turnover Apollo Clinic is recognized as one of the best grassroots. We are confident that this solution will or the spokes around these districts that will Gram Swarozgar Yojana (SGSY), as well as grown up in the small town of Varanasi in Uttar touched INR 60 lakhs (~USD 115,000) by 1998. medical clinics in Varanasi. It offers a complete cater to the medical needs of a large and marginal- provide basic healthcare services to more remote certify the trained candidates to operate profes- Pradesh, Dr. Indu Singh wanted to reverse this Eventually Dr. Singh sought to expand her health- range of services including specialist consulta- ized population at affordable costs.” rural areas. sionally. Most of these trained people would be trend. care operations and registered her company as GV tions, diagnostics, preventive health checks, employed at the micro-clinics or telemedicine Meditech Ltd. in 2002, with plans to set up a dental clinic, In-vitro Fertilization (IVF) and OPERATIONS IN LOW-INCOME STATES (LIS) centres in villages, as well as provide support to multi-specialty hospital in Varanasi. Access to Apollo pharmacy, all under one roof. GV Medi- The Road Ahead Setting Up Improving quality of healthcare delivery in the health camps conducted in their areas. This capital, however, was a big challenge. Dr. Indu tech Hospital is specially designed to cater to Expand operations to villages through Progressing from maternity care to a multi- initiative not only builds healthcare infrastructure elaborated that, “I had just INR 1 lakh (USD trauma cases, and provides outpatient consulta- smaller towns specialty facility micro-clinics and telemedicine centers in rural areas, but also provides employment 1,900) in my bank account at that time, so I tion, diagnostics, trauma operation theatre, opportunities to reduce migration of the younger started looking out for financial support to start I.C.U., physiotherapy center, dialysis, pharmacy UP is home to the largest number of urban poor in The idea of GV Meditech was born from a desire GV Meditech’s immediate focus is on expansion generation to bigger cities. Dr. Singh aptly sum- my hospital. At the same time, Apollo Group of services, and preventive health check packages. a single state. Not only does the state bear a heavy to change the skewed distribution of healthcare through micro-clinics and telemedicine centers in marizes GV Meditech’s approach to healthcare Hospitals was looking for franchisees to expand Surya Meditech Hospital is one of the pioneer burden of poverty, it also ranks low (15th out of delivery infrastructure in the country – as a first villages, connected to hospital hubs at the city and delivery, “Healthcare for us is not just an their operations to smaller cities and towns.” infertility and IVF centers in eastern UP. This 19 states evaluated) in terms of other social indi- step, by establishing health centres in and around district levels. Specifically in next three years, it economical enterprise, but also a social one. We Spotting an opportunity, Dr. Singh approached the centre is also equipped to manage high risk cators such as the Human Development Index. plans to set up 12 telemedicine centers around the truly believe that through our practices we have Ghazipur healthcare facility. been able to help bring health care of highest quality to the common man.” 36 In the medium to long term, GV Meditech plans to Apollo Group for a franchisee in Varanasi, and set pregnancies. up her first hospital, Apollo Clinic, in 2005. At the village level, the company has organized Dr. Singh, a gynaecologist, has done pioneering more than 100 health camps that provide health work in the field of research focused on maternal check-ups and preventive health care services. care, child care and in-vitro treatment. Her core These help increase local awareness about health management team comprises qualified doctors and reduce the incidence of malpractice. Dr. (Dr V.P Singh and Dr. Himansu Rai) and experi- Singh says, “Awareness of the rural population enced management professionals (Chandra Shek- about diseases and healthcare in general is very har and Ashish Chellaya). She is also guided and low. This lack of knowledge makes them victims advised on strategic decisions by members of the of bad healthcare practices offered by unqualified GV Meditech Board including S K Rai (Managing and inexperienced doctors.” Director Works, Hero Cycles Limited), Arun Kumar Singh (Managing Director at a real estate firm) and Ajay Maniar (a banking professional). The Business Model Access to basic healthcare is a big challenge in Varanasi. It has established three 25-55 bed rural India where 70% of the country’s population secondary hospitals in Varanasi, which caters to Leveraging the hub-and-spoke model, with resides. The primary issue in healthcare delivery the semi-urban and rural population of eastern micro-clinics in villages Conditions are especially bleak in the rural areas open more secondary hospitals with modern of the state. Having lived in UP for a large part of facilities in UP, as well as expand the existing to rural areas is lack of basic infrastructure - India UP, western Bihar and parts of Jharkhand. GV her life, Dr. Singh was keen to bring about a ones. To facilitate this growth, the company has has 0.8 beds per 1,000 people and 0.6 doctors per Meditech also plans to establish small clinics at GV Meditech operates on a hub-and-spoke model With a view to have a more permanent set up in change in healthcare delivery within the state, and managed to secure investments from Aavishkar, a 1,000 people – amongst the lowest in the world. the village level, as Dr. Singh says, “The main to deliver healthcare services in UP, with the hubs villages with high population density, GV Medi- shares, “I have studied and practiced medicine in Mumbai-based private equity fund focused on Even this limited healthcare infrastructure has a impact of setting up centres in rural areas is the being multi-specialty hospitals set up at the city tech plans to have at least one micro clinic for UP for decades now. I know that healthcare deliv- rural and social enterprises. heavy urban bias, as 80% of doctors, 75% of reduction in time and money spent by rural popu- level. These hospitals provide secondary and every 50,000 people, and one in every five micro ery in this state is in a poor condition and I was dispensaries and 60% of hospitals are situated in lations in travelling to bigger cities to access tertiary healthcare services to people living in and clinics will include pharmacy and ambulance keen to change this. I always knew my focus will Another initiative that Dr. Singh is spearheading urban areas of the country. Rural populations in healthcare.” around the city. The spokes offer basic healthcare services. It is also working towards creating be UP, especially in and around Varanasi.” is training local people to provide basic health- India have to travel more than 30 kms on an aver- services at the village level through telemedicine telemedicine centers, which will provide special- care services to overcome the talent crunch in age to access some basic health care services. For Dr. Singh, establishing GV Meditech was a centers, health camps, micro-clinics and ambu- ized healthcare services to rural population in an Currently, GV Meditech’s operations focus on six these areas. According to Dr. Singh, “Availability This often makes healthcare access more time natural progression from providing maternity and lance services. economically viable way. The telemedicine districts surrounding Varanasi, namely Azamgarh, of qualified doctors, nurses and paramedic staff in consuming and expensive for them. Further, there child healthcare services in Varanasi. In 1992, she centres are rural touch points, which will connect Chandoli, Mirzapur, Sonebhadra, Ghazipur and the rural areas is a big challenge. So we decided to are serious concerns about the quality of drugs started a small maternity and child healthcare Currently, there are three secondary/tertiary patients in the villages to the specialized doctors Jaunpur. It has built the first layer of hubs with train local talent who that can provide basic available in rural areas. A study conducted by center with just seven medical staff and two healthcare facilities operated by GV Meditech at in cities, using information and communication bigger facilities at the district level, which offer healthcare and support services to people in their National Rural Health Mission indicates that support staff. In the first year, the center clocked the city level - the Apollo Clinic, GV Meditech technology (ICT). Dr. Singh says, “This is neces- secondary or tertiary treatment at a reasonable own villages.” The Government will provide seven out of ten