The Larger Purpose - Green Buildings Rating System India ... · 70% of India’s water supply is...
Transcript of The Larger Purpose - Green Buildings Rating System India ... · 70% of India’s water supply is...
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In preventive health since 2008
Affordable
Accessible
Pure
“Water for all, particularly the underserved”
The Larger Purpose
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Session Focus- Market-based mechanisms for providing clean drinking water at Lower Levels of Pyramid.
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Present in: • > 180 Locations • 7 States • 1 UT
Safe Drinking Water: • Affordable rates • to the underserved
In Partnership with: • Local entrepreneurs, • Corporates, • Government to provide access
The Knowledge of Market based Mechanisms…
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Current Water Scenario
Groundwater in 1/3rd of 600 districts
is unfit for drinking
70% of India’s water supply is
polluted with sewage effluents
India rank 120 / 122 nations
30% of women walk > 500 meters
443 million school days lost per year
70% in low income communities
drink water from untreated source
* Data Source: World Resources Report, UN Report , National Households Survey – Census 2011, UNICEF Report, WaterAID Report,, http://www.deccanherald.com/content/63740/poor-water-quality-serious-threat.html , http://thewaterproject.org/water_stats
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Water-Health Risk Association
37.7 Million affected by water borne diseases*
73 Million Work days lost due to waterborne diseases Resulting economic burden is $600 million /year
1.5 Million Children die due to diarrhea .(1600 Diarrheal deaths daily)
62 Million Affected by dental, skeletal and/or non-skeletal fluorosis.
• Date Source : http://www.devalt.org/newsletter/mar14/of_3.htm, http://www.iisc.ernet.in/currsci/nov25/articles13.htm, http://water.org/country/india/
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Upper class find their own solutions
Middle and Lower Middle can pay/fund part of cost
Base of the pyramid needs to be subsidized/supported
Market Mechanisms for different socio-economic levels
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Villages Slums
Hospitals Public Spaces
Schools Govt. Projects
Consumer Segments
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Technology to suit Water Profile
Water Treatment Plant
• Purification process structured to suit local water profile • Removes ionic and biological contaminants • Remote and Auto Controls
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Promote Water Franchisees in rural as well as urban areas
1. 2.
Joins hands with Corporates, Government and Multilaterals
How Community Level Water Purification Installations are created
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Expenditure
Village Level Cost Sample
CAPEX* (in rupee lakhs)
# Assuming pre -existing machine room
Purification Plant 2.50 Borewell 0.80
Power Connection 0.25
Delivery Vehicle 3.50 Water Chiller 0.60
Site Preparation 0.80 Bubble top & Water Campers 0.50
Ball
Park Rs
9 lakhs
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Village Level Cost Sample
OPEX* (Per Month)
*To service approximately 150 households per day ** CAPEX recovery has to be over and above Rs. 40000
Machine Maintenance 6000 INR
Operator Salary 5000 INR
Driver and Helper Salary 8000 INR
Diesel Costs 2600 INR
Electricity Cost 5500 INR
Ball Park
Rs 40000
Expenditure
Franchisees Expectation 12900 INR
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Revenue Cycle
Equipment and Services
Real Time Process Data
Prepaid Balance
Purification Unit
Revenue share
Pure Water
Components
Home Delivery
Water ATM
Self Delivery
Pay Per Use
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Who Pays CAPEX
Village Entrepreneur Corporate Foundation Government Partner
How? • One Go • Lease • Charge
Consumers
Revenue Cycle
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Who Supports OPEX
Franchisee CSR Partner
Government Subsidy
Market: End Users Pays as per need /perception.
Revenue Cycle
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Market Payment Mechanisms
To Village Entrepreneur From Consumers • Punch Card • Credit/Cash • Pre Paid
From Entrepreneur to Suppliers • Volume Based • Flat
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Remote Monitoring Technology
“Soochak” Controller Sarvajal Enterprise Management
System
• Patented • Real time monitoring • ↑ efficiency ↓ machine
downtime
• Information processing ERP • Enables quicker response to machine related issues. • Tracks vital health parameters
“Enables remote monitoring of volume – hence price adjustment”
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Water ATM – Dispensing technology
• Automated water vending machine
• Cloud connected, Real time online monitoring of each transaction
• 24 x 7 access
• Solar power • RFID card
Water ATM Device
“Ability to price and charge consumer differentially”
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Water ATM
Water ATM – Dispensing technology
• Targeted Consumer Subsidy
• Automated debit at dispensing point
• Differential prices
• RFID Card recharge
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Hub-&-Spoke Model
• Central purification plant and remotely located Water ATM units
• Helps expand reach and social impact
• Price transparency and Quality Accountability
• Reduces fuel costs
• Each transaction is remotely tracked
• Generates additional livelihood opportunities
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Cost Break Up for 1 Litre of Water-Sample
30p
LF
Water Charge Delivery Cost Chiller Cost
RO 20p 25p
30p 20p 25p
Per Litre Price Break Up
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100 House Holds
Cover OPEX
150
House Holds
Cover OPEX and Some CAPEX
200 House Holds
*Recover All Costs*
Expense Recovery
Approximately in 2-3 years* depending on Price and Volume.
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Case Study
Case of
Piramal
Sarvajal
Franchisee
in
Padampur
(Rajasthan)
Satpalji’s Journey: September 2012- Launched his Sarvajal Franchisee in Padampur. April 2013- Brought second delivery vehicle. Total team of five people working for Franchisee. January 2014- Set Up Sarvajal Water ATM for 24*7 access for all consumers March 2014- Expanded production capacity with second purification unit
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Local community mobilizes Local Market
Community Involvement
Feeling of Ownership
Drives the Market
Makes it Sustainable
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Three-Tier Demand & Supply Cycle
Case Study
Primary
Served ~7 lakh liters of water since Oct 2013
Secondary
Over INR 2.5 Lakhs of water revenues have been generated
Leveraged existing physical infrastructure worth ~ INR 7 lakh
This solution has also created 3 new livelihoods
Tertiary
65 paisa per liter
3 competitors replicated model,
50% more HHs!
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Impact
Prices controlled by Market
Inspires Others
Maintains Local Ecosystem
Creates Livelihood Improves Health
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Relative Roles of the Contributing Partners
Sarvajal Partners with Village Franchisees, Corporates (for their
CSR program), Government for creating solutions
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Safe Drinking Water = Good Health = Smiles !
Reach Us at: Website: www.sarvajal.com Email: [email protected]