to the Base of the Pyramid

Transcription

1 Scaling up provision of safe water solutions to the Base of the Pyramid through Aqua+ by Kanika Verma Associate Program Director, Development Alternatives Group

2 DRINKING WATER PROBLEM IN INDIA India has long faced the challenge of providing safe drinking water to over 700 million people in more than 1.5 million villages 1 Only a ¼ of the total population in India has drinking water on their premises 2 67% of Indian households do not treat their drinking water, even though it could be chemically or bacterially contaminated 2 21% of communicable diseases in India are water related 1 1 The World Bank 2 UNICEF

3 Society for Technology and Action for Rural Advancement (TARA) Scalable Solutions for People and Our Planet... The structure addresses the inherent need for commercialization for dissemination at scale and impact: INNOVATION Society for Development Alternatives Society for Development Alternatives Non-profit focused on research and innovation Operational from 1983 onwards Works through projects and grants INCUBATION COMMERCIALIZATION Society for Technology & Action for Rural Advancement (TARA) Society for Technology and Action for Rural Advancement (TARA) Hybrid focused on incubation Operational from 1990 onwards Works through sales of products and services TARA Machines & Tech Services Pvt Ltd TARA Microutilities Pvt Ltd TARAlife Sustainability Solutions Pvt Ltd TARAhaat Information & Marketing Solutions Ltd TARAlife Sustainability Solutions Pvt. Ltd. (TARAlife) was set up in 2014 to fulfill basic needs of people in the rural market

4 WHAT IS AQUA+ The Magic of Two Drops Sodium hypochlorite solution produced through electrolysis using technology developed by Antenna Technologies Selling Price: INR 42 (.58 EUR) /bottle Net content: 50 ml Active chlorine concentration: 6g/l Recommended dosage: 2 drops per litre One bottle purifies 500 litres of water Shelf life: 6 months from the date of manufacturing 30 min

5 JOURNEY SO FAR QUICK SNAPSHOT Market study Prototype developed Setup delivery network Business Stabilization and supply model of Aqua+ chain for development Aqua+ Finalization of Business model Test Expansion alternative Social of delivery Social delivery Marketing systems Marketing models Social Marketing toolkit Microfranchisee model Social Marketing toolkit M&E app Replication toolkit 2010 TARA partnered with Antenna Technologies Test launch of the product INR 20 Shelf life: 40 days Production centralized Commercial launch of the product INR 42 Shelf life: 6 months TARAlife setup Expansion of operations in India Multiplication in South Asia Project mode Commercial mode

6 TAF: Implications on the project TOOL USED FOR ANALYSIS User/Buyer Need to promote Aqua+ as an energy and money saving solution Need to train last mile distributors to be more aware about the product Producers Need to conduct continuous social marketing combining economic rationality and health issues Need to work on increasing the shelf-life of Aqua+ Distributors Need to sell Aqua+ as part of a basic needs multi-product portfolio Need to get national certifications to make the product more credible Need to enhance the brand value through intensive training of last mile distributors Regulator/Investor/Facilitator: Need to align the initiative with government s existing schemes to create awareness and raise funds

7 The TARAlife Business Canvas Key Partners Key Processes Value Proposition Customer Relationship Grant partners R&D and Investors maintenance Technology Regular Social Partners (DA, Marketing TARA) Microfranchisors Key Resources R&D Production unit Distribution network: Micro franchisees Safe drinking water for the BoP segment through bottled chlorination based Household Water Treatment (HWT) Mobile based application Personal interaction through micro franchisees Distribution Channels Trained and branded micro franchisees Market/Customer segment Villages of UP, Bihar and MP No. of HHs: 350 per village 5 people/hh Average HH income: INR 5000 (68 EUR) /month Main costs sources Production costs for certain products HR for procurement, account management Costs for product maintenance and certifications Management of distribution network Main income sources Sales of Aqua+ as a HWT product Sales of Aqua+ as part of a multi-product portfolio of basic needs products

8 THE PRODUCTION SETUP An enhanced production facility has been setup at Orchha (Madhya Pradesh) CURRENT SCENARIO Technology on site: 4 Maxi-WATA devices Production capacity of the unit: 240 litres/day

9 DESIGNING DISTRIBUTION CHANNELS NEED ASESSMENT SURVEYS AND CONSUMER INTERACTION 60% of the people do not treat their water because of lack of Access to and/or Availability of an Affordable water purification solution Multi Micro-franchisee level marketing model model In-house manufacturing Social Marketing Micro-franchisees TARAlife Sales Micro-franchisors Entrepreneurs Micro-franchisees End consumer End consumer Sourcing other basic needs products NGO Partner Identification Micro-franchisees Social Marketing Energy WASH Health Clean Fuel

10 SOCIAL MARKETING Since 2013, TARA has been conducting active socialmarketing, making people aware about the importance of safe drinking water Till date, more than 50,000 households have been provided access to Aqua+ across UP, MP and Bihar Case study: Bhadohi district, UP Hypothesis: Selling Aqua+ through skilled and literate women Approach: Leveraging existing TARA infrastructure Villages covered: 15 Outreach: 3500 people: including 3100 women, 100 children, 150 men Bottles sold during the 3-day campaign: 432 bottles Bottles sold 3 months post the campaign: 8000 bottles (May July 16)

11 EXPANSION AND SCALE OUT Process of leveraging its existing footprint and capitalizing on its captive market. The evidence of success will be measured against: Density of usage and retention Microfranchisee retention through incentivisation OUR VISION With Aqua+ as part of a multi-product portfolio, and each micro-franchisee reaching out to 25,000 households, TARA aims to reach out to 60,000 villages providing access to basic needs products and services to 300,000 households across UP, MP and Bihar by 2021

12 It has been a month since I have been using Aqua+. I have relief from stomach pain and bloating problems. I also feel that using Aqua+ would prevent us from having diseases like Jaundice, etc. Long term use would determine the long-term benefits of using Aqua+. Manju 28 th May 2016

13 THANK YOU