drugs in rural areas were found to a turnover of INR 3 lakhs (~USD 5800). With the Hospital, and Surya Meditech Hospital. The sary to successfully reach the population at the cost. Going forward, it will open smaller clinics assistance to GV Meditech under Swarnjayanti be substandard or counterfeit. Having lived and addition of new facilities and staff, the turnover Apollo Clinic is recognized as one of the best grassroots. We are confident that this solution will or the spokes around these districts that will Gram Swarozgar Yojana (SGSY), as well as grown up in the small town of Varanasi in Uttar touched INR 60 lakhs (~USD 115,000) by 1998. medical clinics in Varanasi. It offers a complete cater to the medical needs of a large and marginal- provide basic healthcare services to more remote certify the trained candidates to operate profes- Pradesh, Dr. Indu Singh wanted to reverse this Eventually Dr. Singh sought to expand her health- range of services including specialist consulta- ized population at affordable costs.” rural areas. sionally. Most of these trained people would be trend. care operations and registered her company as GV tions, diagnostics, preventive health checks, employed at the micro-clinics or telemedicine Meditech Ltd. in 2002, with plans to set up a dental clinic, In-vitro Fertilization (IVF) and OPERATIONS IN LOW-INCOME STATES (LIS) centres in villages, as well as provide support to multi-specialty hospital in Varanasi. Access to Apollo pharmacy, all under one roof. GV Medi- The Road Ahead Setting Up Improving quality of healthcare delivery in the health camps conducted in their areas. This capital, however, was a big challenge. Dr. Indu tech Hospital is specially designed to cater to Expand operations to villages through Progressing from maternity care to a multi- initiative not only builds healthcare infrastructure elaborated that, “I had just INR 1 lakh (USD trauma cases, and provides outpatient consulta- smaller towns specialty facility micro-clinics and telemedicine centers in rural areas, but also provides employment 1,900) in my bank account at that time, so I tion, diagnostics, trauma operation theatre, opportunities to reduce migration of the younger started looking out for financial support to start I.C.U., physiotherapy center, dialysis, pharmacy UP is home to the largest number of urban poor in The idea of GV Meditech was born from a desire GV Meditech’s immediate focus is on expansion generation to bigger cities. Dr. Singh aptly sum- my hospital. At the same time, Apollo Group of services, and preventive health check packages. a single state. Not only does the state bear a heavy to change the skewed distribution of healthcare through micro-clinics and telemedicine centers in marizes GV Meditech’s approach to healthcare Hospitals was looking for franchisees to expand Surya Meditech Hospital is one of the pioneer burden of poverty, it also ranks low (15th out of delivery infrastructure in the country – as a first villages, connected to hospital hubs at the city and delivery, “Healthcare for us is not just an their operations to smaller cities and towns.” infertility and IVF centers in eastern UP. This 19 states evaluated) in terms of other social indi- step, by establishing health centres in and around district levels. Specifically in next three years, it economical enterprise, but also a social one. We Spotting an opportunity, Dr. Singh approached the centre is also equipped to manage high risk cators such as the Human Development Index. plans to set up 12 telemedicine centers around the truly believe that through our practices we have Ghazipur healthcare facility. been able to help bring health care of highest quality to the common man.” 37 In the medium to long term, GV Meditech plans to Apollo Group for a franchisee in Varanasi, and set pregnancies. up her first hospital, Apollo Clinic, in 2005. At the village level, the company has organized Dr. Singh, a gynaecologist, has done pioneering more than 100 health camps that provide health SocialSocial ImpactImpact work in the field of research focused on maternal check-ups and preventive health care services. care, child care and in-vitro treatment. Her core These help increase local awareness about health GV Meditech has been providing quality health- tions. It has organized more than 100 free health management team comprises qualified doctors and reduce the incidence of malpractice. Dr. care at affordable prices for the last two decades camps to educate villagers about the need for (Dr V.P Singh and Dr. Himansu Rai) and experi- Singh says, “Awareness of the rural population to the eastern region of Uttar Pradesh. Today, it hygiene, cleanliness and preventive health check- enced management professionals (Chandra Shek- about diseases and healthcare in general is very serves about 7.1 million people in 15 districts in ups. har and Ashish Chellaya). She is also guided and low. This lack of knowledge makes them victims and around Varanasi, with a team of more than advised on strategic decisions by members of the of bad healthcare practices offered by unqualified 150 staff members and 68 doctors. More than 50% of the employees in GV GV Meditech Board including S K Rai (Managing and inexperienced doctors.” Director Works, Hero Cycles Limited), Arun Meditech’s hospitals and clinics are women. The Kumar Singh (Managing Director at a real estate In a single year, GV Meditech successfully man- company believes that about 2.5 million women firm) and Ajay Maniar (a banking professional). ages more than a million outpatient visits, deliv- will be positively impacted by their initiative in ers more than 25,000 babies, performs around next 3 years. The Business Model 32,000 surgeries and fills about 64,000 prescrip- Access to basic healthcare is a big challenge in Varanasi. It has established three 25-55 bed rural India where 70% of the country’s population secondary hospitals in Varanasi, which caters to Leveraging the hub-and-spoke model, with resides. The primary issue in healthcare delivery the semi-urban and rural population of eastern micro-clinics in villages Conditions are especially bleak in the rural areas open more secondary hospitals with modern of the state. Having lived in UP for a large part of facilities in UP, as well as expand the existing to rural areas is lack of basic infrastructure - India UP, western Bihar and parts of Jharkhand. GV her life, Dr. Singh was keen to bring about a ones. To facilitate this growth, the company has has 0.8 beds per 1,000 people and 0.6 doctors per Meditech also plans to establish small clinics at GV Meditech operates on a hub-and-spoke model With a view to have a more permanent set up in change in healthcare delivery within the state, and managed to secure investments from Aavishkar, a 1,000 people – amongst the lowest in the world. the village level, as Dr. Singh says, “The main to deliver healthcare services in UP, with the hubs villages with high population density, GV Medi- shares, “I have studied and practiced medicine in Mumbai-based private equity fund focused on Even this limited healthcare infrastructure has a impact of setting up centres in rural areas is the being multi-specialty hospitals set up at the city tech plans to have at least one micro clinic for UP for decades now. I know that healthcare deliv- rural and social enterprises. heavy urban bias, as 80% of doctors, 75% of reduction in time and money spent by rural popu- level. These hospitals provide secondary and every 50,000 people, and one in every five micro ery in this state is in a poor condition and I was dispensaries and 60% of hospitals are situated in lations in travelling to bigger cities to access tertiary healthcare services to people living in and clinics will include pharmacy and ambulance keen to change this. I always knew my focus will Another initiative that Dr. Singh is spearheading urban areas of the country. Rural populations in healthcare.” around the city. The spokes offer basic healthcare services. It is also working towards creating be UP, especially in and around Varanasi.” is training local people to provide basic health- India have to travel more than 30 kms on an aver- services at the village level through telemedicine telemedicine centers, which will provide special- care services to overcome the talent crunch in age to access some basic health care services. For Dr. Singh, establishing GV Meditech was a centers, health camps, micro-clinics and ambu- ized healthcare services to rural population in an Currently, GV Meditech’s operations focus on six these areas. According to Dr. Singh, “Availability This often makes healthcare access more time natural progression from providing maternity and lance services. economically viable way. The telemedicine districts surrounding Varanasi, namely