Acara Presentation AgriAble Sources

8/8/2019 Acara Presentation AgriAble Sources

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gr ources

A Business

Solu t ion t o

Ener gy for

AcaraChallenge2010

Rosa GuzmanShannon HigginsMasumi Izawa

Rupal NaiduMadhumita SarkarRajdeep Singh

Beth Roberson Nishant Sonthalia

Priyanka Watane


2/24

Problem : Prov ide s t able, a f fordable,

loc a l ac c ess t o ener fo r cook in

As wood becomes more difficult to foragean e pr ce o r ses, commun es

in rural India need a steady andaffordable energy source for cooking.

A myriad of efficient stoves have been

developed over the years to improve the, ,

these stoves rely on energy sources that are notalways locally sourced.

Poor road infrastructure and vastly scatteredlocalities make the distribution access to

appropriate cooking energy sources a challenge.


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Business Profile: Agri Sources

A riAble Sources connects

rural communitiesthroughout India to

stability provide an economicallyand ecologically sustainable cooking

products necessary for

affordable and efficientaffordability offer a less costlyalternative to LPG

cooking.source locally utilize localagricultural and human resources to

access decentralize thedistribution of cookin fuel for chea er

Proposed

partnership

and easier access


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Agri Sources Business Model

CommunitySelfHelpGrouprunandfinancedecentralizedbusinessforthe

productionofpelletfuelusingagriwaste

3stakeholderscontributetoimplementsolution

Self

Help

Group

SourceofFacilitator:

educator

s ovean

pelletizer

technology

manufacturer

and

nanc ngan

operations


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Agri Sources Business Model

Phase1 Developselfhelpgroupandsecurefunding

PurchasestovesforhouseandpelletizerstoproducefuelPhase2

Startup

productionPhase 3

O erationb selfhel rou

,


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Role of stakeholders in each stage of

business modelWOTRProvides AgriAbleSources

Provides

SelfHelpGroup

Phase1 Knowledge and

helpaggregating

groupandapplying

Humancapital,

community

information,

Phase2 Technology Manufacturing and

distribution

Moneyforthe

purchase of

Phase3 Assistancetostart

upandoperate

business

Employees,

revenue,andwaste

Phase4 Employees,

revenue,andwaste

Phase5 Information Em lo ees

revenue,andwaste


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Agri Sources role w ill be as fac ilitator

espons es

Identifypotential

ourceso un ng

Revenuefromsaleofcommunitypartners

Implementprojects

stovesandpelletizers

Feesfrom

continued

andmaintenance

Large,scalablemarkettranslatestoatremendousopportunityforAgriAbleSourcesin

theroleoffacilitator.


8/24

Imagesource:GoogleImages


9/24

Indian market presents t remendous

otential

PercentEstimated

RuralIndia

marketwe

cancapture

per

household

Revenue

138,000,000 2.0% 800INR $50,000,000

Intermsofmarketsize,thebusinessopportunitypresentsacompelling

opportunity.


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Agri Sources is cheaper and

AgriAbleSources BP EnviroFit Local/ExistingSystem

Product

800

INR

675

INR

500

2000

INR

chulhapellets

3.5INRperkg

pellets

4INRperkg

variesdepending

ontypeofstove

LPG 450INRper

cylinder;biomass

purchased (woodanddung)

freebutlimited

decentralized;no

centralized;

varies

depending

LPG

centralized

and

Distribution

costsincurreddue

tolocalsourcing

costsincurrif

fuelcannotbe

deliveredto

purchased

1.5monthstorefill

cylinder;biomassis

decentralizedhowever

community

limited

Thecombinationofanefficientstoveproduct,affordablefuel,anddirectaccesstothe

fuelsourcemakeforawellroundedconveniencefactorfortheuserwhochooses

AgriAbleSources.


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Imp lem ent ed co r rec t l y bus iness w i l l be

sus ta inab le

Potential Market is 138 million households

ep ca e str ut on mo e

Effectiveim lementationandmana ementwillmakeA riAbleaneffectiveenter rise.


