Date post: | 30-Jun-2015 |
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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])
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
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
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
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.
Market Overview
Market Overview
Top 20%
Bottom 50%
Urban portion of middle30%
Rural portion of middle30%
Technology
Pre-filtration Activated Carbon Treatment Polishing Filtration Ultra Violet Disinfection Storage Cold Drinking Water Capacity: 18,000 liters/day (12 hours
operation)
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
Business Model
Marketing Education and Awareness Advertisement Promotion and Incentives Lucky Draw for Hepatitis Course Free for Doctors for certain level of referrals
Business Model
Operations and Controls: Challenges Cash Collection Machine Service Monitoring
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
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
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%
Snapshot
Corporate: Organization (Proposed)
Acumen Fund
NGO/CBO Franchise
SyntechFibres
LEAD
Pani Ghar
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)
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
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
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
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.