Azamgarh, of qualified doctors, nurses and paramedic staff in consuming and expensive for them. Further, there child healthcare services in Varanasi. In 1992, she centres are rural touch points, which will connect Chandoli, Mirzapur, Sonebhadra, Ghazipur and the rural areas is a big challenge. So we decided to are serious concerns about the quality of drugs started a small maternity and child healthcare Currently, there are three secondary/tertiary patients in the villages to the specialized doctors Jaunpur. It has built the first layer of hubs with train local talent who that can provide basic available in rural areas. A study conducted by center with just seven medical staff and two healthcare facilities operated by GV Meditech at in cities, using information and communication bigger facilities at the district level, which offer healthcare and support services to people in their National Rural Health Mission indicates that support staff. In the first year, the center clocked the city level - the Apollo Clinic, GV Meditech technology (ICT). Dr. Singh says, “This is neces- secondary or tertiary treatment at a reasonable own villages.” The Government will provide seven out of ten drugs in rural areas were found to a turnover of INR 3 lakhs (~USD 5800). With the Hospital, and Surya Meditech Hospital. The sary to successfully reach the population at the cost. Going forward, it will open smaller clinics assistance to GV Meditech under Swarnjayanti be substandard or counterfeit. Having lived and addition of new facilities and staff, the turnover Apollo Clinic is recognized as one of the best grassroots. We are confident that this solution will or the spokes around these districts that will Gram Swarozgar Yojana (SGSY), as well as grown up in the small town of Varanasi in Uttar touched INR 60 lakhs (~USD 115,000) by 1998. medical clinics in Varanasi. It offers a complete cater to the medical needs of a large and marginal- provide basic healthcare services to more remote certify the trained candidates to operate profes- Pradesh, Dr. Indu Singh wanted to reverse this Eventually Dr. Singh sought to expand her health- range of services including specialist consulta- ized population at affordable costs.” rural areas. sionally. Most of these trained people would be trend. care operations and registered her company as GV tions, diagnostics, preventive health checks, employed at the micro-clinics or telemedicine Meditech Ltd. in 2002, with plans to set up a dental clinic, In-vitro Fertilization (IVF) and OPERATIONS IN LOW-INCOME STATES (LIS) centres in villages, as well as provide support to multi-specialty hospital in Varanasi. Access to Apollo pharmacy, all under one roof. GV Medi- The Road Ahead Setting Up Improving quality of healthcare delivery in the health camps conducted in their areas. This capital, however, was a big challenge. Dr. Indu tech Hospital is specially designed to cater to Expand operations to villages through Progressing from maternity care to a multi- initiative not only builds healthcare infrastructure elaborated that, “I had just INR 1 lakh (USD trauma cases, and provides outpatient consulta- smaller towns specialty facility micro-clinics and telemedicine centers in rural areas, but also provides employment 1,900) in my bank account at that time, so I tion, diagnostics, trauma operation theatre, opportunities to reduce migration of the younger started looking out for financial support to start I.C.U., physiotherapy center, dialysis, pharmacy UP is home to the largest number of urban poor in The idea of GV Meditech was born from a desire GV Meditech’s immediate focus is on expansion generation to bigger cities. Dr. Singh aptly sum- my hospital. At the same time, Apollo Group of services, and preventive health check packages. a single state. Not only does the state bear a heavy to change the skewed distribution of healthcare through micro-clinics and telemedicine centers in marizes GV Meditech’s approach to healthcare Hospitals was looking for franchisees to expand Surya Meditech Hospital is one of the pioneer burden of poverty, it also ranks low (15th out of delivery infrastructure in the country – as a first villages, connected to hospital hubs at the city and delivery, “Healthcare for us is not just an their operations to smaller cities and towns.” infertility and IVF centers in eastern UP. This 19 states evaluated) in terms of other social indi- step, by establishing health centres in and around district levels. Specifically in next three years, it economical enterprise, but also a social one. We Spotting an opportunity, Dr. Singh approached the centre is also equipped to manage high risk cators such as the Human Development Index. plans to set up 12 telemedicine centers around the truly believe that through our practices we have Ghazipur healthcare facility. been able to help bring health care of highest quality to the common man.” In the medium to long term, GV Meditech plans to

38 IDEAS for impact Kanungo Institute of Diabetes Specialities (KIDS)

KIDS is the first diabetes specialties hospital in Eastern India KIDS’ out-patient consultation is acknowledged Science Education and Research (NISER). as the largest and the most comprehensive consul- Year of Establishment: 2008 tation in the eastern region of India. The depart- Promoters: Dr. Alok Kanungo and Dr. Mamata Tripathi ment provides complete care on prevention and Operations in Low-Income States (LIS) treatment of diabetes to each patient. The out- Controlling and managing the surge of patient consultation provides check-up for diabe- Kanungo Institute of Diabetes Specialities services such as pharmacy, pathology, ambulance tes and allied complications to 80-100 patients diabetes in Odisha (KIDS) was established in Bhubaneswar, Odisha services, physiotherapy and counseling. KIDS per day and contributes about 44% of the total as a comprehensive diabetic care unit. It is a 100- organizes health camps in rural areas across the revenue. Odisha accounts for around 10% of the diabetic bed hospital equipped with advanced medical state to spread awareness about prevention and population in India, with 50-60 lakhs citizens technology to offer high quality in-patient and control of diabetes. The in-patient department is fully equipped with suffering from the disease. A study conducted by to train about 5,000 youth in next 3-5 years, with KIDS believes that these district diabetes centers out-patient consultation on diabetes and allied an emergency care unit, ICU, dialysis unit as well KIDS in 2011 found that diabetes prevalence is a belief that each individual will earn about INR serve as a scalable model to provide appropriate complications. The hospital also offers related as pediatrics unit. It is also supported by an inter- increasing rapidly in Odisha, impacting 15% of 6,000 (USD 113) per month through this service. diabetes care in rural areas. After having covered nal physiotherapy unit, canteen and round-the- the urban population, around 9% of the semi- the state of Odisha, KIDS will eventually open clock pharmacy, ensuring that patients are treated urban population and 5.5% of the rural popula- KIDS also plans to set up 15 district centers in such district centers in neighboring states like Diabetes has assumed pandemic proportions of his father, Padmashree Binod Kanungo to serve with care. Providing quality healthcare at afford- tion. Odisha’s tier II towns over the next 2 years, and West Bengal, Jharkhand and Chhattisgarh. worldwide, impacting more than 300 million poor people. Being a diabetic himself, the late able prices to 50-60 patients at a time, the cover the entire state in the next 3-5 years by people across the globe. India has been dubbed Padmashree Binod Kanungo had a special interest in-patient department contributes around 34% of Dr. Kanungo realized that the incidence of diabe- setting up 30 district centers. According to Dr. India needs significant investment in healthcare the ‘diabetic capital of the world’, as it is home to in the field of diabetes prevention and care. the revenue. tes is very high in Odisha, and needed a solution. Kanungo, “The main objective of setting up delivery, as access to hospitals and doctors is still more than 20% of the world’s diabetic population. Besides, Kanungo was practicing medicine in district centers is to reduce travel by rural popula- very limited. KIDS aims to help remedy this About 60 million people in India are suffering KIDS has established a 100-bed hospital, which is Apart from the medical treatment, KIDS orga- Cuttack, Odisha. In order to set-up a big hospital, tion to access quality healthcare.” He elaborated situation by expanding their services using local from diabetes currently, with another 77 million automated and fully equipped to offer high qual- nizes