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Sust a inabi l i t y of Bus iness

ManagementCompetition Consumer education

Risk

Stove models

Possibility of newer, cheapertechnology emergence

Focus on lower price

Demonstrate benefit of clean fuel

Market

Scalability; gain buy-in

Accessibility; distribution

Utilize traditional supply chainand distribution model

Empower community

Operations

Agri-waste availabilityfluctuations

Pilot Community

Pelletizer repair andmaintenance

management issues


13/24



14/24

Pi lo t Com m uni t y : Bhivr i V i l lage, Pune

BhivriVillageCharacteristics

Population:4500

AverageIncome:80,000INR

yp ca occupa on:agr cu ure

Currentenergyusage:LPGandbiomass

Generalcooking

needs:

3hours

per

day


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Prac t ic a l i t y and e t hnograph ic r esearch

su est os i t ive res onseHigh Fuel Cost

INR

4,056 INR300

LPGfor

cooking

Coal for

INR

1,800

water

Field ethnography

Total: 6,156 INR8% of Average Annual Income

indicate that villagersare open to adopting

n our arget ommun ty low cost solutions.

Behaviorandeconomicssuggestthatthetargetmarketwillbeeagertoadopttheproduct.


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Supply Chain and Dist r ibut ion Model

A ri SourcesGovernment

-

Agri-Waste

Vi l l age Pel let

Produc t ion Hub

V i l lagers

Pel lets


17/24

Cost o f an Agr iAb le So lu t ion t o t he

End User

One-time stove cost 800 INR

Biomass Pellet cost per kg 4 INR

Biomass pellets needed per hour (kg) .75 INR

Hours stove is used per day 3 hours

Biomass pellet cost per month 270 INR

Biomass pellet cost per year 3240 INR

Biomass pellet cost per year with one time stove fee 4,040 INR(less than current cost of fuel in pilot)


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Result ing in Long Term Cost Savings for

our End-User

AnnualFuelLossof AgriAble

CostSavingsfor

CostinPilot

Community

subsidyfor

LPG

Stoveand

Pelletcost

EndUserinFirst

Year

6,156INR 320INR 4,040INR 2,436INR

CostSaving

on

Fuel

frees

up

cash

for

other

uses.

Cost

savings

to

the

end

user

willincreaseinsecondyearto 3,236INRbecausestovewillbepaidfor.


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Mar ket Size: Pi lo t Com m uni t y

BhivriVillage,PuneDistrict,India

Numberof Households 900households

Capturable Marketin

Community

(50%) 450

households

StoveCost 800INR

PotentialRevenuefromSaleofStoveinMarket

360,000INR

$8,124.00


20/24

Moving fo rw ard Pot ent ia l f ield w ork t o

imp lem ent p i lot p rojec t

Focused

Market

Research

Infrastructure

Research

customers

Build

customer

profiles

Seasonalfluctuationsin

agriwaste

I enti yprice

Proofprojectisascalableendeavorjustifiesmovingforwardwiththepilotproject.


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22/24

Im pac t w i l l be m on it o red and eva luat ed

w i t h m et r ic s

CurrentProblem EvaluatingMetrics GoalsforPilot

Poorindoorair

ualit from#ofhouseholdsreached 400

traditionalcooking

methods

Improvementinindoor

qualityfromnewstoveN/A

Cleanenergysources

areunaffordable

Householdexpenseonfuel

Averagedifferenceoverother

fuel sources

600rupees/month

400rupees/month

However,fullimpactwillnotbeeasilyevaluatedbecauseitwilltouchmanydifferent

areasofhouseholdandcommunit life.


23/24

Pot ent ial impac t o f p rojec t c asc ades ac ross

var ious aspect s in t he value cha in

EnvironmentalImpact HealthEffects

dioxideemissions

Aestheticimprovements

frompoorindoorairquality

SocialChanges EconomicGrowth

pursuits

revenue

Localemploymentopportunities

AgriAbleSourceshaswithinitatriplebottomlineimpactofeconomy,peopleand

env ronment.


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