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Pani ghar overview

Date post: 30-Jun-2015
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Introduction about an innovative and practical business model about providing safe drinking water to low income groups
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Pani Ghar “A project to provide safe drinking water in low income urban areas at affordable price” Ali Salman ( [email protected] )
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Page 1: Pani ghar overview

Pani Ghar

“A project to provide safe drinking water in low income urban areas at affordable price”

Ali Salman ([email protected])

Page 2: Pani ghar overview

Outline

Problem: Access to clean drinking water and Equity Technology: A Six Step process Organizational Model Financial Model Steps to start a Pani Ghar Project Updates Pani Ghar Plans Desired Output and Impact LEAD and Pani Ghar

Page 3: Pani ghar overview

Problem

Over 50% of Pakistanis do not have access to clean drinking water

Over 40% diseases are water-borne The government/municipal supply is

unreliable with a few exceptions The bottled water is mostly highly priced Household Filters are unreliable and needs

replacement Government plants not working properly

Page 4: Pani ghar overview

Purpose of project

To provide clean and safe drinking water at affordable prices in low income urban areas through out Pakistan.

To provide reasonable employment opportunities through outlets and franchises.

To develop a sustainable and self propagating system for provision of drinking water

Page 5: Pani ghar overview

UN HDR 2006: Equity Issue

UN HDR 2006 report emphasizes equity issue as a gap in service quality in safe drinking water between top 20% and bottom 20%.

Pani Ghar resolves to address the equity issue by providing a high quality product and service.

Page 6: Pani ghar overview

Market Overview

Market Overview

Top 20%

Bottom 50%

Urban portion of middle30%

Rural portion of middle30%

Page 7: Pani ghar overview

Technology

Pre-filtration Activated Carbon Treatment Polishing Filtration Ultra Violet Disinfection Storage Cold Drinking Water Capacity: 18,000 liters/day (12 hours

operation)

Page 8: Pani ghar overview

Steps to start a Pani Ghar

Identification of proposed locations Tests of water quality Consumer survey/ Household survey (Primary

and/or Secondary) Selection of location and/or Franchisee Selection of local partners like NGOs, Doctors etc. Order Plant Prepare the outlet Commission the outlet

Page 9: Pani ghar overview

Business Model

Marketing Education and Awareness Advertisement Promotion and Incentives Lucky Draw for Hepatitis Course Free for Doctors for certain level of referrals

Page 10: Pani ghar overview

Business Model

Operations and Controls: Challenges Cash Collection Machine Service Monitoring

Page 11: Pani ghar overview

Business Options

Company Owned and Operated Outlets Company Owned-NGO Assisted Outlets NGO Owned-Company Assisted Outlets Individual Owned-Company Assisted

Outlets CCB-Owned, Company Operated

Outlets Institution Owned, Company Operated

Page 12: Pani ghar overview

Risks and Strategies

Prices of input: Especially the prices of stainless steel, UV Lamp and Copper etc. are highly volatile. Buy advance

Selection of location and franchisee Extensive research and interviews Supporting and Helping Franchisee

Page 13: Pani ghar overview

Central Assumptions for Outlet  Sales Costs

Gross Income Income

Profitability

Max Number of Households: 1000  Rs.   Rs. Rs.  

Start Level: 50 households, add 20 each month     Monthly Quarterly  

Start up Level (Q 1) 116,000

163,992

(47,992)

(143,975) -

Sustainable Level (Q 2) 171,000

165,529

5,471

16,414 69%

Sustainable Level (Q 3) 174,000

167,184

6,816

20,448 69%

Optimum Level (Q 4) 341,000

168,967

172,033

516,100 84%

Page 14: Pani ghar overview

Snapshot

Page 15: Pani ghar overview

Corporate: Organization (Proposed)

Acumen Fund

NGO/CBO Franchise

SyntechFibres

LEAD

Pani Ghar

Page 16: Pani ghar overview

Equity Participation

A private limited company Shares to be allotted to the Fund and

founding directors. Dividends to be paid in light of Board of

Directors decision each year (Retained Earnings vs Dividends)

Page 17: Pani ghar overview

Scaling Up

Stage 1 (2007: Systems Development) 05 Company Operated Outlets in Year 2007 Concentration in Lahore Analyze Results, Develop Systems and Confirm Strategy

Stage 2 (2008-2011: Scaling up) Award Franchises Speed up Company operated outlets

Stage 3 (2011-2015: Consolidation & Expansion) Contribution to MDG Goals Pani Ghar contributes towards this goal

Page 18: Pani ghar overview

Scaling Plan

  Comp. Oper Franchise  

2007 05 10 15

2008 25 25 50

2009 100 100 200

2010 150 200 350

2011 200 400 600

      1065

Page 19: Pani ghar overview

Desired Output

Output: Establish 05 Pani Ghar in Year 1 and establish 1000 outlets by the end of Year 5

Direct and indirect income opportunities for people

Sales Tax contribution to national exchequer

Page 20: Pani ghar overview

Desired Outcome

Increase access to clean drinking water in Pakistan

Increase equity in service quality across income groups

Reducing the probability of water borne diseases in users

Contribute in better life standard, better sanitation.


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