education programs for patients and their he decided to move to the state capital, Bhu- 1 that, “These centers will provide basic clinical talent and technology. According to Dr. Kanungo, people in a pre-diabetes stage . Earlier restricted ity in-patient and out-patient consultation on family for quick and healthy recovery. As part of baneshwar. According to Dr Kanungo, “Bhu- and diagnostic services at the district level. For “Our focus of expansion is horizontal; in that we to urban areas due to sedentary lifestyles, diabetes diabetes and allied complications. The hospital the comprehensive medical treatment, the baneshwar was attracting a lot of attention and specialized care, they will be linked to the main aim to provide affordable and quality healthcare now affects and burdens the rural poor as well. also offers related services such as pharmacy, program provides training on yoga, physiotherapy investment as health-hub for the state. Govern- center in Bhubaneswar through telemedicine.” to more and more patients.” Despite its prevalence, diabetes treatment in India pathology, ambulance services, physiotherapy and lifestyle modification to improve the patient's ment and corporates were showing a lot of inter- is grossly neglected at the community as well as and counseling to serve as one-stop-shop for regular functioning and enhance the quality of est in bringing quality healthcare to Bhu- policy level. Lack of awareness among citizens diabetes care. About 150-200 trained profession- life. These services contribute 22% to the baneswar.” combined with inappropriate treatment of the als are working towards various modules of revenue. disease leads to multiple complications and diabetes prevention, care and cure at KIDS. The Road Ahead disability. Disability further pushes the poor Building up this infrastructure, however, was a bit Expanding reach across Odisha by setting up deeper into the vicious circle of poverty. of challenge for Dr. Kanungo. According to him, “It is difficult and time-consuming to acquire all network of village care providers and Setting Up the clearances to set up a healthcare unit in India. district centers Providing comprehensive care for diabetes Arranging capital from banks or investors is also difficult in the initial stages.” and allied complications KIDS’ primary focus is to expand operations to cover all of Odisha. While the hospital caters to The Business Model populations in and around Bhubaneswar, KIDS According to diabetologist Alok Kanungo, the Building a one-stop shop for diabetes care wants to take diabetes care delivery to the sudden phase of economic growth and develop- KIDS is also actively involved in organizing with out-patient and in-patient treatment as villages. It plans to build healthcare delivery ment has fuelled the diabetes explosion in the research and educational programs on diabetes in infrastructure in villages by training and promot- country. He explains that when a very poor man, well as allied services collaboration with leading educational institutes. ing local youth as diabetes care providers at the who normally struggles to get even one square For example, KIDS is associated with Karolinska village level. Dr. Kanungo explained that, “Local meal per day, starts getting two or three meals The hospital earns its revenues from three main Institute (Sweden), one of the world´s leading youth from villages will be provided with a every day, chances of him getting diabetes streams – out-patient treatment, in-patient treat- medical universities, to facilitate knowledge bicycle, glucometer, blood-pressure monitor, increases due to metabolic disorders. Also, seden- ment and other services (emergency care, physio- exchange on diabetes. Similarly, KIDS is associ- first-aid kit and mobile phones. Using these tary lifestyle and unhealthy food habits have therapy, yoga, counseling etc.). ated with IGNOU (India) for conducting a certi- facilities, they will provide basic diabetes check- significantly increased the incidence of the fied course on community diabetes management. up at the door-steps of villagers, and refer them to disease. He established Kanungo Institute of It is also associated with National Institute of 1 Indian Council of Medical Research – India the main hospital if needed.” The company aims Diabetes Specialities (KIDS) in 2008 in memory Diabetes (ICMR-INDIAB) Study, 2011

40 KIDS’ out-patient consultation is acknowledged Science Education and Research (NISER). as the largest and the most comprehensive consultation in the eastern region of India. The department provides complete care on prevention and Operations in Low-Income States (LIS) treatment of diabetes to each patient. The out- Controlling and managing the surge of patient consultation provides check-up for diabetes and allied complications to 80-100 patients diabetes in Odisha per day and contributes about 44% of the total revenue. Odisha accounts for around 10% of the diabetic population in India, with 50-60 lakhs citizens The in-patient department is fully equipped with suffering from the disease. A study conducted by to train about 5,000 youth in next 3-5 years, with KIDS believes that these district diabetes centers an emergency care unit, ICU, dialysis unit as well KIDS in 2011 found that diabetes prevalence is a belief that each individual will earn about INR serve as a scalable model to provide appropriate as pediatrics unit. It is also supported by an inter- increasing rapidly in Odisha, impacting 15% of 6,000 (USD 113) per month through this service. diabetes care in rural areas. After having covered nal physiotherapy unit, canteen and round-the- the urban population, around 9% of the semi- the state of Odisha, KIDS will eventually open clock pharmacy, ensuring that patients are treated urban population and 5.5% of the rural popula- KIDS also plans to set up 15 district centers in such district centers in neighboring states like Diabetes has assumed pandemic proportions of his father, Padmashree Binod Kanungo to serve with care. Providing quality healthcare at afford- tion. Odisha’s tier II towns over the next 2 years, and West Bengal, Jharkhand and Chhattisgarh. worldwide, impacting more than 300 million poor people. Being a diabetic himself, the late able prices to 50-60 patients at a time, the cover the entire state in the next 3-5 years by people across the globe. India has been dubbed Padmashree Binod Kanungo had a special interest in-patient department contributes around 34% of Dr. Kanungo realized that the incidence of diabe- setting up 30 district centers. According to Dr. India needs significant investment in healthcare the ‘diabetic capital of the world’, as it is home to in the field of diabetes prevention and care. the revenue. tes is very high in Odisha, and needed a solution. Kanungo, “The main objective of setting up delivery, as access to hospitals and doctors is still more than 20% of the world’s diabetic population. Besides, Kanungo was practicing medicine in district centers is to reduce travel by rural popula- very limited. KIDS aims to help remedy this About 60 million people in India are suffering KIDS has established a 100-bed hospital, which is Apart from the medical treatment, KIDS orga- Cuttack, Odisha. In order to set-up a big hospital, tion to access quality healthcare.” He elaborated situation by expanding their services using local from diabetes currently, with another 77 million automated and fully equipped to offer high qual- nizes education programs for patients and their he decided to move to the state capital, Bhu- 1 that, “These centers will provide basic clinical talent and technology. According to Dr. Kanungo, people in a pre-diabetes stage . Earlier restricted ity in-patient and out-patient consultation on family for quick and healthy recovery. As part of baneshwar. According to Dr Kanungo, “Bhu- and diagnostic services at the district level. For “Our focus of expansion is horizontal; in that we to urban areas due to sedentary lifestyles, diabetes diabetes and allied complications. The hospital the comprehensive medical treatment, the baneshwar was attracting a lot of attention and specialized care, they will be linked to the main aim to provide affordable and quality healthcare now affects and burdens the rural poor as well. also offers related services such as pharmacy, program provides training on yoga, physiotherapy investment as health-hub for the state. Govern- center in Bhubaneswar through telemedicine.” to more and more patients.” Despite its prevalence, diabetes treatment in India pathology, ambulance services, physiotherapy and lifestyle modification to improve the patient's ment and corporates were showing a lot of inter- is grossly neglected at the community as well as and counseling to serve as one-stop-shop for regular functioning and enhance the quality of est in bringing quality healthcare to Bhu- policy level. Lack of awareness among citizens diabetes care. About 150-200 trained profession- life. These services contribute 22% to the baneswar.” combined with inappropriate treatment of the als are working towards various modules of revenue. disease leads to multiple complications and diabetes prevention, care and cure at KIDS. The Road Ahead disability. Disability further pushes the poor Building up this infrastructure, however, was a bit Expanding reach across Odisha by setting up deeper into the vicious circle of poverty. of challenge for Dr. Kanungo. According to him, “It is difficult and time-consuming to acquire all network of village care providers and Setting Up the clearances to set up a healthcare unit in India. district centers Providing comprehensive care for diabetes Arranging capital from banks or investors is also difficult in the initial stages.” and allied complications KIDS’ primary focus is to expand operations to cover all of Odisha. While the hospital caters to The Business Model populations in and around Bhubaneswar, KIDS According to diabetologist Alok Kanungo, the Building a one-stop shop for diabetes care wants to take diabetes care delivery to the sudden phase of economic growth and develop- KIDS is also actively involved in organizing with out-patient and in-patient treatment as villages. It plans to build healthcare delivery ment has fuelled the diabetes explosion in the research and educational programs on diabetes in infrastructure in villages by training and promot- country. He explains that when a very poor man, well as allied services collaboration with leading educational institutes. ing local youth as diabetes care providers at the who normally struggles to get even one square For example, KIDS is associated with Karolinska village level. Dr. Kanungo explained that, “Local meal per day, starts getting two or three meals The hospital earns its revenues from three main Institute (Sweden), one of the world´s leading youth from villages will be provided with a every day, chances of him getting diabetes streams – out-patient treatment, in-patient treat- medical universities, to facilitate knowledge bicycle, glucometer, blood-pressure monitor, increases due to metabolic disorders. Also, seden- ment and other services (emergency care, physio- exchange on diabetes. Similarly, KIDS is associ- first-aid kit and mobile phones. Using these tary lifestyle and unhealthy food habits have therapy, yoga, counseling etc.). ated with IGNOU (India) for conducting a certi- facilities, they will provide basic diabetes check- significantly increased the incidence of the fied course on community diabetes management. up at the door-steps of villagers, and refer them to disease. He established Kanungo Institute of It is also associated with National Institute of the main hospital if needed.” The company aims Diabetes Specialities (KIDS) in 2008 in memory

41 SocialSocial ImpactImpact KIDS’ out-patient consultation is acknowledged Science Education and Research (NISER). as the largest and the most comprehensive consultation in the eastern region of India. The depart- KIDS is recognized as the pioneer in diabetes volunteers across the state to understand practical ment provides complete care on prevention and Operations in Low-Income States (LIS) research and innovation in eastern India. ways to prevent diabetes. treatment of diabetes to each patient. The out- Controlling and managing the surge of patient consultation provides check-up for diabe- diabetes in Odisha KIDS has organized five state-level workshops to KIDS has also organized more than 200 health tes and allied complications to 80-100 patients discuss and advocate appropriate policy changes camps in around 30 districts of Odisha to spread per day and contributes about 44% of the total to fight diabetes. It has mobilized more than 2,000 awareness about diabetes. revenue. Odisha accounts for around 10% of the diabetic population in India, with 50-60 lakhs citizens The in-patient department is fully equipped with suffering from the disease. A study conducted by to train about 5,000 youth in next 3-5 years, with KIDS believes that these district diabetes centers an emergency care unit, ICU, dialysis unit as well KIDS in 2011 found that diabetes prevalence is a belief that each individual will earn about INR serve as a scalable model to provide appropriate as pediatrics unit. It is also supported by an inter- increasing rapidly in Odisha, impacting 15% of 6,000 (USD 113) per month through this service. diabetes care in rural areas. After having covered nal physiotherapy unit, canteen and round-the- the urban population, around 9% of the semi- the state of Odisha, KIDS will eventually open clock pharmacy, ensuring that patients are treated urban population and 5.5% of the rural popula- KIDS also plans to set up 15 district centers in such district centers in neighboring states like Diabetes has assumed pandemic proportions of his father, Padmashree Binod Kanungo to serve with care. Providing quality healthcare at afford- tion. Odisha’s tier II towns over the next 2 years, and West Bengal, Jharkhand and Chhattisgarh. worldwide, impacting more than 300 million poor people. Being a diabetic himself, the late able prices to 50-60 patients at a time, the cover the entire state in the next 3-5 years by people across the globe. India has been dubbed Padmashree Binod Kanungo had a special interest in-patient department contributes around 34% of Dr. Kanungo realized that the incidence of diabe- setting up 30 district centers. According to Dr. India needs significant investment in healthcare the ‘diabetic capital of the world’, as it is home to in the field of diabetes prevention and care. the revenue. tes is very high in Odisha, and needed a solution. Kanungo, “The main objective of setting up delivery, as access to hospitals and doctors is still more than 20% of the world’s diabetic population. Besides, Kanungo was practicing medicine in district centers is to reduce travel by rural popula- very limited. KIDS aims to help remedy this About 60 million people in India are suffering KIDS has established a 100-bed hospital, which is Apart from the medical treatment, KIDS orga- Cuttack, Odisha. In order to set-up a big hospital, tion to access quality healthcare.” He elaborated situation by expanding their services using local from diabetes currently, with another 77 million automated and fully equipped to offer high qual- nizes education programs for patients and their he decided to move to the state capital, Bhu- 1 that, “These centers will provide basic clinical talent and technology. According to Dr. Kanungo, people in a pre-diabetes stage . Earlier restricted ity in-patient and out-patient consultation on family for quick and healthy recovery. As part of baneshwar. According to Dr Kanungo, “Bhu- and diagnostic services at the district level. For “Our focus of expansion is horizontal; in that we to urban areas due to sedentary lifestyles, diabetes diabetes and allied complications. The hospital the comprehensive medical treatment, the baneshwar was attracting a lot of attention and specialized care, they will be linked to the main aim to provide affordable and quality healthcare now affects and burdens the rural poor as well. also offers related services such as pharmacy, program provides training on yoga, physiotherapy investment as health-hub for the state. Govern- center in Bhubaneswar through telemedicine.” to more and more patients.” Despite its prevalence, diabetes treatment in India pathology, ambulance services, physiotherapy and lifestyle modification to improve the patient's ment and corporates were showing a lot of inter- is grossly neglected at the community as well as and counseling to serve as one-stop-shop for regular functioning and enhance the quality of est in bringing quality healthcare to Bhu- policy level. Lack of awareness among citizens diabetes care. About 150-200 trained profession- life. These services contribute 22% to the baneswar.” combined with inappropriate treatment of the als are working towards various modules of revenue. disease leads to multiple complications and diabetes prevention, care and cure at KIDS. The Road Ahead disability. Disability further pushes the poor Building up this infrastructure, however, was a bit Expanding reach across Odisha by setting up deeper into the vicious circle of poverty. of challenge for Dr. Kanungo. According to him, “It is difficult and time-consuming to acquire all network of village care providers and Setting Up the clearances to set up a healthcare unit in India. district centers Providing comprehensive care for diabetes Arranging capital from banks or investors is also difficult in the initial stages.” and allied complications KIDS’ primary focus is to expand operations to cover all of Odisha. While the hospital caters to The Business Model populations in and around Bhubaneswar, KIDS According to diabetologist Alok Kanungo, the Building a one-stop shop for diabetes care wants to take diabetes care delivery to the sudden phase of economic growth and develop- KIDS is also actively involved in organizing with out-patient and in-patient treatment as villages. It plans to build healthcare delivery ment has fuelled the diabetes explosion in the research and educational programs on diabetes in infrastructure in villages by training and promot- country. He explains that when a very poor man, well as allied services collaboration with leading educational institutes. ing local youth as diabetes care providers at the who normally struggles to get even one square For example, KIDS is associated with Karolinska village level. Dr. Kanungo explained that, “Local meal per day, starts getting two or three meals The hospital earns its revenues from three main Institute (Sweden), one of the world´s leading youth from villages will be provided with a every day, chances of him getting diabetes streams – out-patient treatment, in-patient treat- medical universities, to facilitate knowledge bicycle, glucometer, blood-pressure monitor, increases due to metabolic disorders. Also, seden- ment and other services (emergency care, physio- exchange on diabetes. Similarly, KIDS is associ- first-aid kit and mobile phones. Using these tary lifestyle and unhealthy food habits have therapy, yoga, counseling etc.). ated with IGNOU (India) for conducting a certi- facilities, they will provide basic diabetes check- significantly increased the incidence of the fied course on community diabetes management. up at the door-steps of villagers, and refer them to disease. He established Kanungo Institute of It is also associated with National Institute of the main hospital if needed.” The company aims Diabetes Specialities (KIDS) in 2008 in memory

42 IDEAS for impact Kautilya Phytoextracts

Kautilya Phytoextracts increases farmer earning by INR 5,000-28,000 per crop and issues related to farming in the two states. tives, Kautilya recently started promoting rabbit Year of Establishment: 2008 breeding in Bihar. The Kautilya team trained rural PROMOTERS:Sanjeev Srivastwa and Pabitra Pahari THE BUSINESS MODEL farmers and women in rabbit breeding, with the Using wastelands to cultivate medicinal objective of meeting the significant demand for rabbit meat in southern India and countries in the Kautilya Phytoextracts seeks to alleviate the wasteland and human resources in these states herbs, breeding rabbits and manufacturing Middle East. The project was extended to West troubles of the tribal marginal farmers of Bihar made it easier to start medicinal plants operations. incense sticks Bengal as well. Delta Farms, Chennai is assisting and West Bengal by generating alternative means Kautilya’s medicinal plants initiative resulted in them in building the rabbit breeding project at of livelihood and strengthening the rural utilization of 300 acres of semi-arid land, Kautilya Phytoextracts began their operations in Bihar. economy. This will also reduce rural youth migra- increased income for farmers, and elevated 5000 Bihar by helping farmers utilize their wastelands tion and rise of extremist movements. farmers from below-poverty limits. Women to grow medicinal herbs like Stevia, Coleus, OPERATIONS IN LOW-INCOME STATES (LIS) engaged in the incense sticks initiative are more Tulsi, Aswagandha, Gurmar, Kaunch, Karela Leveraging ample land and human resources Kautilya currently operates in Bihar and the independent and self-sufficient. (desi), Artemisia annua. The company provides combined with modern farming techniques northern parts of West Bengal. The availability of training and guidance to farmers to grow herbal plants on their wasteland using better farming techniques. They also provide direct market link- The company primarily operates in Bihar and All the three sectors that Kautilya operates in are extraction plant in Bihar to reduce transportation ages by signing buy-back agreements with West Bengal. Bihar accounts for nearly 80% of geared for high growth in future. The domestic costs of herbs, add value to its products and More than 60% of rural India lives below poverty With this objective, he, along with his partner pharma companies. These buy-back agreements the company’s operations, while West Bengal medicinal herbs market is estimated to be INR increase profits. Other plans include setting up line, and the situation only gets worse in the tribal Pabitra Pahari, began evaluating business poten- eliminate marketing uncertainties and provide an accounts for the rest. Srivastwa, who hails from 14,500 crores (USD 2,760 mn) by the end of food processing units for dairy and khoa/paneer areas of Bihar and West Bengal. Tribal population tial in tribal areas of Bihar. They realized that the assured customer base to farmers. Since they Bihar, was disturbed with the migration from 2012, growing at a CAGR of 20%. The domestic manufacturing, poultry farming, fisheries, fish in these states suffers from acute poverty as tribal areas are naturally endowed to grow directly sell the farm produce to pharma compa- Bihar on account of poverty and lack of employ- incense sticks market is estimated to be around feed manufacturing etc. income generation in these areas is meager. The medicinal crops, which serve as raw materials for nies and eliminate agents or middlemen, Kautilya ment opportunities for small and marginal farm- INR 1,000 crores (USD 190 mn), and is growing land in these areas is mostly wasteland and pharma companies. These medicinal crops how- is in a position to demand better prices for the ers. He wanted to provide livelihood options to at about 7% p.a. Rabbit breeding is a relatively These initiatives should help them meet their unsuitable for conventional cultivation. Limited ever, are seasonal and highly water dependent. farmers. This business initiative contributes to the farmers and make them financially sustainable new concept, but the untapped demand is huge. revenue target of INR 15 crores (USD 2.9 mn) in livelihood options is driving people out of their Growing these crops using traditional farming about 50% of the firm’s revenues currently. within their states, and to prevent the exodus to 2015, from revenue of INR 10 crores (USD 1.9 home states to other more prosperous states in methods made it economically unviable for farm- other states. Kautilya plans to expand its medicinal plant mn) in 2011-12. Srivastwa says, “We have taken India, causing decline in potential human ers, as cost of cultivation far exceeded the earn- operations to newer geographies within Bihar. the first step in this direction by providing alter- resource to fuel the rural economy in these states. ings. Srivastwa says, “We felt that if the farmers As he evaluated business potential in Bihar, he The company is also conducting trials to grow nate employment opportunities. The potential On the other hand, states like Maharashtra are were provided guidance on modern farming tech- realized that low-income state such as Bihar has newer herbs with the assistance of Dabur, a herbal opportunities to help alleviate the problems of protesting the heavy inflow of migrant population niques, cultivating these medicinal crops could two very important resources for setting up busi- products major in India. Seeing potential in value rural India are plenty.” as this puts pressure on available infrastructure become profitable.” They developed a business ness units - ample land and human resources. As addition, Kautilya is planning to put up a solvent and public facilities. Providing sustainable liveli- plan, and in 2008, set up Kautilya Phytoextracts a result of this, the cost of setting up operations hoods in their home states is one way to tackle with the mission to alleviate the troubles of the and procurement of materials in this area is low. multiple challenges of acute poverty, limited tribal marginal farmers and strengthen the rural Spurred by these conditions, Kautilya adopted livelihood options and migration. economy. In addition to medicinal herb farming, Kautilya medicinal herb cultivation in Bihar – a state with also manufactures incense sticks, to aid its efforts plenty of wastelands and man power. A year later, Today, Kautilya Photoextracts is a 40-member The Founding Team to improve income generation for the poor in it expanded operations to the northern region of team with a topline of INR 10 crores (USD 1.9 Improving earning potential to reduce migra- these two states. In the Dooars region of North West Bengal, which had a similar nature of soil mn), supporting about 10,000 farmers in Bihar Bengal and the Jamui district in Bihar, Kautilya and crop properties. Going forward, Srivastwa tion and West Bengal. Kautilya’s core management has employed 5,000 women to produce incense believes that his focus will continue to be these team consists of three members. Srivastwa has a sticks. The women are divided into 15-20 self- two states, and that Bihar will continue to account Sanjeev Srivastwa, the CEO of Kautilya Phytoex- management degree, along with a decade of expe- help groups. The Kautilya team trains and for about 80% of his company’s operations, while tracts, was disturbed by such protests against rience in business management, marketing and supplies them with machinery to make bamboo West Bengal would form the rest of the business migrants in Mumbai, Maharashtra. He believed entrepreneurship. Pahari has an experience of 33 sticks used for charcoal rolling, that are finally pie. that people were migrating because they did not years in banking and finance. Dipti Srivastwa has turned into incense sticks. This business initiative earn enough back home. He wanted to develop the more than 8 years of experience in business and has grown significantly, contributing about 40% The Road Ahead poor and underdeveloped areas of Bihar into prof- rural entrepreneurship. Additionally, they have a of the revenues in 2011-12. itable businesses, and thereby improve farmers’ team of highly experienced and knowledgeable Exploring new geographies, activities and conditions substantially. agricultural experts advising them on techniques value addition for impact Adding on to these livelihood generating initia-

44 and issues related to farming in the two states. tives, Kautilya recently started promoting rabbit breeding in Bihar. The Kautilya team trained rural THE BUSINESS MODEL farmers and women in rabbit breeding, with the Using wastelands to cultivate medicinal objective of meeting the significant demand for rabbit meat in southern India and countries in the herbs, breeding rabbits and manufacturing Middle East. The project was extended to West incense sticks Bengal as well. Delta Farms, Chennai is assisting them in building the rabbit breeding project at Kautilya Phytoextracts began their operations in Bihar. Bihar by helping farmers utilize their wastelands to grow medicinal herbs like Stevia, Coleus, OPERATIONS IN LOW-INCOME STATES (LIS) Tulsi, Aswagandha, Gurmar, Kaunch, Karela Leveraging ample land and human resources (desi), Artemisia annua. The company provides combined with modern farming techniques training and guidance to farmers to grow herbal plants on their wasteland using better farming techniques. They also provide direct market link- The company primarily operates in Bihar and All the three sectors that Kautilya operates in are extraction plant in Bihar to reduce transportation ages by signing buy-back agreements with West Bengal. Bihar accounts for nearly 80% of geared for high growth in future. The domestic costs of herbs, add value to its products and More than 60% of rural India lives below poverty With this objective, he, along with his partner pharma companies. These buy-back agreements the company’s operations, while West Bengal medicinal herbs market is estimated to be INR increase profits. Other plans include setting up line, and the situation only gets worse in the tribal Pabitra Pahari, began evaluating business poten- eliminate marketing uncertainties and provide an accounts for the rest. Srivastwa, who hails from 14,500 crores (USD 2,760 mn) by the end of food processing units for dairy and khoa/paneer areas of Bihar and West Bengal. Tribal population tial in tribal areas of Bihar. They realized that the assured customer base to farmers. Since they Bihar, was disturbed with the migration from 2012, growing at a CAGR of 20%. The domestic manufacturing, poultry farming, fisheries, fish in these states suffers from acute poverty as tribal areas are naturally endowed to grow directly sell the farm produce to pharma compa- Bihar on account of poverty and lack of employ- incense sticks market is estimated to be around feed manufacturing etc. income generation in these areas is meager. The medicinal crops, which serve as raw materials for nies and eliminate agents or middlemen, Kautilya ment opportunities for small and marginal farm- INR 1,000 crores (USD 190 mn), and is growing land in these areas is mostly wasteland and pharma companies. These medicinal crops how- is in a position to demand better prices for the ers. He wanted to provide livelihood options to at about 7% p.a. Rabbit breeding is a relatively These initiatives should help them meet their unsuitable for conventional cultivation. Limited ever, are seasonal and highly water dependent. farmers. This business initiative contributes to the farmers and make them financially sustainable new concept, but the untapped demand is huge. revenue target of INR 15 crores (USD 2.9 mn) in livelihood options is driving people out of their Growing these crops using traditional farming about 50% of the firm’s revenues currently. within their states, and to prevent the exodus to 2015, from revenue of INR 10 crores (USD 1.9 home states to other more prosperous states in methods made it economically unviable for farm- other states. Kautilya plans to expand its medicinal plant mn) in 2011-12. Srivastwa says, “We have taken India, causing decline in potential human ers, as cost of cultivation far exceeded the earn- operations to newer geographies within Bihar. the first step in this direction by providing alter- resource to fuel the rural economy in these states. ings. Srivastwa says, “We felt that if the farmers As he evaluated business potential in Bihar, he The company is also conducting trials to grow nate employment opportunities. The potential On the other hand, states like Maharashtra are were provided guidance on modern farming tech- realized that low-income state such as Bihar has newer herbs with the assistance of Dabur, a herbal opportunities to help alleviate the problems of protesting the heavy inflow of migrant population niques, cultivating these medicinal crops could two very important resources for setting up busi- products major in India. Seeing potential in value rural India are plenty.” as this puts pressure on available infrastructure become profitable.” They developed a business ness units - ample land and human resources. As addition, Kautilya is planning to put up a solvent and public facilities. Providing sustainable liveli- plan, and in 2008, set up Kautilya Phytoextracts a result of this, the cost of setting up operations hoods in their home states is one way to tackle with the mission to alleviate the troubles of the and procurement of materials in this area is low. multiple challenges of acute poverty, limited tribal marginal farmers and strengthen the rural Spurred by these conditions, Kautilya adopted livelihood options and migration. economy. In addition to medicinal herb farming, Kautilya medicinal herb cultivation in Bihar – a state with also manufactures incense sticks, to aid its efforts plenty of wastelands and man power. A year later, Today, Kautilya Photoextracts is a 40-member The Founding Team to improve income generation for the poor in it expanded operations to the northern region of team with a topline of INR 10 crores (USD 1.9 Improving earning potential to reduce migra- these two states. In the Dooars region of North West Bengal, which had a similar nature of soil mn), supporting about 10,000 farmers in Bihar Bengal and the Jamui district in Bihar, Kautilya and crop properties. Going forward, Srivastwa tion and West Bengal. Kautilya’s core management has employed 5,000 women to produce incense believes that his focus will continue to be these team consists of three members. Srivastwa has a sticks. The women are divided into 15-20 self- two states, and that Bihar will continue to account Sanjeev Srivastwa, the CEO of Kautilya Phytoex- management degree, along with a decade of expe- help groups. The Kautilya team trains and for about 80% of his company’s operations, while tracts, was disturbed by such protests against rience in business management, marketing and supplies them with machinery to make bamboo West Bengal would form the rest of the business migrants in Mumbai, Maharashtra. He believed entrepreneurship. Pahari has an experience of 33 sticks used for charcoal rolling, that are finally pie. that people were migrating because they did not years in banking and finance. Dipti Srivastwa has turned into incense sticks. This business initiative earn enough back home. He wanted to develop the more than 8 years of experience in business and has grown significantly, contributing about 40% The Road Ahead poor and underdeveloped areas of Bihar into prof- rural entrepreneurship. Additionally, they have a of the revenues in 2011-12. itable businesses, and thereby improve farmers’ team of highly experienced and knowledgeable Exploring new geographies, activities and conditions substantially. agricultural experts advising them on techniques value addition for impact Adding on to these livelihood generating initia-

45 SocialSocial ImpactImpact and issues related to farming in the two states. tives, Kautilya recently started promoting rabbit breeding in Bihar. The Kautilya team trained rural Kautilya has positively impacted around 10,000 imparting training, they have tremendously farmers and women in rabbit breeding, with the THE BUSINESS MODEL farmers in 300 villages, across 15 districts of increased the knowledge and exposure of farmers. objective of meeting the significant demand for Using wastelands to cultivate medicinal Bihar and West Bengal. It has been able to Finally, they have provided the farmers direct and rabbit meat in southern India and countries in the increase earnings of the farmers from INR 5000 sustainable access to customers. herbs, breeding rabbits and manufacturing Middle East. The project was extended to West (USD 95) per acre to INR 20,000 - INR 30,000 incense sticks Bengal as well. Delta Farms, Chennai is assisting (USD 380–570) for every harvest of medicinal The initiative of setting up rabbit breeding in rural them in building the rabbit breeding project at plants. areas has lifted 1,500 families out of poverty. By Kautilya Phytoextracts began their operations in Bihar. training 5,000 women for incense manufacturing, Bihar by helping farmers utilize their wastelands The Kautilya team has succeeded in making about and employing them as microentrepreneurs, to grow medicinal herbs like Stevia, Coleus, OPERATIONS IN LOW-INCOME STATES (LIS) 300 acres of semi-arid land usable for farming. By Kautilya has made them independent, self- Tulsi, Aswagandha, Gurmar, Kaunch, Karela Leveraging ample land and human resources sufficient and given them a stable livelihood. (desi), Artemisia annua. The company provides combined with modern farming techniques training and guidance to farmers to grow herbal plants on their wasteland using better farming techniques. They also provide direct market link- The company primarily operates in Bihar and All the three sectors that Kautilya operates in are extraction plant in Bihar to reduce transportation ages by signing buy-back agreements with West Bengal. Bihar accounts for nearly 80% of geared for high growth in future. The domestic costs of herbs, add value to its products and More than 60% of rural India lives below poverty With this objective, he, along with his partner pharma companies. These buy-back agreements the company’s operations, while West Bengal medicinal herbs market is estimated to be INR increase profits. Other plans include setting up line, and the situation only gets worse in the tribal Pabitra Pahari, began evaluating business poten- eliminate marketing uncertainties and provide an accounts for the rest. Srivastwa, who hails from 14,500 crores (USD 2,760 mn) by the end of food processing units for dairy and khoa/paneer areas of Bihar and West Bengal. Tribal population tial in tribal areas of Bihar. They realized that the assured customer base to farmers. Since they Bihar, was disturbed with the migration from 2012, growing at a CAGR of 20%. The domestic manufacturing, poultry farming, fisheries, fish in these states suffers from acute poverty as tribal areas are naturally endowed to grow directly sell the farm produce to pharma compa- Bihar on account of poverty and lack of employ- incense sticks market is estimated to be around feed manufacturing etc. income generation in these areas is meager. The medicinal crops, which serve as raw materials for nies and eliminate agents or middlemen, Kautilya ment opportunities for small and marginal farm- INR 1,000 crores (USD 190 mn), and is growing land in these areas is mostly wasteland and pharma companies. These medicinal crops how- is in a position to demand better prices for the ers. He wanted to provide livelihood options to at about 7% p.a. Rabbit breeding is a relatively These initiatives should help them meet their unsuitable for conventional cultivation. Limited ever, are seasonal and highly water dependent. farmers. This business initiative contributes to the farmers and make them financially sustainable new concept, but the untapped demand is huge. revenue target of INR 15 crores (USD 2.9 mn) in livelihood options is driving people out of their Growing these crops using traditional farming about 50% of the firm’s revenues currently. within their states, and to prevent the exodus to 2015, from revenue of INR 10 crores (USD 1.9 home states to other more prosperous states in methods made it economically unviable for farm- other states. Kautilya plans to expand its medicinal plant mn) in 2011-12. Srivastwa says, “We have taken India, causing decline in potential human ers, as cost of cultivation far exceeded the earn- operations to newer geographies within Bihar. the first step in this direction by providing alter- resource to fuel the rural economy in these states. ings. Srivastwa says, “We felt that if the farmers As he evaluated business potential in Bihar, he The company is also conducting trials to grow nate employment opportunities. The potential On the other hand, states like Maharashtra are were provided guidance on modern farming tech- realized that low-income state such as Bihar has newer herbs with the assistance of Dabur, a herbal opportunities to help alleviate the problems of protesting the heavy inflow of migrant population niques, cultivating these medicinal crops could two very important resources for setting up busi- products major in India. Seeing potential in value rural India are plenty.” as this puts pressure on available infrastructure become profitable.” They developed a business ness units - ample land and human resources. As addition, Kautilya is planning to put up a solvent and public facilities. Providing sustainable liveli- plan, and in 2008, set up Kautilya Phytoextracts a result of this, the cost of setting up operations hoods in their home states is one way to tackle with the mission to alleviate the troubles of the and procurement of materials in this area is low. multiple challenges of acute poverty, limited tribal marginal farmers and strengthen the rural Spurred by these conditions, Kautilya adopted livelihood options and migration. economy. In addition to medicinal herb farming, Kautilya medicinal herb cultivation in Bihar – a state with also manufactures incense sticks, to aid its efforts plenty of wastelands and man power. A year later, Today, Kautilya Photoextracts is a 40-member The Founding Team to improve income generation for the poor in it expanded operations to the northern region of team with a topline of INR 10 crores (USD 1.9 Improving earning potential to reduce migra- these two states. In the Dooars region of North West Bengal, which had a similar nature of soil mn), supporting about 10,000 farmers in Bihar Bengal and the Jamui district in Bihar, Kautilya and crop properties. Going forward, Srivastwa tion and West Bengal. Kautilya’s core management has employed 5,000 women to produce incense believes that his focus will continue to be these team consists of three members. Srivastwa has a sticks. The women are divided into 15-20 self- two states, and that Bihar will continue to account Sanjeev Srivastwa, the CEO of Kautilya Phytoex- management degree, along with a decade of expe- help groups. The Kautilya team trains and for about 80% of his company’s operations, while tracts, was disturbed by such protests against rience in business management, marketing and supplies them with machinery to make bamboo West Bengal would form the rest of the business migrants in Mumbai, Maharashtra. He believed entrepreneurship. Pahari has an experience of 33 sticks used for charcoal rolling, that are finally pie. that people were migrating because they did not years in banking and finance. Dipti Srivastwa has turned into incense sticks. This business initiative earn enough back home. He wanted to develop the more than 8 years of experience in business and has grown significantly, contributing about 40% The Road Ahead poor and underdeveloped areas of Bihar into prof- rural entrepreneurship. Additionally, they have a of the revenues in 2011-12. itable businesses, and thereby improve farmers’ team of highly experienced and knowledgeable Exploring new geographies, activities and conditions substantially. agricultural experts advising them on techniques value addition for impact Adding on to these livelihood generating initia-

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